Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper generalizes the theoretical model of Aghion et al. (2012) to re-examine the cyclicality of R&D investment with credit constraint and linear production with different innovation capabilities. In contrast to their procyclical conclusion, we show that the R&D investment can be acyclical, procyclical, or countercyclical depending on the innovation capability, the tightness of credit constraint and the level of an entrepreneur‘s wealth.