The effects of venture capital investments on industrial innovative opportunities and technological arbitrage opportunities

Fangqing Wei (), Yi Yang (), Yao Chen () and Feng Yang ()
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Fangqing Wei: University of Science and Technology of China
Yi Yang: University of Massachusetts Lowell
Yao Chen: University of Massachusetts Lowell
Feng Yang: University of Science and Technology of China

Small Business Economics, 2022, vol. 58, issue 4, No 24, 2280 pages

Abstract: Abstract This study investigates how venture capital (VC) investments flowing into an industry impact both the innovative opportunities and technological arbitrage opportunities presented in the industry. After examining 855 industry-year observations for 45 industries in the USA for 1997–2015, we found that VC investments moderate the effects of new venture entry rates on innovative opportunities and technological arbitrage opportunities at the industry level. Additionally, industry concentration and industry dynamism influence the moderating effects of VC investments on the relationships between new venture entry rates and both types of entrepreneurial opportunities. Our study not only contributes to the growing research on innovative opportunities and technological arbitrage opportunities, it also provides managerial implications for both entrepreneurial companies and policymakers.

Keywords: New venture entry rates; Innovative opportunities; Technological arbitrage opportunities; Venture capital investments; Industry contextual characteristics; G24; L26; M13; O33 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-021-00511-7

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