An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia
We hear a lot of political declarations stating the importance of developing an innovation economy by fostering venture capital inflows. But it is obvious that the venture capital market makes an extremely low contribution in terms of total R&D spending or gross investment. Thus, theory...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2015-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2015/0013-32641507007K.pdf |
| _version_ | 1819195068890742784 |
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| author | Kolmakov Vladimir Vladimirovich Polyakova Aleksandra Grigorievna Shalaev Vasily Sergeevich |
| author_facet | Kolmakov Vladimir Vladimirovich Polyakova Aleksandra Grigorievna Shalaev Vasily Sergeevich |
| author_sort | Kolmakov Vladimir Vladimirovich |
| collection | DOAJ |
| description | We hear a lot of political declarations stating the importance of developing
an innovation economy by fostering venture capital inflows. But it is obvious
that the venture capital market makes an extremely low contribution in terms
of total R&D spending or gross investment. Thus, theory says venture capital
investment (VCI) is important due to its huge impact on modernization, but
practitioners note that there is no evidence and VCI constitutes about 1% of
total investments. Formal logic foregrounds the thesis that the effect of
venture investment is important and significant, but delayed. We contribute
to the theory and discussion of the problem of choosing between venture and
non-venture funding by determining a specific niche for venture capital
investment. We derive lagged regression models for GDP and patent
applications for the US and Russia, to test VCI’s impact on economic growth
and innovation. Comparison of model estimates shows significant VCI influence
on GDP at a 4-6- year lag and no synchronous influence, valid for both the US
and Russia. We prove the main hypothesis of our research: the effect of
venture investment on economic and innovation development parameters is
significant and much greater than that of ‘conventional’ investment. |
| first_indexed | 2024-12-23T02:06:53Z |
| format | Article |
| id | doaj.art-d327a1fff0de4ac4b0f287bfda42c508 |
| institution | Directory Open Access Journal |
| issn | 0013-3264 1820-7375 |
| language | English |
| last_indexed | 2024-12-23T02:06:53Z |
| publishDate | 2015-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj.art-d327a1fff0de4ac4b0f287bfda42c5082022-12-21T18:03:53ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752015-01-016020773710.2298/EKA1507007K0013-32641507007KAn analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and RussiaKolmakov Vladimir Vladimirovich0Polyakova Aleksandra Grigorievna1Shalaev Vasily Sergeevich2Plekhanov Russian University of Economics, Moscow, RussiaPlekhanov Russian University of Economics, Moscow, Russia + Tyumen State Oil and Gas University, RussiaNational Business Institute, Moscow, RussiaWe hear a lot of political declarations stating the importance of developing an innovation economy by fostering venture capital inflows. But it is obvious that the venture capital market makes an extremely low contribution in terms of total R&D spending or gross investment. Thus, theory says venture capital investment (VCI) is important due to its huge impact on modernization, but practitioners note that there is no evidence and VCI constitutes about 1% of total investments. Formal logic foregrounds the thesis that the effect of venture investment is important and significant, but delayed. We contribute to the theory and discussion of the problem of choosing between venture and non-venture funding by determining a specific niche for venture capital investment. We derive lagged regression models for GDP and patent applications for the US and Russia, to test VCI’s impact on economic growth and innovation. Comparison of model estimates shows significant VCI influence on GDP at a 4-6- year lag and no synchronous influence, valid for both the US and Russia. We prove the main hypothesis of our research: the effect of venture investment on economic and innovation development parameters is significant and much greater than that of ‘conventional’ investment.http://www.doiserbia.nb.rs/img/doi/0013-3264/2015/0013-32641507007K.pdfventure capital investmenteconomic growthinnovationcomparative studiesR&D spending |
| spellingShingle | Kolmakov Vladimir Vladimirovich Polyakova Aleksandra Grigorievna Shalaev Vasily Sergeevich An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia Ekonomski Anali venture capital investment economic growth innovation comparative studies R&D spending |
| title | An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia |
| title_full | An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia |
| title_fullStr | An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia |
| title_full_unstemmed | An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia |
| title_short | An analysis of the impact of venture capital investment on economic growth and innovation: Evidence from the USA and Russia |
| title_sort | analysis of the impact of venture capital investment on economic growth and innovation evidence from the usa and russia |
| topic | venture capital investment economic growth innovation comparative studies R&D spending |
| url | http://www.doiserbia.nb.rs/img/doi/0013-3264/2015/0013-32641507007K.pdf |
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