Analysis of the Potential of Companies from Central and Eastern Europe in Attracting Innovative Sources of Sustainable Financing

The field of financial innovation is characterized by complexity, specificity (distinct from other types of innovations), and dynamism with multiple effects (both positive and negative) on the entire economic system. Financial innovations have created new opportunities for investment and consumption for households over time, allowing for reduced costs of attracting and utilizing funds. They have also enabled firms to attract large amounts of capital at lower costs for projects (such as biotechnology or start-ups) or in situations (financial difficulty) that traditionally would not have been financed due to associated risks. These innovations have provided new opportunities for investors to diversify their risk and achieve high or moderate returns on their capital, as well as for the active involvement of the state in the investment environment through the utilization of held savings. In short, financial innovation seems to be omnipresent. The complexity of financial innovation arises from the variety of financial products, the different types of financial institutions created, and the diversity of processes practiced by these institutions.