Thread by @whatworksgrowth

To better understand how firms are responding to the #COVID crisis, @CapucineRiom & @asvalero surveyed businesses on their short-term innovation responses.

A key question for policy is how to encourage firms to carry on innovating beyond the crisis.

whatworksgrowth.org/blog/what-work…

What are the main barriers to #innovation?

Economic uncertainty caused by #COVID19 & #Brexit, as well as difficulties accessing finance are the 2⃣ major barriers to investment in innovation.

💳 Access to finance is more of an issue for smaller firms.

What does the evidence say about access to finance? 🔍

Our rapid evidence review found that loan guarantee schemes have a positive effect on firm access to debt finance. But the impact on firm survival is mixed & most evidence is from growth periods.

whatworksgrowth.org/resources/covi…

We asked surveyed firms to select government support programmes that they think would help them innovate in the recovery.

New tax incentives 💷 are the most cited policy levers across larger and smaller firms, and smaller firms also particularly value grants or vouchers 🎫.

What does the evidence tell us about these policies? 🔎

✍️ Read @CapucineRiom's latest blog to find out.

whatworksgrowth.org/blog/what-work…