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Understanding the financing of innovation and commercialization: the case of the Canadian functional food and nutraceutical sector

Understanding the financing of innovation and commercialization: the case of the Canadian functional food and nutraceutical sector

Authors :
John Cranfield
Deepananda P.B. Herath
Spencer Henson
Source :
Applied Economics. 42:2667-2682
Publication Year :
2010
Publisher :
Informa UK Limited, 2010.

Abstract

We develop and implement two models to show what factors affect a firm's decision to seek external financing and the level of financing obtained in the Canadian functional food and nutraceutical sector. Data from a national survey of functional foods and nutraceutical firms in Canada, conducted by Statistics Canada in 2003, is used for this analysis. Firm size, being privately held and engaging in contractual arrangements have negative impacts on the likelihood of a firm seeking external funding, while firms which are intensively involved in the functional food and nutraceutical sector, with greater prospects for business expansion and/or involved in partnerships are more likely to seek external financing. Larger firms and those involved in functional food and nutraceutical research and development receive a greater amount of capital when they decide to raise capital. However, firms focused on functional foods and nutraceuticals, as opposed to more diversified firms, and those involved in product developm...

Details

ISSN :
14664283 and 00036846
Volume :
42
Database :
OpenAIRE
Journal :
Applied Economics
Accession number :
edsair.doi...........c5cd838148c8572d82c85faadf519c15
Full Text :
https://doi.org/10.1080/00036840801964658