Financial resources for research and innovation in small and larger firms: Is it a case of the more you have, the more you do?

Abstract

Firms’ levels of internal financial resources are considered, by academics and policymakers alike, to play a vital role with respect to their engagement in research and innovation (R&I) activities. However, the empirical evidence supporting the importance of such resources for firm-level R&I remains highly inconclusive. Generating a more comprehensive understanding of this topic is paramount for enhancing our knowledge about the drivers and barriers of firm-level R&I. This is also critical for informing the design of more targeted innovation policy interventions.

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