The study reviews access-to-finance conditions met by companies investing in Key Enabling Technologies (KETs) and proposes potential solutions to improve them. KETs are important drivers of innovation, growth and industrial competitiveness in Europe. Approximately 10 000 smaller to medium-sized companies in Europe base their business on the development and commercialisation of KETs. Adequate access-to-finance is widely considered to be a key precondition to ensure further growth and development of these KETs companies.
The study highlights that, despite the exceptionally good market conditions in the financial markets, not all companies benefit from such conditions the same way. Many dynamic innovators and research-driven newcomers find it hard to raise much needed growth capital to develop and scale-up their businesses.
The study also shows that it is not enough to have risk-sharing financial products to resolve KETs companies financing needs. KETs companies are often not aware of these and many need expert financial advice to become “investor-ready”. Similarly, bankers often lack the understanding of new technologies and of their market potential, hence shy away from such investments. What we need is to bring “science to finance” and “finance to science”.
The study was carried out by InnovFin Advisory with the support of Roland Berger Strategy Consultants.