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Venture Capital and Innovation in Europe

Author

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  • Geronikolaou, George
  • Papachristou, George

Abstract

This paper examines the direction of causality between Venture Capital (VC) and innovation (proxied by patents) in Europe. We test whether causality runs from patents to VC by estimating a linear dynamic panel model and causality from VC to patents by estimating a panel count model. Evidence from a European sample indicates that causality runs from patents to VC suggesting that, in Europe, innovation seems to create a demand for VC and not VC a supply of innovation. In this sense, innovative ideas seem to lack more than funds in Europe

Suggested Citation

  • Geronikolaou, George & Papachristou, George, 2008. "Venture Capital and Innovation in Europe," MPRA Paper 36706, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:36706
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    File URL: https://mpra.ub.uni-muenchen.de/36706/1/MPRA_paper_36706.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Eleonora Bartoloni, 2013. "Capital structure and innovation: causality and determinants," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 111-151, February.
    2. Michele Cincera & Anabela Marques Santos, 2015. "Innovation and Access to Finance – A Review of the Literature," iCite Working Papers WP2015-16, ULB -- Universite Libre de Bruxelles.
    3. Michele Cincera & Anabela Santos, "undated". "Innovation and Access to Finance," IRMO Occasional Papers 6, Institute for Development and International Relations, Zagreb.
    4. Faria, Ana Paula & Barbosa, Natália, 2014. "Does venture capital really foster innovation?," Economics Letters, Elsevier, vol. 122(2), pages 129-131.
    5. Andrea Renda, 2016. "Selecting and Designing European ICT Innovation Policies," JRC Working Papers JRC103661, Joint Research Centre (Seville site).
    6. repec:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0405-3 is not listed on IDEAS

    More about this item

    Keywords

    Venture Capital; Dynamic Panel Data; Innovation; Patents;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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