Bio-clusters as co-evolutionary developments of technology, venture capital and socio-political institutions: a historical perspective of Cambridge and Scotland

Παπαϊωάννου, Θεόδωρος; Rosiello, Alessandro

doi:10.1504/ijird.2012.048987

Cited by 2 publications

(1 citation statement)

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“…As a relatively new approach to developing venture capital markets, there are very few empirical studies investigating government attempts at using this approach to study compared to the number of studies that have investigated the older direct and indirect approaches. The few exceptions we identified are Avnimelech and his colleagues (Avnimelech et al, 2010;Avnimelech and Teubal, 2008, 2004Rosiello et al, 2011) and Papaioannou and Rosiello (2012) whose contributions are summarized in Tables I and II. While the empirical evidence is limited both in terms of volume and the location of empirical settings, we identified some theoretical problems with the timed approach.…”

Section: The Timed Approachmentioning

confidence: 99%

Government roles in venture capital development: a review of current literature

Callagher

Smith

Ruscoe

2015

Journal of Entrepreneurship and Public Policy

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Purpose – Interest in venture capital markets continues to be of relevance to politicians and policy makers, recognizing the importance of government participation in venture capital market development. Yet advice regarding developing venture capital markets appears increasingly disparate. The paper aims to discuss these issues. Design/methodology/approach – The authors engage the assumptions that underpin three dominant policy approaches to the development of venture capital markets with regard to the role of governments in that process. The authors categorize existing empirical studies against three approaches and give examples of the different government policies associated with the various approaches. Findings – Direct and indirect approaches recognize the importance of active stock markets but largely ignore the dynamic processes of markets, asserting that the provision of capital, institutional changes, and financial incentives ex ante will cause a positive market reaction, regardless of the market’s context. The recent timed approached is purported as being more comprehensive in its awareness of the need to adapt to countries’ contexts and the need for varying policies at the different stages of market emergence. Research limitations/implications – Limited empirical research tests the voracity and limitations of the timed approach. The challenge in doing so is that evolutionary theories typically explain an event after it has occurred, thus its predictive power is often limited. Future research might investigate the efficacy of policy levers based on the timed approach. Practical implications – The authors highlight the need for the development of venture capital markets, rather than a venture capital industry. Originality/value – The authors extend the existing venture capital market development categories and evaluate each approach in terms of the efficacy of government’s roles in venture capital market development in light of the existing evidence of economic development and entrepreneurial activity.

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