This paper examines how innovations in stock markets — including digital trading platforms, algorithmic trading, FinTech-enabled instruments (e.g., ETFs, tokenization), and enhanced market infrastructure — contribute to economic development. Using an empirical framework that combines descriptive analysis, correlation analysis, and multivariate regression, the study investigates the channels through which market innovations affect economic indicators such as GDP growth, capital formation, liquidity, and financial inclusion. The paper demonstrates the empirical approach using a simulated primary dataset (illustrative of the methods a field-based empirical study would use). Results indicate that higher levels of stock market innovation are positively associated with greater GDP growth through increased liquidity, higher market capitalization growth, and expanded financial inclusion, although increased volatility and cybersecurity risks may partially offset gains. Policy recommendations focus on encouraging inclusive digital market access, supervising algorithmic trading, and strengthening market infrastructure to leverage innovations for broad-based economic development.