This issue brings a text written by Michele Cincera, , PhD and Anabela Santos from Solvay Brussels School of Economics and Management, Brussels, Belgium. The authors analyse innovation and access to finance for SMEs in the EU and 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). 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. The authors found some evidence 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.
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This publication is available in electronic format: Innovation and Access to Finance
