Venture Capital and Innovation in Europe

George Geronikolaou and George Papachristou

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the direction of causality between Venture Capital (VC) and innovation (proxied by patents) in Europe. We test whether causality runs from patents to VC by estimating a linear dynamic panel model and causality from VC to patents by estimating a panel count model. Evidence from a European sample indicates that causality runs from patents to VC suggesting that, in Europe, innovation seems to create a demand for VC and not VC a supply of innovation. In this sense, innovative ideas seem to lack more than funds in Europe

Keywords: Venture Capital; Dynamic Panel Data; Innovation; Patents (search for similar items in EconPapers)
JEL-codes: G24 O30 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36706

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