We explore the evolution of financial innovation using US finance patents. Patented financial innovations are substantial and increasingly economically important. Their subject matter has changed, consistent with the industry’s shift toward household investors and borrowers. Information technology (IT) and other nonfinancial firms drove the surge in financial patenting. The location of innovation shifted, with banks moving activity away from states with tight financial regulation and high-tech regions attracting innovation by payments, IT, and nonfinancial firms. Analyses of returns suggest that the social value of these innovations is higher than their private value. We present a simple model to explain these trends.

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二十一世纪的金融创新：来自美国专利的证据

我们利用美国金融专利探索金融创新的演变。获得专利的金融创新意义重大，而且其经济重要性也日益提高。他们的主题已经改变，与行业向家庭投资者和借款人的转变一致。信息技术 (IT) 和其他非金融公司推动了金融专利申请量的激增。创新的地点发生了变化，银行将活动从金融监管严格的州转移，高科技地区吸引了支付、IT 和非金融公司的创新。回报分析表明，这些创新的社会价值高于其私人价值。我们提出一个简单的模型来解释这些趋势。