In order to facilitate informed discussions, this paper critically reviews four concepts that frequently feature in current discussions: Innovative Finance (often used as an umbrella term for approaches to leverage additional finance as well as other practices), Blended Finance, Impact Investing, and Results-Based Finance. The following aspects are explored:
- A generic description of each concept, based on key elements occurring in different definitions;
- Important differences between existing definitions and terminologies;
- How each concept relates to other concepts around innovative finance; and
- Whether there is evidence that it works.
- The paper concludes with a summary of key issues for donors considering expanding the use of innovative finance.
