Innovation in times of financialization: Do future-oriented innovation strategies suffer? Examples from German industry

Shareholder value, short-term strategies, quarterly financial reports, and performance-based remuneration are strong indicators of a financial market-oriented company. It is questionable whether innovativeness and sustainable innovation capabilities can be maintained in times of financialization focused on short-term efficiency instead of free space for creativity and learning. Using the example of established German industrial companies, I examined the extent to which financialization and financial market actors steer innovation strategies and practices. In-depth interviews with companies, cluster managers and banks and reviews of financing data do not reveal a direct influence of financial investors on innovation activities. On the contrary, companies' managements still have the power to decide how much financial control and standardization they allow for their companies' innovation practices. The pressure on these German companies to innovate comes from their strong market orientation rather than from financialization.