The capital gap for small technology companies: Public venture capital to the rescue?

Small Business Economics

Volumn 38, Issue 3, 2012, Pages 283-301

  del Palacio, Itxaso ^a   Zhang, Xiaotian Tina ^b   Sole, Francesc ^c  

^a IMPERIAL COLLEGE LONDON   (United Kingdom)

^b SAINT MARY'S COLLEGE OF CALIFORNIA   (United States)

^c UNIVERSITAT POLITÈCNICA DE CATALUNYA   (Spain)

Author keywords

Early stage; Entrepreneurship; Public policy; Start up; Venture capital

Indexed keywords

EID: 84856459108     PISSN: 0921898X     EISSN: 15730913     Source Type: Journal    
DOI: 10.1007/s11187-010-9275-6     Document Type: Article

References (59)

1. Akerlof, G. A. (1970). The market for lemons: Qualitative uncertainty and the market mechanism. Quarterly Journal of Economics, 84, 488-500.
2. Alemany, L. (2006). Venture Capital in Spain: Evolution, characterisation and economic impact analysis. International Journal of Entrepreneurship and Innovation Managament, 6(4/5), 412-428.
3. Alemany, L., & Marti, J. (2006). Do Venture Capitalists' characteristics affect the performance of the firms they back? Resource Document. SSRN. http://ssrn. com/abstract=886546.
4. Becker, G. S. (1983). A theory of competition among pressure groups for political influence. Quarterly Journal of Economics, 98, 371-400.
5. Benz, M. (2009). Entrepreneurship as a non-profit-seeking activity. International Entrepreneurship and Management Journal, 5, 23-44.
6. Birkinshaw, J., Murray, G., & Basten, R. (2002). Corporate venturing: The state of the art and the prospects for the future. London: London Business School.
7. Bottazzi, L., Da Rin, M., van Ours, J. C., & Berglof, E. (2002). Venture Capital in Europe and the financing of innovative companies. Economic Policy, 34, 229-269.
8. Caruana, A., & Ewing, M. T. (2002). Effects of some environmental challenges and centralization on the entrepreneurial orientation and performance of public sector entities. Service Industries Journal, 22, 43-58.
9. Chang, C. K. N., Stephane, S. S., & Wang, A. J. (2002). The Advanced Technology Program: A public-private partnership for early stage technology development. Venture Capital, 4(4), 363-370.
10. Cohen, L. R., & Noll, R. G. (1991). The technology pork barrel. Washington: Brookings Institution.
11. Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.
12. Da Rin, M., Nicodano, G., & Sembenelli, A. (2006). Public policy and the creation of active venture capital markets. Journal of Public Economics, 90, 1699-1723.
13. De Meza, D. (2002). Overlending. The Economic Journal, 112(2), F17-F31.
14. Del-Palacio, I., Sole, F., & Batista-Foguet, J. M. (2008). University entrepreneurship centres as service businesses. Service Industries Journal, 28, 939-951.
15. Dimov, D., & Murray, G. (2007). Determinants of the incidence and scale of seed capital investments by venture capital firms. Small Business Economics, 30(2), 127-152.
16. Etzkowitz, H. (2003). Innovation in Innovation: The Triple Helix of University-Industry-Government Relations. Social Science Information, 42, 33-293.
17. European Commission. (2007). Flash Eurobarometer 192. Conducted by The Gallup Organization: Hungary. Resource Document. European Commission. http://ec. europa. eu/public_opinion/flash/fl_192_en. pdf.
18. Gert-Jan Hospers, G. J., Desrochers, P., & Sautet, F. (2009). The next Silicon Valley? On the relationship between geographical clustering and public policy. International Entrepreneurship and Management Journal, 5, 285-299.
19. Gompers, P. A., Kovner, A., Lerner, J., & Scharfstein, D. S. (2006). Skill vs. luck in entrepreneurship and venture capital: Evidence from serial entrepreneurs. NBER Working Paper No. W12592. Resource document. SSRN. http://ssrn. com/abstract=937293.
20. Gompers, P., & Lerner, J. (1999a). The venture capital cycle. Cambridge, MA: MIT Press.
21. Gompers, P. A., & Lerner, J. (1999b). What drives venture capital fundraising? doi: 10. 2139/ssrn. 57935.
22. Gompers, P. A., & Lerner, J. (1999c). Capital formation and investment in venture capital markets: A report on the NBER and the Advanced Technology Program. Report GCR-99-784. Washingon: Advanced Technology Program, National Institutes of Standards and Technology, U. S. Department of Commerce.
23. Greenwald, B. C., Stiglitz, J. E., & Weiss, A. (1984). Information imperfections in the capital market and macroeconomic fluctuations. American Economic Review Papers and Proceedings, 74(1), 94-199.
24. Griliches, Z. (1992). The search for R& D spillovers. Scandinavian Journal of Economics, 94, S29-S47.
25. Gripaios, P., & Bishop, P. (2005). Spatial inequalities in UK GDP per head: The role of private and public services. Service Industries Journal, 25, 945-958.
26. Jaaskelainen, M., Maula, M., & Seppa, T. (2002). The optimum portfolio of start-up firms in venture capital finance: The moderating effect of syndication and an empirical test. Frontiers of Entrepreneurship Research. Wellesley, MA: Babson College.
27. Jaffe, A. B. (1996). Economic analysis of research spillovers and implications for the Advanced Technology Program. Washington: Advanced Technology Program, National Institute of Standards and Technology, U. S. Department of Commerce.
28. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
29. Kanniainen, V., & Keuschnigg, C. (2003). The optimal portfolio of start-up firms in venture capital finance. Journal of Corporate Finance, 9(5), 521-534.
30. Karapetrovic, S., & Willborn, W. (2001). ISO 9000 quality management standards and financial investment services. Service Industries Journal, 21(2), 117-136.
31. Kearney, C., Hisrich, R., & Roche, F. (2008). A conceptual model of public sector corporate entrepreneurship. International Entrepreneurship and Management Journal, 4, 295-313.
32. Kenney, M. (2000). Understanding Silicon Valley: Anatomy of an entrepreneurial region. Stanford, CA: Stanford University Press.
33. Kirwan, P., van der Sijde, P., & Groen, A. (2006). Assessing the needs of new technology based firms (NTBFs): An investigation among spin-off companies from six European Universities. International Entrepreneurship and Management Journal, 2(2), 173-187.
34. Lall, S. (1992). Technological capabilities and industrialization. Word Development, 20(2), 165-186.
35. Leleux, B., & Surlemont, B. (2003). Public versus private venture capital: Seeding or crowding out? A pan-European analysis. Journal of Business Venturing, 18, 81-104.
36. Lerner, J. (1999). The government as venture capitalist: The Long-Run Impact of the SBIR Program. Journal of Business, 72(3), 285-318.
37. Lerner, J. (2002). When bureacrats meet entrepreneurs: The design of effective "Public Venture Capital" programmes. The Economic Journal, 112(2), F73-F84.
38. Lockett, A., Murray, G., & Wright, M. (2002). Do UK VCists still have a bias against investment in new technology firms? Research Policy, 31, 1009-1030.
39. Lockett, A., & Wright, M. (1999). The syndication of private equity: Evidence from the UK. Venture Capital, 1(4), 303-324.
40. Manigart, S., Collewaert, V., Wright, M., Pruthi, S., Lockett, A., Bruining, H., (2007). Human capital and the internationalization of venture capital firms. International Entrepreneurship and Management Journal, 3(1), 109-125.
41. Marti, J. (2004/2007). Informe ASCRI 2004/2007, ASCRI: Madrid (Spain), http://www. ascri. org.
42. Mayer, C., Schoorsb, K., & Yafeh, Y. (2005). Sources of funds and investment activities of venture capital funds: Evidence from Germany, Israel, Japan, and the United Kingdom. Journal of Corporate Finance, 11, 586-608.
43. Milken Institute. (2006). Capital Access Index 2006. Best Markets for Business Finance, Conducted by Barth, J. R., Li, T., Phumiwasana, T., Yago, G., Santa Monica, CA: Milken Institute.
44. Murray, G. C. (1999). Early-stage, venture capital funds, scale economies and public support. Venture Capital, 1(4), 351-353.
45. Murray, G. C., & Lott, J. (1995). Have UK venture capitalists a bias against investment in new technology-based firms? Research Policy, 24(2), 283-299.
46. Myers, S. C., & Majluf, N. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13, 187-221.
47. Nelson, R. R., & Winter, G. S. (1982). An evolutionary theory of economic change. Cambridge: Belknap Press/Harvard University Press.
48. Nilsson, P. A., Petersen, T., & Wanhill, S. (2005). Public support for tourism SMEs in peripheral areas: The Arjeplog Project, northern Sweden. Service Industries Journal, 25(4), 579-599.
49. Peltzman, S. (1976). Towards a more general theory of regulation. Journal of Law and Economics, 19, 211-240.
50. Pintado, T. R., García, D., & van Auken, H. (2007). Venture capital in Spain by stage of development. Journal of Small Business Management, 45(1), 68-88.
51. Pissarides, F. (1999). Is lack of funds the main obstacle to growth? EBRD's experience with small- and medium-sized businesses in central and eastern Europe. Journal of Business Venturing, 14(5-6), 519-539.
52. Roberts, E. (1991). High stakes of high tech entrepreneurs: Understanding venture capital decision making. Winter, 9-20.
53. Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with incomplete information. American Economic Review, 71, 393-409.
54. Tan, W. L., Williams, J., & Tan, T. M. (2005). Defining the 'Social' in 'Social Entrepreneurship': Altruism and entrepreneurship. International Entrepreneurship and Management Journal, 1, 353-365.
55. Tejada, R. (2003). Venture Capital Policy Review: Spain. Working Paper 2003/18, Madrid: Organization for Economic Cooperation and Development. doi: 10. 1787/423325882343.
56. Valle, M. (2008). Iniciativa Neotec, http://tinyurl. com/nwdgyy.
57. Wallsten, S. J. (2000). The Small Business Innovation Research program: Encouraging technological innovation and commercialization in small firms? Rand Journal of Economics, 31, 82-100.
58. Wooldridge, J. (2009). Global Hero. A special report on entrepreneurship. The Economist, Special Report, March 14th.
59. Web de Capital Riesgo, http://www. webcapitalriesgo. com.