How national and international financial development affect industrial R&D

Abstract

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Innovation and Growth: Considerations for Public Policy

“…However, many innovative firms are small and young with limited internal income or assets and have difficulty obtaining external private finance given that the outputs to innovation are relatively uncertain. Some existing studies find a positive impact of access to particular types of finance and business R&D intensity (Maskus et al, 2012), though excessive financial liberalization may have negative consequences for knowledge accumulation by increasing market volatility or reallocation of workers away from innovative sectors (Ang, 2011).…”

Contract enforcement and R&D investment

“…Thus it contributes to the large and growing literature on the determinants of R&D investment and to the literature on the economic effects of legal institutions. Financial development, taxes, subsidies and intellectual property rights protection are major determinants for R&D investment (Carlin and Mayer 2003, Bond, Harhoff, and Reenen 2010, Brown, Fazzari, and Petersen 2009, Maskus, Neumann, and Seidel 2011, Hines 1995, Bloom, Griffith, and Reenen 2002, Zhao 2006) and several studies find that a better contracting environment is associated with a higher level growth, exports, product quality, comparative advantage or trade (Castro, Clementi, and MacDonald 2004, Acemoglu, Johnson, and Robinson 2004, Acemoglu, Aghion, Griffith, and Zilibotti 2010, Azim and Fujiwara 2010, Levchenko 2007, Costinot 2009, Nunn 2007). Yet, none of these studies considers empirically the effects of legal institutions on R&D investment.…”

Financial development and productive inefficiency: A robust conditional directional distance function approach

“…Maskus et al (2012) explain the mechanism between financial development, innovation and economic growth relationship. Badunenko and Romero-Ávila (2013) provide a direct link between financial development and countries' aggregate levels of production efficiency.…”