Module 6: Financing innovation


The relevance of the innovation activities of innovative SMEs (particularly start-ups) in the national innovation system and the most important standards and options for financing these innovation activities will be outlined.  The most important characteristics and advantages and disadvantages of different forms of financing are illustrated and the possibilities of government funding will be discussed.


  • Description of the role of innovative SMEs and/or start-ups in the national innovation system and the nature and characteristics of their innovation activities;
  • Definition of innovation financing  and its importance for SMEs;
  •  Description of alternative formal and informal forms and sources of funding available for start-ups and a comparison of their most important characteristics;
  • Description of the different phases in the development of SMEs, their respective funding mix and the problems in the early stages, i.e. the notorious funding gap in the early stages;
  • Options for political influence to improve the financing conditions of start-ups, clarification of political need to act and/or regulate

The module financing innovations illustrates basic knowledge of the characteristics of financing innovation in SMEs, emphasizing the financing of the early phase, i.e. the financing of start-ups. The most important alternatives of internal and external sources of funding available for SMEs (i.e. investors) and their most important differences will be illustrated. Possible applications and limits of new forms of financing such as microfinancing and crowdfunding will be discussed. Finally, the role of government funding of innovation of SMEs will be addressed and the financing instrument option will be discussed. Wherever possible, practical examples ("good and bad practices") will illustrate the course content.




Courses (in German)


© 2013 Innovation course  Imprint | Data Protection