Distribution Dynamics in European Venture Capital
AbstractThis paper evaluates the evolution of European venture capital investments since 1990, using the distribution dynamics methodology. It tests and rejects the hypothesis that the international allocation of venture capital investments is driven by a pathdependent process of agglomeration, in which a country’s initial advantage is transformed into a long-term lead. Instead, the evidence from a cross section of 13 European countries is more favourable for the alternative hypothesis, which explains international variations in venture capital investments as part of countries’ different patterns of specialization. The robustness of these findings and implications for government policy are discussed.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1191.
Length: 44 pages
Date of creation: Dec 2003
Date of revision:
Distribution dynamics; Markov chains; New technology-based firms; Venture capital;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- G20 - Financial Economics - - Financial Institutions and Services - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-11 (All new papers)
- NEP-CFN-2004-04-11 (Corporate Finance)
- NEP-ENT-2004-04-11 (Entrepreneurship)
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