Financing Technology: An Assessment of Theory and Practice

Pasquale Scandizzo

CEIS Research Paper from Tor Vergata University, CEIS

Abstract: Financing technology poses a special challenge to economic institutions for several reasons. First, the uncertainty surrounding all the investment decisions is particularly acute and pervasive in the case of R&D, as well as developing and testing process and product innovation. Second, while the banks appear to have an important role to play, for many types of innovative businesses, they cannot be the sole source of financing. Third, technology ventures appear to face a basic trade off between profit and growth, which may be exacerbated by a difficult relationship with a credit institution. The paper examines these questions both theoretically and empirically, focusing on the US market as the leading financial center capable of providing imaginative solutions and on the Arab countries as a case study of developing economies facing a financial and institutional constraints.

Keywords: Innovation, finance; growth, new economy, risk evaluation, credit supply, Arab countries, government policies, science and technology parks (search for similar items in EconPapers)
Pages: 50
Date: 2004-01-16
New Economics Papers: this item is included in nep-cfn, nep-cse, nep-fin, nep-fmk and nep-ino
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:rtv:ceisrp:43

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