Author/Authors
ÜÇDOĞRUK, Yeşim Dokuz Eylul University - Faculty of Business - Department of Economics, Turkey
Title Of Article
The Role of Liquidity Constraints in Fuelling The Demand-Pulled Innovation
شماره ركورد
44257
Abstract
The motivation to classify industries in their effort to innovate with the structure of demand, lead to a theoretical controversy in innovative activity known as ‘demand-pull’ versus ‘technology-push’ forces of technical change. Previous empirical literature has provided evidence supporting demandpulled innovation both at the aggregate level and at the firm level. This paper studies a dynamic specification of the demand-pull hypothesis at the firm level, which takes into account both the within and the between effects across Turkish non-financial firms listed at Istanbul Stock Exchange (ISE) over a period of ten years (1998–2007). Moreover, the study also investigates the demand-innovation relationship in liquidity constrained firms since inducing an increase in the effort to innovate mostly depends on the funding of expensive and uncertain R D activities. Our findings confirm the demand-pull hypothesis, yet the role of sales in inducing R D expenditures is 99% significant in the overall sample. More specifically, liquidity constrained firms and firms not receiving public subsidies seem to be particularly sensitive to sales when deciding how much to spend on R D.
From Page
1121
NaturalLanguageKeyword
R D expenditures , demand , pulled innovation , LSDVC estimator
JournalTitle
Ege Academic Review (EAR)
To Page
1128
JournalTitle
Ege Academic Review (EAR)
Link To Document