Title: The 'industrialisation' of venture capital: new challenges for intermediation issues

Authors: Pascal Petit, Michel Quere

Addresses: CNRS-CEPN (Centre d’Economie de l’Universite Paris Nord) and CNRS-CEPREMAP (Centre pour la Recherche Economique et ses Applications), 142, rue du Chevaleret, 75013 Paris, France. ' CNRS-GREDEG/I2C (Groupe de Recherche en Droit, Economie et Gestion) et OFCE-DRIC (Department for Research on Innovation and Competition), 250 rue A. Einstein, Sophia-Antipolis, 06560 Valbonne, France

Abstract: This paper investigates the comparison between the US and European Venture Capital (VC) industries and their developmental conditions. Some characteristics of the US VC industry cannot be carelessly used as a benchmark for European VC industries. We then distinguish R&D-oriented and market access-oriented VC objectives which leads us to develop a comprehensive approach of the VC industry by insisting on the economic implications of its current industrialisation. The intermediation function, covered by venture capital, is characterised by its sectoral and institutional dimensions. Moreover, accounting for this diversity of VC industries helps in recommending policies that comply with national and local specific requirements.

Keywords: venture capital; ICT sectors; life science sectors; academic start-ups; intermediation; Europe; information technology.

DOI: 10.1504/IJTM.2006.009451

International Journal of Technology Management, 2006 Vol.34 No.1/2, pp.126 - 145

Published online: 03 Apr 2006 *

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