Findings

Our main result is represented by the direct and indirect relationships in the ‘finance- innovation-policy nexus’ leading from institutional investors to PE and VC investors and ultimately to the innovators and which is accompanied by financial regulation and innovation policy. On the one hand, financial regulation targeting institutional investors causes trickle-down effects via PE and VC investors toward CT innovators (which are not directly affected by specific policy measures). On the other hand, we see effects of innovation policy on CT, VC/PE, and institutional investors. Examples of policy measures affecting the agents directly or indirectly are explained in the following findings sections. Summarizing tables (Table 7 and 8) for each of the relationships can be found at the end of sections 3.4.1 and 3.4.2 respectively. Tables 14 and 15 (in the appendix) provide additional individual quotes which support the following reasoning. Each of the quotes presented can be linked to the detailed interview descriptives by using the corresponding code (e.g. GER5).