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Institutions and Venture Capital

  • Lerner, Josh


    (Harvard Business School)

  • Tåg, Joacim


    (Research Institute of Industrial Economics)

We survey the literature on venture capital and institutions and present a case study comparing the development of the venture capital market in the US to 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 correlates 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 to the US. In particular, a later development of financial markets and a heavier tax burden for entrepreneurs have played a key role.

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Paper provided by Swedish Entrepreneurship Forum in its series Working Papers with number 2012:17.

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Length: 31 pages
Date of creation: 08 Aug 2013
Date of revision:
Publication status: Published as Lerner, Josh and Joacim Tåg, 'Institutions and Venture Capital' in Industrial and Corporate Change, 2013, pages 153-182.
Handle: RePEc:hhs:entfor:2012_017
Contact details of provider: Postal: Swedish Entrepreneurship Forum, Örebro University, SE-70182 ÖREBRO, Sweden
Web page:

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