Ramana Nanda () and
William Kerr ()
Annual Review of Financial Economics, 2015, vol. 7, issue 1, 445-462
We review the recent literature on the financing of innovation, inclusive of large companies and new start-ups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multistage innovation projects and how this impacts optimal financing design. We further highlight the strong interaction between financing choices for innovation and changing external conditions, especially reduced experimentation costs.
Keywords: banks; entrepreneurship; experimentation; finance; innovation; venture capital (search for similar items in EconPapers)
JEL-codes: G21 G24 L26 M13 O31 O32 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text downloads are only available to subscribers. Visit the abstract page for more information.
Working Paper: Financing innovation (2015)
Working Paper: Financing Innovation (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:anr:refeco:v:7:y:2015:p:445-462
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in Annual Review of Financial Economics from Annual Reviews Annual Reviews 4139 El Camino Way Palo Alto, CA 94306, USA.
Series data maintained by http://www.annualreviews.org ().