IDEAS home Printed from https://ideas.repec.org/a/cai/jiedbu/jie_029_0007.html
   My bibliography  Save this article

Financing the Next Generations of Innovation: New Dimensions in the Private Equity Model

Author

Listed:
  • Laure-Anne Parpaleix
  • Kevin Levillain
  • Blanche Segrestin

Abstract

It is widely acknowledged that, for firms to grow, they need to regularly introduce new generations of innovation; however, this is rarely addressed in the finance or private equity literature. If the private equity investment class is structured based on the business cycle, little is known about how it fosters firms? capacity to regenerate. This leads to the question: How can private equity support firms? ability to repeatedly innovate? Building on the literature in innovation management and design theory, we propose complementing private equity models with new dimensions: the design of potential future products and their expected value. This model is used to analyze in-depth a longitudinal case provided by a French investment fund. We show that it is far better suited to certain investment strategies than are classical models. Among other important implications, we suggest that private equity must not only provide seed, venture, or buyout capital, but also support firms? innovation portfolio regeneration. JEL Codes: G320, O32

Suggested Citation

  • Laure-Anne Parpaleix & Kevin Levillain & Blanche Segrestin, 2019. "Financing the Next Generations of Innovation: New Dimensions in the Private Equity Model," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 7-41.
    • Handle: RePEc:cai:jiedbu:jie_029_0007
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=JIE_029_0007
    Download Restriction: free
    File URL: http://www.cairn.info/revue-journal-of-innovation-economics-2019-2-page-7.htm
    Download Restriction: free
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bernardina Algieri & Antonio Aquino & Marianna Succurro, 2020. "The Impact of Cash-Flow and the Main Components of the Capital Structure on Innovative Performances of European Firms," Review of Economics and Institutions, Università di Perugia, vol. 11(1-2).

    More about this item

    Keywords

    Financing Innovation; Private Equity; Innovation Management; Middle-Market Firms; Design Theories; Firm Life Cycle; Value of Firm;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:jiedbu:jie_029_0007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-journal-of-innovation-economics.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.