Investment frameworks project
This project is concerned with reviewing the influence of public and private investment on emerging industries. The research aims to develop new models for public investment, and to influence future policy towards the support of investment for emerging industries in the UK.
A key element in the development of a technology, a company or an industry is the availability of finance. Much research effort has been directed at understanding the role of venture capital, angel investment and public investment in relation to individual technologies (e.g. Lamoreaux and Sokoloff, 2007; Bhidé, 2006; Connell, 2004). Studies have also been carried out, at the company level, in relation to the readiness of a firm for investment. However, there has been little analysis of the role of public and private investment to support the emergence of a new industry.
The project will analyse historic case studies as well as conducting interviews with current investors, both public and private. It aims to provide a better understanding of how an emerging industry attracts investment at the development and scale up stage of the commercialisation of a new technology - the so-called 'valley of death' (Evans, 2002) when funding is particularly difficult to find.
In order to ensure that this project is well connected to the rest of the Emerging Industries Programme and the various stakeholders involved, a set of regular outreach workshops will be held throughout the life of the project. These will present the latest results and gain feedback to assist in the continuing development of the work.
- Maps of investment over the gestation period of two to three industries (for example regenerative medicine, or fuel cells for automotive use)
- Analysis of the criteria used by private and public investors as to when an industry is 'investible'
- The development of new models for public investment to speed the emergence of new industries