TY - JOUR
T1 - Innovation financing in Colombia
T2 - An explicative proposal
AU - Sierra-González, Jaime Humberto
AU - Londoño-Bedoya, David Andrés
AU - García-Ospina, Juan Manuel
N1 - Publisher Copyright:
© 2021, Pontificia Universidad Javeriana. All rights reserved.
PY - 2021
Y1 - 2021
N2 - Data on innovation financing in Colombia present a paradox: Manufacturing companies prefer to finance their innovation projects with their own capital, with bank loans in second place, and cheaper public funding last. Extant financial theories cannot explain such a paradox (reversed pecking order), making a different approach necessary. Hence, a new perspective is presented on the basis of Sierra’s (2014, 2020) proposal. A fixed effects panel estimation is carried out that includes three new variables: A Knowledge Incorporation and Consolidation System, interaction among companies and funders, a particular type of investor (Dedicated). The results support the alternative explanation. Additionally, research possibilities, designs and applications of public and organisational policy aimed to overcome some of the problems mentioned are proposed.
AB - Data on innovation financing in Colombia present a paradox: Manufacturing companies prefer to finance their innovation projects with their own capital, with bank loans in second place, and cheaper public funding last. Extant financial theories cannot explain such a paradox (reversed pecking order), making a different approach necessary. Hence, a new perspective is presented on the basis of Sierra’s (2014, 2020) proposal. A fixed effects panel estimation is carried out that includes three new variables: A Knowledge Incorporation and Consolidation System, interaction among companies and funders, a particular type of investor (Dedicated). The results support the alternative explanation. Additionally, research possibilities, designs and applications of public and organisational policy aimed to overcome some of the problems mentioned are proposed.
KW - Alternative funding
KW - Investment strategy
KW - Paradox
KW - Project uncertainty
KW - Risk funding
KW - Strategic decision-making
UR - http://www.scopus.com/inward/record.url?scp=85118177784&partnerID=8YFLogxK
U2 - 10.11144/JAVERIANA.CAO34.IFCE
DO - 10.11144/JAVERIANA.CAO34.IFCE
M3 - Article
AN - SCOPUS:85118177784
SN - 0120-3592
VL - 34
JO - Cuadernos de Administracion
JF - Cuadernos de Administracion
ER -