Research and development (R&D) in SMEs: internal funding capacity determines scope of R&D expenditure
News from 2017-12-05 / KfW Research
German SMEs’ internal funding capacity determines whether they conduct R&D and how much they spend on it. Credit rating, on the other hand, is not a factor. R&D funding thus differs fundamentally from capital expenditure funding. This is probably because R&D projects involve high uncertainty of success and little investment in tangible assets.