Financing Creative Destruction

Roberto Samaniego

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uncovers evidence of s potentially important channel linking financial development to growth: the financing of innovations introduced by entrepreneurs. Using internationally comparable data on European countries, entry and exit in research-intensive industries are found to be disproportionately sensitive to the level of financial development. Furthermore, financial development is related to increased R&D spending. The results are robust to several different measures of financial development, and are supported by surveys of the sources of finance used by entrepreneurs. The evidence suggests that intellectual property rights provide the institutional underpinning for financial markets to direct funds towards innovative entrepreneurs.

Keywords: Entry; exit; financial development; creative destruction; R&D intensity; entrepreneurship; intellectual property rights. (search for similar items in EconPapers)
JEL-codes: G18 L26 O14 O16 O31 O33 (search for similar items in EconPapers)
Date: 2009-12-10
New Economics Papers: this item is included in nep-ent, nep-ino, nep-ipr, nep-pr~ and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/22348/1/MPRA_paper_22348.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:22348

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().