Importance and effect of financial and financing-related factors on the innovation intensity of Colombian SMEs
DOI:
https://doi.org/10.46661/revmetodoscuanteconempresa.5581Keywords:
financing of innovation, intensity of innovation, neural networks, SMEsAbstract
Innovation financing has been characterized as a fragmented field where multiple theories coexist, each focusing on one or a few aspects of financing at the same time. This article aims to identify the most influential financial variables and their effect on the intensification of innovation activities of Colombian SMEs, in a single comprehensive empirical model that predicts the intensity of innovation from more than forty subvariables associated with the financing of innovation. The prediction model (which achieved an out-of-sample determination coefficient of 0.5 or 0.6), according to the definition used, is based on a set of neural networks optimized using Bayesian techniques. The results of this work suggest, as a conclusion, that for SMEs to decide to intensify their innovation activities, variables capable of limiting innovation predominate, such as the adjustment costs and some obstacles to innovating, but especially variables focused on risk, such as the risk of bankruptcy of the company or of the innovation project and the risk aversion of the CEO.
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