Innovation funding and technology transfer: a crucial issue for economic development

There is a clear correlation between the development of the economy and growth of the financial system. The aim of this paper is to emphasize how the theme of innovation funding is currently closely related to academic research and technology transfer. Correct and complete information for investors is a central issue in order to ensure sufficient flow of resources for the introduction of innovations in production processes and the financing of new businesses. Most of the economic literature supports the idea that the most suitable innovation funding instrument is the venture capital but where, as in Europe, it was not possible to have through the market the amount of equity necessary, the system of credit intermediaries and the public sector can step in and try to cover the gap between supply and demand of investment. The application of academic research results to production through technology transfer activities could be a solution to two crucial issues in EU countries: on the one hand, it would increase the percentage of private funding for research, on the one hand, by promoting the development of relationships between universities and businesses, would increase opportunities for introducing and developing innovations. The issue is going to grow and evolve in the future and, for this reason, it will often be necessary to conduct an analysis of the state of the art and to review and possibly adapt the strategies and tools adopted to address it.