Survey of guarantee mechanisms for innovation technology published
'Guarantee mechanisms for financing innovative technology', a survey of best practice guarantee mechanisms used to support innovative technology, has been published by the EU Enterprise DG's innovation policy unit. The survey covers 47 guarantee schemes in 13 EU countries, the Czech Republic, USA and Canada. Schemes are classified on three parameters (species of finance to which guarantees are attached, sponsors and relevance to new, technology based firms) and compared on seven parameters. Comparisons relate to the proportion of the loan covered, fees, interest rates, guarantee duration, eligibility conditions, scheme size and default behaviour. Evaluation of schemes is considered in the context of how problems have been solved and obstacles overcome. Unresolved issues, such as inflexibility in financial markets and a weak ability to mobilise dormant capital are also noted. General and specific benefits of guarantees are identified and linked to relevant characteristics and schemes. Exemplary practices are identified, specifically in four areas: - the use of guarantees as instruments in an integrated programme of financial and advisory support measures; - achievement of synergistic relationships among scheme sponsors, financial intermediaries, NTBF entrepreneurs and RTD (research and technological development) institutes; - improvement of efficiency and effectiveness in scheme design and operational management; - promotion of awareness, training, experimentation and evaluative research in the use of guarantees. The aim of the report is to trigger a discussion which should identify and refine good practices that could be adapted and transferred to other countries or regions in order to improve or introduce guarantee schemes across Europe.