We examine the influence of venture capital on patented inventions in the United States across twenty industries over three decades. We address concerns about causality in several ways, including exploiting a 1979 policy shift that spurred venture capital fundraising. We find that increases in venture capital activity in an industry are associated with significantly higher patenting rates. While the ratio of venture capital to R&D averaged less than 3% from 1983–1992, our estimates suggest that venture capital may have accounted for 8% of industrial innovations in that period.
Kortum, S. and Lerner, J. (2001), "Does venture capital spur innovation?", Libecap, G.D. (Ed.) Entrepreneurial inputs and outcomes: New studies of entrepreneurship in the United States (Advances in the Study of Entrepreneurship, Innovation and Economic Growth, Vol. 13), Emerald Group Publishing Limited, Bingley, pp. 1-44. https://doi.org/10.1016/S1048-4736(01)13003-1Download as .RIS
Emerald Group Publishing Limited
Copyright © 2001, Emerald Group Publishing Limited