In Europe (and elsewhere) governments intervene to stimulate innovation in the SME sector, and because SMEs face financial constraints in particular, governments encourage the provision of debt and equity (venture capital) finance to such firms. This paper discusses sales contingent claim (SCC...

This Paper studies the criteria with which the presence or absence of ‘subsidy’ in sales contingent Launch Aid R&D support may be determined when payoff-relevant market incompleteness limits the precision of market-based pricing to non-trivial intervals. The criteria currently employed in...

This paper studies the criteria with which the presence or absence of 'subsidy' in sales contingent Launch Aid Ramp;D support may be determined when payoff-relevant market incompleteness limits the precision of market-based pricing to non-trivial intervals. Existing criteria correctly account...