Venture Capital and Innovation in Europe

Geronikolaou, George and Papachristou, George (2008): Venture Capital and Innovation in Europe. Published in: SSRN , Vol. http:/, (2008)

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

• Item Type: MPRA Paper
• Language: English
• Keywords: Venture Capital; Dynamic Panel Data; Innovation; Patents
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General; G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies

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