When do thick venture capital markets foster innovation? An evolutionary analysis

Colombo L, Dawid H, Kabus K (2012)
Journal of Evolutionary Economics 22(1): 79-108.

Download
OA
Zeitschriftenaufsatz | Veröffentlicht | Englisch
Autor
; ;
Abstract / Bemerkung
In this paper, we examine the trade off between different effects of the availability of venture capital on the speed of technological progress in an industry. We consider an evolutionary industry simulation model based on Nelson and Winter (1982), in which R&D efforts of an incumbent firm generate technological know-how embodied in key R&D employees, who might use this know-how to found a spinoff of the incumbent. Venture capital is needed to finance a spinoff, so that the expected profits from founding a spinoff depend on how easily venture capital can be acquired. Accordingly, thick venture capital markets might have two opposing effects. First, incentives of firms to invest in R&D might be reduced and, second, if spinoff formation results in technological spillovers between the parent firm and the spinoffs, the generation of spinoff firms might positively influence the future efficiency of the incumbent's innovation efforts. We study the manner in which this tradeoff influences the effect of venture capital on innovation expenditures, speed of technological change and evolution of industry concentration in several scenarios with different industry characteristics.
Erscheinungsjahr
Zeitschriftentitel
Journal of Evolutionary Economics
Band
22
Zeitschriftennummer
1
Seite
79-108
ISSN
eISSN
PUB-ID

Zitieren

Colombo L, Dawid H, Kabus K. When do thick venture capital markets foster innovation? An evolutionary analysis. Journal of Evolutionary Economics. 2012;22(1):79-108.
Colombo, L., Dawid, H., & Kabus, K. (2012). When do thick venture capital markets foster innovation? An evolutionary analysis. Journal of Evolutionary Economics, 22(1), 79-108. doi:10.1007/s00191-010-0206-0
Colombo, L., Dawid, H., and Kabus, K. (2012). When do thick venture capital markets foster innovation? An evolutionary analysis. Journal of Evolutionary Economics 22, 79-108.
Colombo, L., Dawid, H., & Kabus, K., 2012. When do thick venture capital markets foster innovation? An evolutionary analysis. Journal of Evolutionary Economics, 22(1), p 79-108.
L. Colombo, H. Dawid, and K. Kabus, “When do thick venture capital markets foster innovation? An evolutionary analysis”, Journal of Evolutionary Economics, vol. 22, 2012, pp. 79-108.
Colombo, L., Dawid, H., Kabus, K.: When do thick venture capital markets foster innovation? An evolutionary analysis. Journal of Evolutionary Economics. 22, 79-108 (2012).
Colombo, Luca, Dawid, Herbert, and Kabus, Kordian. “When do thick venture capital markets foster innovation? An evolutionary analysis”. Journal of Evolutionary Economics 22.1 (2012): 79-108.
Alle Dateien verfügbar unter der/den folgenden Lizenz(en):
Copyright Statement:
This Item is protected by copyright and/or related rights. [...]
Volltext(e)
Access Level
OA Open Access
Zuletzt Hochgeladen
2017-05-26T13:51:03Z