Bank regulation, lending and patenting: evidence from the EBA capital exercise

  • We analyze the impact of decreases in available lending resources on quantitative and qualita- tive dimensions of firms’ patenting activities. We thereby make use of the European Banking Authority?s capital exercise to carve out the causal effect of bank lending on firm innovation. In order to do so we combine various datasets to derive information on firms’ financials, their patenting behaviors, as well as their relationships with their lenders. Building on this self- generated dataset, we provide support for the “less finance, less innovation” view. At the same time, we show that lower available financial resources for firms lead to improvement in the qualitative dimensions of their patents. Hence, we carve out a “less finance, less but better innovation” pattern.

Download full text files

Export metadata

Metadaten
Author:Jan Krzyzanowski, Uwe WalzGND
URN:urn:nbn:de:hebis:30:3-619951
URL:https://ssrn.com/abstract=3979770
DOI:https://doi.org/10.2139/ssrn.3979770
Parent Title (English):SAFE working paper ; No. 330
Series (Serial Number):SAFE working paper series (330)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2021
Year of first Publication:2021
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2021/12/20
Tag:bank; financing; lending; patents
Issue:November 2021
Page Number:29
Note:
We are grateful for financial support by the European Patent Office (EPO) Academic Research Programme.
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License LogoDeutsches Urheberrecht