scispace - formally typeset
Journal ArticleDOI

Firm Productivity, innovation and Financial Development

TLDR
This article found that innovation is crucial for firm performance as it directly and measurably increases productivity, and its effects on productivity are mediated through the financial sector; firms reap the maximum benefits from innovation in countries with well-developed financial sectors.
Abstract
How do firm-specific actions-in particular, innovation-affect firm productivity? And what is the role of the financial sector in facilitating higher productivity? Using a rich firm-level dataset, we find that innovation is crucial for firm performance as it directly and measurably increases productivity. Moreover, its effects on productivity are mediated through the financial sector; firms reap the maximum benefits from innovation in countries with well-developed financial sectors. This effect is particularly important for firms in high-tech sectors, which typically have higher external financing needs.

read more

Citations
More filters
Journal ArticleDOI

Has the global financial crisis had different effects on innovation performance in the agri-food sector by comparison to the rest of the economy?

TL;DR: The impact of the global financial crisis on the probability of firms introducing technological and non-technological innovations as well as on radical and incremental innovations and the use of innovation inputs was analyzed in this paper.
Journal ArticleDOI

Risk capital, private credit, and innovative production

TL;DR: Using panel data for 77 countries over the period 1965-2009, the authors found that countries with more developed financial systems are more innovative, while a stronger patent protection framework curbs innovative production.
Journal ArticleDOI

Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

TL;DR: In this paper, the authors study the innovation-productivity link for manufacturing at the firm level for four Latin American countries (Argentina and Mexico) and two as lower-middle income countries (Colombia and Peru).
Journal ArticleDOI

The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries

TL;DR: Dynamics of technology adoption, technology innovation, human capital and skill development for Lower Middle Income Countries region over the period 2000-2016 by Generalised Method of Moments and cross sectional dependence are explored.
Journal ArticleDOI

A Structural Equation Model of CSR and Performance: Mediation by Innovation and Productivity

TL;DR: In this paper, the authors explored the role of innovation and productivity as mediating factors between Corporate Social Responsibility (CSR) and firm's performance relationship, and proposed a theoretical model (CIPP Model) to identify the mediating factor in the linkage between CSR and performance.
References
More filters
Journal ArticleDOI

Why Do Some Countries Produce so Much More Output Per Worker than Others

TL;DR: This paper showed that differences in physical capital and educational attainment can only partially explain the variation in output per worker, and that a large amount of variation in the level of the Solow residual across countries is driven by differences in institutions and government policies.
ReportDOI

Financial Dependence and Growth

TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Journal ArticleDOI

Why do Some Countries Produce So Much More Output Per Worker than Others

TL;DR: This article showed that the differences in capital accumulation, productivity, and therefore output per worker are driven by differences in institutions and government policies, which are referred to as social infrastructure and called social infrastructure as endogenous, determined historically by location and other factors captured by language.
Posted Content

Financial Dependence and Growth

TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship: that financial development reduces the costs of external finance to firms, and they found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Posted Content

Finance and the Sources of Growth

TL;DR: Beck, Levine, and Loayza as mentioned in this paper evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources- total factor productivity growth, physical capital accumulation, and private saving.
Related Papers (5)