TY - JOUR
T1 - Fin vs. tech
T2 - Are trust and knowledge creation key ingredients in fintech start-up emergence and financing?
AU - Cojoianu, Theodor Florian
AU - Clark, Gordon L.
AU - Hoepner, Andreas G.F.
AU - Pažitka, Vladimir
AU - Wójcik, Dariusz
N1 - Funding Information:
We acknowledge that this work has been supported by funding from the Smith School of Enterprise and the Environment, the IRC and the EU Horizon 2020 Marie Sklodowska-Curie grant agreement No. 713279 (CLNE/2018/202) and the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No. 681337) - CityNet Project and Fintech Project grant No. 825215. We are also grateful to Rupert Stuart Smith for website data collection research assistance. None of the above should be held responsible for any errors or omissions.
Publisher Copyright:
© 2020, The Author(s).
PY - 2021/12
Y1 - 2021/12
N2 - We investigate how the emergence of fintech start-ups and their financing is shaped by regional knowledge creation and lack of trust in financial services incumbents across 21 OECD countries, 226 regions and over the 2007–2014 period. We find that knowledge generated in the IT sector is much more salient for fostering new fintech start-ups than knowledge generated in the financial services sector. Additionally, the importance of new knowledge created in the financial services sector (IT sector) increases (decreases) as fintech start-ups grow and seek financing. When the level of trust in financial services incumbents falls within a region, this is followed by an increase in the financing provided to fintech start-ups. Nevertheless, regions with historically low average levels of trust in financial services incumbents attract less fintech investment overall.
AB - We investigate how the emergence of fintech start-ups and their financing is shaped by regional knowledge creation and lack of trust in financial services incumbents across 21 OECD countries, 226 regions and over the 2007–2014 period. We find that knowledge generated in the IT sector is much more salient for fostering new fintech start-ups than knowledge generated in the financial services sector. Additionally, the importance of new knowledge created in the financial services sector (IT sector) increases (decreases) as fintech start-ups grow and seek financing. When the level of trust in financial services incumbents falls within a region, this is followed by an increase in the financing provided to fintech start-ups. Nevertheless, regions with historically low average levels of trust in financial services incumbents attract less fintech investment overall.
KW - entrepreneurship
KW - fintech
KW - innovation
KW - knowledge spillovers
KW - trust
KW - venture capital
UR - http://www.scopus.com/inward/record.url?scp=85086357162&partnerID=8YFLogxK
U2 - 10.1007/s11187-020-00367-3
DO - 10.1007/s11187-020-00367-3
M3 - Article
AN - SCOPUS:85086357162
SN - 0921-898X
VL - 57
SP - 1715
EP - 1731
JO - Small Business Economics
JF - Small Business Economics
IS - 4
ER -