 Innovations, Market Access and Productivity of Smaller Firms: Examining the Role of Financial DevelopmentChapter Chapter 11 in Digital Transformation and Economic Development in Bangladesh, 2022, pp 225-245 from Springer Abstract: Abstract The chapter shows that financial development at the local level could play a complementary role that enhances smaller firms’ investment in productivity-enhancing innovations, however, in a disproportionate way in terms of firms’ market orientation. More specifically, access to finance supports external market-oriented firms to a greater extent than the local market-oriented firms that are usually less productive. Productive firms invest in innovations to carve out access to external markets and achieve higher growth. The findings in this chapter provide deeper insights into the benefits of easy access (digital) to finance and firms’ intention to invest in innovations through the acquisition of IT or other technologies. Digital finance could be one of the attributes of local financial development as digital finance reduces transaction costs. The study uses sub-district level firm survey data of 1100 manufacturing SMEs combined with administrative data on financial development from Bangladesh. The findings underscore the need for greater financial inclusion and the adoption of technologies for achieving balanced regional growth. Date: 2022 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-2753-9_11 Ordering information: This item can be ordered from DOI: 10.1007/978-981-19-2753-9_11 Access Statistics for this chapter More chapters in Springer Books from Springer |
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