Journal ArticleDOI
Corporate Venture Capital, Value Creation, and Innovation
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TLDR
The authors analyzed how corporate venture capital differs from independent venture capital in nurturing innovation in entrepreneurial firms and found that CVC-backed firms are more innovative, as measured by their patenting outcome, although they are younger, riskier, and less profitable than IVC-based firms.Abstract:
We analyze how corporate venture capital (CVC) differs from independent venture capital (IVC) in nurturing innovation in entrepreneurial firms. We find that CVC-backed firms are more innovative, as measured by their patenting outcome, although they are younger, riskier, and less profitable than IVC-backed firms. Our baseline results continue to hold in a propensity score matching analysis of IPO firms and a difference-in-differences analysis of the universe of VC-backed entrepreneurial firms. We present evidence consistent with two possible underlying mechanisms: CVC's greater industry knowledge due to the technological fit between their parent firms and entrepreneurial firms and CVC's greater tolerance for failure.read more
Citations
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Journal ArticleDOI
Does banking competition affect innovation
TL;DR: In this paper, the authors exploit the deregulation of interstate bank branching laws to test whether banking competition affects innovation and find robust evidence that banking competition reduces state-level innovation by public corporations headquartered within deregulating states.
Journal ArticleDOI
Independent Boards and Innovation
TL;DR: In this article, the authors show that firms that transition to independent boards focus on more crowded and familiar areas of technology, and that the citation increase comes mainly from incremental patents in the middle of the citation distribution; the numbers of uncited and highly cited patents do not change significantly.
Journal ArticleDOI
A review and road map of entrepreneurial equity financing research
Will Drover,Lowell W. Busenitz,Sharon F. Matusik,David M. Townsend,Aaron H. Anglin,Gary Dushnitsky +5 more
TL;DR: In this paper, the authors take stock of the existing research in venture finance and identify key considerations relevant for the domain of venture finance moving forward, and integrate, organize, and assess the large and disparate literature on venture finance.
Journal ArticleDOI
What Affects Innovation More: Policy or Policy Uncertainty?
TL;DR: In this article, the authors examine for 43 countries whether it is policy or policy uncertainty that affects technological innovation more than patent-based proxies, and uncover the mechanism underlying the main result by showing that the number of patenting inventors decreases with policy uncertainty.
Journal ArticleDOI
How do foreign institutional investors enhance firm innovation
TL;DR: This article examined the effect of foreign institutional investors on firm innovation and found that foreign institutional ownership has a positive, causal effect on the firm innovation in 26 non-U.S. economies between 2000 and 2010.
References
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TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
Journal ArticleDOI
The Economic Institutions of Capitalism
TL;DR: The Economic Institutions of Capitalism as mentioned in this paper is a seminal work in the field of economic institutions of capitalism. Journal of Economic Issues: Vol. 21, No. 1, pp. 528-530.
Journal ArticleDOI
Technical change and the aggregate production function
TL;DR: In this article, the authors proposed a method to improve the performance of the system by using the information of the user's interaction with the system and the system itself, including the interaction between the two parties.
Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.
Book ChapterDOI
Testing for Weak Instruments in Linear IV Regression
James H. Stock,Motohiro Yogo +1 more
TL;DR: This paper proposed quantitative definitions of weak instruments based on the maximum IV estimator bias, or the maximum Wald test size distortion, when there are multiple endogenous regressors, and tabulated critical values that enable using the first-stage F-statistic (or, for instance, the Cragg-Donald (1993) statistic) to test whether give n instruments are weak.