Open AccessEarly Stage Investing in Green SMEs: The Case of the UK
Author(s) -
Robyn Owen,
Othmar M. Lehner,
Fergus Lyon,
Geraldine Brennan
Publication year - 2019
Publication title -
acrn journal of finance and risk perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.122
H-Index - 2
ISSN - 2305-7394
DOI - 10.35944/jofrp.2019.8.1.011
Subject(s) - venture capital , renewable energy , business , complementarity (molecular biology) , industrial organization , government (linguistics) , transaction cost , finance , economics , natural resource economics , engineering , linguistics , philosophy , biology , electrical engineering , genetics
How might a Green New Deal be applied to the early stage financing of Cleantechs? Amidst rising interest and adoption of Green New Deals in the US, the paper explores the need for more focused policy to address early stage long horizon financing of Cleantechs. We argue that insufficient focus has been applied to early stage investing into these types of innovative SMEs that could lower CO2 emissions across a range of sectors (including renewable energy, recycling, advanced manufacturing, transport and bio-science). Adopting a resource complementarity lens and borrowing from transaction cost theory, we illustrate and build theory through longitudinal UK case studies. These demonstrate how government policy can scale-up through international collaboration public-private, principally venture capital, co-finance to facilitate cleantech innovation with potentially game changing impacts on reducing CO2 emissions in order to meet the Paris 2015 Climate Change targets.