Access to finance for innovation: the role of venture capital and the stock market
AbstractFinancial constraints for young and small firms can prevent them from supporting innovation and employment creation. We analyze two of the various institutional mechanisms which have been proposed to circumvent it: the development of venture capital market and the stock market access. We will use the information provided by two Scoreboards - used to monitor innovative activity in Europe: the Innovation Union Scoreboard and the R&D Scoreboard. With the first, we study the determinants of the venture capital/GDP intensity in Europe. With the second, we try to assess the contribution of stock market to R&D investment. In the first part, we show that venture capital market complements structural feature such as R&D intensity and market capitalization, is more volatile and seems not affected by anticompetitive regulations. In the second part, we show that unlisted SMEs are more research intensive.
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Bibliographic InfoPaper provided by Institute of Prospective Technological Studies in its series JRC-IPTS Working Papers on Corporate R&D and Innovation with number 2011-05.
Length: 23 pages
Date of creation: Nov 2011
Date of revision:
Venture Capital; R&D; European Policy; Random Effect; Propensity Score Matching.;
Other versions of this item:
- Francesco Bogliacino & Matteo Lucchese, 2011. "Access to finance for innovation: the role of venture capital and the stock market," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(4), pages 165-183.
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-25 (All new papers)
- NEP-ENT-2012-01-25 (Entrepreneurship)
- NEP-EUR-2012-01-25 (Microeconomic European Issues)
- NEP-INO-2012-01-25 (Innovation)
- NEP-SBM-2012-01-25 (Small Business Management)
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