Venture Capital: A Catalyst for Innovation and Growth

Greenwood, Jeremy; Han, Pengfei; Sanchez, Juan M.

Journal Article

Venture Capital: A Catalyst for Innovation and Growth

Abstract: This article studies the development of the venture capital (VC) industry in the United States and assesses how VC financing affects firm innovation and growth. The results highlight the essential role of VC financing for U.S. innovation and growth and suggest that VC development in other countries could promote their economic growth.

Keywords: venture capital; innovation; growth;

JEL Classification: E13; E22; G24; L26; O16; O31; O40;