Purpose

Based on 9,281 firm-level survey data on micro, small and medium enterprises (MSMEs) in India, this study aims to investigate how access to different finance sources and collateral requirement facilitates the firm’s innovation activity across industries.

Design/methodology/approach

This paper used ordered logit regression models using Stata software for explanatory variables to measure the impact of explanatory variables on firm innovation performance. Firms’ innovation performance is measured through the aggregate innovation index obtained by adding up the no. of “new-to-firm” activities.

Findings

The empirical results reveal that external sources of funding impact innovation activity than other financing sources. Also, the requirement of collateral for financing impacts innovation performance significantly. This paper finds that firms funded by state-owned banks or government agency are more actively engaged in innovation activities. The firm’s size, ownership structure and location of the firm also show the varying innovation performance. This paper found variation in innovation performance across industries as well.

Practical implications

First, the present study underlines the significance of funding sources. Second, minimizing the need for collateral to obtain external finance boosts small firms’ innovation activity and will also trigger overall economic growth. Finally, while making policies for ownership transformation of state-owned institutions, policymakers should discuss these policies’ impact on innovative firms.

Originality/value

What facilitates innovation performance in an emerging market is missing in the literature for MSMEs, largely due to lack of data. It is reasonable not to generalize innovation knowledge in large firms to small firms because of the constraints, particularly MSMEs face.

中文翻译：

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企业创新和融资渠道：来自印度的企业级证据

目的

本研究基于 9,281 份关于印度微型、中小型企业 (MSME) 的公司级调查数据，旨在调查获得不同资金来源和抵押品要​​求如何促进公司跨行业的创新活动。

设计/方法/方法

本文使用Stata软件的有序logit回归模型作为解释变量来衡量解释变量对企业创新绩效的影响。企业的创新绩效是通过将数字相加得到的总创新指数来衡量的。的“新公司”活动。

发现

实证结果表明，外部资金来源比其他资金来源对创新活动的影响更大。此外，融资抵押品的要求显着影响创新绩效。本文发现国有银行或政府机构资助的企业更积极地参与创新活动。公司的规模、所有权结构和公司所在地也显示出不同的创新绩效。本文还发现了跨行业创新绩效的差异。

实际影响

首先，本研究强调了资金来源的重要性。其次，最大限度地减少获得外部融资所需的抵押品可促进小企业的创新活动，也将引发整体经济增长。最后，在制定国有机构所有权转型政策的同时，政策制定者应该讨论这些政策对创新企业的影响。

原创性/价值

中小微企业的文献中缺少促进新兴市场创新绩效的因素，这主要是由于缺乏数据。由于限制，特别是中小微企业面临的限制，不将大公司的创新知识推广到小公司是合理的。