Working Paper
Venture Capital Backed Growth
Christian Keuschnigg
CESifo, Munich, 2002
CESifo Working Paper No. 664
CESifo, Munich, 2002
CESifo Working Paper No. 664
The paper proposes a simple equilibrium model of venture capital, entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper demonstrates how a productive and active VC industry boosts innovation driven growth.
Keywords: venture capital, double moral hazard, innovation, growth