Comparing catalysts of change: evolution and institutional differences in the venture capital industries in the U.S., Japan and Germany

Abstract

This paper compares the evolution of the venture capital industries in the U.S., Germany and Japan. Private initiatives, a competitive science infrastructure and a favorable legal environment contributed to an early success of the industry in the U.S. Early public efforts to create venture capital firms in Germany and Japan failed. Only when the regulatory environment changed did venture capital firms evolve in both countries with Japan adjusting its regulatory environment about ten years later than Germany. At this point the industry in the U.S. is highly developed, the industry in Germany is growing rapidly, and the industry in Japan is ‘budding’. Future convergence to the U.S. industry model seems likely.

Citation

Kuemmerle, W. (2001), "Comparing catalysts of change: evolution and institutional differences in the venture capital industries in the U.S., Japan and Germany", Burgelman, R.A. and Chesbrough, H. (Ed.) Comparative Studies of Technological Evolution (Research on Technological Innovation, Management and Policy, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 227-261. https://doi.org/10.1016/S0737-1071(01)01008-3