Abstract:
A strong relationship exists between innovation and access to finance in the economic development of a country, and constraints to either of these would limit progress in its developmental stage. In studying the demand for innovation finance and the supply thereof in South Africa, an understanding of these synergies and important factors required to improve the overall development stage of the country were gained.
According to the World Economic ForumÕs Global Competitiveness Report 2016-2017, South Africa was one of the highest ranked for financial market development and its capacity for innovation was ranked in the top quartile, but for some reason these two rankings are not aligning for the country to be shifted towards an innovation-driven development stage.
The majority of research suggests that a lack of access to finance constrain an increase in the number of innovative businesses, but others suggest that there arenÕt enough innovative businesses demanding finance to grow the overall innovation sector.
By interviewing entrepreneurs and innovation financiers and understanding the demand and supply strategies, this study identifies important factors that should be focussed on in order to improve a co-existence and improve innovation levels in South Africa.
