Financial Development and Innovation: The Role of Market Structure
研究发现1980-2018年间，股权和信贷市场的金融发展对创新呈倒U型影响，且影响因行业技术高低而异，机制是资金分配不均导致市场集中。
Abstract We assess how financial development affects innovation. For this purpose, we employ a unique Research Quotient data set from 1980 to 2018, and observe significant inverted‐U effects of financial development on innovation for equity and credit markets. Specifically, the effects of the markets are sector‐specific, implying that the inverted‐U effect of the equity market on innovation is mainly driven by its diminishing effect on innovation in high‐technology industries, while credit markets mostly affect innovation in non‐high‐technology industries. Regarding the mechanism, we posit that the inverted‐U shape between finance and innovation may be explained by the disproportionate funds allocation‐induced market concentration.