The limits of lending: Banks and technology adoption across Russia

Cagatay Bircan, Ralph de Haas

Research output: Contribution to journalArticleScientificpeer-review


We exploit historical and contemporaneous variation in local credit markets across Russia to identify the impact of credit constraints on firm-level innovation. We find that access to bank credit helps firms to adopt existing products and production processes that are new to them. They introduce these technologies either with the help of suppliers and clients or by acquiring external know-how. We find no evidence that bank credit also stimulates firm innovation through in-house R&D. This suggests that banks can facilitate the discussion of technologies within developing countries but that their role in pushing the technological frontier is limited.
Original languageEnglish
Article numberhhz060
Pages (from-to)536-609
JournalReview of Financial Studies
Issue number2
Early online dateJun 2019
Publication statusPublished - Feb 2020


  • credit constraints
  • firm innovation
  • technological change


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