Innovation financière et croissance économique

Abstract

Financial Innovation and Economic Growth Financial innovation is a recent notion but it lies well within the conceptual framework established by Schumpeter. Nevertheless, its effects on economic growth are indirect. Financial innovation is a self-generating form of technical progress. It can be as disruptive as it can be enduring. It is induced as much by demand as by supply, it economises on manpower and it increases capitalistic intensity in the financial services sector. The transmission period of innovation is relatively short and practices are seen to be sensitive to regulatory and deregulatory measures. Analysis of the Belgian legislation adopted in 1982 creating new financial products by way of fiscal innovation, points to the following conclusions: financial innovation underlies the growth of financial services modifying their production; competition is propitious to financial innovation but regulatory measures may also provoke innovation aimed at avoidance of these measures; the requirements of financial innovation essentially affect the growth of the computer and telecommunications sectors, innovation produces less direct after effects on the economy as a whole. When innovation results in reduced costs which are not retained in the financial services sector but are redistributed to its clients, this can influence economic activity and growth. However, this is true on two conditions only: that other growth factors come into play in enterprise simultaneously and that the general economic, social and legal environment be favourable. Financial innovation cannot be the sole motor of economic growth.