‪Financial regimes, financialization patterns and industrial performances: preliminary remarks‪

Giovanni Dosi, Valérie Revest and Alessandro Sapio

Revue d'économie industrielle, 2016, vol. n° 154, issue 2, 63-96

Abstract: ?The evolutionary taxonomy of financial systems, outlined by Dosi (1990), argued that market-based systems are comparatively more engaged in exploring new technological paradigms, due to selective market pressure, whereas in credit-based systems their more institutionalized financial allocation provides an advantage for cumulative learning. ? This article offers a preliminary assessment of those conjectures in light of the institutional change associated with the financialization process and the ?maximizing shareholders value? principle. The available evidence suggests that financialization has disconnected the performance of firms on the financial markets from the determinants of firm-level growth and innovation. Selection among companies increasingly occurs on financial markets according to criteria based on short-term returns. As such, financialization has contributed towards compressing and somewhat degrading the specific properties of the finance-innovation nexus of both financial system archetypes, simultaneously deteriorating static and Schumpeterian efficiency.

Keywords: Innovation; Evolutionary Theory; Financial Systems; Firm Growth; Financialization (search for similar items in EconPapers)
Date: 2016
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