How national and international financial development affect industrial R&D

Keith Maskus, Rebecca Neumann and Tobias Seidel

European Economic Review, 2012, vol. 56, issue 1, 72-83

Abstract: We examine the impacts of both domestic and international financial market development on R&D intensities in 22 manufacturing industries in 18 OECD countries for the period 1990–2003. We take account of such industry characteristics as the need for external financing and the amount of tangible assets. Multiple forms of domestic financial development are important determinants of R&D intensity but only foreign direct investment is significant among alternative measures of international financial development. We find the strongest effects for private bond-market capitalization, while FDI, private credit by banks, and stock-market capitalization have similar effects in terms of magnitude.

Keywords: R&D; Financial systems; Financial development; International financial integration (search for similar items in EconPapers)
JEL-codes: F36 G10 G15 G32 O30 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (59)

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Working Paper: How National and International Financial Development Affect Industrial R&D (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:1:p:72-83

DOI: 10.1016/j.euroecorev.2011.06.002

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