Big Innovation Centre | An innovation-friendly financial system

Building an innovation-friendly financial system

The financial system is a pivotal component of the UK’s innovation and investment ecosystem. Following the financial crisis, the financial sector came under enormous criticism for its role in bringing about the most severe recession since the 1930s. In addition, the banking sector has been criticised for neglecting its core business, including lending to support business generation and growth.

This work programme focuses on how to reform the financial sector to ensure such a crisis does not occur again. Specifically, we are looking at the role of the financial sector on two fronts: one, ensuring that the financial system is a source of stability and growth for the economy, and two, mitigating the market failure in lending to innovative, high-growth firms.

The Big Innovation Centre is undertaking cutting-edge analysis on both of these fronts, building on our 2011 submission to the Independent Commission on Banking and our report 'The Discouraged Economy'. First, we seek to propose potential reforms to the regulation of the banking business model to ensure financial stability. Second, we are identifying and evaluating the systemic barriers faced by firms in access to finance, looking particularly at the capital structure of firms as well as risk assessment and mitigation.

Take a look at the work we currently do around finance, incorporated in 3 key themes: banking business models; innovative SMEs; regulatory environment.

Related Reports

Two spheres that don’t touch
This report looks at how the UK’s financial system supports the financing of innovative activities at the aggregate level.

Hiba Sameen
07 June 2013

Credit and the Crisis
Since the 2008 financial crisis there has been a significant tightening in credit conditions and a dramatic reduction in bank lending to small firms.

Neil Lee, Hiba Sameen and Lloyd Martin
07 June 2013

Flexible Project Investments

Brett Douglas, with Gareth Quested and Hiba Sameen
26 February 2013

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INSPIRE [TWO]: SME Entrepreneurs and Funding
If you are an SME Entrepreneur or business with any interest in funding , then please join us for a morning with leading champions of entrepreneurship including Julie Meyer Founder and CEO of Ariadne Capital, Alysia Wanczyk of Seedrs and TED Speaker and creative entrepreneur Samir Ceric.

Friday, 21 June 2013
09:30 - 12:30

Birgitte Andersen at The Economist's SME conference
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Thursday, 02 May 2013 - Tuesday, 02 April 2013
13:00 - 16:25

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Related Blogs

Innovative firms face greater obstacles in obtaining finance, despite being crucial to the recovery
After the launch of the 'Credit and the Crisis' report last week, Hiba takes us through the key findings of her research and their implications.

Hiba Sameen
11 June 2013

Which leadership challenges remain as a barrier to growth for SMEs?
A review of the the leadership challenges which often face micro-businesses and SMEs.

Mike Cherry, Policy Chairman, FSB
21 March 2013

A Budget for innovation and growth? Three tests
Our Senior Economist, Charles, puts forward 3 tests against which to assess the potential for innovation and growth in this year's budget.

Charles Levy
18 March 2013

Related NewsCoverage

Our report on innovative SMEs facing obstacles to finance was reported by Bdaily Business News

Bdaily
17 June 2013

Innovative SMEs stifled by lack of funds, is4profit comment on our report

is4profit
11 June 2013

The TAA publish an article on our 'Credit and the Crisis' report

TaxAssist Accountants
10 June 2013

Related PressReleases

Banks are failing to lend to firms which will drive the recovery, new report shows
A new report published today (7 June) by the Big Innovation Centre warns that innovative small firms – those most crucial to jobs and growth – are finding it significantly more difficult than their peers to secure the funding they need to grow.

Tom Phillips
07 June 2013

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