Innovation in the Financial Sector: Persistence and Schumpeterian Hypotheses

Roberto Napoli

University of Trento.

DOI: 10.4236/jssm.2008.13023                

Abstract

The paper analyses innovation features in the German financial sector. The first topic is persistence of innovation. Our research question is: Do innovators plan further innovation for the subsequent year? In addition, since the sector is so far poorly researched, very basic questions are investigated in the paper: the relationship between firm size and innovation (both linear and quadratic), as well as the impact of market structure on innovation (i.e. Schumpeterian and neo-Schumpeterian hypotheses). Finally, Suttons argument of R & D sunk costs is investigated as a possible explanation for persistence. Basing on the CIS IV survey, our empirical evidence is consistent with the results of similar researches carried out in different sectors.

Keywords

financial innovation, CIS, schumpeterian hypothesis

Conflicts of Interest

The authors declare no conflicts of interest.

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