FINNOV – Finance, Innovation and Growth: Changing Patterns and Policy Implications (CBR project)

Overview

Aims and objectives

The CBR is leading the EC FP7 FINNOV consortium activities on ‘Capital Markets and Innovation: Financing Business Experimentation in Europe’ (WP 3). This work package aims to understand the interactions between innovation and innovation financing and the ways in which innovation finance policy instruments can match the needs of heterogeneous economic and business contexts. Andrea Mina and Samantha Sharpe completed reviews of the literatures and data on venture capital and corporate venture capital. Hughes (with Panos Desyllas of Manchester Business School) explored the links between takeovers and private and public quoted company innovation performance. Jocelyn Probert is developing an in-depth study of the corporate venturing process and its relationship with firm (investor and investee) behaviours. Targets include Unilever, BASF, Dow, Novartis, Siemens and Intel.

Progress

The key themes that will be explored across seven empirical ‘Work Packages’ (WP) are: CBR papers were presented at the 2010 FINNOV Conference organised by Professor Mariana Mazzucato and Professor Giovanni Dosi at the Sant’Anna School of Advanced Studies (13-14 May, Pisa). Among the follow-up initiatives, after his participation at the EC FP7 FINESS (Financial Systems, Efficiency and Stimulation of Sustainable Growth) Workshop held at the Berlin-Brandenburg Academy of Sciences in 2009, Andrea Mina was invited external discussant at EC FP7 VICO Conference held at Politecnico di Milano on 8 July 2010. In June 2010 FINNOV was one of very few EC projects to be invited to the EC 2020 Meeting (Brussels) to discuss the implementation strategy of the new EC policy agenda.

The FINNOV Final Conference: Financing Innovation and Growth: Reforming a Dysfunctional System of the FP7 FINNOV project (Finance, Innovation & Growth) took place on 1-2 February 2012 at the House of Commons (Day 1) and the Italian Cultural Institute (Day 2) in London. The conference focused on the need for finance to be reformed so that it serves innovation and value creation – rather than innovation serving finance and too much value destruction. Our motto is: finance for creative destruction not destructive creation.

For further details contact Andrea Mina or visit the FINNOV website.

Cambridge project leader

  • Andrea Mina

Other principal investigators

  • Alan Hughes
  • Stan Metcalfe

Research fellows

  • Henry Lahr
  • Jocelyn Probert
  • Samantha Sharpe

Collaborating institutions

The Open University (UK)
Sant’Anna School of Advanced Studies (Italy)
Polytechnic of University of Marche (Italy)
Economics Institute (Czech Republic)
University of Bordeaux (France)
University of Sussex (UK)

Project dates

2009-2011

Funding

European Commission, FP7

Output

Journal articles

Lahr, H. and A. Mina (2013) ‘Exit risk, technological opportunities and the stage distribution of venture capital investments’, Financial Management, forthcoming. 

Lahr, H., (2013) ‘An improved test for earnings management using kernel density estimation’ European Accounting Review, forthcoming. 

Mina, A., Lahr, H. and Hughes, A. (2013) ‘The demand and supply of external finance for innovative firms’ Industrial and Corporate Change, 22(4): 1-33.

Desyllas, P. and Hughes A. (2010) ‘Do high technology acquirers become more innovative?’ Research Policy, 39: 1105-1121.

Desyllas, P. and Hughes, A. (2009) ‘The revealed preferences of high technology acquirers: an analysis of the characteristics of their targets’ Cambridge Journal of Economics, 33: 1089-1111.

Book chapters

Deakin, S. and A. Mina (2013) ‘Institutions and innovation: is corporate governance the missing link?’ in M. Pittard, A. Monotti and J. Duns (eds.) Business Innovation: A Legal Balancing Act – Perspectives from Intellectual Property, Labour and Employment, Competition and Corporate Laws’, pp. 456-482 (Cheltenham: Edward Elgar).

Working papers

Wennberg, K., Lee, C., Tether, B. and Mina, A. (2010) ‘Turning digital: diversification in UK design consultancy services’ Imperial College London (Business School) Working Paper, March 2010; CBR WP 413, September. 

Mina, A. (2009) ‘Risk capital and innovation: corporate venture capital’ FINNOV Working paper 3.1b.

Conference papers

Lahr, H. and Mina, A. (2013) ‘Exit risk, technological opportunities and the stage distribution of venture capital investments’, BAFA 2013, April.

Lahr, H. and Mina, A. (2013) ‘Exit risk, technological opportunities and the stage distribution of venture capital investments’, FMA 2013, April.

Lahr, H., Mina, A. (2013) ‘Dynamic financial constraints and innovation: Evidence from the UK Innovation Surveys’, CONCORDi 2013 (Winner of the Best Paper Award). 

Lahr, H. and Mina, A. (2013) ‘Coaching or selection? Venture capital and firms’ patenting performance’, 2012 Financial Management Association (FMA) Annual Meeting, Atlanta, 18 October; 2013 DRUID Summer Conference ESADE, Barcelona, 17-19 June; AoM Annual Meeting 2013, Lake Buena Vista, Orlando, 9-13 August. 

Lahr, H. and Mina, A. (2013) ‘Coaching or Selection? Venture Capital and Firms’ Patenting Performance’, FMA 2012, June.

Hughes, A. (2012) ‘Lessons for Government Policy’, FINNOV Policy Debate at the House of Commons, House of Commons Members Dining Room, London.

Mina, A. (2012) International Schumpeter Conference, University of Queensland, Brisbane, 2-5 July. 

Mina, A. (2012) DRUID Summer Conference 2012, Copenhagen Business School, Copenhagen, June 19-21. 

Mina, A. (2012) SPRU-CENTRIM Freeman Centre Seminar Series, University of Sussex, Brighton, 18 May. 

Mina, A. (2011) EC FP7 ‘FINNOV – Finance, Innovation and Growth’ Final Conference, House of Commons, UK Parliament, and Italian Institute of Culture, London, 1st-2nd February (Panel 3: First Speaker). 

Mina, A. (2011) Manchester Institute of Innovation Research, Manchester Business School, Seminar Series, 14 November. 

Mina, A.(2011) EAEPE Annual Conference “Schumpeter´s Heritage – The Evolution of the Theory of Evolution”, Vienna, 27-30 October.

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