In this paper we suggest that technological acquisition and innovation by firms involve new investment, and thus require a financial decision as well as a technological one. The level of analysis is the southern European countries and the impact of the European integration process on sectoral innovation and industrial restructuring processes. The paper suggests that technological development goes beyond incentives for technological invetsment projects. It depends on the quality of investment decisions and in the long run on the profitability of these projects. In consequence, as the structure and behaviour of the capital market strongly affects investment decisions, it will also affect technological development.
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Paper provided by United Nations University, Institute for New Technologies in its series Discussion Papers with number
4.
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