Stock markets, credit markets, and technology-led growth

Abstract

The high-tech sector accounts for the majority of corporate innovation in modern economies. In a sample of 38 countries, we document a strong positive relation between the initial size of the country's high-tech sector and subsequent rates of GDP and total factor productivity growth. We also find a strong positive connection between a country's equity (but not credit) market development and the size of its high-tech sector. Our main difference-indifferences estimates show that better developed stock markets support faster growth of innovative-intensive, high-tech industries. The main channels for this effect are higher rates of productivity and faster growth in the number of new high-tech firms. Credit market development fosters growth in industries that rely on external finance for physical capital accumulation but is unimportant for growth in innovation-intensive industries. These findings show that stock markets and credit markets play important but distinct roles in supporting economic growth. Stock markets are uniquely suited for financing technology-led growth, a particularly important concern for advanced economies.

Government expenditures in the support of technological innovations and impact on stock market and real economy: the empirical evidence from the US and Germany

“…Among the analysed R&D indicators, a high technology export in both economies brings the biggest added value for the growth of GDP. The dominant role of this activity confirms also the study of Brown et al (2017), Greenhalgh (2016).…”

“…The first of all, the main driver in the support of R&D is a private sector as in the US as in Germany. We can find the same findings in papers of Azoulay et al (2019), Brown et al (2017), Chen et al (2013), Jiang (2016) Ivanova and Cepel (2018) and Blanco et al (2020). The novelty or added value of our approach is in searching relationshi among the stock market 1development and GDP growth, while controlling for the effects of technological innovations.…”

Sources of financial and credit support for the innovation sector of Kazakhstan

“…Влияние степени развития фондовых и кредитных рынков на сектор высоких технологий в странах с развитой экономикой исследуется в работе Brown et al (2017). В свою очередь, в работе Xiao et al 2012 Проблемы финансового обеспечения развития инновационной деятельности в реальном секторе России исследуются в работе Морковкина (2015: 39-49).…”

Model to Measure the Readiness of University Testing Laboratories to Fulfill ISO/IEC 17025 Requirements (A Case Study)

“…In other words, universities are considered as an open innovation source as a result of the research activities [6][7][8][9][10][11][12][13][14][15][16][17][18]. Recently, there has been rapid progression in technology [19][20][21] and the industrial sector [22][23][24]. Lots of product innovations in these sectors resulted from universities, for instance, lithium battery [25][26][27], electric vehicle [28,29], and traceability technology [30,31].…”