Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

Fabio Bertoni and Tereza Tykvova

Research Policy, 2015, vol. 44, issue 4, 925-935

Abstract: 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.

Keywords: Governmental venture capital; Independent venture capital; Patenting; Invention; Innovation; Biotechnology (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (97)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S004873331500030X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies (2015)
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:respol:v:44:y:2015:i:4:p:925-935

DOI: 10.1016/j.respol.2015.02.002

Access Statistics for this article

Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().