Title: The difficulties of financing innovation in Europe

Authors: Bernard Guilhon, Sandra Montchaud

Addresses: Centre d'Economie et de Finances Internationales (CEFI) CNRS-FRE 2778, University of the Mediterranean – Aix-Marseille II, France. ' Centre d'Economie et de Finances Internationales (CEFI) CNRS-FRE 2778, University of the Mediterranean – Aix-Marseille II, France

Abstract: The gaps in terms of R&D and innovation between the European countries and the USA can be explained by the specific nature of their current financial systems. Young innovative firms are particularly susceptible to financial difficulties; however, these can be eased by venture capital linked to active financial markets. Sensitive gaps between particular countries exist from the point of view of private equity in the seed and start-up phases.

Keywords: R&D investment; innovation funding; financial systems; financial gap; venture capital; entrepreneurial finance; Europe; entrepreneurship; innovation management; research and development; SMEs; small and medium-sized enterprises.

DOI: 10.1504/IJEIM.2006.010372

International Journal of Entrepreneurship and Innovation Management, 2006 Vol.6 No.4/5, pp.383 - 394

Published online: 17 Jul 2006 *

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