Dissertation Summary: Venture Capital and Innovation

14 Pages Posted: 26 Jul 2013

See all articles by Juanita Gonzalez-Uribe

Juanita Gonzalez-Uribe

London School of Economics & Political Science (LSE) - Department of Finance

Date Written: May 31, 2013

Abstract

This dissertation explores the relation between venture capital and innovation. There are three main findings. First, venture capital funding is associated with an increase in the rate of companies’ innovative activity. However, this increase appears to occur at the expense of innovation quality. Second, venture capital funding increases the diffusion of companies’ technical knowledge. Results are consistent with two mechanisms: venture capital investors certify the value of innovations to the general public, and facilitate communication among companies in their portfolios. Third, companies in the same venture capital network produce similar innovations, especially if the companies belong to different industries or geographies.

Keywords: Venture Capital, Innovation, Entrepreneurship

JEL Classification: G24, M13, G23, O31, O32

Suggested Citation

Gonzalez-Uribe, Juanita, Dissertation Summary: Venture Capital and Innovation (May 31, 2013). Available at SSRN: https://ssrn.com/abstract=2297881 or http://dx.doi.org/10.2139/ssrn.2297881

Juanita Gonzalez-Uribe (Contact Author)

London School of Economics & Political Science (LSE) - Department of Finance ( email )

United Kingdom
+442074057686 (Phone)

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