Access to finance for innovation: the role of venture capital and the stock market

Francesco Bogliacino and Matteo Lucchese

No 2011-05, JRC Working Papers on Corporate R&D and Innovation from Joint Research Centre

Abstract: Financial constraints for young and small firms can prevent them from supporting innovation and employment creation. We analyze two of the various institutional mechanisms which have been proposed to circumvent it: the development of venture capital market and the stock market access. We will use the information provided by two Scoreboards - used to monitor innovative activity in Europe: the Innovation Union Scoreboard and the R&D Scoreboard. With the first, we study the determinants of the venture capital/GDP intensity in Europe. With the second, we try to assess the contribution of stock market to R&D investment. In the first part, we show that venture capital market complements structural feature such as R&D intensity and market capitalization, is more volatile and seems not affected by anticompetitive regulations. In the second part, we show that unlisted SMEs are more research intensive.

Keywords: Venture Capital; R&D; European Policy; Random Effect; Propensity Score Matching. (search for similar items in EconPapers)
JEL-codes: M13 O31 O38 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-11
New Economics Papers: this item is included in nep-ent, nep-eur, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Access to finance for innovation: the role of venture capital and the stock market (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:wpaper:201105

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