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The impact of patenting on the size of high-tech firms: the role of venture capital and product market regulation

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  • Massimo Colombo
  • Kourosh Shafi

Abstract

We investigate how public policies related to product market regulation (PMR) influence the ability of European young venture-capital (VC) backed firms compared to a sample of matched non-VC backed firms to grow in size in proportion to their innovative activity. Whereas VCs can presumably offer value-added services to overcome the regulatory constraints of PMR, we find that VC-backed firms relative to non-VC backed ones are more adversely sensitive to these policies. This evidence indicates that PMR impedes the most VC-backed firms’ high-potential for innovation-driven growth. Copyright Associazione Amici di Economia e Politica Industriale 2016

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  • Massimo Colombo & Kourosh Shafi, 2016. "The impact of patenting on the size of high-tech firms: the role of venture capital and product market regulation," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 85-103, March.
    • Handle: RePEc:spr:epolin:v:43:y:2016:i:1:p:85-103
    DOI: 10.1007/s40812-015-0023-4
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    Cited by:

    1. Chiara Criscuolo & Angelo Secchi, 2016. "Resources (mis)allocation, innovation and the competitiveness of Europe," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 1-9, March.
    2. 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.

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    More about this item

    Keywords

    Venture capital; Product market regulation; Innovation; High-tech ventures; Public policy; G28 Government Policy and Regulation; G24 Investment Banking • Venture Capital • Brokerage • Ratings and Ratings Agencies;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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