Does venture capital really foster innovation?

Faria, Ana Paula; Barbosa, Natália

doi:10.1016/j.econlet.2013.11.014

Cited by 92 publications

(41 citation statements)

References 12 publications

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“…Besides providing funds, these active investors usually add value to their invested companies by engaging in monitoring, recruiting executives and directors, formulating strategies, and helping with further fund-raising activities. It has been demonstrated theoretically and empirically that venture capitalists play an important role in funded companies ' general performance and market value (Lerner, 1995;Kortum and Lerner, 2000;Hellmann and Puri, 2002;Kaplan and Str ömberg, 2004;Guo and Jiang, 2013;Faria and Barbosa, 2014).…”

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confidence: 98%

Does Foreign Venture Capital Provide More Value‐added Services to Initial Public Offering Companies in China?

Yin

Tian

et al. 2016

China and World Economy

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This paper uses all 1404 initial public offerings (IPO) undertaken between 2002 and 2012 in China to analyze whether venture capital (VC) investment, especially foreign VC investment, brings more or less value-added services to the invested companies during the 3 years following the IPO. The results show that venture capitalists choose to invest in companies with higher value potential, and, in turn, the value of the companies increases after the IPO is undertaken; foreign VC adds more value to companies than domestic venture capital. However, the profitability of VC-backed and non VC-backed companies after IPO does not differ significantly. Nevertheless, it is shown that VC plays an active role in China.

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confidence: 98%

Does Foreign Venture Capital Provide More Value‐added Services to Initial Public Offering Companies in China?

Yin

Tian

et al. 2016

China and World Economy

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“…In the past decades, North American and European countries actively sought to increase the size of their venture capital markets 6–10. The levels of venture capital available to Canadian life sciences companies have more than doubled from 2001 to 2010 11.…”

Section: Venture Capital and New Medical Technologiesmentioning

confidence: 99%

“…Examining panel data of 17 European Union countries, Faria and Barbosa6 found that venture capitalists are “more willing to support innovation only after the initial and more uncertain stage of technology development has been overcome.” This tendency partly explains why the Horizon 2020 Programme protected up to €320.14 million in 2014 to help innovative firms to gain access to various types of risk financing 5. To foster the growth of technology-based ventures, venture capital typically steps in after entrepreneurs have fleshed out their core innovative idea with the financial support of governments, relatives and ‘angels’ (eg, wealthy individuals who finance entrepreneurial activities) 3.…”

Section: Venture Capital and New Medical Technologiesmentioning

confidence: 99%

How does venture capital operate in medical innovation?

2016

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While health policy scholars wish to encourage the creation of technologies that bring more value to healthcare, they may not fully understand the mandate of venture capitalists and how they operate. This paper aims to clarify how venture capital operates and to illustrate its influence over the kinds of technologies that make their way into healthcare systems. The paper draws on the international innovation policy scholarship and the lessons our research team learned throughout a 5-year fieldwork conducted in Quebec (Canada). Current policies support the development of technologies that capital investors identify as valuable, and which may not align with important health needs. The level of congruence between a given health technology-based venture and the mandate of venture capital is highly variable, explaining why some types of innovation may never come into existence. While venture capitalists’ mandate and worldview are extraneous to healthcare, they shape health technologies in several, tangible ways. Clinical leaders and health policy scholars could play a more active role in innovation policy. Because certain types of technology are more likely than others to help tackle the intractable problems of healthcare systems, public policies should be equipped to promote those that address the needs of a growing elderly population, support patients who are afflicted by chronic diseases and reduce health disparities.

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“…In this study, number of patent applications at European Patent Office (EPO) was used as frequency of patent. The number of patent applications were used as measurement instead of patent grants in line with previous contributions (Cho & Lee, 2013;Faria & Barbosa, 2014). However the data of 21 countries was obtained from EUROSTAT.…”

Section: Patentsmentioning

confidence: 99%

Explaining Venture Capital And Technology Commercialization In Eu Countries Through Dynamic Modeling

Jamil¹

2018

The European Proceedings of Social and Behavioural Sciences

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Technology commercialization is envisioned as an important indicator of economic growth through academic environment. The assurance of financial capital to accelerate the technology commercialization is a big challenge for European countries and above that, European Venture Capital (VC) market has not been fully exploited according to its potential. Using a dynamic model approach on 21 European Union countries data from 2007 to 2013, we found an empirical stance for an interaction between research and development (R&D) expenditure and VC for accelerating technology commercialization in the form of contemporary patents and startups. The results depict that venture capitalists are more oriented towards startups as compared to patenting activity. The application of dynamic model approach helped to generalize the results across Europe and for other developed countries. Particularly, the study argues that a contemporary knowledge and simulation of VC in framing the innovation system and promising the business formation is much desired. In line with the perspective of innovation led ecosystem, an active contribution and understanding of VC would also be acknowledged.

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Does venture capital really foster innovation?

Cited by 92 publications

References 12 publications

Does Foreign Venture Capital Provide More Value‐added Services to Initial Public Offering Companies in China?

Does Foreign Venture Capital Provide More Value‐added Services to Initial Public Offering Companies in China?

How does venture capital operate in medical innovation?

Explaining Venture Capital And Technology Commercialization In Eu Countries Through Dynamic Modeling

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