[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v4y2002i1p59-76.html
   My bibliography  Save this article

Plugging the knowledge gap: An international comparison of the role for policy in the venture capital market

Author

Listed:
  • Rebecca Harding
Abstract
This paper examines the role of policy in creating venture capital structures that support innovative, high growth companies. It compares the policy challenges and the emerging structures and measures in the US, Germany, Singapore, France, Ireland, the Netherlands and the UK. It argues that policies to stimulate the demand for venture capital are more effective in overcoming inherent information asymmetries in venture capital market. These information asymmetries take the form of risk aversion on the supply side and uncertainty and resistance to venture capital on the demand side. The result is a gap in funding for high growth businesses. Narrowing this gap--often called the equity gap--has been a target of policy makers in the countries studied. The paper provides evidence to demonstrate that the equity gap is actually the measurable outcome of this information asymmetry, or 'knowledge gap' and that policy has been most effective in countries which have approached the development of a venture capital market through demand rather than supply side measures.

Suggested Citation

  • Rebecca Harding, 2002. "Plugging the knowledge gap: An international comparison of the role for policy in the venture capital market," Venture Capital, Taylor & Francis Journals, vol. 4(1), pages 59-76, January.
    • Handle: RePEc:taf:veecee:v:4:y:2002:i:1:p:59-76
    DOI: 10.1080/13691060110093019
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691060110093019
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13691060110093019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Becsky-Nagy Patricia, 2013. "Venture Capital In Hungarian Academic Spin-Offs," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 351-360, December.
    2. Becsky-Nagy, Patrícia & Fazekas, Balázs, 2017. "Résen van-e az állam?. Az állami szerepvállalás hatása a kockázati tőke keresleti oldalára [Is the state on the ball?. The effect of the state s role on the demand side of venture capital]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 507-527.
    3. Marshall, Maria I. & Samal, Ananya, 2006. "The Effect Of Human And Financial Capital On The Entrepreneurial Process: An Urban-Rural Comparison Of Entrepreneurs In Indiana," Staff Papers 28651, Purdue University, Department of Agricultural Economics.
    4. Arena, Marika & Bengo, Irene & Calderini, Mario & Chiodo, Veronica, 2018. "Unlocking finance for social tech start-ups: Is there a new opportunity space?," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 154-165.
    5. Balázs FazekasBalázs Fazekas, 2016. "Value-Creating Uncertainty – A Real Options Approach in Venture Capital," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 15(4), pages 151-166.
    6. Maunula, Mari, 2006. "The Perceived Value-added of Venture Capital Investors. Evidence from Finnish Biotechnology Industry," Discussion Papers 1030, The Research Institute of the Finnish Economy.
    7. László Szerb & Gábor Rappai & Zsolt Makra & Siri Terjesen, 2007. "Informal Investment in Transition Economies: Individual Characteristics and Clusters," Small Business Economics, Springer, vol. 28(2), pages 257-271, March.
    8. Iman Seoudi, 2015. "Public Policy For Venture Capital: An Integrated Framework," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 9(4), pages 31-51.
    9. Ron Martin & Christian Berndt & Britta Klagge & Peter Sunley, 2005. "Spatial Proximity Effects and Regional Equity Gaps in the Venture Capital Market: Evidence from Germany and the United Kingdom," Environment and Planning A, , vol. 37(7), pages 1207-1231, July.
    10. Iman Seoudi & Salma Mahmoud, 2016. "Public Policy For Venture Capital: A Comparative Study Of Emirates, Saudi Arabia And Egypt," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 7(1), pages 19-42.
    11. Kosztopulosz, Andreász & Makra, Zsolt, 2004. "Az üzleti angyalok szerepe a növekedni képes kisvállalkozások fejlesztésében Magyarországon [The role of business angels in developing small firms in Hungary with growth potential]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 717-739.
    12. Cécile Carpentier & Jean-Marc Suret, 2005. "The Indirect Costs of Venture Capital in Canada," CIRANO Working Papers 2005s-25, CIRANO.
    13. Schilder, Dirk, 2006. "Public venture capital in Germany: task force or forced task?," Freiberg Working Papers 2006/12, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    14. Anita Matisone & Natalja Lace, 2021. "Effective Venture Capital Market Development Concept," JOItmC, MDPI, vol. 7(4), pages 1-29, November.
    15. Lange, Knut & Müller-Seitz, Gordon & Sydow, Jörg & Windeler, Arnold, 2013. "Financing innovations in uncertain networks—Filling in roadmap gaps in the semiconductor industry," Research Policy, Elsevier, vol. 42(3), pages 647-661.
    16. Andrew Watkins, 2010. "The Venture Capital Perspective on Collaboration with Large Corporations/MNEs in London and the South East: Pursuing Extra‐Regional Knowledge and the Shaping of Regional Venture Capital Networks?," Review of Policy Research, Policy Studies Organization, vol. 27(4), pages 491-507, July.
    17. Elisa Salvador & Rebecca Harding, 2006. "Innovation Policy at the Regional Level: the Case of Wales," Post-Print hal-02550826, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:veecee:v:4:y:2002:i:1:p:59-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.