Access to Finance for Cleantech Innovation and Investment: Evidence from U.K. Small- and Medium-Sized Enterprises

Marc Cowling, Weixi Liu

Research output: Contribution to journalArticlepeer-review

Abstract

Clean technology (cleantech) is becoming increasingly important as firms and industries seek to address challenges around the global scarcity of resources and also achieve wider social and environmental goals. Yet there are underlying problems with how capital markets respond to this increasing demand for new and innovative cleantech investments. In this article, we use a large U.K. dataset to first consider the extent to which firms engaging with cleantech increase their demand for external capital. We then consider how different types of debt and equity financiers deal with this demand for funds. Our key findings are that: 1) businesses engaging with clean technologies have a higher demand for external capital and 2) these demands are not being fully met by traditional providers which forces firms to seek out alternative and nontraditional sources of finance.

Original languageEnglish
JournalIEEE Transactions on Engineering Management
Early online date3 May 2021
DOIs
Publication statusE-pub ahead of print - 3 May 2021

Keywords

  • Access to finance
  • Business
  • clean technology
  • Companies
  • credit rationing
  • Government
  • Green products
  • Industries
  • Investment
  • small- and medium-sized enterprises
  • Technological innovation

ASJC Scopus subject areas

  • Strategy and Management
  • Electrical and Electronic Engineering

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