Firm Level Implications of Early Stage Venture Capital Investment - An Empiri cal Investigation

Arbeitspapier

The paper analyses the impact of venture capital finance on growth and innovation activities of young German firms. Among other variables, our panel of firm data includes data on venture capital funding and patent applications. With statistical matching procedures we draw an adequate control group of non­venture funded but otherwise comparable firms. The analysis confirms other findings that venture funded firms in Germany have higher number of patent applications than those in the control group. However, they do so already before the venture capitalists engagement. After this engagement, the number of patent applications does not differ significantly from that of the control group, however the venture funded firms display significantly larger growthrates. We conclude that the higher innovation output of venture funded firms is mainly driven by the selection process made by the venture capitalist.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Papers on Entrepreneurship, Growth and Public Policy ; No. 2205

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Semiparametric and Nonparametric Methods: General ; Firm Behavior: Theory ; Business Objectives of the Firm
• Subject: Firm Demography ; Firm Start-Ups ; Firm Growth ; Venture Capital ; Patented Innovations ; Microeconomic Evaluation Methods ; Risikokapital ; Unternehmensgründung ; Innovation ; Unternehmenswachstum ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Engel, Dirk ; Keilbach, Max
• Event: Veröffentlichung
• (who): Max Planck Institute for Research into Economic Systems
• (where): Jena
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/20012
• Last update: 10.03.2025, 11:42 AM CET