Business finance for R&D:
Table of contents
1. Introduction: To what extent an economic downturn affects corporate R&D p.2
2. Different ways of funding business R&D p.10
3. Collaborative financing for R&D p.18
4. R&D funding and the public-private nexus p. 21
5. Fostering investments in R&D activities: a mix of public measures p.27
6. Public investments in R&D: a focus on the Italian grant fostering R&D from the private sector p.33
7. Financing R&D: enhancing the efficiency of R&D expenses in the European Union p.37
8. A potential for innovation: low and high tech sector p. 41
9. The role of R&D investment for low tech sector p. 46
10. Conclusions and References p.49
The current crisis is challenging companies belonging to any sector and around the globe. Rising economic pressure commonly translates into cost reduction strategies and thus companies tend to rethink also their engagement in R&D. Hence, the shortage in finance may cause a short-term drop in R&D, referring mainly to a delayed launch of new R&D projects; some scheduled projects may finally turn out to be realized 'slimmer' while others may even be given up entirely simply because the company cannot afford investing in R&D.
In turn, such an ad hoc drop in the R&D spending may affect the effectiveness of R&D activities also in the mid-run since innovation systems, technological clusters, university-industry links, etc. might be sustainably damaged ('financially dried out').
And any rethinking of R&D strategies may also imply a final reorientation and thus may have a long-term effect too not only in terms of technological development but also for the whole business; for instance in concentrating corporate R&D activities on fewer – core – business areas, emerging technological sectors and markets only....