Funding Structures

some ideas for designing innovative funding

instruments

Brigitte Hatvan

Overview

• Demand for finance

• Public funding / private investment

• Framework conditions for innovation funding

• Some conclusions for project work

Demand for finance / firms seeking finance, EU 20

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Demand for finance / firms seeking finance, EU 20

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Financing innovation – public funding

OECD: Measuring Innovation: A New Perspective, 2010, http://www.oecd.org/innovation/strategy/measuring

National vs. regional public investment

Financing innovation – venture capital funds

• Venture Capital tends to concentrate on a few sectors at a time• Good performance of the VC sector requires a market for small and new firm stocks (IPOs)

in order to provide an exit strategy for early stage investors

Financing innovation – private investors

Enlargement of innovation concept / target groups

applied research<->

innovation

basicresearch

marketintroduction

Complexity of multi-level innovation policy

regionallevel

EU policies,strategies, programmes

nationallevel

Differentiation of institutions / stakeholders and their roles

Non-institutional stakeholders and service providers

Funding institutions

Intermediary agencies

Framework conditions for innovation funding

Designing an innovative funding instrument

• Target group orientation

• Thematic focus

• Communication tool

• Risk management

• Role definition in funding process

LOOKING FORWARDTO INTERESTING DISCUSSIONS …