Seminar

Past

Innovate to Borrow: How Intangibles Shape Finance and Growth

Victoria Vanasco (CREI)

  • Date29 September 2026
  • Time 14h00 - 15h00
  • Room Online and in Room 4 of the congress space

Abstract

We study a dynamic economy in which heterogeneous entrepreneurs invest in either generic or innovative technologies, the latter relying on intangible, firm-specific assets whose payoffs are realized through learning or experimentation (e.g., know-how, R&D). A key friction is that, to finance investment, entrepreneurs can pledge assets but not cash flows. We show that innovative technologies can relax financing constraints by increasing the value of continuation relative to default, thereby enabling borrowing against future cash flows. Technology choice is non-monotonic in productivity: low-productivity entrepreneurs innovate-to-experiment and delay investment, intermediate types adopt generic technologies, and high-productivity entrepreneurs innovate-to-scale and relax financial constraints. In equilibrium, financial frictions distort both the allocation of capital and the choice of technology, leading to insufficient experimentation. The model helps us understand how innovation is adopted across firms and economies and has novel policy implications.

Other seminars

Pre-Trends Ahead of Monetary Policy Surprises: Recovering the Response of Corporate Investment

  • Seminar

  • Séminaire Banque de France

  • Date 13 October 2026

  • Place Online and Room 4 conference space

  • Speaker or organiser Antoine Hubert de Fraisse (London School of Economics)

Details

Past

The Role of Macroeconomic Uncertainty for Endogenous Attention to Central Bank Communication

  • Seminar

  • Séminaire Banque de France

  • Date 6 October 2026

  • Place Online and in Room F148

  • Speaker or organiser Lena Dräger (Leibniz Universität Hannover)

Details

Past

The Financial (In)Stability Real Interest Rate, R**

  • Seminar

  • Séminaire Banque de France

  • Date 22 September 2026

  • Place Online and in Room 1 Driant

  • Speaker or organiser Gianluca Benigno (University of Lausanne)

Details