Financing R&D and Innovation for Corporate Growth: What new evidence should policy-makers know?
The Policy Brief addresses the results of a recent European Conference on the Financing R&D and Innovation (CONCORDi-2013: http://iri.jrc.ec.europa.eu/concord/2013/index.html). It presents recent empirical evidence on the topic and attempts to draw a number of policy-relevant messages to be brought to the attention of policymakers, as well as open questions requiring further research to address policy needs. This document provides state-of-the-art evidence and the most recent value-added results, summarised as follows: a) Financial constraints are important obstacles to R&D and innovation in EU firms, and the importance of these obstacles depend on factors that are both internal and external to firms. b) The reduction of information asymmetries can considerably lower the barriers to access financial resources for corporate R&D and innovation activities. c) Among external financial instruments, bank loans are the least attractive, while venture capital is (still) considered suitable for financing R&D and innovation projects, although they have a too short a time horizon to yield returns. Crowdfunding has been identified as a new emerging financial instrument. d) Policy remedies to financial shortages and barriers are not affected by crowding-out, but their additionality is very sensitive and not yet systematic. Public venture capital and public use of crowdfunding are issues to be further investigated. e) The great heterogeneity of companies and framework conditions across countries and regions calls for better analyses and monitoring of instruments. f) Both scientists and policymakers participating to CONCORDi-2013 called for establishing a stronger network of R&D and innovation policy evaluators to support the proper implementation of the upcoming European financial support instruments agreed for the period 2014-2020.
MONCADA PATERNO' CASTELLO Pietro;
VEZZANI Antonio;
HERVAS SORIANO Fernando;
MONTRESOR Sandro;
2014-01-20
Publications Office of the European Union
JRC86062
978-92-79-34510-4,
1831-9424,
EUR 26272,
OP LF-NA-26272-EN-N,
http://ftp.jrc.es/EURdoc/JRC86062.pdf,
https://publications.jrc.ec.europa.eu/repository/handle/JRC86062,
10.2791/38265,
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