Research and development investment and financing constraints: The case of Japan

2017 ◽  
Vol 42 ◽  
pp. 1336-1342 ◽  
Author(s):  
Wien Saidani ◽  
Badreddine Msolli ◽  
Aymen Ajina
Keyword(s):  
Research And Development ◽  
Financing Constraints ◽  
Investment And Financing

Roadblock to Innovation: The Role of Patent Litigation in Corporate R&D

2021 ◽  
Author(s):  
Filippo Mezzanotti
Keyword(s):  
Research And Development ◽  
Supreme Court ◽  
Supreme Court Decision ◽  
Court Decision ◽  
Financing Constraints ◽  
Patent Litigation ◽  
General Increase ◽  
The Supreme Court ◽  
Patent Enforcement

I examine how patent enforcement affects corporate research and development (R&D), exploiting the legal changes induced by the Supreme Court decision eBay v. MercExchange. This ruling increased courts’ flexibility in remedying patent cases and effectively lowered the potential costs of patent litigation for defendants. For identification, I compare innovative activity across firms differentially exposed to patent litigation before the ruling. Across several measures, I find that the decision led to a general increase in innovation. This result confirms that the changes in enforcement induced by the ruling reduced some of the distortions caused by patent litigation. Exploring the channels, I show that patent litigation negatively affects investment because it lowers the returns from R&D and exacerbates its financing constraints. This paper was accepted by Gustavo Manso, finance.

Fiscal counter-cyclicality and productive investment: evidence from advanced economies

2018 ◽  
Vol 19 (1) ◽  
Author(s):  
Davide Furceri ◽  
João Tovar Jalles
Keyword(s):  
Research And Development ◽  
Statistical Method ◽  
Information And Communications Technology ◽  
Financing Constraints ◽  
Communications Technology ◽  
Reverse Causality ◽  
Difference In Difference ◽  
Omitted Variable Bias ◽  
Advanced Economies ◽  
Variable Bias

Abstract We use a difference-in-difference approach to 25 industries for 18 advanced economies over the period 1985–2012 to examine the effect of fiscal counter-cyclicality on productive investment: (i) Research and Development (R&D), and (ii) Information and Communications Technology (ICT). The results show that fiscal counter-cyclicality increases R&D expenditure and the share of ICT capital in industries that are more financially constrained. Moreover, the effect is larger during recessions – when financing constraints are more likely to be binding – than during economic expansions. Our statistical method mitigates concerns about omitted variable bias and reverse causality. In addition, the results are robust to different measures of fiscal counter-cyclicality and to the inclusion of several controls.

How to Apply Dynamic Optimization into Intertemporal Investment

2011 ◽  
Vol 63-64 ◽  
pp. 930-935
Author(s):  
Zhong Qun Wu
Keyword(s):  
Dynamic Programming ◽  
Objective Function ◽  
Dynamic Model ◽  
Dynamic Optimization ◽  
Optimal Decision ◽  
Financing Constraints ◽  
Investment Efficiency ◽  
Intertemporal Optimization ◽  
Investment And Financing ◽  
Optimal Dynamic

The most important feature of cascaded hydropower investment, intertemporal optimization, is neglected to some extent. This paper focuses on how to make an optimal decision on intertemporal investment based on the case of cascaded hydropower. I incorporated intertemporal investment and financing constraints in dynamic programming, and proposed a new objective function. As a result, an intertemporal optimal dynamic model is established. The model highlights the fundamental framework of dynamic programming on cascaded hydropower development. The framework is robustly suitable to improve investment efficiency with respect to intertemporal optimization.

Sign in / Sign up

Export Citation Format

Share Document