How Financial Market Development Can Encourage Innovation Activity

Innovation is crucial to improving productivity and fostering sustainable growth, especially among countries that are moving toward or are at the cutting edge of technological advances (technology frontier). Innovation is usually underfinanced due...

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Bibliographic Details
Main Author:	Cao, Yu
Format:	Brief
Language:	English
Published:	World Bank, Malaysia 2021
Subjects:	INNOVATION PRODUCTIVITY EMERGING MARKET ECONOMIES EQUITY MARKET RESEARCH AND DEVELOPMENT
Online Access:	http://documents.worldbank.org/curated/undefined/799771635517440050/How-Financial-Market-Development-Can-Encourage-Innovation-Activity http://hdl.handle.net/10986/36567

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recordtype	oai_dc
spelling	okr-10986-365672021-11-13T05:10:39Z How Financial Market Development Can Encourage Innovation Activity Cao, Yu INNOVATION PRODUCTIVITY EMERGING MARKET ECONOMIES EQUITY MARKET RESEARCH AND DEVELOPMENT Innovation is crucial to improving productivity and fostering sustainable growth, especially among countries that are moving toward or are at the cutting edge of technological advances (technology frontier). Innovation is usually underfinanced due to its high uncertainty nature and market failures caused by mismatches in information about the value of an investment between inventors and outside investors (information asymmetry). The development of financial markets can reduce such frictions and channel financing to innovation. The Brief first examines the recent trend in innovation activities in advanced and emerging markets economies, and then explores the underlying mechanisms through which financial market development may encourage innovation at both the firm and aggregate levels. Lastly, this Brief discusses the relevant policies that can be implemented by policy makers to boost innovation activities. 2021-11-12T22:33:38Z 2021-11-12T22:33:38Z 2021-11-01 Brief http://documents.worldbank.org/curated/undefined/799771635517440050/How-Financial-Market-Development-Can-Encourage-Innovation-Activity http://hdl.handle.net/10986/36567 English Research and Policy Brief;No. 52 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Malaysia Publications & Research Publications & Research :: Brief
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INNOVATION PRODUCTIVITY EMERGING MARKET ECONOMIES EQUITY MARKET RESEARCH AND DEVELOPMENT
spellingShingle	INNOVATION PRODUCTIVITY EMERGING MARKET ECONOMIES EQUITY MARKET RESEARCH AND DEVELOPMENT Cao, Yu How Financial Market Development Can Encourage Innovation Activity
relation	Research and Policy Brief;No. 52
description	Innovation is crucial to improving productivity and fostering sustainable growth, especially among countries that are moving toward or are at the cutting edge of technological advances (technology frontier). Innovation is usually underfinanced due to its high uncertainty nature and market failures caused by mismatches in information about the value of an investment between inventors and outside investors (information asymmetry). The development of financial markets can reduce such frictions and channel financing to innovation. The Brief first examines the recent trend in innovation activities in advanced and emerging markets economies, and then explores the underlying mechanisms through which financial market development may encourage innovation at both the firm and aggregate levels. Lastly, this Brief discusses the relevant policies that can be implemented by policy makers to boost innovation activities.
format	Brief
author	Cao, Yu
author_facet	Cao, Yu
author_sort	Cao, Yu
title	How Financial Market Development Can Encourage Innovation Activity
title_short	How Financial Market Development Can Encourage Innovation Activity
title_full	How Financial Market Development Can Encourage Innovation Activity
title_fullStr	How Financial Market Development Can Encourage Innovation Activity
title_full_unstemmed	How Financial Market Development Can Encourage Innovation Activity
title_sort	how financial market development can encourage innovation activity
publisher	World Bank, Malaysia
publishDate	2021
url	http://documents.worldbank.org/curated/undefined/799771635517440050/How-Financial-Market-Development-Can-Encourage-Innovation-Activity http://hdl.handle.net/10986/36567
_version_	1764485514173349888

How Financial Market Development Can Encourage Innovation Activity

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