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Venture Capital Backed Growth

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Abstract

The paper proposes a simple equilibrium model of venture capital, start-up entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper shows how a productive and active venture capital industry boosts innovation based growth. It also demonstrates the potential of tax policy to promote innovation and growth by strengthening incentives for more intensive venture capital support.

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Authors and Affiliations

  1. University of St. Gallen (IFF), CEPR and CESifo, Varnbuelstrasse 19, CH-9000, St. Gallen, Switzerland

    Christian Keuschnigg

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  1. Christian Keuschnigg
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Keuschnigg, C. Venture Capital Backed Growth. Journal of Economic Growth 9, 239–261 (2004). https://doi.org/10.1023/B:JOEG.0000031428.35711.fc

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  • DOI: https://doi.org/10.1023/B:JOEG.0000031428.35711.fc

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