Does Governmental Venture Capital Spur Invention and Innovation? Evidence from Young European Biotech Companies?
Journal
Research Policy
Type
journal article
Date Issued
2015
Author(s)
Abstract
© 2015 Elsevier B.V. This paper explores whether and how governmental venture capital investors (GVCs) spur invention and innovation in young biotech companies in Europe. To gauge invention we focus on the simple patent stock at the company level, while innovation is proxied by the citation-weighted patent stock. Our findings indicate that GVCs, as stand-alone investors, have no impact on invention and innovation. However, GVCs boost the impact of independent venture capital investors (IVCs) on both invention and innovation. We conclude that GVCs are an ineffective substitute, but an effective complement, of IVCs. We also distinguish between technology-oriented GVCs (TVCs) and development-oriented GVCs (DVCs). We find that DVCs are better at increasing firm's inventions, and that TVCs, combined with IVCs, support innovations.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Volume
44
Start page
925
End page
939
Pages
14
Subject(s)
Division(s)
Eprints ID
259428
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1-s2.0-S004873331500030X-main.pdf
Size
249.99 KB
Format
Adobe PDF
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