Technifying Ventures

Yoshiki Ando, Emin Dinlersoz, Jeremy Greenwood and Ruben Piazzesi
Additional contact information
Emin Dinlersoz: Bureau of the Census, https://sites.google.com/site/emindinlersoz/
Jeremy Greenwood: University of Pennsylvania, http://www.jeremygreenwood.net/
Ruben Piazzesi: University of Pennsylvania, http://www.econ.upenn.edu/

No 40, Economie d'Avant Garde Research Reports from Economie d'Avant Garde

Abstract: Abstract The adoption of advanced technologies has important implications for employment and growth. The analysis of firm-level data from US Census Bureau indicates that firms with advanced technologies are disproportionately backed by venture capital (VC). While both advanced technology use and VC backing separately matter significantly for firm outcomes, VC backing has a larger effect on firms with advanced technology. A model of startups is constructed featuring decisions to use advanced technology and VC. The model is matched up with facts about firms' employment, technology use, and VC reliance. The implications of business taxation and subsidies are studied, and the significance of the availability of advanced technology and VC in the economy is quantified.

Keywords: Advanced technology; banks; capital gains taxation; corporate income taxation; difference-in-difference analysis; employment; firm-level data; reallocation effect; startups; subsidies; synergy; venture capital; technology adoption; US Census data (search for similar items in EconPapers)
JEL-codes: G20 O30 O40 (search for similar items in EconPapers)
Date: 2025-03
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