How venture capitalists spur invention in Spain: Evidence from patent trajectories

Arque-Castells, Pere

doi:10.1016/j.respol.2012.01.008

Cited by 73 publications

(31 citation statements)

References 47 publications

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“…This evidence is consistent with most of the literature on finance and innovation, for instance, studies of venture capital and innovation, which find that venture capital investments and the frequency with which firms use this type of selective and competitive external financial resource, are generally associated to high innovation potential (Casamatta, 2003;Arqué-Castells, 2012;Bertoni et al, 2015). However, the presence of adequate demand for innovative product is not necessarily guaranteed.…”

Section: Conclusion and Policy Implicationssupporting

confidence: 87%

“…No distinction is made between firms willing or not willing (or needing) to innovate (see Savignac, 2008and D'Este et al, 2008, 2012.…”

Section: 2mentioning

confidence: 99%

“…We add to the work of Savignac (2008) and D'Este et al (2008, 2012 and identify a 'relevant sample' of potential innovators vis à vis non-innovation oriented firms, on the basis of their self-declarations about their willingness to innovate. We claim and demonstrate empirically that, in the context of assessing the effect of the barriers to innovation, it is important to filter out those firms that are not willing or do not need to innovate (non-innovation oriented) from those that choose to devote financial resources to innovation, but do not manage to produce an innovation (failed innovators) due to the barriers to innovation.…”

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

“…For instance, if it can be shown that firms do not innovate because they lack liquidity, struggle to access external financial sources or perceive innovation costs as excessive, it is relatively more straightforward for policy makers to alleviate these barriers by providing liquidity. This can take the form of additional subsidies, tax credits or channelling public funds to Venture Capital (VC) to increase (mainly R&D) innovation investments (Arqué-Castells, 2012;Bertoni and Tykvová, 2015).…”

Section: Introductionmentioning

confidence: 99%

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No money, no honey? Financial versus knowledge and demand constraints on innovation

2017

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The paper adds to the literature on the barriers to innovation in two ways. First, we assess comparatively what mostly constrains firms' ability to translate investment in innovation activity into new products and processes, whether it is mainly finance, as most of the literature would suggest, or whether it is mostly knowledge and marketrelated aspects. Second, we suggest a method to correct for the sample selection bias that often affects empirical contributions to this scholarship. By filtering out firms that are not interested in innovation from those that struggle to engage in it, we obtain a relevant sample of potential innovators, which allows us to analyse the comparative effect of financial and non-financial barriers on innovation success. We find that demand-side factors, particularly concentrated market structure and lack of demand, are as important as financial constraints in determining firms' innovation failures. This evidence redirects attention from financial to non-financial barriers by considering traditional demand, market structure and regulation factors involved in reduced firm innovation performance. The empirical analysis is based on an unbalanced panel of firm-level data from four waves of the UK Community Innovation Survey (CIS) between

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Section: Conclusion and Policy Implicationssupporting

confidence: 87%

“…No distinction is made between firms willing or not willing (or needing) to innovate (see Savignac, 2008and D'Este et al, 2008, 2012.…”

Section: 2mentioning

confidence: 99%

Section: Conclusion and Policy Implicationsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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No money, no honey? Financial versus knowledge and demand constraints on innovation

2017

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“…On one hand, the research suggests that VCs are attracted by innovative companies (Baum and Silverman, 2004;Engel and Keilbach, 2007;Hirukawa and Ueda, 2011). On the other hand, the literature shows that inventive and innovative activity is positively affected by the presence of VCs (Arqué-Castells, 2012;Bertoni et al, 2010b;Kortum and Lerner, 2000;Popov and Roosenboom, 2012).…”

Section: Introductionmentioning

confidence: 99%

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

2015

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a b s t r a c tThis paper explores whether and how governmental venture capital investors (GVCs) spur invention and innovation in young biotech companies in Europe. To gauge invention we focus on the simple patent stock at the company level, while innovation is proxied by the citation-weighted patent stock. Our findings indicate that GVCs, as stand-alone investors, have no impact on invention and innovation. However, GVCs boost the impact of independent venture capital investors (IVCs) on both invention and innovation. We conclude that GVCs are an ineffective substitute, but an effective complement, of IVCs. We also distinguish between technology-oriented GVCs (TVCs) and development-oriented GVCs (DVCs). We find that DVCs are better at increasing firm's inventions, and that TVCs, combined with IVCs, support innovations.

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Substantial innovation or strategic innovation? The impact of government venture capital guidance funds on corporate innovation

Saci,

Ahmad

2024

Strategic Change

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Based on a dual‐differential model of the number of patent applications issued by A‐share enterprises from 2014 to 2019, this article analyzes impact of Venture Capital (VC) guided by government on company's innovation and their internal mechanisms. The results show that the number of patent applications increases after enterprises are invested directly or indirectly by the government guiding fund, indicating that this kind of VC has a positive guidance on enterprise innovation. However, after further studying by subdividing patent types, it is found that enterprises pay less attention to invention patents, which hold higher technical requirements, and focus on “quantity” rather than “quality” in patent applications. This result also reflects that the investment of VC guided by government promotes the overall enterprise innovation, but the positive effect on the innovation quality is not significant. Our article not only affirms the positive influence of VC guided by government on enterprise innovation, but also puts forward some suggestions on the management of government guiding fund.

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How venture capitalists spur invention in Spain: Evidence from patent trajectories

Cited by 73 publications

References 47 publications

No money, no honey? Financial versus knowledge and demand constraints on innovation

No money, no honey? Financial versus knowledge and demand constraints on innovation

Does governmental venture capital spur invention and innovation? Evidence from young European biotech companies

Substantial innovation or strategic innovation? The impact of government venture capital guidance funds on corporate innovation

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