quality signal

Publication date: 2 Jul 2014 | Publication type: NIESR Discussion Paper | Authors: Hall, B | External authors: Dirk Czarnitzki, Hanna Hottenrott | JEL classification: O31, O32, O38 | NIESR discussion paper number: 430
Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D...