Venture Capital, the Public Sector and the High-Technology Industry

International Journal of Innovation and Technology Management, Vol. 5, No. 1, pp. 105-122, 2008

Posted: 9 Oct 2009

See all articles by Avi Messica

Avi Messica

The College of Management

Tamir Agmon

Tel Aviv University, Faculty of Management

Multiple version iconThere are 2 versions of this paper

Date Written: March 1, 2008

Abstract

We studied the optimal funding of the public sector for the Hi-Tech industry in the presence of short-term, cyclical, venture capital (VC) funding by constructing a decision-making model that results in the optimal governmental support and a model that accounts for the dynamics of the VC industry. We found that the VC industry is highly correlated with the NASDAQ stock index and that the optimal public policy for funding the Hi-Tech sector should be anti-cyclical, dynamic, and conditioned on the VC investments. The models and their validation are discussed as well as the practical implications for policy and decision makers.

Keywords: Public sector, government, venture capital, investment, high technology, Hi-Tech

Suggested Citation

Messica, Avi and Agmon, Tamir, Venture Capital, the Public Sector and the High-Technology Industry (March 1, 2008). International Journal of Innovation and Technology Management, Vol. 5, No. 1, pp. 105-122, 2008, Available at SSRN: https://ssrn.com/abstract=1486003

Avi Messica (Contact Author)

The College of Management ( email )

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Tamir Agmon

Tel Aviv University, Faculty of Management

Ramat Aviv
Tel Aviv
Israel
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