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Banking Credit and Innovation Technology: a Global Perspective

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  • Arnone, Massimo
  • Costantiello, Alberto
  • Leogrande, Angelo

Abstract

The article reviews the linkage of banking credit with technological innovation at global level underlining that access to finance is important for and innovation. The domestic credit percentage involving the private sector to GDP allows projects of high risk but with a very high reward, projects that are key in increasing productivity and global competitiveness significantly. This paper explores that dynamic in infrastructure, creative industries, and greening technologies. Indeed, findings from such studies do show positive correlations, such as between credit and infrastructure development or creative exports, suggesting the capability of systems of finance to transform. These findings indicate the positive relationships that exist in some contexts, such as reduced R&D investment. Taking into account the ecological bottom line, this research underlines ecosystem-based strategies of banking, green credit, and poised financial regulations for sustainable development. Synthesizing into this paper provides actionable insight into how policy makers, financial institutions, and researchers can tap into the synergy between the financial system and innovation.

Suggested Citation

  • Arnone, Massimo & Costantiello, Alberto & Leogrande, Angelo, 2024. "Banking Credit and Innovation Technology: a Global Perspective," MPRA Paper 122774, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122774
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    References listed on IDEAS

    as
    1. Qinglu Yuan & Huan Zhou, 2021. "An Analysis on Bank Credit and Industrial Structure Upgrading of Beijing-Tianjin-Hebei Region-Based on Technological Innovation Mode," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(1), pages 1-1.
    2. Vinicius Dezem & Swati Sachan & Marcelo Macedo & André Longaray, 2024. "Optimal data-driven strategy for in-house and outsourced technological innovations by open banking APIs," Future Business Journal, Springer, vol. 10(1), pages 1-30, December.
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    4. Kowalewski, Oskar & Pisany, Paweł, 2022. "Banks' consumer lending reaction to fintech and bigtech credit emergence in the context of soft versus hard credit information processing," International Review of Financial Analysis, Elsevier, vol. 81(C).
    5. Shusen Qi & Steven Ongena, 2020. "Fuel the Engine: Bank Credit and Firm Innovation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 57(2), pages 115-147, April.
    6. Mduduzi Biyase & Talent Zwane & Precious Mncayi & Mokgadi Maleka, 2023. "Do Technological Innovation and Financial Development Affect Inequality? Evidence from BRICS Countries," IJFS, MDPI, vol. 11(1), pages 1-18, March.
    7. Chen Lin & Sibo Liu & Lai Wei, 2023. "Banking and innovation: a review," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 21(1), pages 143-176, January.
    8. Liu, Xiaohua & Zhao, Qiuhan, 2024. "Banking competition, credit financing and the efficiency of corporate technology innovation," International Review of Financial Analysis, Elsevier, vol. 94(C).
    9. Tinghua Liu & Jingru Wang & Dilesha Nawadali Rathnayake & Pierre Axel Louembé, 2022. "The Impact of Commercial Credit on Firm Innovation: Evidence from Chinese A-Share Listed Companies," Sustainability, MDPI, vol. 14(3), pages 1-23, January.
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    More about this item

    Keywords

    Panel Data; Banking; Innovation.;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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