scholarly journals The Impact of Venture Capital on the Persistence of Innovation Activities of Swiss Start-Ups

2013 ◽  
Author(s):  
Spyros Arvanitis ◽  
Tobias Stucki
Keyword(s):  
Venture Capital ◽  
Innovation Activities ◽  
Start Ups ◽  
The Impact

Technological Disruptions, GVCs, and Industrial Policy

2020 ◽  
pp. 484-504
Author(s):  
David Bailey ◽  
Lisa De Propris
Keyword(s):  
Industrial Policy ◽  
New Technologies ◽  
High Technology ◽  
Value Chains ◽  
Innovation Activities ◽  
Advanced Economies ◽  
Start Ups ◽  
The Impact ◽  
Technology Industries ◽  
High Technology Industries

This chapter examines the impact of technological change on global value chains (GVCs) and what initiatives and instruments governments in advanced economies can deploy to support firms and people during the transition. Drawing on an emerging debate on de-globalization, we discuss how global production is slowly shifting from being organized in GVCs to continental platforms with shorter and geographically closer relationships as firms seek to co-locate manufacturing and innovation activities. This offers regions and places the opportunity to upgrade and transform their economies and thereby to anchor high-technology industries, leveraging industrial legacy with frontier technologies. We will discuss the implications for a transformative place-based industrial policy that aims to connect embedded industries to new technologies; to repopulate embedded industries with new firms and start-ups, and to use regulation and procurement to create new markets and allow exploration.

scholarly journals Modeling the Impacts of Venture Capital Investment on Firm Innovation

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Han Qiao ◽  
Sen Zhang ◽  
Yao Xiao
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Capital Investment ◽  
Inhibitory Effect ◽  
Firm Innovation ◽  
Venture Capital Investment ◽  
Chinese Firm ◽  
Innovation Activities ◽  
Growth Enterprise Market ◽  
The Impact

Taking firms listed on the Chinese Growth Enterprise Market (GEM) in 2008–2017 as the sample, this study investigates the impact of venture capital (VC) investment on Chinese firm innovation using propensity score matching and a difference-in-differences (PSM-DID) model. The results show that, overall, firms’ innovation inputs and outputs do not show obvious enhancement due to VC entry, but instead show a strong and then weak inhibitory effect. VCs have heterogeneous impacts on firm innovation; that is, compared to other types of firms, firms with technology-dependent characteristics and firms whose actual controllers are experts in the same industry can effectively mitigate the adverse impact of VC on innovation inputs and gradually promote growth in the quantity and quality of the innovation outputs after the second year of VC entry. This study not only reveals the impact of VC on firm innovation activities in the Chinese capital market but also provides empirical evidence to help improve the financial innovation service system and the use of the capital market to promote innovation in China.

Organization and Financing of Innovation, and the Choice between Corporate and Independent Venture Capital

2009 ◽  
Vol 44 (6) ◽  
pp. 1291-1321 ◽  
Author(s):  
Paolo Fulghieri ◽  
Merih Sevilir
Keyword(s):  
Venture Capital ◽  
Strategic Alliances ◽  
Internal Resources ◽  
Start Up ◽  
Corporate Venture ◽  
External Organization ◽  
Rival Firms ◽  
Established Firms ◽  
Start Ups ◽  
The Impact

AbstractThis paper examines the impact of competition on the optimal organization and financing structures in innovation-intensive industries. We show that as an optimal response to competition, firms may choose external organization structures established in collaboration with specialized start-ups where they provide start-up financing from their own resources. As the intensity of the competition to innovate increases, firms move from internal to external organization of projects to increase the speed of product innovation and to obtain a competitive advantage with respect to rival firms in their industry. We also show that as the level of competition increases, firms provide a higher level of financing for externally organized projects in the form of corporate venture capital (CVC). Our results help explain the emergence of organization and financing arrangements such as CVC and strategic alliances, where large established firms organize their projects in collaboration with external specialized firms and provide financing for externally organized projects from their own internal resources.

From venture capital towards venture firm innovation performance: evidence from SMEs of China

2021 ◽  
pp. 1-7
Author(s):  
Yanran Ma ◽  
Jianfeng Cai ◽  
Yiqi Wang ◽  
Umar Farooq Sahibzada
Keyword(s):  
Venture Capital ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Firm Innovation ◽  
Management Incentives ◽  
Mediating Role ◽  
Equity Incentives ◽  
Start Ups ◽  
The Impact

Based on information asymmetry, agency theory and resource-based view (RBV), this study investigates the impact of venture capital (VC) on venture firm innovation performance, ascertains the extent to which VC affects venture firm innovation performance and finds the mediating effect of management incentives. Constructing a sample of a novel panel dataset of firms listed on the SME Board of China, we examined a sample of 927 start-ups between 2008 and 2017, showing a notable negative relationship between VC and Patent, and a positive relationship between VC and total factor productivity (TFP), providing stable evidence that VC could not spur firm patent directly, but facilitate the commercialization of innovation. Moreover, it shows that management equity incentives (MEI) and management cash incentives (MCI) playing significant positive mediating role between VC and TFP, while there is no mediating effect between VC and Patent. Findings of this study strengthen the experience of VC and suggest how practitioners of SMEs to enhance the commercialization of innovation, considerably extends our understanding of the impact of VC on venture firm innovation performance.

Human capital, intellectual capital, and government venture capital

2017 ◽  
Vol 6 (3) ◽  
pp. 359-374 ◽  
Author(s):  
Ikenna Uzuegbunam ◽  
Yin-Chi Liao ◽  
Luke Pittaway ◽  
G. Jason Jolley
Keyword(s):  
Venture Capital ◽  
Intellectual Capital ◽  
Ordinary Least Squares ◽  
New Venture ◽  
Least Squares Regression ◽  
Data Set ◽  
Content Type ◽  
Nuanced Understanding ◽  
Start Ups ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of human and intellectual capital on start-ups’ attainment of government venture capital (GVC). It is theorized that as a result of government predisposition toward enhancing knowledge spillover and certifying underinvested start-ups, different types of human and intellectual capital possessed by start-ups will distinctly affect GVC funding. Design/methodology/approach The Kauffman Firm Survey, a panel data set of 4,928 new US firms over a five-year period (2004-2008), serves as the data source. Ordinary least squares regression, coupled with generalized estimating equations to check for robustness, is used to determine the effect of human and intellectual capital on GVC funding. Findings Founders’ educational attainment has a greater impact than their occupational experience in GVC funding. While the number of patents owned by the start-up increases GVC funding, the number of trademarks and copyrights negatively influence GVC funding. Originality/value By distinguishing between different aspects of human and intellectual capital, this study provides a more nuanced understanding of the influence of new venture resources in the context of GVC.

scholarly journals The Effect of Corporate Social Responsibility on the Technology Innovation of High-Growth Business Organizations

2021 ◽  
Vol 13 (13) ◽  
pp. 7286
Author(s):  
Jun Huang ◽  
Peijun Xie ◽  
Yating Zeng ◽  
Yun Li
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Venture Capital ◽  
Technological Innovation ◽  
Social Innovation ◽  
High Growth ◽  
Business Organizations ◽  
Innovation Activities ◽  
Corporate Social ◽  
The Impact

The implementation of innovation-driven strategy requires business organizations to actively conduct technological innovation activities. Corporate social responsibility (CSR) performance is an important factor to promote technological innovation, and venture capital (VC) as a matching capital with technological innovation also affects technological innovation. Using Chinese listed companies on the Growth Enterprise Market (GEM) during the 2014–2018 period as a sample, we study the role of corporate social responsibility performance in technological innovation and the impact of venture capital on the relationship between the two. We find that social responsibility performance can effectively promote innovation, which is promoted significantly by the shareholder responsibility and employee responsibility dimensions of social responsibility. We also find that venture capital inhibits the promotion of social responsibility to technological innovation. This work will guide VC institutions to pay more attention to business organizations social innovation projects.

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