The Effect of Venture Capital on Innovation Strategies / Marco Da Rin, María Fabiana Penas.

Format:

Book

Author/Creator:

Da Rin, Marco.

Contributor:

National Bureau of Economic Research.

Penas, María Fabiana.

Series:

Working Paper Series (National Bureau of Economic Research) no. w13636.

NBER working paper series no. w13636

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2007.

Summary:

We examine a unique dataset of Dutch companies, some of which have received venture financing. The data include detailed information on innovation activities and other company characteristics. We analyse the role of venture finance in influencing innovation strategies. We find that venture capitalists push portfolio companies towards building absorptive capacity and towards more permanent in-house R&D efforts. By contrast, we find that public funding relaxes financial constraints, but does not lead to a build-up of absorptive capacity. Our results thus highlight the special role of venture capital in shaping companies' innovation strategies.

Notes:

Print version record

November 2007.