Competition and R&D Financing: Evidence From the Biopharmaceutical Industry
研究产品市场竞争如何影响研发密集型企业的融资决策，发现竞争加剧时企业增加研发投入、持有更多现金并减少净债务，利用Hatch-Waxman法案作为外生冲击提供因果证据。
Abstract The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on the development of innovative products is only partially understood. We hypothesize that as competition increases, R&D-intensive firms will: i) increase R&D investment relative to existing assets in place; ii) carry more cash; and iii) maintain less net debt. Using the Hatch–Waxman Act as an exogenous shock to competition, we provide causal evidence supporting these hypotheses through a differences-in-differences analysis that exploits differences between the biopharma industry and other industries, and heterogeneity within the biopharma industry. We also explore how these changes affect innovative output.