- Subject index
This book analyzes a range of social contexts in which human decisions shape technology in the market economy. It comprises a critical review of both a select research literature and in-depth historical studies. Material is drawn from many social science disciplines to inform the reader of the reality of taking decisions on innovation.
Chapter 6: Finance – Techniques, Institutions and Innovation
Finance – Techniques, Institutions and Innovation
Innovation and development are expensive activities and no wonder that in the private sector – but not necessarily the public – they are undertaken for the prospect of financial return. In a fantasy world without uncertainty projects could be ranked and developed by the relative scale of their profitability; in reality uncertainty dogs the evaluation of development costs and future returns. In these circumstances the strict application of textbook financial evaluation may generate dysfunctional patterns of investment. This chapter aims to review some of the diversity of means that organisations and society have developed to evaluate and finance innovation. With this departure point, both internal techniques of financial appraisal and external institutions such as ...