Work

The Effect of Venture Capital on Innovation Strategies

Year: 2007

Type: preprint

Abstract: 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.

Source: SSRN Electronic Journal

Authors: Marı́a Fabiana Penas, Marco Da Rin

Institutions: Universidad Torcuato Di Tella, Tilburg University

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

OpenAlex ID: W1561123396

Cites: 52

Cited by: 14

Related to: 10