More than one in three innovative small firms that sought finance between 2010 and 2012 did not obtain any of the funding they needed. This is nearly triple the rate of 2007/8, the report found.
With innovative SMEs playing a crucial role in creating jobs, the Big Innovation Centre said this lack of funding highlights a "systematic failure" in the financial system that is holding back the UK economy.
Drawing on responses from nearly 11,000 SMEs, credit and the crisis: Access to finance for innovative small firms since the recession, also shows how access to finance for all SMEs has worsened considerably since the start of the recession, with failure rates now double those of 2007 and 2008.
The report also showed out of all SMEs seeking finance between 2010 and 2012, more than half had difficulties finding it, while one in four did not receive any funding at all. However, innovative SMEs remain significantly more likely to encounter problems than non-innovative small firms.
The report's author, Dr Neil Lee, said: "The future growth of the UK economy depends on investment in new products and services. Yet it is harder for innovative small firms to obtain finance than their peers.
"A lack of finance for the firms which need it most will be a long-term drag on the UK economy. Without action from policymakers, banks are unlikely to change their lending behaviour."