Abstract
| Original language | English |
|---|---|
| Publisher | Asian Development Bank Institute |
| Number of pages | 37 |
| Publication status | Published - Mar 2018 |
Publication series
| Name | ADBI Working Paper Series |
|---|---|
| Publisher | Asian Development Bank Institute |
| No. | 815 |
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Banking and innovation : a review. / LIN, Chen; LIU, Sibo; WEI, Lai.
Asian Development Bank Institute, 2018. (ADBI Working Paper Series; No. 815).Research output: Working paper › Working paper series
TY - UNPB
T1 - Banking and innovation : a review
AU - LIN, Chen
AU - LIU, Sibo
AU - WEI, Lai
PY - 2018/3
Y1 - 2018/3
N2 - We summarize the major findings of empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding of the various roles the banking sector plays in determining innovation. We reassess the effect of banking development and innovation, extending the scope of analysis to more granular dimensions of innovation and to Asian economies where financial markets are less developed. We find that while theoretical implications are generally indefinite about the effect of banking development on innovation, empirical findings are less ambiguous given their distinct focus of sample firms and the underlying channels investigated. The development conditions of financial markets also matter in drawing implications for the effect of financial institutions on innovation. Specifically, when the stock market is relatively less developed, as in most Asian economies, banks play a significant role in financing and promoting innovation. Therefore, it seems plausible for policy makers in these regions to strengthen the development of the banking sector and to improve the depth of the credit market. In this survey, we will summarize the major findings of the empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding about the various roles that the banking sector plays in determining innovation. Then, we will reassess the effect of banking development and innovation.
AB - We summarize the major findings of empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding of the various roles the banking sector plays in determining innovation. We reassess the effect of banking development and innovation, extending the scope of analysis to more granular dimensions of innovation and to Asian economies where financial markets are less developed. We find that while theoretical implications are generally indefinite about the effect of banking development on innovation, empirical findings are less ambiguous given their distinct focus of sample firms and the underlying channels investigated. The development conditions of financial markets also matter in drawing implications for the effect of financial institutions on innovation. Specifically, when the stock market is relatively less developed, as in most Asian economies, banks play a significant role in financing and promoting innovation. Therefore, it seems plausible for policy makers in these regions to strengthen the development of the banking sector and to improve the depth of the credit market. In this survey, we will summarize the major findings of the empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding about the various roles that the banking sector plays in determining innovation. Then, we will reassess the effect of banking development and innovation.
UR - https://commons.ln.edu.hk/sw_master/7520
M3 - Working paper series
T3 - ADBI Working Paper Series
BT - Banking and innovation : a review
PB - Asian Development Bank Institute
ER -