Crowdfunding in sustainable innovation: Insights from and for Germany

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 Germany. This policy brief looks at crowdfunding from several levels: a strategic, programmatic and case level. Concerning Germany attention should be paid to the lowering of regulation, the involvement of crowdfunding within the classic banking service and the appreciation of engagement with a new culture of financial participation.