Crowdfunding and Innovation

Hervé, Fabrice; Schwienbacher, Armin

doi:10.1002/9781119565178.ch11

Cited by 21 publications

(30 citation statements)

References 73 publications

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“…Nonetheless, ECF should increase the level of innovation within a SME, due to idea generation and external feedback from backers; for example, in Herve and Schwienbacher's (2018) survey paper, these influence mechanisms play an important role in establishing the link between innovation and entrepreneurial firms.…”

Section: The Crowdfunding Domainmentioning

confidence: 99%

“…Moreover, information cascades that emerge when network participants can watch the investment decisions of other investors may allow for the speedy and costless transfer of knowledge from customers to the entrepreneurs (Vismara 2018). We thus investigate the extent to which ECF impacts performance and growth opportunity of SMEs through the influence mechanism of the wisdom-of-crowd effect (Polzin et al 2017;Herve and Schwienbacher 2018). Our analysis of data collected through the Fame BVD database for SMEs operating in the UK for the 2014-2017 period suggests that ECF does not improve SME innovation; however, SMEs exhibited an increase in growth opportunity (GO) following the use of crowdfunding.…”

Section: Introductionmentioning

confidence: 99%

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What impact does equity crowdfunding have on SME innovation and growth? An empirical study

2019

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We examine the impact of equity crowdfunding on innovation and growth opportunity within small- and medium-sized enterprises. While previous studies have generally focused on the realm of crowdfunding and how it can close the financing gap for small firms, recent academic attention has turned toward assessing the outcome of equity crowdfunding, measured in terms of successes (or failures) in post-campaign firm financing. Using data from Fame BVD for small firms operating in the UK, we investigate whether equity crowdfunding can act as a catalyst for innovation and growth. The findings show that crowdfunding does not have a significant influence on innovation in small firms, thereby disproving the proposition that the use of crowdfunding leads to an increase in innovation. Nonetheless, crowdfunding does have an impact on the growth opportunity of small firms, with a strong positive correlation. Our further tests on return on assets models and propensity score and controlled firm-matching models show a positive impact of crowdfunding on small firms’ performance. We also discuss the implications of our findings for small firms’ use of equity crowdfunding for business growth opportunities.

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Section: The Crowdfunding Domainmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

What impact does equity crowdfunding have on SME innovation and growth? An empirical study

2019

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“…The principle of neutrality warns against using public funding for entrepreneurial finance: administrative procedures to allocate funding risk being gamed or biased against exactly the type of players that such programs intend to support. That said, the decentralized decision characteristics of crowd financing can be a useful tool for improving access to public funding for small, innovative ventures (Hervé and Schwienbacher 2018). Such financing could, for example, be beneficial for the Juncker Fund, a high-profile public funding scheme that has been criticized for emphasizing "shovel-ready" projects over smaller, more risky, innovative ventures (Schneider 2015b).…”

Section: Experimenting With New Technology To Finance Venturing In Almentioning

confidence: 99%

The Entrepreneurial Society

Sanders

Elert

Henrekson

2019

International Studies in Entrepreneurship

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“…Currently, in the form of online crowdfunding platforms, it is of interest for approximately 10 years and its importance in investing in startups and other projects (building, artistic, social, etc.) is growing (2008 -platform Indiegogo and 2009platform Kickstarter) (Soltes and Stofa, 2016;Herve and Schwienbacher, 2018). Herve and Schwienbacher (2018) distinguish between crowdfunding and crowdsourcing.…”

mentioning

confidence: 99%

“…is growing (2008 -platform Indiegogo and 2009platform Kickstarter) (Soltes and Stofa, 2016;Herve and Schwienbacher, 2018). Herve and Schwienbacher (2018) distinguish between crowdfunding and crowdsourcing. According to them, crowdfunding is a mixture of crowdsourcing and microfinance.…”

mentioning

confidence: 99%

Benchmarking of Slovak Regions in Terms of Start-UP Implementation Indicators and Creative Potential Indicators

Piteková

Vrábliková

2019

MMI

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Creative regions contribute to a higher standard of living, are attractive to start-ups, create new jobs, reduce brain drain and attract applicants for university education. The paper aims to compare selected indicators of implementation of start-ups and creative potential in the regions of Slovakia at NUTS 3 level and to quantify their mutual relationship. Benchmarking of 8 Slovak NUTS 3 level regions is based on 2 comparisons, namely: 6 indicators of start-ups implementation (frequency of start-ups, creation of radical innovations, employment in fast-growing companies, venture capital awareness, crowdfunding awareness and possibilities of counselling in the implementation of start-ups) and 6 indicators of creative potential (openness and diversity, human capital, cultural environment, technologies, institutional environment and creative outputs). Numerical values of these indicators are obtained from secondary research studies – e. g. modified Slovak Creative Index, Regional Innovation Scoreboard, Slovak Start-up Report and websites of innovation incubators and crowdfunding platforms. To obtain the true values of these criteria, the analysis of secondary data – desk research and the method of pairwise comparison with 91 respondents (students of Slovak universities of economic orientation with Slovak or Ukrainian nationality) was used to determine the real significance (weights) of the criteria. According to pairwise comparison, the most important indicator of start-up implementation is possibilities of counselling and the most important indicator of creative potential is creative outputs. Consequently, the relationship between the two comparisons is quantified. The global benchmark based on the implementation of start-ups is the Bratislava region, as well as in the case with creative potential. There is a strong correlation (85.5 %) between the scores of the compared regions. The final ranking of the 5 regions out of 8 in both comparisons is also the same. The theoretical contribution is extending of the issue of benchmarking from traditional understanding (products, services, processes) to spatial understanding (region). The main practical contribution of the paper is to identify the weaknesses of each of the compared regions through benchmarking. Its implementation can be the basis for the development of regional strategies and the introduction of new study programs at universities. Keywords: benchmarking, creative potential, region, Slovak Republic, Start-UP.

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Crowdfunding and Innovation

Cited by 21 publications

References 73 publications

What impact does equity crowdfunding have on SME innovation and growth? An empirical study

What impact does equity crowdfunding have on SME innovation and growth? An empirical study

The Entrepreneurial Society

Benchmarking of Slovak Regions in Terms of Start-UP Implementation Indicators and Creative Potential Indicators

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