R&D and Credit Rationing in SMEs

Maria Luisa Mancusi, Andrea Vezzulli

Research output: Contribution to journalArticlepeer-review

36 Citations (Scopus)


We study the effects of credit rationing on Research and Development (R&D) investment using survey and accounting data on a large representative sample of manufacturing small and medium size enterprises (SMEs). Our econometric model accounts for the endogeneity of our credit rationing indicator and employs an innovative theory based identification strategy. We find that credit rationing has a significantly negative effect on both the probability to set up R&D activities and on the level of R&D spending (conditioned on the R&D decision), but the overall estimated reduction in R&D spending is largely to be associated with the first effect.
Original languageEnglish
Pages (from-to)1153-1172
Number of pages20
JournalEconomic Inquiry
Publication statusPublished - 2014


  • Bivariate Probit
  • Credit Rationing
  • IV Tobit
  • R&D
  • Whited and Wu Index


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