FINNOV

Abstract: Different sources and forms of capital are committed to risky investment in innovation and the way in which these are translated into value varies considerably across countries, sectors of the economy and firms. The work package EXPERIMENTATION explores the nature of different innovation financing models and investigates the link between business financing and the characteristics of innovative firms. Its theoretical contribution is the development of a Schumpeterian perspective on the financing of business experimentation. Its empirical contribution consists of a set of novel analyses of the financial foundations of entrepreneurship and the process of creative destruction.