Publication:
Bank Ownership and Firm Innovation

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dc.contributor.authorDe Nicola, Francesca
dc.contributor.authorIootty, Mariana
dc.contributor.authorMelecky, Martin
dc.date.accessioned2023-06-20T14:41:13Z
dc.date.available2023-06-20T14:41:13Z
dc.date.issued2023-06-20
dc.description.abstractThis paper studies the effect of bank ownership on product innovation by borrowing firms, highlighting the role of the state, foreign, and combined foreign-state bank ownership. It uses Enterprise Survey data for more than 22,000 firms in 49 countries from 2016 to 2020, linked to Fitchconnect data on banks: their ownership, soundness indicators, and legal origins. The paper confirms that a firm's access to bank credit is associated with a greater probability of product innovation, even when adjusting for possible reverse causality. If the credit is provided by a state-owned bank, the probability that the borrowing firm will innovate increases. The analysis does not find a similarly positive effect for foreign bank ownership. But when considering the combined effect of foreign state ownership, the results are most statistically and economically significant. Although the results may not be extendable to research and development spending (a key input to innovation), the findings show that foreign state banks can serve as an additional financing vehicle to stimulate radical innovation alongside equity financiers.en
dc.identifierhttp://documents.worldbank.org/curated/en/099515205302312976/IDU0c85603c00c3460462a0b26c056b6774ddfca
dc.identifier.doi10.1596/1813-9450-10458
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/39896
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers; 10458
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank Group
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectFIRM INNOVATION
dc.subjectNEW PRODUCTS AND SERVICES
dc.subjectBANK OWNERSHIP IMPACT ON INNOVATION
dc.subjectSTATE OWNED BANKS
dc.subjectFOREIGN BANKS
dc.subjectINTERNATIONAL FINANCE CORPORATION
dc.subjectLEGAL ORIGINS AND BANK STABILITY
dc.subjectRADICAL INNOVATION
dc.titleBank Ownership and Firm Innovationen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleBank Ownership and Firm Innovation
okr.date.disclosure2023-05-30
okr.date.doiregistration2025-04-07T08:23:09.678184Z
okr.date.doiregistration2025-04-08T16:11:02.357538Z
okr.date.doiregistration2025-04-09T03:01:56.804615Z
okr.date.lastmodified2023-05-30T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099515205302312976/IDU0c85603c00c3460462a0b26c056b6774ddfca
okr.guid099515205302312976
okr.identifier.docmidIDU-c85603c0-c346-462a-b26c-56b6774ddfca
okr.identifier.doi10.1596/1813-9450-10458
okr.identifier.doihttp://dx.doi.org/10.1596/1813-9450-10458
okr.identifier.externaldocumentum34071803
okr.identifier.internaldocumentum34071803
okr.identifier.reportWPS10458
okr.import.id857
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099515205302312976/pdf/IDU0c85603c00c3460462a0b26c056b6774ddfca.pdfen
okr.region.administrativeEurope and Central Asia
okr.sectorPublic Administration - Financial Sector
okr.topicScience and Technology Development::Innovation
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Competitiveness and Competition Policy
okr.topicFinance and Financial Sector Development::Public & Municipal Finance
okr.unitEFI-ECA-FCI-Finance-1 (EECF1)
relation.isAuthorOfPublicationdf7e1e55-05d4-558a-a340-71941945e91d
relation.isAuthorOfPublicationc2369c70-649c-4c08-a1c8-b1dcb7d123de
relation.isAuthorOfPublication.latestForDiscoverydf7e1e55-05d4-558a-a340-71941945e91d
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