The New New Financial Thing: The Sources of Innovation Before and After State Street
AbstractThis paper examines the sources of financial innovations between 1990 and 2002, using Wall Street Journal articles as indicators of innovations. No evidence suggests that larger firms are particularly innovative; in many specifications, there is a disproportionate representation of smaller firms among the innovators. Less profitable firms and those with stronger academic ties also innovate more. The elasticity of innovation with respect to size appears to have increased sharply since the State Street decision that greatly accelerated the rate of financial patenting. I conclude by exploring how the origins of financial patents resemble or differ from those of innovations.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10223.
Date of creation: Jan 2004
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Find related papers by JEL classification:
- G2 - Financial Economics - - Financial Institutions and Services
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-12 (All new papers)
- NEP-CFN-2004-01-12 (Corporate Finance)
- NEP-ENT-2004-01-12 (Entrepreneurship)
- NEP-TID-2004-01-12 (Technology & Industrial Dynamics)
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