The impact of lending on the innovativeness of light manufacturers

Abstract

The companies' innovative activities are a foundation for strengthening their position in the industry and ensuring sustainable access to advanced technologies. Analysis of the correlation between access to loans and innovative activity gives grounds not only to evaluate the effectiveness of companies' investment decisions but also to identify barriers that hinder their progress. This determines the relevance of the issue under research. The aim of this study is to determine the impact of lending on the innovativeness of light manufacturers globally, which is essential for understanding the mechanisms that contribute to the development of the industry. The Granger test was used to establish causality. The Dickey-Fuller test was performed to verify the model. The impact was assessed and analysed using correlation and regression analysis. The results of the study indicate that there is no causal relationship between lending and the growth of the number of innovative light manufacturers. According to the regression analysis, investment in innovative companies in Sweden shows a significant positive effect, as an increase of USD 1 million in funding leads to an 11% increase in the number of such companies. In the US, an increase in lending by the same amount stimulates only a 4% growth of innovative light manufacturers. The UK recorded a similar figure at 2%, while it reached 6% in Singapore. These differences indicate the variability of investment efficiency in different countries. The obtained results can significantly contribute to the deepening of research on the use of credit for the introduction of innovations in light manufacturers. A promising direction for further analysis is the study of the influence of credit mechanisms on the innovative development of the light industry in developing countries. This research has the potential to identify key factors that contribute to successful innovation in this area.