Can Venture Capital Foster Innovation in Canada? Yes, but Certain Types of Venture Capital Are Better Than Others
AbstractCanada’s problem with lagging productivity growth has led policymakers to focus on boosting innovation, in part by supporting Canadian venture capital funding for business. But which types of venture capital (VC) funds are most effective in spurring innovation? This study examines that question in the Canadian context by examining the records of VC funding in generating new patent applications for the period 1996-2008. Overall, Canadian VC funding spurs innovation more effectively on a dollar-for-dollar basis than investment in research and development (R&D). The type of VC fund also matters. Private and institutional VC funds consistently foster innovation; corporate and government VC funds do reasonably well in promoting innovation; but retail, bank and other VC dollars perform poorly on that score.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 138.
Length: 12 pages
Date of creation: Sep 2012
Date of revision:
Publication status: Published on the C.D. Howe Institute website, September 2012
Economic Growth and Innovation; venture capital; Canada;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
- NEP-CFN-2012-10-20 (Corporate Finance)
- NEP-CSE-2012-10-20 (Economics of Strategic Management)
- NEP-FDG-2012-10-20 (Financial Development & Growth)
- NEP-INO-2012-10-20 (Innovation)
- NEP-IPR-2012-10-20 (Intellectual Property Rights)
- NEP-SBM-2012-10-20 (Small Business Management)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristine Gray).
If references are entirely missing, you can add them using this form.