Financial Structure and Firm Innovation : Evidence from around the World

This paper analyzes the relationship between financial structure and innovation. Analysis of cross-country micro data over 2009–18 shows that a firm’s financial sources matter for the choice to innovate and the extent to which a firm innovates. The...

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Main Authors:	Mare, Davide S., de Nicola, Francesca, Miguel, Faruk
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	FINANCE FIRM INNOVATION ENTREPRENEURSHIP BANKING RISK CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/145871621868536350/Financial-Structure-and-Firm-Innovation-Evidence-from-around-the-World http://hdl.handle.net/10986/35631

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recordtype	oai_dc
spelling	okr-10986-356312021-06-02T05:10:46Z Financial Structure and Firm Innovation : Evidence from around the World Mare, Davide S. de Nicola, Francesca Miguel, Faruk FINANCE FIRM INNOVATION ENTREPRENEURSHIP BANKING RISK CAPITAL This paper analyzes the relationship between financial structure and innovation. Analysis of cross-country micro data over 2009–18 shows that a firm’s financial sources matter for the choice to innovate and the extent to which a firm innovates. The relationship is stronger for firms relying on non-bank financial intermediaries and for firms in low-technology sectors. Moreover, the use of external sources of finance is associated with improved prospects of innovation, especially in more financially developed countries. These findings suggest that developing the financial sector can bring benefits in terms of innovation. 2021-06-01T21:59:32Z 2021-06-01T21:59:32Z 2021-05 Working Paper http://documents.worldbank.org/curated/en/145871621868536350/Financial-Structure-and-Firm-Innovation-Evidence-from-around-the-World http://hdl.handle.net/10986/35631 English Policy Research Working Paper;No. 9670 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCE FIRM INNOVATION ENTREPRENEURSHIP BANKING RISK CAPITAL
spellingShingle	FINANCE FIRM INNOVATION ENTREPRENEURSHIP BANKING RISK CAPITAL Mare, Davide S. de Nicola, Francesca Miguel, Faruk Financial Structure and Firm Innovation : Evidence from around the World
relation	Policy Research Working Paper;No. 9670
description	This paper analyzes the relationship between financial structure and innovation. Analysis of cross-country micro data over 2009–18 shows that a firm’s financial sources matter for the choice to innovate and the extent to which a firm innovates. The relationship is stronger for firms relying on non-bank financial intermediaries and for firms in low-technology sectors. Moreover, the use of external sources of finance is associated with improved prospects of innovation, especially in more financially developed countries. These findings suggest that developing the financial sector can bring benefits in terms of innovation.
format	Working Paper
author	Mare, Davide S. de Nicola, Francesca Miguel, Faruk
author_facet	Mare, Davide S. de Nicola, Francesca Miguel, Faruk
author_sort	Mare, Davide S.
title	Financial Structure and Firm Innovation : Evidence from around the World
title_short	Financial Structure and Firm Innovation : Evidence from around the World
title_full	Financial Structure and Firm Innovation : Evidence from around the World
title_fullStr	Financial Structure and Firm Innovation : Evidence from around the World
title_full_unstemmed	Financial Structure and Firm Innovation : Evidence from around the World
title_sort	financial structure and firm innovation : evidence from around the world
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/145871621868536350/Financial-Structure-and-Firm-Innovation-Evidence-from-around-the-World http://hdl.handle.net/10986/35631
_version_	1764483457710292992

Financial Structure and Firm Innovation : Evidence from around the World

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