Venture Capital Backed Growth
26 Pages Posted: 28 Feb 2002
Date Written: February 2002
The paper proposes a simple equilibrium model of venture capital, entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper demonstrates how a productive and active VC industry boosts innovation driven growth.
Keywords: Venture Capital, Double Moral Hazard, Innovation, Growth
JEL Classification: D82, G32, O16, O40
Suggested Citation: Suggested Citation