NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effect of Venture Capital on Innovation Strategies

Marco Da Rin, María Fabiana Penas

NBER Working Paper No. 13636
Issued in November 2007
NBER Program(s):   CF

We examine a unique dataset of Dutch companies, some of which have received venture financing. The data include detailed information on innovation activities and other company characteristics. We analyse the role of venture finance in influencing innovation strategies. We find that venture capitalists push portfolio companies towards building absorptive capacity and towards more permanent in-house R&D efforts. By contrast, we find that public funding relaxes financial constraints, but does not lead to a build-up of absorptive capacity. Our results thus highlight the special role of venture capital in shaping companies' innovation strategies.

download in pdf format
   (226 K)

email paper

This paper is available as PDF (226 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Entrepreneurial Financing, Advice, and Agency Costs, Roland Strausz, in Entrepreneurship: Strategy and Structure, Journal of Economics and Management Strategy 18(3), Fall 2009 (Blackwell Publishing)

Users who downloaded this paper also downloaded these:
Da Rin, Hellmann, and Puri w17523 A survey of venture capital research
Jovanovic and Szentes w12874 On the Return to Venture Capital
Brander, Du, and Hellmann w16521 The Effects of Government-Sponsored Venture Capital: International Evidence
Kortum and Lerner w6846 Does Venture Capital Spur Innovation?
Aizenman and Kendall w14344 The Internationalization of Venture Capital and Private Equity
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us