How national and international financial development affect industrial R&D

Keith Maskus, Rebecca Neumann, Tobias Seidel

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Abstract

We examine the impacts of both domestic and international financial market development on R&D intensities in 22 manufacturing industries in 18 OECD countries for the period 1990-2003. We take account of such industry characteristics as the need for external financing and the amount of tangible assets. Multiple forms of domestic financial development are important determinants of R&D intensity but only foreign direct investment is significant among alternative measures of international financial development. We find the strongest effects for private bond-market capitalization, while FDI, private credit by banks, and stock-market capitalization have similar effects in terms of magnitude.

Empfohlene Zitierform:

Maskus, K., R. Neumann and T. Seidel (2012): How national and international financial development affect industrial R&D, European Economic Review, 56, 72–83.

Informationen Herausgeber

Zeitschrift	European Economic Review
Herausgeber	Elsevier, Maryland Heights, MO 63043, US
Band	56
Seiten	72–83

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