Economic studies show that the rate of return on research and development investment is very high,possibly yielding 25-50% a year.Why,then,are banks reluctant to lend to start-up firms investing in a new idea,and where do these firms get their capital?

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The Answer of Economic studies show that the rate of return on research and development investment is very high,possibly yielding 25-50% a year.Why,then,are banks reluctant to lend to start-up firms investing in a new idea,and where do these firms get their capital?

Economic Studies Show That the Rate of Return on Research