Fostering innovation beyond basic research grants – how (missing) cooperation between innovators and investors affects innovation performance
Abstract
This research article highlights the role of investors vis-à-vis government supported research partnerships. Using an evolutionary approach to innovation we show that public agencies could leverage their invested money by establishing a intense knowledge exchange between innovator and investor. Intense knowledge exchange and the willingness to learn is they key do effective commercialisation and diffusion. To attract further investments in government supported R&D partnerships advanced signalling techniques to indicate the quality of the projects are needed. Prior research has highlighted the positive impact of carefully selected participants of these projects. We deepen the knowledge about selection schemes, regulation and criteria to reduce information asymmetries between innovators and investors.