Innovation and Access to Finance

Michele Cincera and Anabela Santos ()
Additional contact information
Anabela Santos: The International Centre for Innovation, Technology and Education Studies (iCite), Solvay Brussels School of Economics and Management, University of Brussels, Belgium

No 6, IRMO Occasional Papers from Institute for Development and International Relations, Zagreb

Abstract: Promoting Research and Development (R&D) activities is the main goal of the EU 2020 Strategy in order to achieve an R&D spending at least 3% of GDP. The Innovation Union is one of the seven flagship initiatives of the EU 2020 Strategy, which has the aims: to improve access to finance for R&D; to get innovative ideas to market; to ensure growth and jobs (European Commission, 2014b). The aim of the present paper is to identify and explain the main mechanisms related to four commitments of Innovation Union: i) Commitment 10 (Put in place EU level financial instruments to attract private finance); ii) Commitment 11 (Ensure cross-border operation of venture capital funds); iii) Commitment 12 (Strengthen cross-border matching of innovative firms with Investors); iv) Commitment 13 (Review State Aid Framework for Research, Development and Innovation). To this purpose, a review of both theoretical and empirical literatures about ’Innovation, Access to Finance and SMEs’ based on more than 80 scientific and other articles and analyses is presented. The paper provides an analysis of the main alternative financial instruments to bank loans, namely Risk-Sharing Facility Financing, Venture Capital, Business Angels and public subsidies. We found some evidence in the literature that Venture Capital could have a limited impact in enhancing innovation in the long-term and that some public support schemes could be more effective than other, depending on the firm’s maturity state.

Keywords: EU 2020 strategy; innovation; finance; Innovation Union (search for similar items in EconPapers)
Pages: 29 pages
New Economics Papers: this item is included in nep-ban, nep-cse, nep-ent, nep-ino, nep-sbm and nep-tid
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.irmo.hr/wp-content/uploads/2013/11/IRMO ... ncera-Santos1909.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to irmo.hr:443 (Bad file descriptor) (http://www.irmo.hr/wp-content/uploads/2013/11/IRMO-OP-1_2016-Cincera-Santos1909.pdf [302 Found]--> https://irmo.hr/wp-content/uploads/2013/11/IRMO-OP-1_2016-Cincera-Santos1909.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:crv:opaper:6

Access Statistics for this paper

More papers in IRMO Occasional Papers from Institute for Development and International Relations, Zagreb Contact information at EDIRC.
Bibliographic data for series maintained by Snjezana Ivanovic ().