Competition and innovation in the financial sector: Evidence from the rise of FinTech start-ups

Arbeitspapier

We provide new evidence on the effects of competition on incumbents' innovative behavior by examining the rise of FinTech start-ups over the period 2000-2016. We employ machine learning techniques to classify a large global sample of patent applications into five FinTech categories. We exploit the variation in the share of FinTech patent applications by non-financial startups to incumbent financial firms to measure competitive pressures from outside the financial industry. We show that higher competitive pressures from nonfinancial start-ups increases the probability that financial incumbents innovate. Moreover, competition from start-ups results in a higher number of FinTech patent applications by financial incumbents as compared to non-financial firms, especially when the innovations of FinTech start-ups are more important, as proxied by future patent citations count.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: UCD Centre for Economic Research Working Paper Series ; No. WP22/01

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Institutions and Services: General ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Innovation and Invention: Processes and Incentives
• Thema: FinTech ; patents ; machine learning ; financial incumbents ; innovation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Caragea, Doina ; Dobri, Mihai ; Cojoianu, Theodor ; Hoepner, Andreas G. F. ; Peia, Oana
• Ereignis: Veröffentlichung
• (wer): University College Dublin, UCD School of Economics
• (wo): Dublin
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/256818
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ