Technology spillovers, asset redeployability and corporate financial policies

Prior research shows that technology spillovers across firms increase innovation, productivity and value. We study how finance their own growth stimulated by from technological peer firms. find greater lead to higher leverage. This is the result of increasing asset redeployability, as evidenced more collateralized borrowing transactions. Borrowing costs also decrease. Exogenous variation in development tax credits other allows us identify causal effect on a given firm.