Spiky Globalization of Venture Capital Investments: The Influence of Prior Human Networks
SUNY at Buffalo - School of Management
State University of New York at Buffalo
University of Pittsburgh
February 10, 2010
Strategic Entrepreneurship Journal, Forthcoming
We demonstrate a spiky globalization pattern in the cross-border spread of venture capital: rather than being uniformly distributed, cross-border venture capital flows are unevenly distributed, in that certain regions of the U.S. display particularly intense linkages with certain foreign nations. We posit that such spiky globalization of venture capital is driven by the spiky globalization pattern of prior human networks between locations, and provide empirical results supportive of our hypothesis. Specifically, we reason that immigrant entrepreneurs inherently tend to collocate with each other in their host nation, thus advantaging certain regions in the competition to act as sources and destinations of cross-border venture capital. This study sheds new light on geographical patterns in international venture capital and entrepreneurship.
Number of Pages in PDF File: 35
Keywords: Venture capital, Cross-border capital flows, Immigrant entrepreneurs, Spiky globalization, Human networks, Bilateral intensity indexAccepted Paper Series
Date posted: February 11, 2010 ; Last revised: May 6, 2012
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