TITLE:
Innovative Activity and Access to Finance of SMEs: Views and Agenda
AUTHORS:
Ioannis Vlassas, Christos Kallandranis, Dimitris Anastasiou
KEYWORDS:
Information Asymmetry, Small Business Lending, Credit Rationing, Innovation, Survey Data
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.1,
February
9,
2023
ABSTRACT: A rapidly growing body of research applies survey methods to examine the
ability of SMEs to obtain external financing. These studies focus on firm-specific
characteristics and demonstrate the impact of such ability on their own growth
and overall economic growth, among other outcomes. However, the use of external
financing is of crucial importance, especially whether SMEs can adopt
innovation when they succeed in getting a loan. This paper reviews this
literature that is not as extensive as the one focusing on typical investments
with two purposes. First, we summarize recent work, providing a guide to its
methodologies, datasets, and findings. Second, we consider applications of the
literature in innovation, including insights for policymakers that seek to
assess the potential economic effects of investments in innovation.