High-tech start-up access to public funds and venture capital: Evidence from Italy

International Review of Applied Economics

Volumn 21, Issue 3, 2007, Pages 381-402

  Colombo, Massimo G ^a   Grilli, Luca ^a   Verga, Cinzia ^a  

^a POLITECNICO DI MILANO   (Italy)

Author keywords

New technology based firms; Public subsidies; Technology policy; Venture capital

Indexed keywords

CAPITAL; FINANCE; HIGH TECHNOLOGY INDUSTRY; INDUSTRIAL ENTERPRISE; INVESTMENT; MANUFACTURING; SUBSIDY SYSTEM; TECHNOLOGY POLICY;

EURASIA; EUROPE; ITALY; SOUTHERN EUROPE;

EID: 34250677215     PISSN: 02692171     EISSN: 14653486     Source Type: Journal    
DOI: 10.1080/02692170701390361     Document Type: Article

References (57)

1. Aldrich, H. E., Kallenberg, A., Marsden, P. and Cassell, J. (1989) In pursuit of evidence: Sampling procedures for locating new businesses. Journal of Business Venturing, 4, pp. 367-386.
2. Audretsch, D. and Lehmann, E. (2004) Financing high-tech growth: The role of banks and venture capitalists. Schmalenbach Business Review, 56, pp. 340-357.
3. Audretsch, D., Albert, N. L. and John, T. S. (2002) Public/private technology partnerships: Evaluating SBIR-supported research. Research Policy, 31, pp. 145-158.
4. Baum, J. and Silverman, B. (2004) Picking winners or building them? Alliance, intellectual and human capital as selection criteria in venture financing and performance of biotechnology start-ups. Journal of Business Venturing, 19, pp. 411-436.
5. Berger, A.N. and Udell, G.F. (1998) The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, 22, pp. 613-673.
6. Bertoni, F., Colombo, M. G., Croce, A. and Piva, E. (2006) A review of the venture capital industry in Italy. Venture Capital in Europe, Elsevier, Amsterdam
7. Birley, S. (1984) Finding the new firm. Proceedings of the Academy of Management Meetings, 47, pp. 64-68.
8. Blanes, J. and Busom, I. (2004) Who participates in R&D subsidy programs? The case of Spanish manufacturing firms. Research Policy, 33, pp. 1459-1476.
9. Bottazzi, L. and Da Rin, M. (2002) European venture capital. Economic Policy, 17:34, pp. 229-270.
10. Carpenter, R. E. and Petersen, B. C. (2002) Capital market imperfections, high-tech investment, and equity financing. The Economic Journal, pp. F54-F72.
11. Chan, Y.S. (1983) On the positive role of financial intermediation in allocation of venture capital in market with imperfect information. Journal of Finance, 35:5, pp. 1543-1568.
12. Colombo, M. G. and Grilli, L. (2005) Founders' human capital and the growth of new technology based firms: A competence-based view. Research Policy, 34, pp. 795-816.
13. Colombo, M. G. and Grilli, L. (2006) Supporting high-tech start-ups: lessons from Italian technology policy. International Entrepreneurship and Management Journal, 2:2, pp. 189-209.
14. Colombo, M. G. and Grilli, L. (2007) Funding gaps? Access to bank loans by high-tech start-ups. Small Business Economics, 26, pp. 25-46.
15. Colombo, M. G., Grilli, L. and Piva, E. (2006) In search for complementary assets: The determinants of alliance formation of high-tech start-ups. Research Policy, 35, pp. 1166-1199.
16. Denis, D. J. (2004) Entrepreneurial finance: An overview of the issues and evidence. Journal of Corporate Finance, 10, pp. 301-326.
17. Egeln, J., Licht, G. and Steil, F. (1997) Firm foundations and the role of financial constraints. Small Business Economics, 9:2, pp. 137-150.
18. Engel, D. and Keilbach, M. (2007) Firm level implication of early stage venture capital investment: An empirical investigation. Journal of Empirical Finance
19. Fazzari, S., Hubbard, R. G. and Petersen, B. C. (1988) Financing Constraints and Corporate Investment. Brookings Papers on Economic Activity, 1, pp. 141-205.
20. Feldman, M. P. and Kelley, M. R. (2003) Leveraging R&D: Assessing the impact of the U.S. Advanced Technology Program. Small Business Economics, 20:2, pp. 153-165.
21. Fried, V. H. and Hisrich, R. D. (1994) Toward a model of venture capital decision-making. Financial Management, 23, pp. 28-37.
22. Gans, J. S. and Stern, S. (2003) When does funding research by smaller firms bear fruit? Evidence from the SBIR program. Economics of Innovation and New Technology, 12:4, pp. 361-384.
23. Gimeno, J., Folta, T., Cooper, A. and Woo, C. (1997) Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42, pp. 750-783.
24. Giudici, G. and Paleari, S. (2000) The Provision of finance to innovation: A survey conducted among Italian technology-based small firms. Small Business Economics, 14:1, pp. 37-53.
25. Gompers, P. and Lerner, J. (2001) The venture capital revolution. Journal of Economic Perspectives, 15:2, pp. 145-168.
26. Gorman, M. and Sahlman, W. A. (1989) What do venture capitalist do?. Journal of Business Venturing, 4, pp. 231-248.
27. Griliches, Z. (1992) The search for R&D spillovers. Scandinavian Journal of Economics, 94, pp. 29-47.
28. Hall, J. and Hofer, C. W. (1993) Venture capitalists' decision criteria in new venture evaluation. Journal of Business Venturing, 8, pp. 25-42.
29. Hsu, D. H. (2006) Venture capitalists and cooperative start-up commercialization strategy. Management Science, 52, pp. 204-219.
30. Hubbard, R. G. (1998) Capital market imperfections and investment. Journal of Economic Literature, 36, pp. 193-225.
31. Kaplan, S. N. and Strömberg, P. (2001) Venture capitalists as principals: Contracting, screening and monitoring. American Economic Review, 91, pp. 426-430.
32. Kaplan, S. N. and Strömberg, P. (2003) Financial contracting theory meets the real world: An empirical analysis of venture capital contracts. Review of Economic Studies, 70, pp. 281-315.
33. Kaplan, S. and Strömberg, P. (2004) Characteristics, contracts, and actions: Evidence from venture capitalist analyses. Journal of Finance, 59, pp. 2177-2210.
34. Lach, S. (2002) Do R&D subsidies stimulate or displace private R&D? Evidence from Israel. Journal of Industrial Economics, 50:4, pp. 369-390.
35. Lazear, E. P. (2004) Balanced skills and entrepreneurship. American Economic Review, 94:2, pp. 208-211.
36. Lerner, J. (1999) The Government as venture capitalist: The long-run impact of the SBIR Program. Journal of Business, 72:2, pp. 285-318.
37. Lerner, J. (2002) When bureaucrats meet entrepreneurs: The design of effective 'public venture capital' programmes. Economic Journal, 112, pp. 73-84.
38. Lowe, R. A. (2001) The role and experience of start-ups in commercializing inventions: Start-up licensees at the University of California. Entrepreneurial Inputs and Outcomes: New Studies of Entrepreneurship in the United States, Elsevier Science, New York, NY
39. MacMillan, I. C., Seigel, R. and Narasimha, P. N. Subba (1985) Criteria used by venture capitalist to evaluate new venture proposals. Journal of Business Venturing, 1, pp. 119-128.
40. Mansfield, E., Rapoport, J., Romeo, A., Wagner, S. and Beardsley, G. (1977) Social and private rates of return from industrial innovation. Quarterly Journal of Economics, 91, pp. 221-240.
41. Mosconi, R. and Seri, R. (2006) Non-causality in bivariate binary time series. Journal of Econometrics, 132, pp. 379-407.
42. Muzyka, D., Birley, S. and Leleux, B. (1996) Trade-offs in the investment decisions of European venture capitalists. Journal of Business Venturing, 11, pp. 173-287. pp. 173-287.
43. Oakey, R. (1995) High-Technology New Firms: Variables Barriers to Growth, Chapman & Hall, London
44. Sahlman, W. A. (1990) The structure and governance of venture-capital organizations. Journal of Financial Economics, 27, pp. 473-521.
45. Santarelli, E. and Vivarelli, M. (2002) Is subsidizing entry an optimal policy?. Industrial and Corporate Change, 11:1, pp. 39-52.
46. Schertler, A. (2001) Venture capital in Europe's common market: A quantitative description. Kiel Working Paper
47. Shane, S. and Cable, D. (2002) Network ties, reputation, and the financing of new ventures. Management Science, 48:3, pp. 364-381.
48. Sheperd, D. A., Ettenson, R. and Crouch, A. (2000) New venture strategy and profitability: A venture capitalist's assessment. Journal of Business Venturing, 15, pp. 449-467.
49. Stiglitz, J. E. and Weiss, A. (1981) Credit rationing in markets with imperfect information. American Economic Review, 71, pp. 393-410.
50. Tanayama, T., Toivanen, O. and Takalo, T. (2004) Selection or self-rejection?, RICAFE. Working Paper
51. Teece, D. J. (1986) Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. Research Policy, 15, pp. 285-305.
52. Toole, A. A. and Czarnitzki, D. (2005) Biomedical academic entrepreneurship through the SBIR program. Working Paper, Cambridge
53. Tyebjee, T. T. and Bruno, A. V. (1984) A model of VC investment activity. Management Science, 30:9, pp. 1051-1056.
54. Wallsten, S. J. (2000) The effects of government-industry R&D programs on private R&D: The case of the small business innovation research. RAND Journal of Economics, 31:1, pp. 82-100.
55. Westhead, P. and Storey, D. J. (1997) Financial constraints on the growth of high technology small firms in the United Kingdom. Applied Financial Economics, 7, pp. 197-201.
56. Zacharakis, A. L. and Meyer, G. D. (1998) A lack of insight: Do VC really understand their own decision process. Journal of Business Venturing, 13, pp. 57-76.
57. Zacharakis, A. L. and Meyer, G. D. (2000) The potential of actuarial decision models: Can they improve the venture capital investment decision?. Journal of Business Venturing, 15, pp. 323-346.