Private financing, R&D, and export activity: Evidence from Portugal

Using firm-level data for Portugal, 2006–2021, we investigate linkages between private financing — private equity (including venture capital) and private debt — and firms’ exporting and innovation. Combining matching and regression procedures, we find that private financing is associated with exporting and R&D activity. Firms financed by private equity are more likely to export and to export a larger share of their sales. They also exhibit higher propensity to allocate employees and funds to R&D, and to channel a larger share of investment into it. Private debt is likewise positively related to innovation inputs and exports, but both effects are limited to the extensive margin. • Private financing is linked to export and R&D activity. • Private equity is linked to export participation and higher export intensity. • Private equity is linked to R&D participation and greater R&D investment intensity. • Private debt is linked to export and R&D participation (extensive margins).