FINNOV First Policy Brief (Do Financial Markets Reward Innovation?)

01 January 2010

The FINNOV project studies the relationship between financial markets and the real economy. FINNOV first policy brief focuses on whether financial markets reward or penalize innovation. Do innovative firms receive more finance than non-innovative ones? Do they grow more? Do they get better credit ratings? How does the shareholder revolution affect R&D spending? And do some well-positioned economic actors reap significant returns even when their actions result in value destruction rather than value creation?

These questions are relevant not only to understand whether financial markets will be able to finance (VC, bank funds, etc) innovation and whether the stock market will respond to such investments, but also to better understand the nature of the crisis in the first place.

FINNOV Policy Brief Spring 2010201.3 KB