This paper reviews the major finance-related causes of private under-investment in innovation and the consequent alternative
choices for public policy. The focus is on incentive-based arguments that address the problem of limited appropriability of
new knowledge, and on the lacking access to external sources of finance caused by imperfections in the capital market. Drawing
a policy mind map, which aims to enhance the mutual awareness and coordination of policy makers at the crossroads of technology
and corporate finance, the paper is organised along the following chain of thought: causes and rationales, aims and targets,
critical constraints, and the main finance-related instruments of innovation policy.
Keywords:technological change, corporate finance, innovation policy, fiscal incentives, venture capital
Forschungsbereich:Industrieökonomie, Innovation und internationaler Wettbewerb