Crowdfunding in Sustainable Innovation: Insights from and for Austria

Stefan Philipp, Kaisa Johanna Matschoss, Juha Petteri Repo, Anita Tregner-Mlinaric

Research output: Book/ReportCommissioned reportProfessional

Abstract

The take up of innovative services and products has contributed to creative thinking also in terms of new sources of financing. Innovation processes are characterised by constant development, and it is beneficial if models of financing can be aligned to that. Crowdfunding, i.e. collecting finance from publics, has emerged as a new alternative also in the field of sustainable innovation. Crowdfunding is particularly interesting for Small and Medium size companies (SME’s) looking for financing when their product or service is not considered quite ready for investments. This policy brief looks how crowdfunding relates to sustainable innovation. It introduces crowdfunding as an activity, discusses it in relation to sustainable innovation and looks at the development of crowdfunding in Austria. This policy brief looks at crowdfunding from several levels: a strategic, programmatic and case level. While the European crowdfunding volume is increasing and it is becoming an important source of capital for start-ups and SMEs, the Austrian market for alternative financing is rather small. Different platforms exist for crowd-donation, crowd-sponsoring as well as crowdinvesting but the total volume is still below the European average. In 2014 Austrian platforms helped to raise a total of 3.6 Mio. Euro which equals 0.4 Euro per capita. For comparison, the European average is about 2.1 Euro per capita. Even though the legal framework for crowdinvesting was changed in summer 2015, experts don’t think that the alternative financing market will grow substantially during the next years.
Original languageEnglish
Publisher¨Public Participation in Developing a Common Framework for Assessment and Management of Sustainable Innovation, CASI
Publication statusPublished - 22 Dec 2015
MoE publication typeD4 Published development or research report or study

Fields of Science

  • 512 Business and Management
  • 1172 Environmental sciences
  • 511 Economics

Cite this