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Venture Capital Financing and Green Patenting

Author

Listed:
  • Andrea Bellucci
  • Serena Fatica
  • Aliki Georgakaki
  • Gianluca Gucciardi
  • Simon Letout
  • Francesco Pasimeni

Abstract

This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies’ balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm’s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.

Suggested Citation

  • Andrea Bellucci & Serena Fatica & Aliki Georgakaki & Gianluca Gucciardi & Simon Letout & Francesco Pasimeni, 2023. "Venture Capital Financing and Green Patenting," Industry and Innovation, Taylor & Francis Journals, vol. 30(7), pages 947-983, August.
    • Handle: RePEc:taf:indinn:v:30:y:2023:i:7:p:947-983
    DOI: 10.1080/13662716.2023.2228717
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    Citations

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    Cited by:

    1. Tommaso Oliviero & Sandro Rondinella & Alberto Zazzaro, 2024. "Are green firms more financially constrained? The sensitivity of investment to cash flow," CSEF Working Papers 700, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Gianluca Gucciardi, 2024. "Do venture capital investments contribute to the achievement of the sustainable development goals?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 8716-8746, December.
    3. Lapo Santarlasci & Armando Rungi & Antonio Zinilli, 2025. "Seeing Through Green: Text-Based Classification and the Firm's Returns from Green Patents," Papers 2507.02287, arXiv.org, revised Oct 2025.
    4. Diego Sancho-Bosch & Elena Huergo, 2025. "When More Is Not Better: Heterogeneous Dose–Response Effects of R&D Subsidies by Firm Size," Documentos de Trabajo del ICAE 2025-09, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    5. M. Dal Molin & A.C. Pinate & M.G. Brandano, 2025. "Institutional Quality and Green Innovation in Italy: A Regional Perspective," Working Paper CRENoS 202508, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    6. Matteo Ambrois & Annalisa Croce & Elisa Ughetto, 2025. "Greening the future: how venture capital nurtures cleantech companies’ growth in Europe," Small Business Economics, Springer, vol. 65(1), pages 191-229, June.
    7. Nerlich, Carolin & Köhler-Ulbrich, Petra & Andersson, Malin & Pasqua, Carlo & Abraham, Laurent & Bańkowski, Krzysztof & Emambakhsh, Tina & Ferrando, Annalisa & Grynberg, Charlotte & Groß, Johannes & H, 2025. "Investing in Europe’s green future - Green investment needs, outlook and obstacles to funding the gap," Occasional Paper Series 367, European Central Bank.
    8. Agostino, Mariarosaria & Rondinella, Sandro, 2025. "Do climate extreme events stimulate or hinder green innovation? Evidence from the Italian manufacturing sector," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 101-111.
    9. Meike Siefkes & Anton Lohne Hamer & Gustav Haaland & Øyvind Bjørgum, 2024. "Profit first, environmental impact second? Investigating hybrid institutional logics in venture capital investment approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7922-7941, December.

    More about this item

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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