Characteristics and drivers of venture capital investment activity in Romania
The present paper aims at characterising the venture capital market and identifying factors affecting the venture capital investments activity in Romania in the period 2000-2010. With a view to assessing the intensity of manifestation of various factors on the supply and demand of venture capital we...
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2012-07-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/755.pdf
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| Summary: | The present paper aims at characterising the venture
capital market and identifying factors affecting the venture capital
investments activity in Romania in the period 2000-2010. With a view to
assessing the intensity of manifestation of various factors on the supply
and demand of venture capital we use an econometric model of
macroeconomic variables already tested in the literature. We consider,
however, that we bring contributions to the approach, by analysing the
features of the venture capital market in Romania and impact factors, our
work being, at the same time, support in assessing the types of decisions
to be adopted by policymakers to the formation of an authentic market
and stimulating innovation. Our results indicate that the total R&D
intensity is the main determinant of the venture capitals invested in this
period in the two phases (for early stages and expansion). A significant
incidence, mainly on the supply side, also shows the annual long term
real interest rate, while the market capitalisation, the effective marginal
tax rate on corporate income, the annual inflation or unemployment rate
do not impact on the venture capital. Our recommendations, in terms of
formation and development of the venture capital market, look as a
priority, strengthening the demand for resources, respectively
encouraging of enterprises to innovate, creating of conditions for the
supply to be manifested in the seed and start-up stages and the
compatibilization of the need for resources with prudential rules by
adapting regulations for institutional investors. |
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| ISSN: | 1841-8678 1844-0029 |