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Venture Capital’s Role in Financing Innovation

1 January 2020
Case Study
Publisher : The Journal of Economic Perspectives

16294

This article examines the significant role of venture capital (VC) in financing innovation and its broader impact on the economy. It analyses how VC firms identify, fund, and support innovative companies, particularly in nascent industries. The authors discuss the institutional structures and mechanisms that enable venture capital to drive technological advancements and economic growth, including its influence on market dynamics and entrepreneurial ecosystems.

Author(s) :

Josh Lerner, Ramana Nanda

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Key topics

Innovative Finance/ Blended Finance

Also found in

Financial Stewardship, Sustainability, & Accountability

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