{"id":8704,"date":"2014-09-30T17:56:00","date_gmt":"2014-09-30T15:56:00","guid":{"rendered":"https:\/\/casmef.luiss.it\/publications\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\/"},"modified":"2026-11-05T12:23:08","modified_gmt":"2026-11-05T11:23:08","slug":"innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis","status":"publish","type":"casmef_publication","link":"https:\/\/casmef.luiss.it\/en\/publications\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\/","title":{"rendered":"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Abstract: Financial frictions represent a severe obstacle to firms\u2019 innovativeness. This paper shows the existence and quantifies the effects of financial barriers to the innovation propensity of Italian SMEs. Employing direct measures of financial constraints and a credit-score estimated ad hoc, I find financially-constrained firms have a probability of innovating that is significantly lower than sound companies (-30%). Results document the existence of a feedback-effect of innovation on firms\u2019 financial position, resulting into an additional reduction in firms\u2019 propensity to innovate. The paper also highlights the role of soft information in mitigating financial obstacles to innovation by improving the financial condition of more opaque (small) borrowers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Abstract: Financial frictions represent a severe obstacle to firms\u2019 innovativeness. This paper shows the existence and quantifies the effects of financial barriers to the innovation propensity of Italian SMEs. Employing direct measures of financial constraints and a credit-score estimated ad hoc, I find financially-constrained firms have a probability of innovating that is significantly lower than [&hellip;]<\/p>\n","protected":false},"template":"","publication_type":[559],"class_list":["post-8704","casmef_publication","type-casmef_publication","status-publish","hentry"],"acf":{"pub_unit":8775,"pub_file":8703},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis - Casmef<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/casmef.luiss.it\/en\/publications\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis - Casmef\" \/>\n<meta property=\"og:description\" content=\"Abstract: Financial frictions represent a severe obstacle to firms\u2019 innovativeness. This paper shows the existence and quantifies the effects of financial barriers to the innovation propensity of Italian SMEs. Employing direct measures of financial constraints and a credit-score estimated ad hoc, I find financially-constrained firms have a probability of innovating that is significantly lower than [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/casmef.luiss.it\/en\/publications\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\/\" \/>\n<meta property=\"og:site_name\" content=\"Casmef\" \/>\n<meta property=\"article:modified_time\" content=\"2026-11-05T11:23:08+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/publications\\\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\\\/\",\"url\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/publications\\\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\\\/\",\"name\":\"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis - Casmef\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#website\"},\"datePublished\":\"2014-09-30T15:56:00+00:00\",\"dateModified\":\"2026-11-05T11:23:08+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/publications\\\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/publications\\\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/publications\\\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/\",\"name\":\"Casmef\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#organization\",\"name\":\"Casmef\",\"url\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/casmef.luiss.it\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Logo-CASMEF.svg\",\"contentUrl\":\"https:\\\/\\\/casmef.luiss.it\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/Logo-CASMEF.svg\",\"caption\":\"Casmef\"},\"image\":{\"@id\":\"https:\\\/\\\/casmef.luiss.it\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis - Casmef","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/casmef.luiss.it\/en\/publications\/innovation-financial-constraints-and-relationship-lending-firm-level-evidence-in-times-of-crisis\/","og_locale":"en_US","og_type":"article","og_title":"Innovation, Financial Constraints and Relationship Lending: Firm-Level Evidence in Times of Crisis - Casmef","og_description":"Abstract: Financial frictions represent a severe obstacle to firms\u2019 innovativeness. 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