Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277259 
Year of Publication: 
2013
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 10 [Issue:] 1 [Year:] 2013 [Pages:] 93-105
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
Setting off from an Evolutionary perspective, this paper debates key aspects of the process of financing innovation based on Keynes's asset choice model within the context of Minsky's cycle and the Institutionalist approach of Veblen. Innovative activity is surrounded by great uncertainty because firms invest funds for the long term without being sure whether they will earn high returns. As a result, firms run into additional obstacles when trying to obtain financing to develop new technologies. This difference becomes clearer when developed countries (USA) and less-developed countries (Brazil) are compared. The higher the level of uncertainty in world markets, the lower the amount of funds available to finance innovation; and this situation is accentuated in less-developed countries because they do not have a mature financial system capable of supporting innovation risks.
Subjects: 
financing innovation
uncertainty
asset choice
Veblen
Minsky
JEL: 
E12
O16
O43
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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