@article {572, title = {The geography of venture capital and entrepreneurial ventures{\textquoteright} demand for external equity}, journal = {Research Policy}, year = {2019}, month = {jan}, publisher = {North-Holland}, abstract = {

In this paper, we study how the geography of venture capital (VC) and the location of entrepreneurial ventures affect the propensity of the latter to seek external equity financing. We analyse a sample of 533 European high-tech entrepreneurial ventures and examine their external equity-seeking behaviour in the 1984{\textendash}2009 period. We find that ventures are more likely to seek external equity when the local availability of VC is higher, whereas the level of competition of the local VC market plays a negligible role. The stimulating effect of the availability of VC on the demand for external equity rapidly decreases with distance and vanishes at approximately 250 km. It also vanishes when national borders are crossed, except for countries at close cultural and institutional distance. Moreover, the distance decay of the stimulating effect of the availability of VC varies with the characteristics of prospective VC investors, namely, their private or public ownership and governance, and their reputation. These results have important implications for the policy that European countries and the European Commission should implement to foster the demand for VC by entrepreneurial ventures, thereby improving the functioning of the VC market in Europe.

}, issn = {0048-7333}, doi = {10.1016/J.RESPOL.2018.12.004}, url = {https://www.sciencedirect.com/science/article/pii/S0048733318303044?via{\%}3Dihub}, author = {Colombo, Massimo G. and D{\textquoteright}Adda, Diego and Quas, Anita} } @article {567, title = {High-tech entrepreneurial ventures seeking external equity: whether, when, where... and why not?}, journal = {Economia e Politica Industriale}, year = {2018}, pages = {1{\textendash}24}, abstract = {

In this paper, we study the demand of high-tech entrepreneurial ventures for external equity, revealing the conditions that determine whether, when and where they decide to seek external equity during their lives. We also provide evidence on the most important reasons for not looking for external equity at all. We focus on a sample of 530 high-tech entrepreneurial ventures located in 7 European countries and founded between 1984 and 2009. We reveal that company-level characteristics, namely the human capital, the innovativeness, the size, the asset intangibility, and the alternatives to equity capital (internal cash flows and debt) determine whether, when (i.e., at what age) and when (i.e., in international or domestic markets) companies seek external equity. Industry- and country-level variables also play a secondary role in explaining high-tech entrepreneurial ventures{\^a}{\texteuro}{\texttrademark} demand for external equity.

}, issn = {0391-2078, 1972-4977}, doi = {10.1007/s40812-018-0094-0}, url = {https://link.springer.com/article/10.1007/s40812-018-0094-0}, author = {Quas, Anita and D{\textquoteright}Adda, Diego} } @article {565, title = {Self-selection of entrepreneurial firms in thin venture capital markets: Theory and empirical evidence}, journal = {Strategic Entrepreneurship Journal}, year = {2018}, keywords = {Entrepreneurial firms, High-tech entrepreneurship, market thinness, Selection, Venture capital}, issn = {1932-443X}, doi = {10.1002/sej.1280}, url = {http://onlinelibrary.wiley.com/doi/10.1002/sej.1280/abstract}, author = {Bertoni, Fabio and D{\textquoteright}Adda, Diego and Grilli, Luca} } @article {573, title = {Is Smart Specialisation Strategy coherent with regional innovative capabilities?}, journal = {Regional Studies}, year = {2018}, month = {nov}, pages = {1{\textendash}13}, issn = {0034-3404}, doi = {10.1080/00343404.2018.1523542}, url = {https://www.tandfonline.com/doi/full/10.1080/00343404.2018.1523542}, author = {D{\textquoteright}Adda, Diego and Guzzini, Enrico and Iacobucci, Donato and Palloni, Roberto} } @article {566, title = {Mapping innovation dynamics in the Internet of Things domain: Evidence from patent analysis}, journal = {Technological Forecasting and Social Change}, year = {2017}, abstract = {

The Internet of Things ({IoT}) is an emerging paradigm in the {ICT} sector and it is at the center of many current political and economic debates. Scholars, executives, and policymakers are becoming increasingly interested in understanding how to turn the {IoT} into reality, since various technological constraints (e.g., standardization and interoperability) limit the possibility of realizing an inclusive {IoT} information network. These constraints are exacerbated by the lack of a clear picture of the innovation dynamics and technology evolution of the {IoT}. This paper seeks to address this gap by mapping the development of {IoT} technologies. In particular, we have collected 61,972 {IoT} patents filed under the Patent Cooperation Treaty in the period 2000{\^a}{\texteuro}{\textquotedblleft}2012. We analyze temporal trends, cross-country dynamics and identity of the applicants. Moreover, we provide insights about the development of the most relevant {IoT} technologies by looking at triadic patent families.

}, keywords = {Innovation, Internet of Things, Patent analysis, Technology evolution}, issn = {0040-1625}, doi = {10.1016/j.techfore.2017.04.022}, url = {http://www.sciencedirect.com/science/article/pii/S0040162517305498}, author = {Ardito, Lorenzo and D{\textquoteright}Adda, Diego and Messeni Petruzzelli, Antonio} } @article {colombo_participation_2016, title = {The participation of new technology-based firms in EU-funded R\&D partnerships: The role of venture capital}, journal = {Research Policy}, volume = {45}, number = {2}, year = {2016}, pages = {361{\textendash}375}, abstract = {

This paper investigates the participation of new technology-based firms (NTBFs) in EU-funded R\&D partnerships. We examine whether venture capital (VC)-backed firms are more likely to enter these partnerships than their non VC-backed peers and the role of the ownership and governance of the VC investor. We resort to a mixed method approach. We use qualitative information collected through interviews with managers of NTBFs and VC firms to better illustrate our deductively derived theoretical hypotheses, that are then tested through a large scale econometric analysis. The econometric analysis takes advantage of the VICO dataset, which includes longitudinal data on 8346 NTBFs from seven European countries observed from 1995 to 2008, out of which 758 were VC-backed. The econometric results show that VC backing has a strong positive impact on NTBFs{\textquoteright} participation in EU-funded R\&D partnerships, but the magnitude of this effect rapidly decreases with NTBFs{\textquoteright} prior experience of this type of partnership. Moreover, the magnitude of the impact of VC backing considerably differs depending on the type of investor with bank and government VC exhibiting the strongest positive effects.

}, keywords = {Entrepreneurship}, issn = {0048-7333}, doi = {10.1016/j.respol.2015.10.011}, url = {http://www.sciencedirect.com/science/article/pii/S004873331500164X}, author = {Colombo, Massimo G. and D{\textquoteright}Adda, Diego and Pirelli, Lorenzo H.} } @article {bertoni_cherry-picking_2015, title = {Cherry-picking or frog-kissing? A theoretical analysis of how investors select entrepreneurial ventures in thin venture capital markets}, journal = {Small Business Economics}, year = {2015}, pages = {1{\textendash}15}, abstract = {

We propose a formal model that analyzes which entrepreneurial ventures actively seek and subsequently obtain venture capital (VC) financing in thin VC markets. The model shows that in thin VC markets, (1) VC investors will invest in companies in need (frog-kissing) rather than in best performers (cherry-picking), and (2) the best performing ventures will self-select out of the market for VC. These conclusions are in line with the results from the literature, which note that in Europe many entrepreneurial firms do not actively seek VC investment and that VC investors do not appear to possess the same cherry-picking ability that they have in the US.

}, keywords = {Entrepreneurship}, issn = {0921-898X, 1573-0913}, doi = {10.1007/s11187-015-9690-9}, url = {http://link.springer.com/article/10.1007/s11187-015-9690-9}, author = {Bertoni, Fabio and D{\textquoteright}Adda, Diego and Grilli, Luca} } @article {colombo_hybrid_2014, title = {Hybrid alliances and radical innovation: the performance implications of integrating exploration and exploitation}, journal = {The Journal of Technology Transfer}, volume = {40}, number = {4}, year = {2014}, pages = {696{\textendash}722}, abstract = {

In this paper we examine the innovation performance of hybrid alliances, that is, alliances that combine exploration and exploitation activities. While previous research has emphasized the tensions engendered by the combination of exploration and exploitation, we claim that the integration of these two types of activities can generate synergies as well. We argue that, in the case of alliances involving academic spin-offs (ASOs), these synergies may outweigh the tensions under specific conditions, and thus improve alliance innovation performance. Specifically, we hypothesize that the relative performance of exploitation activities is greater in hybrid alliances when the alliance has radical innovation outcomes. Conversely, the relative performance of exploration activities is greater in hybrid alliances when the alliance has incremental innovation outcomes. These hypotheses are tested using fine-grained data on a sample of 149 alliances involving European ASOs.

}, keywords = {Entrepreneurship}, issn = {0892-9912, 1573-7047}, doi = {10.1007/s10961-014-9363-x}, url = {http://link.springer.com/article/10.1007/s10961-014-9363-x}, author = {Colombo, Massimo G. and Doganova, Liliana and Piva, Evila and D{\textquoteright}Adda, Diego and Mustar, Philippe} } @article {croce_venture_2014, title = {Venture capital financing and the financial distress risk of portfolio firms: How independent and bank-affiliated investors differ}, journal = {Small Business Economics}, volume = {44}, number = {1}, year = {2014}, pages = {189{\textendash}206}, abstract = {

We analyze a sample of European high-tech entrepreneurial firms that received bank venture capital (BVC) financing between 1994 and 2004. We employ a {\textquotedblleft}two-step{\textquotedblright} matching procedure in order to build a control group composed of (1) comparable firms that received venture capital financing from independent investors (IVCs) and (2) comparable non-invested firms. The econometric analyses suggest that BVC investors are interested in the financial risk profile of the firms they invest in. In fact, before the first round of financing, BVC-backed firms show a lower risk of financial distress than both IVC-backed firms and non-invested firms. However, after the investment, BVC-backed firms exhibit a significant increase in debt exposure, compared to non-invested firms.

}, keywords = {Entrepreneurship}, issn = {0921-898X, 1573-0913}, doi = {10.1007/s11187-014-9582-4}, url = {http://link.springer.com/article/10.1007/s11187-014-9582-4}, author = {Croce, Annalisa and D{\textquoteright}Adda, Diego and Ughetto, Elisa} } @article {colombo_contribution_2009, title = {The contribution of university research to the growth of academic start-ups: an empirical analysis}, journal = {The Journal of Technology Transfer}, volume = {35}, number = {1}, year = {2010}, month = {mar}, pages = {113{\textendash}140}, abstract = {

The aim of this paper is to analyze empirically under which circumstances the universities located in a geographical area contribute to the growth of a special category of local new technology-based firms (NTBFs), those established by academic personnel (academic start-ups, ASUs). We examine the effects of a series of characteristics of local universities on the growth rates of ASUs and we compare them with the effects of the same university characteristics on the growth of other (i.e., non-academic) NTBFs. In the empirical part of the paper, we estimate an augmented Gibrat law panel data model using a longitudinal dataset composed of 487 Italian NTBFs observed from 1994 to 2003. Out of these NTBFs 48 are ASUs. The results of the econometric estimates suggest that universities do influence the growth rates of local ASUs, while the effects on the growth rates of other NTBFs are negligible. In particular, the scientific quality of the research performed by universities has a positive effect on the growth rates of ASUs; conversely the commercial orientation of research has a negative effect. These results indicate that universities producing high-quality scientific research have a beneficial impact on the growth of local high-tech start-ups, but only if these firms are able to detect, absorb, and use this knowledge. In this perspective, a greater commercial orientation of university research leading to a reduction of the knowledge available for absorption by these companies, can be detrimental.

}, keywords = {Entrepreneurship, Technology Transfer}, issn = {0892-9912, 1573-7047}, doi = {10.1007/s10961-009-9111-9}, url = {http://link.springer.com/article/10.1007/s10961-009-9111-9}, author = {Colombo, Massimo G. and D{\textquoteright}Adda, Diego and Piva, Evila} } @article {bertoni_venture_2010, title = {Venture capital investments and patenting activity of high-tech start-ups: a micro-econometric firm-level analysis}, journal = {Venture Capital}, volume = {12}, number = {4}, year = {2010}, pages = {307{\textendash}326}, abstract = {

The aim of this paper is to analyse empirically the impact of venture capital (VC) finance on the innovation output of new technology-based firms (NTBFs) as reflected by their patenting activity. In particular, we compare the patenting rates of VC-backed and non-VC-backed NTBFs. To investigate whether VC investments spur patenting activity, we consider a unique longitudinal dataset composed of 351 Italian NTBFs operating in high-tech manufacturing industries and software, 33 of which are VC-backed. We estimate different econometric models on panel data, controlling for factors that may affect a firm{\textquoteright}s patenting behaviour other than the presence of VC, like founders{\textquoteright} human capital and use of other sources of financing. The results show that VC investments positively affect subsequent patenting activity and that before receiving VC, VC-backed firms do not exhibit a higher patenting propensity than other firms.

}, keywords = {Entrepreneurship}, issn = {1369-1066}, doi = {10.1080/13691066.2010.486157}, url = {http://dx.doi.org/10.1080/13691066.2010.486157}, author = {Bertoni, Fabio and Croce, Annalisa and D{\textquoteright}Adda, Diego} }