How to Finance Innovations: Issues and Possible Instruments

This paper discussed the issues and possible instruments that are linked with the financing of innovation activities and projects. The paper elaborated the sources of investment to carry out innovative programs and also demonstrated the importance of government funding and venture capital, especially for the newly establish companies. The paper also discussed the key arguments like the significance of cashflow and role of asymmetric information, and depicted that how these factors can affect while financing an innovative activity or project.