@article {19713,
	title = {Credit Constraints and the Cyclicality of R\&D Investments: Evidence from France},
	journal = {Currently revised for the Journal of the European Economic Association},
	year = {2007},
	abstract = {We use a French firm-level panel data set over the period 1993-2004 to analyze the relationship between credit constraints and firms{\textquoteright} R\&amp;D behavior over the business cycle. Our main results can be summarized as follows: (i) the share of R\&amp;D investment over total investment is countercyclical without credit constraints, but it becomes more procyclical as firms face tighter credit constraints; (ii) the result is magnified for firms in sectors that depend more heavily upon external finance; (iii) in more credit constrained firms, R\&amp;D investment share plummets during recessions but does not increase proportionally during upturns; (iv) average R\&amp;D investment and productivity growth are more negatively correlated with sales volatility in more credit constrained firms.
},
	author = {P. Aghion and P Askenazy and N Berman and G Cette and L Eymard}
}
