The Effects of Financial Openness on Innovation: An Empirical Study
Using data from 33 OECD countries for the years 1980-2014, we estimate the effects of financial openness on innovation through the use of fixed effects panel data regression. After establishing innovation as a core factor in technological growth, we derive, with the help of Schumpeterian models of growth, an argument that the financial system has a significant role in the development of innovation
