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Geography and Industry Meets Venture Capital

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Author Info
Yochanan Shachmurove () (Department of Economics, The City College of the City University of New York, and Department of Economics, University of Pennsylvania)

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Abstract

Do certain regions inherently enjoy an advantage in venture capital investment decisions? And how do industry characteristics affect venture capital activity? These questions fall under the reemerging study of economic geography, which suggests the importance of industrial location to economic decision making. Through the lens of economic geography, this paper examines the impact of industrial and regional characteristics on venture capital activities from 1996 to 2005. Analyzing venture capital data with nineteen regions and seventeen industries, this study affirms the significance of geography and industry to investment trends in venture capital.

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Publisher Info
Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 07-015.

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Length: 34 pages
Date of creation: 30 Mar 2007
Date of revision:
Handle: RePEc:pen:papers:07-015

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Related research
Keywords: Venture Capital Venture-Backed Public Companies Economic Geography Location Biotechnology Business Products and Services Computers and Peripherals Consumer Products and Services Electronics and Instrumentation Financial Services Healthcare Services Industrial and Energy Information Technology Services Media and Entertainment Medical Devices and Equipment Networking and Equipment Retailing and Distribution Semiconductors Software Telecommunications.

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Find related papers by JEL classification:
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Investment, or Financing
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
G3 - Financial Economics - - Corporate Finance and Governance
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  3. Sorenson, Olav & Rivkin, Jan W. & Fleming, Lee, 2006. "Complexity, networks and knowledge flow," Research Policy, Elsevier, vol. 35(7), pages 994-1017, September. [Downloadable!] (restricted)
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    Other versions:
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  11. Krugman, Paul, 1995. "Innovation and agglomeration: Two parables suggested by city-size distributions," Japan and the World Economy, Elsevier, vol. 7(4), pages 371-390, November. [Downloadable!] (restricted)
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  13. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August. [Downloadable!] (restricted)
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  14. Krugman, Paul, 1994. "Complex Landscapes in Economic Geography," American Economic Review, American Economic Association, vol. 84(2), pages 412-16, May. [Downloadable!] (restricted)
  15. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September. [Downloadable!] (restricted)
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  16. Olga Alonso-Villar, 2005. "The effects of transport costs revisited," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 589-604, October. [Downloadable!] (restricted)
  17. Paul Krugman & Anthony Venables, 1993. "Integration, Specialization, and the Adjustment," NBER Working Papers 4559, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
  19. Krugman, Paul, 1998. "What's New about the New Economic Geography?," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 7-17, Summer.
  20. Constant, Amelie & Shachmurove, Yochanan & Zimmermann, Klaus F., 2003. "What Makes an Entrepreneur and Does It Pay? Native Men, Turks, and Other Migrants in Germany," IZA Discussion Papers 940, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  21. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
    Other versions:
  22. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  23. Karen-Helene Midelfart & Henry G. Overman & Anthony J. Venables, 2003. "Monetary Union and the Economic Geography of Europe," Journal of Common Market Studies, Blackwell Publishing, vol. 41(5), pages 847-868, December. [Downloadable!] (restricted)
  24. Behrens, Kristian, 2005. "Market size and industry location: Traded vs non-traded goods," Journal of Urban Economics, Elsevier, vol. 58(1), pages 24-44, July. [Downloadable!] (restricted)
  25. Venables, Anthony J, 1998. "The Assessment: Trade and Location," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 1-6, Summer.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Toro González, Daniel, 2007. "How to measure the spillover effect?," MPRA Paper 4682, University Library of Munich, Germany. [Downloadable!]
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