- Consulting Editors
- The Capital Flow from Institutional Investors to Entrepreneurs
- Venture Capital and the Financial Crisis: An Empirical Study across Industries and Countries
- Venture Capital Reputation
- Keys to Fundraising Success in Nascent Venture Capital Firms
- Corporate Venture Capital in the Twenty-First Century: an Integral Part of Firms' Innovation Toolkit
- Corporate Venture Capital: From Venturing to Partnering
- Vipe Financing: Venture (Capital) Investments in Public Equity
- Philanthropic Venture Capital From A Global Perspective: Definition and Investment Strategy
- Venture Capital Before The First Dollar: Deal Origination, Screening, and Evaluation
- Capital Structure Determinants In Growth Firms Accessing Venture Funding
- Venture Capital Staging: Domestic Versus Foreign Vc-Led Investments
- Follow-On Financing of Venture Capital–Backed Companies
- Performance Implications of Venture Capital Syndication Networks
- Valuing Common and Preferred Shares in Venture Capital Financing
- Required Rates of Return and Financial Contracting for Entrepreneurial Ventures
- Financial Contracting in U.S. Venture Capital: Overview and Empirical Evidence
- Time-Inconsistent Preferences and Venture Capital Contracting
- Syndication of Vc Investments, Governance, and Contract Design
- Venture Capital in Germany: The Role of Venture Capital Firms' Experience, Ownership Structure, and Agency Problems
- Venture Capital Law Firms: An Analysis of Equity Investments and Networks
- From Ideas to Products: Financing Innovation and Getting Access to Innovation
- The Impact of Venture Capital on Innovation
- What Drives the Top Line?: Determinants of Sales Revenue in Private Venture–Backed Firms
- Value Added by Angel Investors through Postinvestment Involvement: Exploratory Evidence and Ownership Implications
- The Impact of Venture Capital on the Long-Term Performance of IPO Firms: Evidence from Korea
- Regional Impact of Venture Capital
- Spread, Scope, and Scale in Venture Capital Globalization: A Clustered Globalization Model
- The Development of Venture Capital: Macroeconomic, Political, and Legal Determinants
- A Comparative Analysis of Venture Capital Investment In the United States and Europe
- The Role of Geographic Proximity in Venture Capital
- Geography and Venture Capital Investment in the United States, 1995–2009
- The Role of Government, Venture Capital, and Banks in Closing Liquidity Gaps in the SME Sector of an Emerging Market
Abstract and Keywords
This article begins by reviewing the empirical evidence on the impact of venture capital on innovation. It identifies some of the key challenges to empirical research in this area and discusses the methods that have been used to address them. There is evidence of a substantial impact of venture capital on innovation, measured by patent counts, at the industry level (at least for the United States). Although estimates vary, on average a dollar of venture capital appears to be three to four times more potent in stimulating innovation than a dollar of traditional corporate R&D. There is no corresponding evidence of a significant impact of venture capital on innovation at the individual-firm level. The article discusses possible explanations for this difference, including the difficulties of adequately controlling for the endogeneity of venture capital investment at the firm level.
Roberta Dessí is associate professor of economics at the Toulouse School of Economics. She graduated from the University of Cambridge with a degree in economics, from the London School of Economics with an MSc, and then from the University of Cambridge with a PhD, always in economics. She has published in the American Economic Review, the Rand Journal of Economics, the Economic Journal, and the Journal of Economics and Management Strategy. Her research interests include venture capital and innovation; financial contracts; corporate finance; the relationship between incentives, motivation, and performance; the determinants and consequences of overconfidence.
Nina Yin is a PhD candidate at the Toulouse School of Economics. She graduated from the China Center for Economic Research at Peking University with an MA and then from the Toulouse School of Economics with an MSc in economics. She has published in the China Economic Review. Her research interests include the impact of venture capital on innovation, incremental innovation in pharmaceuticals, economics of intellectual property, and empirical industrial organization.
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