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Article
Publication date: 14 June 2021

Sakari Sipola

The purpose of this paper is to examine how entrepreneurship culture affects start-up and venture capital co-evolution during the early evolution of an entrepreneurial…

1098

Abstract

Purpose

The purpose of this paper is to examine how entrepreneurship culture affects start-up and venture capital co-evolution during the early evolution of an entrepreneurial ecosystem (EE) and its ability to foster the emergence of ambitious entrepreneurship as an outcome of its activity. Unlike studies that capture entrepreneurship culture at the national level, this study focusses specifically on the culture of venture capital-financed entrepreneurship and understanding its implications to the development of venture capital markets and successful firm-level outcomes within ecosystems.

Design/methodology/approach

Relying on EE and organisational imprinting theory, this study specifies characteristics of venture capital-financed entrepreneurship of Silicon Valley to illustrate the American way of building start-ups and examine whether they have as imprints affected to the entrepreneurship culture and start-up and venture capital co-evolution in Finland during the early evolution of its EE between 1980 and 1997.

Findings

The results illustrate venture capital-financed entrepreneurship culture as a specific example of entrepreneurship culture beneath the national level that can vary across geographies like the findings concerning Finland demonstrate. The findings show that this specific culture matters through having an impact on the structural evolution and performance of EEs and on the ways how they deliver or fail to deliver benefits to entrepreneurs.

Originality/value

The results show that venture capital-financed entrepreneurship and the emergence of success stories as outcomes of start-up and venture capital co-evolution within an EE are connected to a specific type of entrepreneurship culture. This paper also contributes to the literature by connecting the fundamentals of organisational imprinting to EE research.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 14 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 20 September 2022

Stoyu I. Ivanov and Matthew Faulkner

Small firms, which represent much of the Silicon Valley region, tend to experience losses due to their small scale, small customer base and lack of diversification. The…

Abstract

Purpose

Small firms, which represent much of the Silicon Valley region, tend to experience losses due to their small scale, small customer base and lack of diversification. The authors study the impact of accounting conservatism and losses on firm value and as such this study is an appropriate addition to this growing field of financial management.

Design/methodology/approach

The authors use methodology developed in prior literature to examine Silicon Valley and non-Silicon Valley firms' and their behavior when facing losses and the factors, which might play a role in their valuation. The authors focus particularly on earnings and accounting conservatism. Accounting conservatism captures how fast firms record losses relative to gains. The faster losses are recognized than gains the more accounting conservatism is exhibited. The authors examine the seemingly unrelated estimation of differences in means for our independent variables of interest across the two samples of Silicon Valley and non-Silicon Valley firms, both earnings and accounting conservatism. The authors use matched sample analysis of these firms based on four digit SIC code, size and date. In robustness, the authors run a more in-depth propensity score matched sample analysis.

Findings

The authors document that market values of Silicon Valley firms with accounting losses are affected less by negative earnings than other firms with accounting losses in the United States outside of the Silicon Valley region, noting the “lose big, win bigger” sentiment of Silicon Valley. Additionally, the authors document that accounting conservatism does play a role in influencing valuations of companies with accounting losses both in Silicon Valley and the rest of the United States, marginally more for Silicon Valley firms.

Originality/value

This study would be of interest to fund managers who need to consider smaller firms for inclusion in their portfolios. A lot of small firms have experienced losses ever since going public, especially Silicon Valley start-up firms.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Book part
Publication date: 12 September 2003

Jonathan Jaffee

Social scientists have recently turned their attention to the important consequences of industrial districts or so-called agglomeration economies on economic growth and…

Abstract

Social scientists have recently turned their attention to the important consequences of industrial districts or so-called agglomeration economies on economic growth and firm performance. This paper explores an important but unanswered question involving agglomeration economies: does geographic location within an agglomeration affect firm performance? I assess this question by examining the effects of different geographic office locations (by zip code) on the failure rates of all corporate law firms located in Silicon Valley from 1969 to 1998. Empirical estimates reveal that Silicon Valley corporate law firms benefit from the increased volume of client referrals that comes from being near mutualistic firms that offer a different range of legal services, the lower labor costs and more specialized division of labor that come from being near a large joint supply of lawyers, and the increased business that comes from being near important clients (i.e. venture capital firms).

In addition, corporate law firms that locate in certain municipalities of Silicon Valley, including Palo Alto, San Jose, and Santa Clara, have significantly increased failure rates, even controlling for many firm-specific differences. Younger corporate law firms (under the age of 11 years) are helped disproportionately by being near important environmental resources and harmed disproportionately by being in certain perilous areas of Silicon Valley. All told, a law firm’s office location within Silicon Valley has significant consequences for its survival.

Details

Geography and Strategy
Type: Book
ISBN: 978-0-76231-034-0

Abstract

Details

Silicon Valley North
Type: Book
ISBN: 978-0-08044-457-4

Article
Publication date: 2 October 2017

K.C. Fung and Nathalie Aminian

In this paper, the authors aim to examine some characteristics of the innovation system and policy in France and China. For comparison, they also highlight some high…

Abstract

Purpose

In this paper, the authors aim to examine some characteristics of the innovation system and policy in France and China. For comparison, they also highlight some high technology features of Silicon Valley and California.

Design/methodology/approach

The authors study the characteristics of innovation in France and in China. The authors examine the technology systems and policies in both countries and compare their features with those in Silicon Valley.

Findings

As far as France is concerned, it can be stated that the innovation system and policy are under transformation, going from a strong state involvement to a more decentralized framework. This evolution leads to a multi-level governance of the innovation system and to the emergence of new actors. For China, the most interesting development in China is the evolution of its internet-related sector. The authors argue here that the internet-driven economy is a radical, systemic technological change and it is rapidly growing in China.

Originality/value

One of the earliest papers comparing the innovation policies and activities in France, China and Silicon Valley.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 10 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Abstract

Details

Silicon Valley North
Type: Book
ISBN: 978-0-08044-457-4

Article
Publication date: 1 December 2004

Hannu Jungman and Marko Seppä

The increased capital intensity of venture capital supply and the increased knowledge intensity of new venture supply have created a knowledge gap and recreated a capital…

Abstract

The increased capital intensity of venture capital supply and the increased knowledge intensity of new venture supply have created a knowledge gap and recreated a capital gap between new venture activity and venture capital industry. This development has given rise to an all‐new breed of players. In this descriptive, qualitative study, V2C activity is explored in a local context through comparison of cases Tampere (Finland) and Silicon Valley (USA). In Silicon Valley, the dominant group of V2C players is business angels, whereas in Tampere, publicly funded incubators play the most visible role in new venture development. Nevertheless, in both areas, five different categories of V2C players are represented, and, in both, bridge the gaps to a significant extent.

Details

Qualitative Market Research: An International Journal, vol. 7 no. 4
Type: Research Article
ISSN: 1352-2752

Keywords

Book part
Publication date: 26 December 2016

Evan Burkosky

Abstract

Details

Angel Financing in Asia Pacific
Type: Book
ISBN: 978-1-78635-128-9

Book part
Publication date: 1 September 2016

Liv Nyland Krause

The purpose of this chapter is to explore the phenomenon of innovation in a particular setting in Japan, and more specifically to trace a local initiative toward the…

Abstract

Purpose

The purpose of this chapter is to explore the phenomenon of innovation in a particular setting in Japan, and more specifically to trace a local initiative toward the creation of an “innovation ecosystem” in a large city and its surrounding region in Western Japan, with the aim of fostering entrepreneurship and economic revitalization.

Methodology/approach

The analysis in this chapter is based on ethnographic fieldwork, including participant-observation in meetings and events held to promote entrepreneurship and collaboration in the region, as well as interviews with city officials, managers, and entrepreneurs related to the activities of the creation of the “innovation ecosystem.”

Findings

In the chapter, I show how the emergence of the ecosystem metaphor for business innovation informs practices and imaginaries in which relations, co-creation, and natural growth become central as models of and for innovation processes in a context of crisis, in ways that generate not only innovation but the ecosystem itself.

Originality/value

The chapter provides historical and social context to the metaphor of the innovation ecosystem that is receiving increasing interest globally, and provides insights into how innovation activities and the enacting of the “innovation ecosystem” take place in practice.

Details

The Economics of Ecology, Exchange, and Adaptation: Anthropological Explorations
Type: Book
ISBN: 978-1-78635-227-9

Keywords

Content available
59

Abstract

Details

Microelectronics International, vol. 16 no. 3
Type: Research Article
ISSN: 1356-5362

Keywords

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