Capital Markets, Financial Intermediaries and Financing of New Technologies: International Evidence from Industry Data
28 Pages Posted: 19 Oct 2006
Date Written: October 2006
Using a sample of 18 industries from 18 OECD countries, an industry level analysis of the influence of the financial system's orientation (bank-oriented vs. market-oriented) on R&D intensity is carried out. Our results, with OLS, GMM and VAR methodologies, show a positive relation between capital market development and the importance of the most R&D intensive sectors. Nevertheless, there are some exceptions to this pattern, which may be related to the legal and institutional framework of each country.
Keywords: capital markets, financial intermediaries, R&D, VAR
JEL Classification: O16, G21, O14
Suggested Citation: Suggested Citation