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Innovation Financing and Use of Income Contingent Loans

Author

Listed:
  • Glenn Withers

    (Universities Australia)

  • Amanda Denniss

    (Universities Australia)

Abstract

Innovation is the engine of growth in the modern knowledge economy. Yet market processes in relation to innovation have important limitations. In this paper the innovation role is defined, market flaws are dissected, the status of current innovation policy instruments is examined and a new way forward based on income contingent loans is proposed. Evidence is provided as to how such schemes can be designed, and how they are an unequivocal efficiency improvement over conventional instruments. Extension of the model to public-private partnership approaches is also considered to further enhance efficiency and effectiveness.

Suggested Citation

  • Glenn Withers & Amanda Denniss, 2009. "Innovation Financing and Use of Income Contingent Loans," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(2), pages 145-165.
    • Handle: RePEc:ozl:journl:v:12:y:2009:i:2:p:145-165
    as

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    References listed on IDEAS

    as
    1. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211, December.
    2. Charles I. Jones & John C. Williams, 1998. "Measuring the Social Return to R&D," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1119-1135.
    3. Derek Bosworth & Mark Rogers, 2001. "Market Value, R&D and Intellectual Property: An Empirical Analysis of Large Australian Firms," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 323-337, December.
    4. Jeffrey I. Bernstein, 1988. "Costs of Production, Intra- and Interindustry R&D Spillovers: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 21(2), pages 324-347, May.
    5. Tim Higgins & Glenn Withers, 2009. "Community Attitudes to Income Contingent Loans," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(2), pages 217-236.
    6. Bosworth, Derek & Rogers, Mark, 2001. "Market Value, R&D and Intellectual Property: An Empirical Analysis of Large Australian Firms," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 323-337, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entrepreneurship; New Firms; Startups Innovation and Invention: Processes and Incentives;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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