IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v11y2025i1d10.1186_s43093-025-00547-1.html
   My bibliography  Save this article

Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia

Author

Listed:
  • Fakhrullah

    (Shandong Normal University)

  • Sher Khan

    (Comenius University Bratislava)

  • Xiao DingDing

    (Business School Shandong Normal University)

  • Marian Suplata

    (Comenius University Bratislava)

Abstract

Financial development plays a vital role in fostering economic growth, influencing financial institutions, markets, technological innovation, and gross domestic product (GDP). While prior research has extensively examined this relationship, traditional metrics such as the ratio of private credit to GDP and stock market capitalization to GDP fail to capture the multidimensional nature of financial development. To address this limitation, this study introduces nine comprehensive measures encompassing financial depth, access, and efficiency across financial institutions and markets. Using a dataset spanning 2019–2022, this study evaluates financial development indicators for countries listed from A to L in the International Monetary Fund database. The findings reveal a robust positive correlation between financial development and technological innovation, suggesting that enhanced financial infrastructure facilitates technological advancements. Moreover, the results indicate a significant positive relationship between technological innovation and GDP, reinforcing the argument that innovation serves as a catalyst for economic expansion. These findings underscore the critical role of financial development in not only promoting innovation but also in stimulating economic growth. The study carries important implications for policymakers, emphasizing the necessity of financial sector reforms to enhance financial access, depth, and efficiency. By fostering a more developed financial system, nations can stimulate technological progress and, consequently, economic growth. The inclusion of nine financial development measures provides a more holistic evaluation compared to traditional metrics, offering deeper insights into the dynamics of financial systems. In conclusion, this study contributes to the literature by presenting a more nuanced understanding of financial development’s impact on technological innovation and GDP, highlighting its essential role in shaping sustainable economic growth. Graphical abstract

Suggested Citation

  • Fakhrullah & Sher Khan & Xiao DingDing & Marian Suplata, 2025. "Global technology innovation: comparison of new broad-based index of financial development of Europe and Asia," Future Business Journal, Springer, vol. 11(1), pages 1-21, December.
    • Handle: RePEc:spr:futbus:v:11:y:2025:i:1:d:10.1186_s43093-025-00547-1
    DOI: 10.1186/s43093-025-00547-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-025-00547-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s43093-025-00547-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:futbus:v:11:y:2025:i:1:d:10.1186_s43093-025-00547-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.