By Topic

How venture capital thwarts innovation

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$31 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)

This paper address the question of whether venture capital funding has helped to promote or stunt the growth of technological innovation over the past decade. A study of 1,303 electronic high-tech initial public offerings for a 10-year period ending in 2002 showed that the level of innovation during the decade was surprisingly low. The results also did not correlate well with venture capital funding, i.e., the level of innovation actually dropped sharply after 1996, even as venture funding was rising. The paper presents four basic factors that can be attributed to the decrease in innovation.

Published in:

Spectrum, IEEE  (Volume:42 ,  Issue: 4 )