A bibliometric analysis and systematic literature review of innovation financing mechanisms for technology startups

Abstract

Research on innovation financing has become more comprehensive, covering different financing mechanisms. But the body of work is still conceptually fragmented, with studies often focusing on individual financing channels rather than how they relate to each other. In addition, there is little integrated understanding of how the institutional environment and stages of firm development jointly determine the effectiveness and appropriateness of various financing mechanisms. Previous reviews have also been limited by methodological separation, relying either on bibliometric mapping or qualitative synthesis, which limits their ability to combine structural patterns in the literature with deeper explanatory insights. The purpose of this study is to address the identified research gaps by conducting a systematic review and bibliometric analysis of innovation financing research published between 2015 and 2025. A systematic review following PRISMA 2020 was conducted using Scopus, supplemented by Google Scholar and backward citation tracking by using keywords such as “financing mechanism*”, “venture capital”, “angel investment”, “crowdfunding”, “government grant*”, “equity financing”, “debt financing”,“growth”, “tech startup*”, “innovation-driven firm*”. The studies were selected based on predefined inclusion and exclusion criteria and from 291 records retrieved 38 empirical studies met inclusion criteria. Bibliometric analysis was conducted using VOS viewer and identified co-authorship patterns, keyword co-occurrence networks, Bibliometric Coupling Analysis of Countries, thematic clusters: traditional equity financing (venture capital and angel investment), democratized financing (crowdfunding), and emerging digital/hybrid models. In addition, a systematic review was performed to synthesize and interpret the findings of the selected studies. The study has identified various themes that can either positively or negatively impact startup growth, including debt financing, crowdsourcing, angel investment, venture capital, government grants, and business plan contests. It has also indicated the use and significance of mixed funding sources from various angles. The review reveals that regulatory environment, business type, firm age, and geographic location influence financing effectiveness, helps reconcile contradictory findings in previous literature. By combining bibliometric mapping with a systematic review, this study also goes beyond identifying research trends and synthesizes evidence from the literature.