BIS central bankers’ speeches  9  It is also not easy to find investors ready to finance innovative firms based on knowledge at a start-up phase. In the case of radical innovation, the results are highly uncertain and normally involve long maturing periods before bearing fruit.
While incremental innovation is normally capable of obtaining bank financing, traditional banking does not task itself with financing radical innovation. Thus new forms of financing must be encouraged and alternative financial instruments developed, including seed capital and risk capital.