Financing Constraints, Radical versus Incremental Innovation, and Aggregate Productivity
提供新证据表明融资摩擦与企业生产率增长负相关，并通过包含激进式创新的模型解释了年轻与年老企业的动态差异及不同融资摩擦程度行业的生产率增长差异。
I provide new empirical evidence on the negative relationship between financial frictions and productivity growth over a firm’s life cycle. I show that a model of firm dynamics with incremental innovation cannot explain this evidence. However, further including radical innovation, which is very risky but potentially very productive, allows for the joint replication of several stylized facts about the dynamics of young and old firms and the differences in productivity growth in industries with different degrees of financing frictions. These frictions matter because they act as a barrier to entry that reduces competition and the risk-taking of young firms.