Financial constraints and the failure of innovation projects

Although many innovation projects are abandoned before completion, the empirical evidence has focused on the determinants of innovation, while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by...

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Detalles Bibliográficos
Autores: Garcia-Quevedo, Jose, Segarra Blasco, Agustí, 1958-, Teruel, Mercedes
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2018
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/121586
Acceso en línea:https://hdl.handle.net/2445/121586
Access Level:acceso abierto
Palabra clave:Gestió de la innovació
Finances
Innovation management
Finance
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spelling Financial constraints and the failure of innovation projectsGarcia-Quevedo, JoseSegarra Blasco, Agustí, 1958-Teruel, MercedesGestió de la innovacióFinancesInnovation managementFinanceAlthough many innovation projects are abandoned before completion, the empirical evidence has focused on the determinants of innovation, while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by potentially innovative Spanish firms for the period 2005-2013. Our analysis differentiates between the impacts of internal and external barriers on the probability of abandoning a project, and we examine whether these differ depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that it is during the conception stage that financial constraints have their greatest effect on the probability of abandoning an innovation project. In addition, the financial sources are not neutral across the innovation project lifecycle. During the design phase, Spanish firms are more sensitive to internal financial sources while, during the execution stage, they are more sensitive to external sources.Elsevier2018info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/121586Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://doi.org/10.1016/j.techfore.2017.05.029Technological Forecasting and Social Change, 2018, vol. 127, num. February, p. 127-140https://doi.org/10.1016/j.techfore.2017.05.029cc-by-nc-nd (c) Elsevier, 2018http://creativecommons.org/licenses/by-nc-nd/3.0/esinfo:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/1215862026-05-27T06:46:51Z
dc.title.none.fl_str_mv Financial constraints and the failure of innovation projects
title Financial constraints and the failure of innovation projects
spellingShingle Financial constraints and the failure of innovation projects
Garcia-Quevedo, Jose
Gestió de la innovació
Finances
Innovation management
Finance
title_short Financial constraints and the failure of innovation projects
title_full Financial constraints and the failure of innovation projects
title_fullStr Financial constraints and the failure of innovation projects
title_full_unstemmed Financial constraints and the failure of innovation projects
title_sort Financial constraints and the failure of innovation projects
dc.creator.none.fl_str_mv Garcia-Quevedo, Jose
Segarra Blasco, Agustí, 1958-
Teruel, Mercedes
author Garcia-Quevedo, Jose
author_facet Garcia-Quevedo, Jose
Segarra Blasco, Agustí, 1958-
Teruel, Mercedes
author_role author
author2 Segarra Blasco, Agustí, 1958-
Teruel, Mercedes
author2_role author
author
dc.subject.none.fl_str_mv Gestió de la innovació
Finances
Innovation management
Finance
topic Gestió de la innovació
Finances
Innovation management
Finance
description Although many innovation projects are abandoned before completion, the empirical evidence has focused on the determinants of innovation, while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by potentially innovative Spanish firms for the period 2005-2013. Our analysis differentiates between the impacts of internal and external barriers on the probability of abandoning a project, and we examine whether these differ depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that it is during the conception stage that financial constraints have their greatest effect on the probability of abandoning an innovation project. In addition, the financial sources are not neutral across the innovation project lifecycle. During the design phase, Spanish firms are more sensitive to internal financial sources while, during the execution stage, they are more sensitive to external sources.
publishDate 2018
dc.date.none.fl_str_mv 2018
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/121586
url https://hdl.handle.net/2445/121586
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1016/j.techfore.2017.05.029
Technological Forecasting and Social Change, 2018, vol. 127, num. February, p. 127-140
https://doi.org/10.1016/j.techfore.2017.05.029
dc.rights.none.fl_str_mv cc-by-nc-nd (c) Elsevier, 2018
http://creativecommons.org/licenses/by-nc-nd/3.0/es
info:eu-repo/semantics/openAccess
rights_invalid_str_mv cc-by-nc-nd (c) Elsevier, 2018
http://creativecommons.org/licenses/by-nc-nd/3.0/es
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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