Finance for Innovation: New Tools and Approaches

Digital and technological innovation is changing the way innovative firms access debt and equity funding.

With new sources of finance, such as crowdfunding, peer-to-peer business lending, or distributer ledger technologies (e.g. Blockchain, ICO) emerging that are disrupting the supply chain.

This track in the R&D Management Conference will create a discussion of how these new tools and approaches to finance help innovative companies to overcome the funding gap and affect traditional lending and equity markets.

Possible topics may include:

  • The contribution these new tools and approaches to finance make to innovation activity
  • Understanding the role these new technologies play in the entrepreneurial finance ecosystem
  • The kinds of ecosystem required to make these new approaches to finance flourish
  • Interaction with traditional sources of finance
  • Who are the key players and what are their motivations
  • Disruptive impact on banks and funds

We asked track co-chair Vincenzo Butticè, Assistant Professor, Department of Management, Economics and Industrial Engineering, Politecnico di Milano for his views of this emerging sector.

1. What do you think are the most disruptive influences impacting developments in your track?

Vincenzo ButticeDigital and technological innovation is greatly affecting the financial services industry, by changing the way innovative firms access funding. New forms of disintermediated sources of finance, such as crowdfunding, peer-to-peer business lending, or distributer ledger technologies (e.g. Blockchain, ICO) appears every week, shanking existing business and policy makers. We know little about the topic from an academic perspective, the track aims at attracting contributions that helps to fill this funding gap

2. Can you describe some recent findings in this area that are of interest to you personally? 

Fintech innovation in entrepreneurial finance is allowing an increasing number of companies to access financial capital. Crowdfuding is nowadays an important source of alternative finance and ICOs are becoming a new trend as well.

3. If someone was new to this topic what would you suggest they read to get a quick overview of the issues?

FinTech literature is still in its infancy. It is really difficult to find a compressive reading to enter the topic. An interesting reading on the topic is:

Block, J. H., Colombo, M. G., Cumming, D. J., & Vismara, S. (2017). New players in entrepreneurial finance and why they are there. Small Business Economics, 1-12

Proponents: Vincenzo Butticè; Giancarlo Giudici; Massimiliano Guerini.

For more information about the R&D Management Conference.