We propose a model of entrepreneurial innovation that rationalizes its pattern of boom and bust. In the model, a successful entrepreneurial project is the result of a search and matching process between entrepreneurs and capitalists. A strategic complementarity between the entrepreneurs’ demand for funds and the capitalists’ supply arises both on the extensive and on the intensive margin. Using data from the Global Entrepreneurship Monitor, and collecting data on the venture capital market of 23 OECD countries plus China for the period 2007–2015, we find robust evidence of complementarity across the two sides of the market. We also provide a quantitative estimate of a multiplier effect originating from such complementarity.
Market frictions in entrepreneurial innovation: Theory and evidence / Cipollone, A.; Giordani, Paolo. - In: JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION. - ISSN 0167-2681. - 163:July(2019), pp. 297-331. [10.1016/j.jebo.2019.04.028]
Market frictions in entrepreneurial innovation: Theory and evidence
Giordani P
2019
Abstract
We propose a model of entrepreneurial innovation that rationalizes its pattern of boom and bust. In the model, a successful entrepreneurial project is the result of a search and matching process between entrepreneurs and capitalists. A strategic complementarity between the entrepreneurs’ demand for funds and the capitalists’ supply arises both on the extensive and on the intensive margin. Using data from the Global Entrepreneurship Monitor, and collecting data on the venture capital market of 23 OECD countries plus China for the period 2007–2015, we find robust evidence of complementarity across the two sides of the market. We also provide a quantitative estimate of a multiplier effect originating from such complementarity.File | Dimensione | Formato | |
---|---|---|---|
complem-apr_2019_tables.pdf
Open Access
Tipologia:
Documento in Pre-print
Licenza:
DRM (Digital rights management) non definiti
Dimensione
566.87 kB
Formato
Adobe PDF
|
566.87 kB | Adobe PDF | Visualizza/Apri |
1-s2.0-S0167268119301398-main.pdf
Solo gestori archivio
Tipologia:
Versione dell'editore
Licenza:
DRM (Digital rights management) non definiti
Dimensione
1 MB
Formato
Adobe PDF
|
1 MB | Adobe PDF | Visualizza/Apri |
Pubblicazioni consigliate
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.