ABSTRACTWe study whether R&D‐intensive firms are liquidity constrained, by modelling their antecedent decision to apply for credit. This sample selection issue is relevant when studying a borrower–lender relationship, as the same factors can influence the decisions of both parties. We find firms with no or low R&D intensity to be less likely to request extra funds. When they do, we observe a higher probability of being denied credit. Such a relationship is not supported by evidence from the R&D‐intensive firms. Thus, our findings lend support to the notion of credit constraints being severe only for a sub‐sample of innovative firms. Furthermore, the results suggest that the way in which the R&D activity is organized may differentially affect a firm's probability of being credit constrained.
Testimony issued by the General Accounting Office with an abstract that begins "The President's January 2001 changes in the export control thresholds for high performance computer exports are not adequately justified. Although the President's report recognizes that high performance computing capabilities will become increasingly available to other countries through computer clustering, the report fails to address all military significant uses for computers at the new thresholds and assess the national security impact of such uses. The support for the President's policy proposal for relaxed U.S. computer controls also is not adequate. Although the new policy was based on the conclusion that computer hardware exports can no longer be controlled, the executive branch did not adequately assess alternative control options. GAO identified several implications of the changes to the control thresholds and the proposed change in U.S. computer export control policy related to increased risks for U.S. national security. For example, the inadequacies of the President's justifications demonstrate the need for a comprehensive study of the issues involved. Furthermore, the policy proposal would reduce information that might be useful in detecting patterns of exports to customers engaged in proliferation activities because it would eliminate an annual reporting requirement that provides information on end users. This testimony summarized a December report (GAO-01-10)."