Venture Capital Investments in Europe and Firm Productivity: Independent versus Corporate Investors

32 Pages Posted: 26 Jan 2014

See all articles by Massimo G. Colombo

Massimo G. Colombo

Politecnico di Milano

Samuele Murtinu

Utrecht University - School of Economics

Date Written: January 15, 2014

Abstract

Using a new European Commission-sponsored longitudinal dataset – the VICO dataset – we assess the impact of independent (IVC) and corporate venture capital (CVC) investments on the total factor productivity (TFP) of European high-tech entrepreneurial firms during the period 1992-2010. After controlling for potential sources of endogeneity and selection bias, our results indicate that both IVC and CVC investments boost TFP, whereas investments syndicated by both IVC and CVC investors do not. These effects are mostly due to an increase in sales value. Moreover, the dynamics of the impact of VC investments on TFP and its components – sales value, fixed assets, and payroll expenses – differs depending on the type of investor.

Keywords: independent venture capital, corporate venture capital, high-tech entrepreneurial firms, total factor productivity, syndication

JEL Classification: G24, D24, M13, C23

Suggested Citation

Colombo, Massimo G. and Murtinu, Samuele, Venture Capital Investments in Europe and Firm Productivity: Independent versus Corporate Investors (January 15, 2014). Available at SSRN: https://ssrn.com/abstract=2384816 or http://dx.doi.org/10.2139/ssrn.2384816

Massimo G. Colombo

Politecnico di Milano ( email )

Piazza Leonardo da Vinci, 32
20113 Milan
Italy

Samuele Murtinu (Contact Author)

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

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