Financial constraints and innovation: Why poor countries don't catch up
---- Acknowledgements ----
We would like to thank Bronwyn Hall, Dietmar Harhoff, Bill Kerr, Klara Sabirianova Peter, John van Reenen, Oleksandr Talavera, and Joachim Winter as well as seminar participants at NBER, SFB-TR, University of Linz and University of Munich for comments and suggestions. This paper was partly written while Monika Schnitzer visited the University of California, Berkeley. She gratefully acknowledges the hospitality of the department as well as financial support by the German Science Foundation through SFB-TR 15. Gorodnichenko thanks NBER (Innovation Policy and the Economy program) for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.