Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel
Venture Investments in Israel â€“ a Regional Perspective This paper analyzes the geographic distribution of venture investments in start-ups in Israel, using data for the period of 1995-2004. The findings show that their location behavior differs from that of high-tech activities: they show a pattern of "dispersed concentration" (as compared with a pattern of "concentrated concentration" of high-tech activity), with high levels of concentration in focal places, but at a commuting distance from the main metropolis. This is explained by the fact that venture investors also play the role of entrepreneurs and managers. The comparison between different types of venture investors shows that local venture capital funds lead to the heaviest concentration in the metropolis, in comparison with foreign venture investors. This heavy concentration of venture investments implies increasing regional gaps, with a minimal participation of peripheral regions, even those that enjoy some high-tech activity.
|Date of creation:||Aug 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Almeida, Paul & Dokko, Gina & Rosenkopf, Lori, 2003. "Startup size and the mechanisms of external learning: increasing opportunity and decreasing ability?," Research Policy, Elsevier, vol. 32(2), pages 301-315, February.
- Walter Powell & Kenneth Koput & James Bowie & Laurel Smith-Doerr, 2002. "The Spatial Clustering of Science and Capital: Accounting for Biotech Firm-Venture Capital Relationships," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 291-305.
- Bharat A. Jain & Omesh Kini, 2000. "Does the Presence of Venture Capitalists Improve the Survival Profile of IPO Firms?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(9&10), pages 1139-1183.
- Hellmann, Thomas F. & Puri, Manju, 2000.
"Venture Capital and the Professionalization of Start-up Firms: Empirical Evidence,"
1661, Stanford University, Graduate School of Business.
- Thomas Hellmann & Manju Puri, 2002. "Venture Capital and the Professionalization of Start-Up Firms: Empirical Evidence," Journal of Finance, American Finance Association, vol. 57(1), pages 169-197, 02.
- Wallsten, Scott J., 2001. "An empirical test of geographic knowledge spillovers using geographic information systems and firm-level data," Regional Science and Urban Economics, Elsevier, vol. 31(5), pages 571-599, September.
- James D. Adams, 2002.
"Comparative localization of academic and industrial spillovers,"
Journal of Economic Geography,
Oxford University Press, vol. 2(3), pages 253-278, July.
- James D. Adams, 2001. "Comparative Localization of Academic and Industrial Spillovers," NBER Working Papers 8292, National Bureau of Economic Research, Inc.
- Roberta Capello & Alessandra Faggian, 2005. "Collective Learning and Relational Capital in Local Innovation Processes," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 75-87.
- Colin Mason & Richard Harrison, 2003. "Closing the Regional Equity Gap? A Critique of the Department of Trade and Industry's Regional Venture Capital Funds Initiative," Regional Studies, Taylor & Francis Journals, vol. 37(8), pages 855-868.
- Pierre Therrien, 2005. "City and innovation: Different size, different strategy," European Planning Studies, Taylor & Francis Journals, vol. 13(6), pages 853-877, September.
- Stuart, Toby & Sorenson, Olav, 2003. "The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms," Research Policy, Elsevier, vol. 32(2), pages 229-253, February.
- Sapienza, Harry J., 1992. "When do venture capitalists add value?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 9-27, January.
- Danny Quah, 2002.
"Spatial Agglomeration Dynamics,"
American Economic Review,
American Economic Association, vol. 92(2), pages 247-252, May.
- Peter Sunley & Britta Klagge & Christian Berndt & Ron Martin, 2005. "Venture capital programmes in the UK and Germany: In what sense regional policies?," Regional Studies, Taylor & Francis Journals, vol. 39(2), pages 255-273.
- Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-85, March.
- Bresnahan, Timothy F & Gambardella, Alfonso & Saxenian, AnnaLee, 2001. "'Old Economy' Inputs for 'New Economy' Outcomes: Cluster Formation in the New Silicon Valleys," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 835-60, December.
- Gordon Murray, 1998. "A Policy Response to Regional Disparities in the Supply of Risk Capital to New Technology-based Firms in the European Union: The European Seed Capital Fund Scheme," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 405-419.
- Baranes, E. & Tropeano, J.-P., 2002.
"Why are technological spillovers spatially bounded ? A market orientated approach,"
Cahiers du CREDEN (CREDEN Working Papers)
02.06.29, CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1.
- Baranes, Edmond & Tropeano, Jean-Philippe, 2003. "Why are technological spillovers spatially bounded? A market orientated approach," Regional Science and Urban Economics, Elsevier, vol. 33(4), pages 445-466, July.
- Roberta Capello, 2002. "Entrepreneurship and spatial externalities: Theory and measurement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(3), pages 387-402.
- Havnes, Pers-Anders & Senneseth, Knut, 2001. "A Panel Study of Firm Growth among SMEs in Networks," Small Business Economics, Springer, vol. 16(4), pages 293-302, June.
- Dafna Schwartz, 2006. "The Regional Location of Knowledge Based Economy Activities in Israel," The Journal of Technology Transfer, Springer, vol. 31(1), pages 31-44, 01.
- Gil Avnimelech & Morris Teubal, 2004. "Venture capital start-up co-evolution and the emergence & development of Israel's new high tech cluster," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(1), pages 33-60.
- Gil Avnimelech & Morris Teubal, 2004. "Strength of Market Forces and the Successful Emergence of Israel's Venture Capital Industry. Insights from a Policy-Led Case of Structural Change," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1265-1300.
- Rolf Sternberg, 1999. "Innovative Linkages and Proximity: Empirical Results from Recent Surveys of Small and Medium Sized Firms in German Regions," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 529-540.
- Goran Lindstrom & Christer Olofsson, 2001. "Early stage financing of NTBFs: An analysis of contributions from support actors," Venture Capital, Taylor & Francis Journals, vol. 3(2), pages 151-168, April.
- Mason, Colin M & Harrison, Richard T, 2000. "The Size of the Informal Venture Capital Market in the United Kingdom," Small Business Economics, Springer, vol. 15(2), pages 137-48, September.
- Markku Maula & Erkko Autio & Gordon Murray, 2005. "Corporate Venture Capitalists and Independent Venture Capitalists: What do they know, Who do They Know and Should Entrepreneurs Care?," Venture Capital, Taylor & Francis Journals, vol. 7(1), pages 3-21, January.
- Clement Wang & Kangmao Wang & Qing Lu, 2002. "Do venture capitalists add value? A comparative study between Singapore and US," Applied Financial Economics, Taylor & Francis Journals, vol. 12(8), pages 581-588.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p868. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.