Analysis of the importance of finance in innovation

Abstract

The importance of innovation as well as open innovation has been widely recognised as the most important tool of business and countries' competitiveness. There is wideranging literature on separate innovation factors affecting the success of an innovation and elaborating the profile of innovative company. In financial economics, finance is considered as one of the most crucial innovation factorrs; and financial gap in the innovation process is one of the most seriuous ones. However, in the context of open innovation, we should reconsider the role of finance, as one of a number of innovation factors of the innovation process. The question is raised whether finance is relevant at all in the innovation journey and whether it can be leveraged by other resources that are available externally (e.g., by increasing knowledge-intensive partnerships).[...]