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Research on interaction of innovation spillovers in the AI, Fin-Tech, and IoT industries: considering structural changes accelerated by COVID-19

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  • Chi-Ming Ho

    (Southern Taiwan University of Science and Technology)

Abstract

This paper aims to probe the influence of innovation spillovers in the artificial intelligence (AI) and financial technology (Fin-tech) industries on the value of the internet of things (IoT) companies. Python was utilized to download public information from Yahoo Finance, and then the GARCH model was used to extract the fluctuations of cross-industry innovation spillovers. Next, the Fama–French three-factor model was used to explore the interactive changes between variables. The panel data regression analysis indicates that the more firms accept innovation spillovers from other industries, the better the excess return; however, this effect differs because of industrial attributes and the environmental changes induced by COVID-19. Additionally, this study finds that investing in large-cap growth stocks of IoT firms is more likely to yield excess returns. Finally, the study yields lessons for policy leverage to accelerate the upgrading and transformation of innovation-interactive industries by referring to the practices of Singapore and South Korea.

Suggested Citation

  • Chi-Ming Ho, 2023. "Research on interaction of innovation spillovers in the AI, Fin-Tech, and IoT industries: considering structural changes accelerated by COVID-19," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-29, December.
    • Handle: RePEc:spr:fininn:v:9:y:2023:i:1:d:10.1186_s40854-022-00403-z
    DOI: 10.1186/s40854-022-00403-z
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    More about this item

    Keywords

    AI; Covid-19; Fin-Tech; Innovation spillover; IoT;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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