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Financial Market and Technological Innovation

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  • Hartmut Hirsch-Kreinsen

Abstract

This paper addresses the relationship between technological innovation and finance. The financial market must be regarded as one of the fundamental prerequisites of innovation, inasmuch as it is here that decisions are made on capital allocation to enterprises. However, less has been written on the interdependencies between the patterns of corporate finance and governance on the one hand and company innovation strategies on the other. The paper takes up these open questions. It analyses the transformation process of the German innovation system due to the dynamics of the financial market in the last decades. In conclusion, some general insight into the relationship between finance and innovation beyond the German context will be provided. The paper is based on an extensive literature research in the fields of economic sociology and innovation studies and the analysis of the public debate on the prospects of the current economic development.

Suggested Citation

  • Hartmut Hirsch-Kreinsen, 2011. "Financial Market and Technological Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 18(4), pages 351-368.
    • Handle: RePEc:taf:indinn:v:18:y:2011:i:4:p:351-368
    DOI: 10.1080/13662716.2011.573954
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    References listed on IDEAS

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    Cited by:

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    2. Hahn, Katrin, 2019. "Innovation in times of financialization: Do future-oriented innovation strategies suffer? Examples from German industry," Research Policy, Elsevier, vol. 48(4), pages 923-935.
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    5. Stefan Kipar, 2011. "Kreditvergabe und Innovationsaktivität in der Finanzkrise," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 80(3), pages 111-130.
    6. Stefan Kipar, 2012. "Determinants of Firm Innovation - Evidence from German Panel Data," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 45, March.
    7. Bi, Kexin & Huang, Ping & Ye, Hui, 2015. "Risk identification, evaluation and response of low-carbon technological innovation under the global value chain: A case of the Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 238-248.
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    9. Zheng, Mingbo & Feng, Gen-Fu & Wang, Quan-Jing & Chang, Chun-Ping, 2023. "Financial globalization and technological innovation: International evidence," Economic Systems, Elsevier, vol. 47(1).
    10. Jiayi Li & Shujun Ye & Shujuan Wang, 2023. "Spatial Network Analysis on the Coupling Coordination of Digital Finance and Technological Innovation," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    11. Feiling Lu, 2023. "How does financial development environment affect regional innovation capabilities? New perspectives from digital finance and institutional quality," Journal of Information Economics, Anser Press, vol. 1(1), pages 31-46, January.
    12. Polzin, Friedemann & Sanders, Mark & Stavlöt, Ulrika, 2018. "Do investors and entrepreneurs match? – Evidence from The Netherlands and Sweden," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 112-126.
    13. Lin Zhu & Fan Dong & Liangwen Hu, 2023. "Mechanisms of How Private Equity Drives Industrial Upgrade: An Empirical Study Based on China’s Panel Data," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    14. F.H.J. Polzin & M.W.J.L. Sanders & Florian Täube, 2017. "A diverse and resilient financial system for investments in the energy transition," Working Papers 17-03, Utrecht School of Economics.
    15. Fakhimi, MohammadAmin & Miremadi, Iman, 2022. "The impact of technological and social capabilities on innovation performance: a technological catch-up perspective," Technology in Society, Elsevier, vol. 68(C).
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