CAPITAL MARKETS, FINANCIAL INTERMEDIARIES AND FINANCING OF NEW TECHNOLOGIES: INTERNATIONAL EVIDENCE FROM INDUSTRY DATA

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Félix J. López Iturriaga

DOI:10.22495/cocv8i2c4p1

Abstract

Using a sample of 18 industries from 18 OECD countries, I perform an industry-level analysis of the influence of the country’s financial-system orientation, i.e., bank- or market-oriented, on R&D intensity. Using OLS, GMM, and VAR methods, my results show a positive relation between capital market development and the importance of the most R&D-intensive sectors. Nevertheless, there are some exceptions to this pattern, which may be related to the legal and institutional framework of each country.

Keywords: Capital Markets, Financial Intermediaries, R&D, VAR

How to cite this paper: Iturriaga, F. J. L. (2011). Capital markets, financial intermediaries and financing of new technologies: International evidence from industry data. Corporate Ownership & Control, 8(2-4), 407-426. http://dx.doi.org/10.22495/cocv8i2c4p1