The dynamics of financial innovation system

This article investigates the financial innovation system, a crucial sectoral innovation system underlying the national innovation system, and business finance issues upon start-up financing to support technology and innovation development. The study highlights the importance of US government financing programmes as a successful model of national institutional framework in promoting economic performance and utilizes the case of Thailand to explore the dynamics of the financial innovation system. The paper examines the government policies and financing programmes of major institutions legitimizing technology and innovation financing activities such as the Ministry of Finance, Ministry of Science and Technology and Ministry of Industry. The results provide empirical evidence of the financial innovation system and useful implications for policy makers to strengthen the national capabilities in science and technology.