IDEAS home Printed from https://ideas.repec.org/p/eag/rereps/40.html
   My bibliography  Save this paper

Technifying Ventures

Author

Abstract

How do advanced technology adoption and venture capital (VC) funding impact employment and growth? An analysis of data from the US Census Bureau shows that while both advanced technology use and VC funding are important on their own for firm outcomes, their combination has the strongest effect. VC tends to have a bigger impact, but it affects only a small number of firms, while technology adoption has a smaller impact but affects many more firms. A model of startups is created, focusing on decisions to use technology and seek VC funding. The model is compared with firm-level data on employment, technology use, and VC investment. The study also looks at the effects of business taxes and subsidies, and measures the overall importance of technology and VC in the economy.

Suggested Citation

  • Yoshiki Ando & Emin Dinlersoz & Jeremy Greenwood & Ruben Piazzesi, 2025. "Technifying Ventures," Economie d'Avant Garde Research Reports 40, Economie d'Avant Garde.
    • Handle: RePEc:eag:rereps:40
    as

    Download full text from publisher

    File URL: http://www.jeremygreenwood.net/papers/TV.pdf
    File Function: full text
    Download Restriction: None
    ---><---

    More about this item

    Keywords

    Advanced technology; banks; capital gains taxation; corporate income taxation; difference-in-difference analysis; employment; firm-level data; reallocation effect; startups; subsidies; synergy; venture capital; technology adoption; US Census data;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eag:rereps:40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jeremy Greenwood (email available below). General contact details of provider: http://www.jeremygreenwood.net/EAG.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.