Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu It is, however, venturing in a different direction. While the era of the PC belongs to the US, Europeans are betting far more heavily a future era of wireless communications.
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Documents inNonetheless, it seems that Europe as a whole has progressed less speedily in the digital economy than the US. This paper aims at examining two key factors supporting the arrival of new technologies. More specifically, it will focus on the role of venture capital on the one hand, and entrepreneurial mentality on the other.The remainder of the text is organised as follows. The next section will go into the differences between the engine-rooms of the EU and US high-tech business -i.e. the availability of venture capital. Some asymmetries in entrepreneurial attitudes on both sides of the Atlantic will be briefly described in Section 3. A final section summarises and concludes.
The role of venture capital
"What would life be if we had no courage to attempt anything?" Vincent Van Gogh
Trends in venture capital investmentAlthough cultural diff e rences exist and should not be ignored they cannot be the sole re a s o n why Europe has pro g ressed less speedily than the US. Much of the explanation has to do with the availability of investors that are willing to take on the risk of financing new innovations.C o m m e rcialising new technologies is indeed characterised by considerable risks. Firstly, high technology is often a business in which the "winner takes all". At the same time, there is always the possibility of business stealing -that is, that another company builds upon a patent and launches a more advanced version of the original product. Obviously, this would render the original design worthless. When, in extremis, a high probability of business stealing is expected, innovative activity may vanish.Ve n t u re capitalists are willing to buy such risks in exchange for shares in a company and a s u fficient expected rate of re t u rn. Overall risk is managed by having a diversified portfolio of and an entre p re n e u r i a l m e n t a l i t y.