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Governmental venture capital for innovative young firms

Author

Listed:
  • Massimo G. Colombo

    (Politecnico di Milano)

  • Douglas J. Cumming

    (York University)

  • Silvio Vismara

    () (University of Bergamo)

Abstract

Abstract Governments around the world have set up governmental venture capital (GVC) funds, and are increasingly doing so, with the aims of fostering the development of a private venture capital industry and to alleviate the equity capital gap of young innovative firms. The rationale and the appropriateness of these programs is controversial. In this paper, we borrow from the recent literature on entrepreneurial finance to document the evolution and to compare the effects of the different types of governmental support. In contrast with a lack of success in some countries, there have been successful GVC initiatives, such as the Australian Innovation Investment Fund. Consequently, the proper design of the investment processes of GVC funds is an urgent topic for scholars and policy makers.

Suggested Citation

  • Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2016. "Governmental venture capital for innovative young firms," The Journal of Technology Transfer, Springer, vol. 41(1), pages 10-24, February.
  • Handle: RePEc:kap:jtecht:v:41:y:2016:i:1:d:10.1007_s10961-014-9380-9
    DOI: 10.1007/s10961-014-9380-9
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    Citations

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    Cited by:

    1. Joern H. Block & Douglas J. Cumming & Silvio Vismara, 2017. "International perspectives on venture capital and bank finance for entrepreneurial firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(1), pages 3-22, March.
    2. repec:kap:sbusec:v:50:y:2018:i:2:d:10.1007_s11187-016-9831-9 is not listed on IDEAS
    3. Engberg, Erik & Halvarsson, Daniel & Tingvall, Patrik, 2017. "Direct and Indirect Effects of Private- and Government Sponsored Venture Capital," Ratio Working Papers 288, The Ratio Institute.
    4. David B. Audretsch & Erik E. Lehmann & Matthias Menter, 2016. "Public cluster policy and new venture creation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(4), pages 357-381, December.
    5. Silvio Vismara, 2016. "Equity retention and social network theory in equity crowdfunding," Small Business Economics, Springer, vol. 46(4), pages 579-590, April.
    6. repec:mgt:youmng:v:12:y:2017:i:4:p:317-331 is not listed on IDEAS
    7. repec:kap:sbusec:v:50:y:2018:i:2:d:10.1007_s11187-016-9826-6 is not listed on IDEAS
    8. repec:eee:pacfin:v:48:y:2018:i:c:p:162-185 is not listed on IDEAS
    9. Douglas Cumming & Sofia Johan & Jeffrey G. MacIntosh, 2017. "A drop in an empty pond: Canadian public policy towards venture capital," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(1), pages 103-117, March.
    10. Christopher S. Hayter, 2016. "A trajectory of early-stage spinoff success: the role of knowledge intermediaries within an entrepreneurial university ecosystem," Small Business Economics, Springer, vol. 47(3), pages 633-656, October.
    11. repec:kap:sbusec:v:50:y:2018:i:2:d:10.1007_s11187-016-9828-4 is not listed on IDEAS
    12. Tommaso Minola & Silvio Vismara & Davide Hahn, 2017. "Screening model for the support of governmental venture capital," The Journal of Technology Transfer, Springer, vol. 42(1), pages 59-77, February.
    13. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Massimo G. Colombo & Kourosh Shafi, 2016. "Swimming with sharks in Europe: When are they dangerous and what can new ventures do to defend themselves?," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2307-2322, November.

    More about this item

    Keywords

    Entrepreneurial finance; Venture capital; GVC; IPOs; M&As;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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