16 Pages Posted: 29 Dec 2012 Last revised: 8 May 2013
Date Written: May 6, 2013
A recent article in the Journal of Public Economics has asserted, among other things, that government venture capital funds in Europe have crowded out private venture capital. In this research note, I explain that the findings in that paper are based on empirical measures that are completely flawed. Moreover, I show with data spanning 13 countries and the years 1989-2011 that government venture capital funds in Europe have not crowded out private venture capital investment.
Keywords: Venture capital, Public Policy, Government sponsorship, Tax, Crowding out
JEL Classification: G24, G28, G32, G38, K22
Suggested Citation: Suggested Citation
By John Morley