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Excerpt
Did Bank Distress Stifle Innovation During the Great Depression? Ramana Nanda, Tom Nicholas, October 2013, Paper. "We find a negative relationship between bank distress and the level, quality, and trajectory of firm-level innovation during the Great Depression, particularly for R&D firms operating in capital intensive industries. However, we also show that because a sufficient number of R&D intensive firms were located in counties with lower levels of bank distress, or were operating in less capital intensive industries, the negative effects were mitigated in aggregate..." Link