Which form of venture capital is most supportive of innovation?

Fabio Bertoni and Tereza Tykvová

No 12-018, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Although there seems to be consensus in the literature that venture capital investors increase the innovation output of their portfolio companies, there is little evidence about how investor type (governmental vs. private) and transaction structure (syndicated vs. non-syndicated) moderate this impact. Using a sample of 865 young biotech and pharmaceutical companies from seven European countries, we investigate which form of venture capital is most supportive of innovation. Our results suggest that in companies financed by syndicates and by private venture capital investors, the innovation output increases significantly faster than in non-venture-backed companies. The most supportive form is a heterogeneous syndicate (i.e., consisting of both types of venture capital investors) led by a private investor.

Keywords: innovation; patents; private venture capital investors; governmental venture capital investors; syndication; biotech and pharmaceutical companies; Europe (search for similar items in EconPapers)
JEL-codes: G24 H0 O3 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-ino, nep-ipr and nep-pr~
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/56030/1/688727530.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:12018

Access Statistics for this paper

More papers in ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().