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Measuring the Spillovers of Venture Capital

52 Pages Posted: 29 Aug 2017  

Monika Schnitzer

University of Munich - Department of Economics; Centre for Economic Policy Research (CEPR)

Martin Watzinger

Ludwig Maximilian University of Munich

Multiple version iconThere are 2 versions of this paper

Date Written: August 2017

Abstract

We provide the first measurement of knowledge spillovers from venture capital-financed companies onto the patenting activities of other companies. On average, these spillovers are nine times larger than those generated by the R&D investment of established companies. Spillover effects are larger in complex product industries than in discrete product industries. Start-ups with experienced inventors holding a patent at the time of receiving the first round of investment produce the largest spillovers, indicating that venture capital fosters the commercialization of technologies. Methodologically, we contribute by developing a novel definition of the spillover pool, combining citation-based and technological proximity-based approaches.

Keywords: innovation, Spillovers, venture capital

JEL Classification: G24, O3, O31, O32

Suggested Citation

Schnitzer, Monika and Watzinger, Martin, Measuring the Spillovers of Venture Capital (August 2017). CEPR Discussion Paper No. DP12236. Available at SSRN: https://ssrn.com/abstract=3028602

Monika Schnitzer (Contact Author)

University of Munich - Department of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany
+49 89 2180 2217 (Phone)
+49 89 2180 2767 (Fax)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Martin Watzinger

Ludwig Maximilian University of Munich ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

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