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Does venture capital really foster innovation?

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  • Faria, Ana Paula
  • Barbosa, Natália

Abstract

Using panel data of 17 European Union countries, we find robust empirical support for a positive impact of venture capital on innovation. After controlling for the potential endogenous relationship between venture capital and innovation, the results indicate that venture capital fosters innovation but mainly at a later stage.

Suggested Citation

  • Faria, Ana Paula & Barbosa, Natália, 2014. "Does venture capital really foster innovation?," Economics Letters, Elsevier, vol. 122(2), pages 129-131.
    • Handle: RePEc:eee:ecolet:v:122:y:2014:i:2:p:129-131
    DOI: 10.1016/j.econlet.2013.11.014
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    More about this item

    Keywords

    Venture capital; Innovation; Dynamic panel data;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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