EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints

The COVID-19 crisis triggered a reduction in investment by European firms, affecting both tangible assets like buildings and machinery, and investments in intangible assets like research and development (R&D) and training. This paper uses European Investment Bank Investment Survey (EIBIS) data to co...

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Manylion Llyfryddiaeth
Fformat: Online
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Cyhoeddwyd: European Investment Bank 2025
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Mynediad Ar-lein:ONIX_20250402_9789286158421_19
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collection Directory of Open Access Books
description The COVID-19 crisis triggered a reduction in investment by European firms, affecting both tangible assets like buildings and machinery, and investments in intangible assets like research and development (R&D) and training. This paper uses European Investment Bank Investment Survey (EIBIS) data to compare and explain how these different types of investment were affected by the shock. The analysis reveals considerable heterogeneity, with R&D investment declining the least, and investment in training and in machinery and equipment declining the most. Financial constraints deterred investment activity both before and after the outbreak of the COVID-19 shock, and affected both kinds of investment, although R&D was more sensitive to financial constraints during the pandemic. Strong policy support implemented during the pandemic contributed to alleviating part of the negative impact of COVID-19 by mitigating the increase in the number of financially constrained firms.
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institution Directory of Open Access Books
language eng
publishDate 2025
publishDateRange 2025
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publisher European Investment Bank
publisherStr European Investment Bank
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spelling doab-20.500.12854ir-1580842025-07-30T09:00:08Z EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting The COVID-19 crisis triggered a reduction in investment by European firms, affecting both tangible assets like buildings and machinery, and investments in intangible assets like research and development (R&D) and training. This paper uses European Investment Bank Investment Survey (EIBIS) data to compare and explain how these different types of investment were affected by the shock. The analysis reveals considerable heterogeneity, with R&D investment declining the least, and investment in training and in machinery and equipment declining the most. Financial constraints deterred investment activity both before and after the outbreak of the COVID-19 shock, and affected both kinds of investment, although R&D was more sensitive to financial constraints during the pandemic. Strong policy support implemented during the pandemic contributed to alleviating part of the negative impact of COVID-19 by mitigating the increase in the number of financially constrained firms. 2025-04-03T06:41:51Z 2025-04-03T06:41:51Z 2025-04-02T13:56:16Z 2024 book ONIX_20250402_9789286158421_19 https://library.oapen.org/handle/20.500.12657/100562 9789286158421 https://directory.doabooks.org/handle/20.500.12854/158084 eng open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/100562/1/9789286158421_pdf.pdf European Investment Bank 10.2867/8577134 10.2867/8577134 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286158421 38 Luxembourg open access
spellingShingle thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title_full EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title_fullStr EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title_full_unstemmed EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title_short EIB Working Paper 2024/06 - Intangible differences: Investment during the pandemic and the role of financial constraints
title_sort eib working paper 2024 06 intangible differences investment during the pandemic and the role of financial constraints
topic thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
topic_facet thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting
url ONIX_20250402_9789286158421_19