Innovation in the Financial Sector: Persistence and Schumpeterian Hypotheses

DOI: 10.4236/jssm.2008.13023   PDF   HTML     6,838 Downloads   11,942 Views   Citations

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.

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R. Napoli, "Innovation in the Financial Sector: Persistence and Schumpeterian Hypotheses," Journal of Service Science and Management, Vol. 1 No. 3, 2008, pp. 215-225. doi: 10.4236/jssm.2008.13023.

Conflicts of Interest

The authors declare no conflicts of interest.

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