Dessi, Roberta and Yin, Nina
(2015)
Venture Capital and Knowledge Transfer.
TSE Working Paper, n. 15-555
Preview |
Text
Download (678kB) | Preview |
Abstract
This paper explores a new role for venture capitalists, as knowledge intermediaries. A venture capital investor can communicate valuable knowledge to an entrepreneur, facilitating innovation. The venture capitalist can also communicate the entrepreneur's innovative knowledge to other portfolio companies. We study the costs and benefits of these two forms of knowledge transfer, and their implications for investment, innovation, and product market competition. The model also sheds light on the choice between venture capital and other forms of finance, and the determinants of the decision to seek patent protection for innovations. Our analysis provides a rationale for the use of contingencies (specifically, patent approval) in VC contracts documented by Kaplan and Stromberg (2003), and for recent evidence on patterns of syndication among venture capitalists.
Item Type: | Monograph (Working Paper) |
---|---|
Language: | English |
Date: | February 2015 |
Uncontrolled Keywords: | venture capital, knowledge intermediaries, contracts, innovation, competition, patents |
JEL Classification: | D82 - Asymmetric and Private Information D86 - Economics of Contract - Theory G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies L22 - Firm Organization and Market Structure - Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Site: | UT1 |
Date Deposited: | 16 Mar 2015 14:56 |
Last Modified: | 02 Apr 2021 15:49 |
OAI Identifier: | oai:tse-fr.eu:29010 |
URI: | https://publications.ut-capitole.fr/id/eprint/16698 |