To what extent do financing constraints affect Chinese firms' innovation activities?

摘要: Abstract We investigate the extent to which financing constraints affect innovation activities of over 120,000 mainly unlisted Chinese firms period 2000–2007. Based on a variety specifications and estimation methods, we document that firms' are constrained by availability internal finance. Specifically, private suffer most, followed foreign firms, while state-owned collective enterprises least constrained. Moreover, finance represents particularly binding constraint small located in coastal provinces, with low political affiliation, fewer state shares, as well for sole proprietorship firms.