In this issue of Corporate Financier we look at the issues facing the development of so-called innovative companies. These are the businesses that will shape our economy and lives in the future.

We hear from the CEO of an early-stage cleantech company that has struggled to get support because its technology was not the established type – its disruptive nature meant the solar heating systems did not qualify for the same grants as other technologies, a hurdle that has thankfully been overcome. We profile a private equity investment in a Formula 1 team, forming unique commercial partnerships to capitalise on a technological area where the UK is a clear global leader.

Our cover story looks at the strides that have been made in commercialising technologies developed at universities, while we also examine the prospects for IPOs [LINK to “A change in the air”, same issue] and the reasons behind the negative view of fair value held by many in the private equity world. Finally, we take a look at the prospects for M&A in the food sector [LINK to ‘A Recipe for Deals’, same issue]. What, you may ask, has that got to do with innovation? More than you may think.

Erich Sieber, a partner at venture capital firm Inventages, talks about the firm’s £4m investment in Tanfield Foods. We first covered Tanfield in June 2006 when it raised £1.4m from private individuals through Hotbed. Tanfield produces fresh meals made by local farmers that can be stored at room temperature for over a year. In the office, we struggled to believe it and customer acceptance was cited as a major challenge (for the record, it’s pretty tasty stuff).

In the US last year, biotech, medtech and cleantech accounted for half of all venture capital investments. UK and European figures aren’t yet available, but the picture is similar. Policymakers associate innovation with ‘high-tech’ and, while these are huge sectors with great potential, Seiber puts it plainly: ‘Innovation can be anywhere’.

Grant Murgatroyd is editor of Corporate Financier

This article first appeared in Corporate Financier, magazine of the ICAEW Corporate Finance Faculty 'Editor' view: Seek and you will find'  , in March 2010.