The potential for innovative development of crowdfunding

Abstract

Considering the necessity of innovative development of economy nowadays, proper attention should be paid to the possibilities and prospects of its regular financing. In its turn, the effectiveness of financing depends on the variety of its sources. Therefore, both the theoretical research and applied aspects of the problem have become urgent. Particularly, further innovative development is closely connected with possibilities of financial support via the Internet. In the context of the research, the advisability and potential of crowdfunding for further economic development have been justified. Although crowdfunding is a new practice in modern society, a growing use of crowdfunding has been observed in developed countries, which at the same time are leaders of innovative developments worldwide. This study, therefore, has tried to investigate the efficiency of using crowdfunding for financing economic development and explain the potential of its innovative development. The theoretical thesis of researches on crowdfunding have been combined with the practical experience of using different crowdfunding platforms in different countries. Furthermore, the tendencies for change in the innovative financing via the Internet in developed countries, the dynamics and further possibilities for using this practice have been compared. Based on the statistics of main international organizations, the attention has been paid to the use of crowdfunding on the national markets. The advantages of this kind of financing according to the national peculiarities have been researched.