TY  - JOUR
AU  - Da Rin, Marco
AU  - Penas, María Fabiana
TI  - The Effect of Venture Capital on Innovation Strategies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13636
PY  - 2007
Y2  - November 2007
DO  - 10.3386/w13636
UR  - http://www.nber.org/papers/w13636
L1  - http://www.nber.org/papers/w13636.pdf
N1  - Author contact info:
Marco Da Rin
Department of Finance-Office K 936
Tilburg University
Warandelaan 2
P.O. Box 90153
5000 LE Tilburg
The Netherlands
Tel: 31 13 466 2054
Fax: 31 13 466 2875
E-Mail: marco.darin@uvt.nl

Maria Fabiana Penas
Universidad Torcuato Di Tella
Escuela de Negocios
Av. Figueroa Alcorta 7350
C1428BCW Ciudad Autónoma Buenos Aires
Argentina
E-Mail: fpenas@utdt.edu
M1  - published as Roland Strausz. "Entrepreneurial Financing, Advice, and Agency Costs," in Thomas Hellman and Scott Stern, editors, "Entrepreneurship: Strategy and Structure" Journal of Economics and Management Strategy 18(3), Fall 2009 (Blackwell Publishing) (2009)

M3  - presented at "Entrepreneurship: Strategy and Structure Conf.", September 13-15, 2007
AB  - We examine a unique dataset of Dutch companies, some of which have received venture financing. The data include detailed information on innovation activities and other company characteristics. We analyse the role of venture finance in influencing innovation strategies. We find that venture capitalists push portfolio companies towards building absorptive capacity and towards more permanent in-house R&D efforts. By contrast, we find that public funding relaxes financial constraints, but does not lead to a build-up of absorptive capacity. Our results thus highlight the special role of venture capital in shaping companies' innovation strategies.
ER  -