Banking and innovation: a review

We summarize the major findings of empirical studies that examine effect banking development on innovation and highlight their relative contributions to our understanding various roles sector plays in determining innovation. reassess innovation, extending scope analysis more granular dimensions Asian economies where financial markets are less developed. find while theoretical implications generally indefinite about ambiguous given distinct focus sample firms underlying channels investigated. The conditions also matter drawing for institutions Specifically, when stock market is relatively developed, as most economies, banks play a significant role financing promoting Therefore, it seems plausible policy makers these regions strengthen improve depth credit market.In this survey, we will understanding.