The Role of Governmental Venture Capital in the Venture Capital Ecosystem: An Organizational Ecology Perspective
Abstract
We use the theory of organizational ecology to study how governmental venture capital (GVC) affects the investment behavior of private venture capital (PVC). Because of its objectives and dominant competencies, GVC is a unique organizational species that occupies a different niche than PVC. GVC is conceived to establish mutualistic relations with PVC. Accordingly, the greater the presence of GVC in a venture capital (VC) ecosystem, the more PVC investors should be attracted toward GVC’s niche. We consider several relevant niche dimensions at the company (age and size), industry (biotechnology), and regional (competitiveness) levels. Our analysis of 1,239 PVC investments in Europe confirms most of our predictions.
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Biographies
Fabio Bertoni is the associate dean for research and a professor of corporate finance at emlyon business school, France.
Massimo G. Colombo is a professor of innovation economics, entrepreneurship and entrepreneurial finance, and the deputy director for research, accreditations and rankings at Politecnico di Milano, Italy.
Anita Quas is an assistant professor of corporate finance at emlyon business school, France.
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Article first published online: October 29, 2017
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