Financing Innovation: A Complex Nexus of Risk & Reward

35 Pages Posted: 17 Dec 2019

See all articles by Sourish Dutta

Sourish Dutta

Centre for Development Studies

Date Written: April 10, 2015


The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). .Therefore, in this paper I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of Indian market system.

Keywords: Innovation, Financing Frictions, Entrepreneurial Finance

JEL Classification: G11, G24, O31, O32

Suggested Citation

Dutta, Sourish, Financing Innovation: A Complex Nexus of Risk & Reward (April 10, 2015). Available at SSRN: or

Sourish Dutta (Contact Author)

Centre for Development Studies ( email )

Prasanth Nagar, Ulloor
Trivandrum, Kerala 695011


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