Community Research and Development Information Service - CORDIS


Funding of new technology-based firms by commercial banks in Europe

Funded under: FP5-INNOVATION-SME


Innovation Policy Studies - Innovation Finance

This study looks not at equity but at loan finance and associated services offered by commercial banks to a particular subset of small firms - new technology-based firms or NTBFs. The classic definition of an NTBF is a firm that is less than 25 years old, is independent of larger companies, and is established to exploit inventions or innovations.

The study attempts to understand the situation from the supply side, and to codify good practice. Data were collected by interviews with 49 bank branches across Europe, and in the United States and Israel, chosen for their proximity to science parks, where one would expect to find clusters of potential NTBF customers. Expert interviews and a literature search were also conducted.
A summary of the study is contained in the publication "Building an innovative economy in Europe", which summarises the first 12 studies in the Innovation Policy Studies series (

The summary can also be downloaded below.

The full study is available free of charge from the Enterprise DG's Innovation Directorate at

EUR 17025
ISBN 92-828-9731-1
Catalogue Number: NB-NA-17025-EN-C

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Record Number: 1809 / Last updated on: 2004-06-25
Category: MISC