Title: Public models to support venture capital market

Authors: Marco Giorgino

Addresses: Polytechnic of Milan, Department of Management, Economics and Industrial Engineering, Piazza Leonardo da Vinci 32, 20133 Milan, Italy

Abstract: The venture capital industry is cyclical; it has periodic shocks in supply and demand trends. This situation has a serious impact on investors| choices and on the fund raising opportunities of new ventures. An effective measure that the public body could use to support innovative companies| growth is to gather public resources with private money. The results of a research on public instruments to support domestic markets in Israel, France, UK and Ireland are presented in this paper. In order to measure public effort and performance in supporting research and innovation policies, a selected benchmark was based on concrete experiences, which are directly investigated through a unique key. Techniques and methodologies of best practice in international cases were investigated through the study of their working modalities and performances. In all cases, the founding solution consists of a subscription of seed funds or funds of funds investing into venture capital funds. Direct investments in companies| shares are also not excluded.

Keywords: public risk capital facilities; high-tech start-ups; financing; venture capital funds; public measures; public instruments; innovation support; Israel; France; UK; United Kingdom; Ireland; benchmarking; SMEs; small and medium-sized enterprises; entrepreneurship; innovation management.

DOI: 10.1504/IJEIM.2006.010376

International Journal of Entrepreneurship and Innovation Management, 2006 Vol.6 No.4/5, pp.444 - 461

Published online: 17 Jul 2006 *

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