Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2003

Abstract

Developmental financial institutions (DFIs) in emerging economies regularly assess new technology platforms to support their investments in new ventures, established firms, and technology institutions (TIs). Their financing decisions are guided by national priorities such as achieving technological self-reliance. By providing attractive financing options and related support, DFIs are well placed to consciously channel finance into designated priority technology areas. To better understand DFI roles, we conducted multiple interviews with participants affiliated with DFIs, firms and TIs in India. From data gathered from these interviews and secondary data on DFIs in emerging economies, we develop a preliminary framework to suggest that DFIs, when proactive in making technology assessments, form an important link between developing a firm’s absorptive capacity and building a nation’s innovative capacity. Also, DFI financing facilitates new venture creation in the context of underdeveloped capital markets prevalent in emerging economies. To illustrate these roles, we consider technology support programs of DFIs in India and their role in the information technology (IT) industry.

Keywords

Technology policy, Entrepreneurship, Innovation, Absorptive capacity, Emerging economies

Discipline

Business | Entrepreneurial and Small Business Operations | Strategic Management Policy | Technology and Innovation

Research Areas

Strategy and Organisation

Publication

Research Policy

Volume

32

Issue

1

First Page

89

Last Page

108

ISSN

0048-7333

Identifier

10.1016/S0048-7333(02)00002-1

Publisher

Elsevier

Additional URL

https://doi.org/10.1016/S0048-7333(02)00002-1

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