Fencing off Silicon Valley: Cross-border venture capital and technology spillovers

Ufuk Akcigit, Sina T. Ates, Josh Lerner, Richard R. Townsend and Yulia Zhestkova

Journal of Monetary Economics, 2024, vol. 141, issue C, 14-39

Abstract: The treatment of foreign investors is a contentious topic in U.S. entrepreneurship policy. We model a setting where foreign corporate investments in Silicon Valley may allow U.S. entrepreneurs to pursue technologies that they could not otherwise, but may also lead to knowledge spillovers. We show that despite the benefits from such inbound investments for U.S. firms, it may be optimal for the U.S. government to raise their costs to deter these investments. Using as comprehensive as possible a sample of investments by foreign corporate investors in U.S. start-ups, we find evidence consistent with the presence of knowledge spillovers to foreign investors.

Keywords: Corporate venture capital; Foreign direct investment; Innovation (search for similar items in EconPapers)
JEL-codes: F13 G24 O31 O33 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304393223001319
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Fencing Off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers (2020)
Working Paper: Fencing off Silicon Valley: Cross-Border Venture Capital and Technology Spillovers (2020)
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:eee:moneco:v:141:y:2024:i:c:p:14-39

DOI: 10.1016/j.jmoneco.2023.10.016

Access Statistics for this article

Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser

More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().