The Use of Intellectual Property Rights for Corporate Financing

In their study on the financing of intellectual property (IP), WIFO economists Werner Hölzl and Jürgen Janger shed light on the legal framework and relevant institutions in credit and venture capital financing and identify the challenges and opportunities of IP-based financing in Austria.

Intangible investments play an increasingly important role in the knowledge-based economy. This poses challenges for bank-based financial systems, such as Austria, to finance investments in intangible assets.

According to the study, there is potential for improvement. In particular, smaller companies and start-ups with little equity capital find it difficult to raise sufficient funds for their business idea in Germany. This is because securities are required for a bank loan – and these are often lacking. At the same time, the venture capital market in Austria remains underdeveloped.