Venture's Economic Impact in Australia
41 Pages Posted: 16 Nov 2013
Date Written: November 15, 2013
We empirically compare the contributions of venture capital (VC) and private equity (PE) backed firms, including those backed by government subsidized Innovation Investment Funds (IIFs), in the Australian economy by analyzing employment, R&D, patents, time to IPO, and market capitalization from market inception to August 2012. Overall, the data highlights a central role for VC and IIF investment in facilitating R&D, innovation, and economic growth. Our IIF findings highlight the success of government sponsorship of venture capital under the Australian program design, which is sharply in contrast with the lack of success of government venture programs in other countries.
Keywords: Venture Capital, Private Equity, Patents, R&D, Employment, IPOs, Market Capitalization, Government Policy
JEL Classification: G24, G28, O16, O30, O38
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