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Institutions and venture capital

  • Josh Lerner
  • Joacim T�g

We survey the literature on venture capital and institutions and present a case study comparing the development of the venture capital market in the United States and Sweden. Our literature survey underscores that the legal environment, financial market development, the tax system, labor market regulations, and public spending on research and development correlate with venture capital activities across countries. Our case study suggests these institutional differences led to the later development of an active venture capital market in Sweden compared with the United States. In particular, a later development of financial markets and a heavier tax burden for entrepreneurs have played a key role. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC., Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/icc/dts050
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Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 22 (2013)
Issue (Month): 1 (February)
Pages: 153-182

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Handle: RePEc:oup:indcch:v:22:y:2013:i:1:p:153-182
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