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The Impact of Venture Capital on the Persistence of Innovation Activities of Swiss Start-ups

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Abstract

In this study we investigate the impact of early stage venture capital on innovation activities of Swiss start-ups. This is done based on a cohort of start-ups that is representative of all firms founded in Switzerland in 1996/97 as recorded by a census of the Swiss Federal Statistical Office for this period. We analyze not only the impact of early stage venture capital on innovation performance 3 years after firm foundation but also 6 and 9 years after firm start, respectively, for those firms that survived so long and reported continuously innovation activities (persistence of innovation). The results support neither the hypothesis of a positive impact on initial innovation activities nor the hypothesis of a positive time-persistent effect on innovation performance of start-ups.

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Bibliographic Info

Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 13-332.

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Length: 25 pages
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:kof:wpskof:13-332

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Keywords: venture capital; start-ups; innovation performance;

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