Work

Short-Term America Revisited? Boom and Bust in the Venture Capital Industry and the Impact on Innovation

Year: 2003

Type: article

Abstract: This chapter seeks to understand the implications of the recent decline in venture activity for innovation. It argues that the situation may not be as grim as it initially appears. While there are many reasons for believing that on average venture capital has a powerful effect on innovation, the effect is far from uniform. During boom periods, the prevalence of overfunding of particular sectors can lead to a sharp decline in the effectiveness of venture funds. While prolonged downturns may eventually lead to good companies going unfunded, many of the dire predictions today seem overstated.

Source: Innovation Policy and the Economy

DOI: 10.1086/ipe.3.25056151

Authors: Paul Gompers, Josh Lerner

Language: English

Topic: Private Equity and Venture Capital

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

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

Open Access status: green

OpenAlex ID: W1586342909

FWCI: 33.26

Cites: 14

Cited by: 62

Related to: 10