1996

To present the steps taken by the main members countries of the OECD to promote innovation.

The article looks at all the main member countries of the OECD (Europe, U. S., Japan, Canada and Korea) and discusses the various ways of promoting innovation. The VC industry and business angels are means that are cited.

Amit, Brander & Zott

1997

To describe and analyse the VC industry in Canada.

The VCC are a specialized segment of the financial market which is primarily concerned with new private businesses. They especially emphasize industries that have reached a more advanced stage of entrepreneurial development. In addition, one notes a predominance of buy-backs by the initiated rather than IPOs. The asymmetry of the information is one of the major causes of this situation.

Schilit

1997

To define venture capital and its use, and to study the impact of VC on the business financed and on the economy as a whole.

VCC are not only involved in financing. They spur entrepreneurship, which is responsible for economic growth.

Zucker, Darby & Brewer

1999

To examine relationships between the intellectual capital of scientists who make discoveries, the existence of university programs in the biosciences, the presence of VC and discoveries made by biotechnical companies in the U.S.

When intellectual capital is taken into account in the regression model, the number of VCC reduces the probability of discoveries.

Andersson

2000

To study the elements that promote the development of new economies in countries of the OECD.

The author maintains that new information and communication technologies will develop thanks to VC, among other things. The author also lists other factors that will assist in this development.

Baygan & Freudenberg

2000

To compare venture capital activities of OECD member countries while taking into account the flow of international VC.

International capital flows improve the efficiency of the VC market internationally but diminish the importance of the supply factors to the benefit of demand. Thus, creativity, innovation, risk taking and the entrepreneurial spirit may attract funds regardless of their source. On average, investments in venture capital are smaller when obstacles to business are higher.

Gans & Stern

2000

To determine if the concentration of financing for research-oriented SME in the high technology sectors is related to capital constraints to which these businesses are subjected.

The authors found that the projects performed optimally for the technologies in those industrial sectors that have attracted high levels of VC. Therefore, there is market segmentation to attract VC.

Hauser

2000

To discuss the link between VC and entrepreneurship.

The author claims that VC is necessary for stimulatingentrepreneurship in Europe.

Hood

2000

To evaluate the development of public VC in Scotland.

The study shows that Scottish Development Finance has contributed to the economic development of Scotland.

Kortum & Lerner

2000

To study the influence of venture capital on patenting.

An increase in venture capital activity in an industry isrelated to a greater number of patents.

Laperche & Bellais

2000

To describe and study various VC risks and the role of large business in the financing of innovation achieved by small businesses.

Several techniques can be used by VCC to reduce the risks it faces. Public authorities can also help by offering guarantees or subsidies. Large businesses can benefit from the growth of small technological businesses that receive such assistance because the latter are a link in the strategy of large businesses.

Lerner & Kortum

2000

To examine the influence of VC on innovations that are protected by letters patent in 20 various industrial sectors during a 30-year period.

There is a positive correlation between the request for letters patent and VC financing.

Suarez

2000

To examine the influence of stock markets on the creation of businesses.

The high cost of access to financial markets discourages SME (due to strong information asymmetry), but supervision by a mentor (the influence of VCC) allows the business to put off going public until the problems are less severe. However, the fact that there is a fixed supply of capital forces the VCC to quickly list SME on the stock exchange to recuperate their funds and to redistribute them to new projects. However, there is a beneficial effect on innovation and business creation.

Tykvova (a)

2000

To determine whether the growth in the VC industry in Germany has as great an influence on innovation as that observed in the U.S.

The author shows that VC has a significant impact on the number of letters patent.

Van der Vlist, Gerking & Folmer

2000

To analyse the geographic distribution of recipients in the Small Business Innovation Research (SBIR) program.

The awards in the Small Business Innovation Research (SBIR) program are usually made to businesses that are at the centre of innovation activities.

Randjelovic

2001

To study the relationship between VC and businesses that are starting up in the field of environmental protection.

VCC in the environment sector are financially more fragile than "normal" VCC. Nevertheless, there is great potential for environmental development through VC.

Zucker, Darby & Armstrong

2001

To examine the reasons for success in commercializing knowledge.

VC has a positive impact on the success of commercializing activities.

Armour

2002

To evaluate the impact of the law on VC in the United Kingdom (from the point of view of supply and demand).

The laws (regulations regarding pension funds and the flow of capital between countries, rules for going public, VCC organizational structures, etc.) can facilitate (or hinder) VC development.

Audretsch & Lehmann

2002

To analyse how VC financing differs from that of banks.

Small and innovating businesses are more likely to be financed by VC than by banks. Moreover, VC has a positive influence on business growth.

Ayayi

2002

To determine the capital structure of an entrepreneur dealing with a VCC at the very beginning of a venture when the financial contract must be negotiated within the context of adverse selection.

The author shows that equity capital allows the VCC to create optimal ex-ante value, to expect high profits and to increase social welfare substantially. Debt-linked securities are not optimal for this model. These results are confirmed by Canadian experience.

Belke, Fehn & Foster

2002

To see the impact of VC on the performance of the labour market for various OECD member countries.

It seems that VC influences the job market: countries with the most VC are also those that have the strongest growth in employment related to production as well as the lowest rate of unemployment.

Bottazzi & Da Rin

2002

To compare the VC industry in Europe to that in the U.S.

The authors conclude that the gap between the two countries (U.S. and Europe) is large and growing. VC has allowed businesses that are listed on a new stock market to improve their financial situation. However, the European VC industry has a limited effect on the ability to raise capital, to grow and to create jobs.

Callahan & Muegge

2002

To study the influence of the role of VCC in the innovation process.

VC can promote innovation.

Dubocage & Rivaud-Danset

2002

To study how government policy can support VC in France.

The analysis of government practices in France raises many problems that are not particular to that country. An example common to France and other countries is the lack of skills in specific cases, such as megaprojects and megafunds.

Engel

2002

To evaluate the impact of VC on job growth in newly created businesses.

VC influences job growth positively.

Gordon

2002

To study the economic factors that are responsible for the performance of the American economy and for its technological advancement.

VC is one of the factors responsible for the performance of the American economy.

Houben & Kakes

2002

To analyse the relationship between the financial aspects and the information and communication technologies on macroeconomic performance.

A comparison of different countries shows that a market-oriented financial system and a well-developed VC market are the key factors in the development of the new economy.

Keuschnigg (a)

2002

To propose a balanced model of VC, innovation and entrepreneurship.

VC has a positive influence on innovation and growth.

Koh & Koh

2002

To analyse the evolution of the VC market in Asia and in Singapore.

Compared to the American industry, there is an urgent need to create engines of economic growth.

Lawton

2002

To evaluate the role of government in the use of VC to stimulate business and job growth.

The author suggests that the governments of European countries should remove regulatory barriers but should also provide the information necessary to dispel the fear of VC (and of VCC).

Lerner

2002

To understand the implications of the collapse of venture capital activities on innovation.

The most efficient government programs and policies are those that concentrate on the long-term improvement of private markets rather than those that simply try to offer short-term funds.

Megginson

2002

To see the evolution of the venture capital market and, especially, if the market is moving towards an integration or a segmentation of its industry.

The main national markets in Europe and in the U.S. will continue to be segmented and venture capital will be even more important in countries in which the legal system is based on common law than in those where it is based on civil law.

Mueller & Inderst

2002

To study the influence of the capital market on the value of start-up businesses.

Capital supply, the degree of competition in the capital market, the costs of entry and the transparency of these markets are features of the capital market that influence start-ups. Government policies (for example, the capital gains tax), which can positively influence the capital market, also have positive impacts on start-ups. Moreover, when the supply of capital is low (high), the VCC are more (less) likely to select projects.

Nuechterlein

2002

To study the role of financing on start-ups in the U.S., Europe and in Asia.

The U.S. provides the most favourable environment for start-ups of any country in the world, whereas the United Kingdom leads the way in Europe. In Asia, Taiwan has benefited from an entrepreneurial culture and a very dynamic small business sector.

Rigaut

2002

To find the elements that explain heavy fundraising in Europe between 1996 and 2000 and the reasons for its decline in 2001, and proceed to a comparison of the European market with the American market.

The main deciding factors for venture capital fundraising are: information technology expenses, rigidity in the job market and the regulatory environment. Venture capital should continue to play an important role in innovation, economic growth and job creation in Europe. Improvement in the legal and fiscal environments is a key factor.

Riyanto & Schwienbacher

2002

To study the consequences of corporate venture financing of innovation by businesses.

The authors maintain that this type of corporate venture financing has a positive influence on innovation, even if the latter is "directed", and that it increases demand for the products of the "parent" business. The cases of Cisco and Microsoft are discussed.

Roberts & Malone

2002

To study the spin-off procedures of new businesses that emanate from universities, laboratories, governments and other organizations specialized in R&D in the U.S. and the United Kingdom.

The spin-off process is greatly facilitated when VC and an entrepreneurial spirit are present. MIT and Stanford are used as examples to illustrate this situation.

Vinig

2002

To use a path dependence and analysis of feedback structures to identify the determinants of success of the technology sector in Israel in the '90s.

VC is one of the components used in the study to identify the determinants of success in the technology sector.

Chesbrough (b)

2003

To suggest a partial theory for the national institutional factors that could explain the creation of innovative businesses in the U.S. and in Japan.

Job markets that require technical training, the VC market and supplier/client relations are the three factors that explain the differences observed between the two countries.

Norton & Tenenbaum

1993

H1: Preferred assets are the financing instruments used most in VC.

H2: Small and specialized VCC (in other words, those less diversified) will be more likely to pool funds (principle of syndication).

Both hypotheses are confirmed: preferred assets are the financial instruments used most in VC and the smaller and less diversified VCC use the pooling of equity capital more often.

Berger & Udell

1994

To determine why American banks abandoned loans in favour of equity financing toward the end of the '90s.

Regulations, the size of the banks, changes in risk and macro-economic effects are possible explanations for the change from loans to equity financing.

Bourdeau, Noël & Toulouse

1994

To draw up a profile of the VC industry in Quebec.

The article notes a very strong concentration, and very close linkage, between governments, banking institutions and organized labour in the VC network in Quebec. These institutions, which are at once partners and competitors, are part of the foundation of Quebec economic development.

Engineer

1994

To comment on the Berger and Udell (1994) article on the motivation of American banks to abandon loans in favour of equity financing toward the end of the '90s.

Critique of the methodology and the results obtained.

Gompers & Lerner

1994

To analyse the remuneration structure in partnerships in the U.S.

The system of remuneration depends on: the size of the funds, the age of the funds, their performance and the specialization of the funds (based on the initial stages or high technology).

Lerner (b)

1994

To study the causes of VC investment syndication.

During the first financing rounds, well-established VCC try to syndicate among themselves. It is in subsequent rounds that the less well-known VCC come in. When well-established VCC get involved in later rounds, it frequently means that the businesses are doing well.

Fiet

1995

To compare the strategies used by the VCC to protect themselves against risks with those used by business angels.

Business angels are more concerned with potential agency risk rather than that of the market whereas it is the opposite for VCC. This can be explained by the fact that the VCC have already guarded against agency risk through contracts. This difference in approach constitutes segmentation in the VC market.

Freear & Sohl

1996

To present the requirements for starting businesses and the various available sources.

The authors describe two means that could help entrepreneurs put capital together: business angels and the Internet.

Gompers & Lerner

1996

To examine the contractual clauses in VCC partnership agreements.

The clauses used are very different and heterogeneous. The use of clauses depends on the balance between VC supply and demand and on the intensity of agency problems.

Mason & Harrison

1996

To study the influence of commercial banks on the venture capital market.

It is in the interest of commercial banks to direct SME to VC financing, especially to informal VC. They can thus benefit from a more credible client.

1996

To present the steps taken by the main member countries of the OECD to promote innovation.

The article looks at all the main member countries of the OECD (Europe, U. S., Japan, Canada and Korea) and discusses the various ways of promoting innovation. The VC industry and business angels are means that are cited.

Amit, Brander & Zott

1997

To describe and analyse the VC industry in Canada.

The VCC are a specialized segment of the financial market which is primarily concerned with new private businesses. They especially emphasize industries that have reached a more advanced stage of entrepreneurial development. Moreover, one notes a predominance of buy-backs by the initiated rather than IPOs. The asymmetry of the information is one of the major causes of this situation.

Anand & Galetovic

1997

To analyse the structure of the financial intermediation market when information ownership rights are weak.

The model foresees that each intermediary (including the VCC) has limited market power on information.

Best

1997

To describe the VC industry in Canada.

In Canada, workers' funds, government funds and non-financial business funds play an important role. Close to half the funds invested in VC is placed in government funds. Contrary to what occurs in the U.S., there is very little financing dedicated to start-up businesses. Canadian VCC give less priority to high technology than does the U.S.

Fiet

1997

To evaluate the two types of venture capital networks: the formal network (VCC) and the informal one (business angels).

There is a certain segmentation of the venture capital market that allows entrepreneurs looking for funds to have recourse to at least two financing networks.

La Porta, Lopez-de-Silanes, Shleifer & Vishny

1997

To look at the influence of legislation on investor protection in the capital market.

Countries that have the weakest legal protection of investors have the smallest capital markets (equity capital but also debt). Countries based on French civil law are the worst.

Milhaupt

1997

To compare the relationship between corporate go vernance and innovation in the VC industry in the U.S. and in Japan.

American funds are larger, more independent, have more control in the businesses that are financed, are more involved in the businesses that are financed, invest more frequently at initial stages and invest more in the new economy than Japanese funds. The author notes five explanations related to differences in the corporate governance systems between the countries and which are positively related to the growth of supply and demand in the U.S.

1997

To describe the main government programs of OECD member countries whose purpose is to help the financing of technological businesses.

Government intervention can occur at three levels: directly on capital supply, through financial incentives or through regulation. The article states the situation in light of these interventions and presents six principles that must be considered by governments to establish such programs. These principles are: its design, the possibility of the program's additionality, the program's management, its access procedures, its transparency and its evaluation.

Robbie, Wright & Chiplin

1997

To analyse VCC monitoring by various stakeholders in the United Kingdom.

Increased competition in a mature market is leading more and more investors to monitor VCC. This monitoring deals especially with returns and the need for VCC to inform the investors.

Robin

1997

To identify the factors that investors must take into account to manage a venture capital investment portfolio well.

Investors must take into consideration the three following factors to manage a VC investment portfolio well: diversification, the timing of returns and the capital invested in relation to the redistributed capital.

Vaillancourt

1997

To describe and analyse the institutional aspects, tax expenditures and repercussions of workers' venture capital funds on job creation.

The author makes three important points. First, workers' venture capital funds have objectives other than only profitability. Second, acquiring an interest in this type of fund gives access to tax credits on income which, from the government's point of view, increases tax expenditures. Third, the influence of this type of fund on job creation is somewhat mitigated.

Black & Gilson

1998

A comparison of the vitality of the VC industry in the U.S. to that in other countries.

The vitality of VC in systems centred on stock markets (U.S.) is better than that in a system centred on banks (Germany or Japan). The article gives the various possible reasons for such a situation and models explicit and implicit contracts between investors and the VCC and between the VCC and the business.

Gompers

1998

To examine recent trends in the venture capital market.

More and more, VCC are freeing up large sums of money which translates into larger investment funds. This substantial mobilization leads to greater pressure to find cost-effective investments. Given the amounts available, international projects, or those at advanced stages, are favoured.

Gompers & Lerner (a)

1998

To examine the deciding factors (macro-economic, regulatory or performance factors) of venture capital fundraising.

An increase in VC demand, a decrease in the capital gains tax, a softening in pension fund regulations, an increase in R&D expenses both by industries and by academia, the performance and reputation of the fund, all have a positive impact on commitments for new VC funds.

Gompers & Lerner (c)

1998

To examine the positive effect of capital inflow into the VC industry on valuations.

The authors conclude that the sums committed are positively related to the valuation of new investments. This relation still holds if the model takes into consideration additional measures of control on the businesses that are financed and the performance of the stock market. The success of these investments does not seem to explain this relation.

Karlgaard

1998

To compare business angels to VCC.

"Serious" angels can compete with formal VCC.

La Porta, Lopez-de-Silanes, Shleifer & Vishny

1998

To analyse the differences between countries in terms of their laws for the protection of shareholders and creditors, the origin of these laws and their implementation.

Countries whose legal system is based on common law have the strongest legal protection of shareholders whereas countries in which the legal system is based on French civil law have the weakest. Scandinavian countries are in the middle. The concentration of ownership in the largest companies is negatively related to investor protection.

Lau

1998

To study the structure of the Canadian market.

Workers' funds created by the government dominate the VC market in Canada but for the last few years, independent private funds and pension funds have managed to gather more and more money.

Parker & Parker

1998

To describe the structure and the evolution of the VC industry in the U.S. and, especially, in the south-eastern part of the country.

The growth of VC in south-eastern U.S. was promoted by the economic development of the region, by government policies that were favourable to VC investment and by the emergence of new VCC. It is foreseen that, more and more, VC will be useful for the emergence of new industries and technologies in the region.

Smith

1998

To examine the problem of adverse selection from the point of view of the businessman who "hires" a VCC to help him improve the business.

The reputation of the VCC plays an important role and the information available on the Internet helps businessmen.

Aernoudt

1999

To study the VC measures taken by the European Union in response to the fact that its VC is lagging behind that of the United States.

The author points out that new programs to finance VC funds directly, or to improve the conditions for access to financing, have been implemented. These programs are generally more efficient than classic grant programs.

Duffy

1999

To present the various structures of VCC, the functioning of the venture capital market and recent trends.

There are more and more sources of venture capital. The typical VCC is a partnership of 3 to 6 investors in which the money is primarily oriented to high technology start-ups.

Gannon

1999

To study the development of the venture capital market in Canada.

The venture capital market in Canada is evolving slowly but steadily.

Gompers & Lerner

1999

To provide information on the different dimensions of VC and to predict the future of this type of financing.

Venture capital supply will probably continue to rise. In fact, the VC industry seems to be cyclical. Technological innovations as well as the development of regional agglomerations are among the major deciding factors for VC supply in the U.S. There are several aspects that are still to be discovered. It will be interesting to see to what extent the model of American VC can be applied and succeed around the world.

Korn

1999

To explain the functioning of the off-road capital market.

There is an increase in venture capital supply due to the existence of an off-road market, which competes with traditional approaches.

Murray

1999

To study the size of the VC market that finances start-up businesses.

The share of VC destined for start-up businesses is still very weak. In fact, it is the small VCC that invest in the early stages of development.

Nishizawa

1999

To describe the effects of the Japanese financial crisis on the small business sector; to explain why the other sources of equity capital for new businesses have not appeared; and show the different government policies that were applied recently to help start-ups.

The Japanese Ministry of International Trade and Industry uses all possible means to help new Japanese businesses. It seems that the expected effects would not be observable in the short term due to a lack of experienced investors who could get involved in this niche.

Touati

1999

To study the composition of the original model of regional French VC.

The regional supply of equity capital is still limited. Nonetheless, synergy between private and public capital presents a new paradigm for regional development in France.

Anand & Galetovic

2000

To study the sequence of the financing of R&D activities in an environment in which ownership rights to knowledge can be defined.

Where there is strict respect of ownership rights, research is always financed by VC. Otherwise, the model predicts that the projects can be financed either by VC or by businesses, or the projects simply remain without financing. If competition is strong, the projects have a good chance of finding financing.

Baygan & Freudenberg

2000

To compare venture capital activities between OECD member countries by taking the flow of international VC into consideration.

International capital flows improve the efficiency of the VC market internationally but diminish the importance of the supply factors to the benefit of demand. Thus, creativity, innovation, risk taking and the entrepreneurial spirit may attract funds regardless of their source. On average, investments in venture capital are smaller when obstacles to business are higher.

Cetindamar & Jacobsson

2000

To analyse the evolution of the VC industry in Sweden.

A structural change was observed in the VC industry in Sweden where a diversity of investments took place, but the industry has not yet reached maturity.

Cumming & MacIntosh

2000

To compare exit strategies in Canada to those in the U.S.

Partial divestitures in Canada are too related to IPOs, to secondary sales or when the stock market valuation is high compared to the book value of the investment, whereas they are more related to buy-outs or to when the amounts involved are high in the U.S. The authors conclude that the differences arise from the legal and institutional environments in the two countries.

Dahlstrand & Cetindamar

2000

To study the financing of innovation in Sweden.

The authors demonstrate the importance of three actors in the development of a financing system for innovation. The actors are: government, the VC industry and the competent acquirers.

Denny

2000

To see how to increase the supply of VC in the United Kingdom.

Several solutions are offered by the author to try to increase the supply of VC in the United Kingdom.

Harrison & Mason

2000

To study the complementarities of the formal and informal VC markets.

The authors raise four forms of complementarity that are possible between formal and informal VC: co-investment, investments in the businesses in stages, investments by business angels in formal VC funds and project references.

Heidrick & Keddie

2000

To do a summary of VC "best practices" in the U.S.

"Best practices" in VC financing are related to the following initiatives: the SBIC program; financial incentives; gains realized on projects; a tax exemption for public financial securities; and the law for reducing the tax burden on taxpayers in 1997.

Hood

2000

To evaluate the development of public VC in Scotland.

The study shows that Scottish Development Finance has contributed to the economic development of Scotland.

Infometrics Ltd.

2000

To present the evolution of the venture capital market in New Zealand.

In New Zealand, the VC market is still relatively young but growing. It also tends to be segmented.

Jeng & Wells

2000

To identify the deciding factors in raising funds.

The deciding factors in raising venture capital funds are: IPOs, the rigidity in the labour market, disclosure standards of financial reports, private pension funds, growth in the GDP, growth in market capitalization and government programs. IPOs are the most important vectors in venture capital investment.

Keuschnigg & Nielsen

2000

To analyse the influence of taxation laws on the VC market.

The government programs that were considered are: taxation on the differences in salaries and on income, the reporting of losses, progressive rates and grants for entrepreneurship.

Kiholm Smith, Smith & Williams

2000

To identify the laws and regulations that limit mutual funds from investing in VC.

The authors survey the various policies and regulations that prevent mutual fund investment managers from investing in these securities. An important problem is the determination of value.

Laperche & Bellais

2000

To describe and study various VC risks and the role of large business in the financing of innovation achieved by small businesses.

Several techniques can be used by the VCC to reduce the risks it faces. Public authorities can also help by offering guarantees or subsidies. Large businesses can benefit from the growth of small technological businesses that receive such assistance because the latter are a link in the strategy of large businesses.

Marti & Balboa

2000

To identify the determinants of fundraising in countries where information on return is rare and asymmetrical.

The greater the amounts invested, the easier it is for fund managers to find new funds. Divestments (including IPO and delisting), valuated to costs, have a negative impact on the acquisition of new funds.

Piper

2000

To survey the articles on the financing of small high-technology businesses in the United Kingdom.

The author discusses barriers to the financing of small high-technology businesses in the United Kingdom. Public and private sector initiatives are mentioned, however.

Snee

2000

To evaluate the relevance of a business development fund in Wales.

The author demonstrates that, in the absence of a private sector, the development fund is justified in improving the allocation of resources.

Sorenson & Stuart

2000

To analyse how VCC networks have influenced the behaviour of exchanges of information.

Geographical and industrial "spaces" represent natural barriers in the exchange of information on investment opportunities. The syndication of investments allows for the expansion of these spaces.

Balboa & Marti

2001

To identify the key factors related to VC when the information is asymmetrical and rare.

The funds gathered by VCC depend on the investment capacities of fund managers: the more invested funds increase, the more funds will be raised from different investors (increase in supply). These strong investments reflect the time when information is most readily available. When divestments are large, the opposite effects are observed.

Bascha & Walz

2001

To study the differences in behaviour and the control mechanisms used by VCC depending on the type of fund.

Private VCC tend to demand a higher return than public VCC. Private VCC tend to be refinanced by closed-end funds. The size (in number and quality) of public actors in Germany is one of the causes of the infrequent use of convertible securities and the dominance of silent partnerships as financial instruments. The use of convertible securities depends on the severity of agency problems.

Chu & Hisrich

2001

To study the emergence of VC in Hong Kong.

In the development of its VC, the Hong Kong authorities must henceforth concentrate their efforts on the long-term investments of high-tech start-ups.

Clendenning & Associates

2001

To present the issues s urrounding equity financing of Canadian SME such as venture capital, IPO and post-IPO equity financing to direct Industry Canada's future research in this area.

Analysis shows that questions related to venture capital, the IPO, and post-IPO are important to the development of SME. The structure of the venture capital market in Canada, the behaviour and expertise in venture capital management by Canadian investors, the participation of Canadian institutional investors, the taxation system and the trans-border interaction of the Canadian and American markets are also factors that can compromise the competitiveness of Canadian SME.

Cumming (a)

2001

To determine the optimal structure of contracts that deal with the syndication of agreements between VCC.

The author develops a model whereby, under specific conditions, lead or inside VCC use preferred stock and follow-on or outside VCC use convertible debt. This model is confirmed by a sample of Canadian companies.

Fulghieri & Sevilir

2001

To develop a model of the organizational structure and innovation activities when integration, VC financing and strategic alliances are determined in an endogenous manner in response to pressures caused by the "race for R&D" and in response to financial constraints.

The authors give the conditions under which each organizational structure emerges (integrated, not integrated, alliances, independence, corporate venture capital).

Haar

2001

To analyse the problems of financing by biotechnological companies in Europe.

Given the serious problems in information asymmetry in the biotechnological sector, traditional financial markets cannot operate well and it is here that VC should be effective. However, VC programs that have only tried to reduce financing costs do not achieve the anticipated success. They must also implement market mechanisms to allocate resources. There can be an opportunity for trans-border allocation, as happens in Europe, but it must be accompanied by a harmonization of laws, regulations and economic policies.

Hyytinen & Pajarinen

2001

To compare the financial systems of the Nordic countries.

Many similarities were noted among the Nordic countries. Moreover, venture capital in these countries has not yet matured compared to what occurs in other European countries.

Jo

2001

To analyse the influence of the Internet on the venture capital industry.

The author recognizes the influence of the Internet on the industry and wonders whether this trend will last or will simply disappear with time.

Keuschnigg & Nielsen

2001

To evaluate theoretically the impact of government policies on venture capital investments.

Of the three following government policies – to increase investments in the training of entrepreneurs, to subsidize equipment and to subsidize production – only cost-effective government services improve the wealth of the country whereas the three measures influence entrepreneurship positively.

Pereiro

2001

To compare the characteristics of the VC market in Argentina to that of other countries, including the United States.

The study shows that, on average, it takes an Argentinian entrepreneur more money to start a new business than it does an American one, that the operational parameters of the Argentinian VC market conform to international standards and that Argentinian business angels invest more per business than those of other countries.

Robin

2001

To determine the size of alternative assets and the players involved in this market.

Public pension funds are the largest players in the 'alternative' investment market. Institutional investors invest in these shares to get returns that are better than those of traditional investments.

Rock

2001

To study the phenomenon of companies that do not do IPOs in their own domestic markets.

Venture capital can develop especially under conditions that allow VCC to exit by IPO. The author maintains that that can be done elsewhere than in the domestic market.

Tacis

2001

To present the VC situation in Russia.

The majority of sums invested in VC funds in Russia come directly from abroad. Moreover, there is a lack of VC for high technology industries. The government is trying to implement measures that would promote demand as well as supply in VC.

The Canadian e-business opportunities roundtable

2001

To see how Canada could attain a higher economic level (one of the means is VC).

To compensate for the shortcomings of the venture capital industry, American pension fund investments should be increased, foreign venture capital promoted and regulations regarding the commitment of funds improved.

Vermeulen

2001

To compare the European venture capital market to the American one.

The author notes a significant difference between the two markets and, to make up for the lag of the European market, suggests bringing down institutional, legal, taxation and cultural obstacles, which create significant costs for start-up businesses. The influence of government to resolve these problems is firmly stressed.

Aoki & Dinc

2002

To discuss the various financial practices that can exist in the world. The American VC market is one of these "financial practices".

The authors describe these various practices and illustrate them using examples.

Armour

2002

To evaluate the impact of the law on VC in the United Kingdom (from the point of view of supply and demand).

The laws (regulations regarding pension funds and the flow of capital between countries, for going public, VCC organizational structures, etc.) can facilitate (or hinder) VC development.

Audretsch & Lehmann

2002

To analyse how VC financing differs from that of banks.

Small and innovating businesses are more likely to be financed by VC than by banks. Moreover, VC has a positive influence on business growth.

Axiss Australia

2002

To present the situation of the VC industry in Australia.

In Australia, venture capital has undergone constant evolution during the 1996-2000 period. Most investments were directed towards the service, information/computer technology and health/bioscience sectors. Moreover, one notes a certain willingness to promote initial stages of development.

Aylward

2002

To analyse the VC industry in developing countries.

Several factors that are critical to the industry's performance and organization are identified.

Barnes & McCarthy

2002

To examine the hypothesis that young VCC introduce businesses to the stock market earlier than older VCC to build a reputation for themselves more quickly and, thereby, subsequently put together funds more easily.

The authors confirm their hypothesis in the English market (London Stock Exchange) and add that the strong under-evaluation is caused by the fact that the new businesses listed on the stock market are young and not because of the characteristics of the VCC.

Bottazzi & Da Rin

2002

To compare the VC industry in Europe to that in the U.S.

The authors conclude that the gap between the two countries (U.S. and Europe) is large and growing. VC has allowed businesses that are listed on a new stock market to improve their financial situation. However, the European VC industry has a limited effect on the ability to raise capital, to grow and to create jobs.

Brander, Amit & Antweiler

2002

To do a model and test two possible reasons for syndication: the selection of projects and complementary competence in management.

Investments from syndication show greater returns than where there is no syndication.

Brush, Carter, Greene, Hart & Gatewood

2002

To analyse the role of women on VC supply and demand.

An analytical framework is proposed to explain the roles that women can play in VC supply and demand.

Bruton, Ahlstrom & Singh

2002

To study the emergence of the VC industry in Singapore and the specificity of its evolution.

The institutional environment and, more particularly, the regulatory environment created by the government explain the differences observed in the VC industry between the region of Singapore and the rest of Asia.