Innogen · Research · Current projects
Finance, Innovation and Growth: changing patterns and policy implications (FINNOV)
Funding: EC FP7
March 1 2009 – February 29 2012
The Lisbon Agenda (2000, 2005) set out a new industrial policy for an enlarged European Union that aims to enhance long-term economic performance and improve the ability of European firms to generate innovation and growth. This was seen to require improvements in the generation of new knowledge and better translation of new inventions into the commercial innovations that generate productivity improvements and economic growth. Invention and experimentation in industry is central to these processes, but innovation involves more than invention, science and technology, or R&D. Innovation needs to be appropriately managed, organised, and financed.
The role of finance in innovation has been poorly understood, but the effective operation of the credit and financial markets that supply finance and monitor and redistribute the returns to innovation is essential to the long-term economic and social coherence of Europe. This project helped to provide a deeper understanding of these complex relationships between innovation and financial markets, in order to information policy and practice within a post-financial crisis Europe. Its key themes explored: finance and the economic of risk and uncertainty; the interaction between financial institutions, modes of financing, and innovation and growth; and the links between economics of innovation and inequality.