Finance and the technology-trade nexus

This paper sketches the contours of the evolving international/monetary sys tem and examines the various roles of the intemediation mechanisms. Then it examines the extent to which the financial system is independent from the "real economy" and the various ways in which it impacts it. The paper discu sses some views in good currency on the dynamics of the technology-trade-fi nance nexus and shows how the financial system influences organization, loc ation and technology choices in mese-innovation systems. The final section of the paper looks at the policy implications that might be derived from th e analysis and suggests some directions for the future research. (C) 1998 P ublished by Elsevier Science Ltd. All rights reserved.