New innovation finance products: qualitative research

New qualitative research commissioned by BEIS to understand the appetite for different features of publicly financed debt products.

New innovation finance products: qualitative research

The author(s)

  • Andrej Horvath Ipsos Public Affairs, UK
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Ipsos MORI was commissioned by the Department for Business, Innovation and Skills (now the Department for Business, Energy and Industrial Strategy) in March 2016 to undertake a programme of qualitative research with businesses and financiers (lenders and investors) in order to understand the appetite for different features of publicly financed debt products to support private sector innovation activity. The objective of the study was to inform the development of the business case for the introduction of new instruments by the UK government.

The study team undertook interviews with 40 businesses to gather their detailed views on the topic. These interviews offered an insight into the business model, innovation and funding profile of each business, as well as how various forms of publicly-backed debt products might relate to their specific context and support their innovation projects. To focus these discussions on the specific features of a debt product the study team used a set of hypothetical debt innovation finance products. Interviews with 10 financiers provided the study team with a broader perspective on the products and allowed them to explore the likely short and long term market implications of their potential introduction.

The evidence presented in this report sheds light on the potential appetite of innovative firms for new innovation finance products and provides some detail on the potential explanations for variations in this appetite. It does not attempt to offer systematic evidence or a prediction as to how UK firms might react to the introduction of particular products.

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Technical details

The report is based upon qualitative interviews with innovative businesses and financiers (lenders and investors) carried out in April 2016 and a validation workshop in June 2016.

The author(s)

  • Andrej Horvath Ipsos Public Affairs, UK

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