The Institutionalization and Endogenization of Venture Capital: A Regional Analysis of Northern Virginia in the 1990s

Posted: 4 Nov 2009

See all articles by Gordon Shockley

Gordon Shockley

School of Community Resources & Development

Roger R. Stough

George Mason University - School of Policy, Government, and International Affairs

Date Written: 2004

Abstract

How systems of venture capital become institutionalized and endogenized in technology-intensive regions in Northern Virginia is determined.First, a short, interpretative history of the institutionalization of capital is presented.This history sheds light on the evolution of venture capital from the twelfth to the eighteenth centuries and on the acceleration of this evolution during the nineteenth and twentieth centuries.Next, the impact of the information and communication technology revolution on capital institutions is examined, and it is hypothesized that the revolution has reenergized capital institutions. Data from a 1998 case study of the National Capital Region of Northern Virginia are used to test this hypothesis.Interviews were conducted with 11 managers of private investor networks, 14 investors, 13 entrepreneurs, and 15 business assistance providers.As the case study illustrates, the rapid growth of the New Economy and the subsequent regional development of technology-intensive areas have resulted in the institutionalization and endogenization of venture capital at an accelerated rate. (SAA)

Keywords: History, New Economy, High technology industries, Regional analysis, Venture capital, Regional development

Suggested Citation

Shockley, Gordon and Stough, Roger R., The Institutionalization and Endogenization of Venture Capital: A Regional Analysis of Northern Virginia in the 1990s (2004). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1496758

Gordon Shockley (Contact Author)

School of Community Resources & Development ( email )

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Roger R. Stough

George Mason University - School of Policy, Government, and International Affairs ( email )

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United States
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