scholarly journals The Silicon Valley Syndrome

2019 ◽  
Author(s):  
Olav Sorenson ◽  
Doris Kwon
Keyword(s):  
Income Inequality ◽  
Venture Capital ◽  
Silicon Valley ◽  
High Tech ◽  
High Tech Sector ◽  
Tradable Sector

How does expansion in the high-tech sector influence the broader economy of a region? We demonstrate that an infusion of venture capital in a region appears associated with: (i) a decline in entrepreneurship, employment, and average incomes in other industries in the tradable sector; (ii) an increase in entrepreneurship and employment in the non-tradable sector; and (iii) an increase in income inequality in the non-tradable sector. An expansion in the high-tech sector therefore appears to lead to a less diverse tradable sector and to increasing inequality in the region.

scholarly journals Features of venture capital funded enterprises: evidence from Slovakia

2019 ◽  
Vol 17 (3) ◽  
pp. 111-121
Author(s):  
Magdaléna Freňáková ◽  
Oľga Kmeťová ◽  
Pavel Blaščák
Keyword(s):  
Venture Capital ◽  
Exploratory Study ◽  
Slovak Republic ◽  
High Tech ◽  
Exact Tests ◽  
High Tech Sector ◽  
Time Period ◽  
Micro Enterprises ◽  
Scientific Hypotheses ◽  
A Share

This article contains an exploratory study of micro, small and medium sized enterprises (SMEs) funded by venture capital in conditions of the Slovak Republic. Their features specifically the number of employees and the affiliation to the industry branch in compliance with technological or knowledge demandingness were investigated. For that purpose two scientific hypotheses were verified. Verification of hypotheses was performed by the exact tests on the research sample consisted of 61 venture capital funded SMEs in the Slovak Republic in the time period 2001–2006. According to affiliation of enterprises to the category of micro, small and medium sized enterprises in our research sample, our assumption that the micro and small sized enterprises are more venture capital driven than medium sized enterprises was confirmed. The results showed that the majority of venture capital funded SMEs are micro-enterprises representing 60.66% and small sized enterprises with a share of 27.87%. According to affiliation of enterprise to the industry branch in compliance with its technological or knowledge demandingness in our research sample, our assumption that venture capital is related especially to the enterprises in high-tech sector was not confirmed and we can conclude that venture capital is related more to the enterprises operating in low-tech or medium low-tech sector than to the enterprises operating in high-tech or medium high-tech sector. The share of enterprises in high-tech sector was the lowest (only 3.28%) among all the sectors (low-tech, medium low-tech, medium high-tech and high-tech).

Zhongguancun and China's High-Tech Parks in Transition: ““Growing Pains”” or ““Premature Senility””?

Asian Survey ◽  
2004 ◽  
Vol 44 (5) ◽  
pp. 647-668 ◽  
Author(s):  
Cong Cao
Keyword(s):  
Venture Capital ◽  
Role Models ◽  
Silicon Valley ◽  
Institutional Support ◽  
High Tech ◽  
Technological Capabilities ◽  
Role Of Government ◽  
Support For Innovation ◽  
Growing Pains

This essay examines the development of China's high-tech parks and, in particular, the challenges they have encountered. It concludes that lack of institutional support for innovation and the indigenous technological capabilities necessary to be competitive, unclear ownership, lack of venture capital, and the overwhelming role of government have impeded the efforts of China's high-tech parks to duplicate the success of role models such as Silicon Valley.

scholarly journals Financing High-tech Start-ups: Moral Hazard, Information Asymmetry and the Reallocation of Control Rights

2015 ◽  
Vol 15 (2) ◽  
pp. 685-708 ◽  
Author(s):  
Ye (George) Jia
Keyword(s):  
Venture Capital ◽  
Information Asymmetry ◽  
Private Information ◽  
High Tech ◽  
Capital Investments ◽  
Control Rights ◽  
High Tech Sector ◽  
Hidden Actions ◽  
High Level ◽  
Venture Capital Investments

Abstract Recent data suggest that venture capital investments concentrate in the high-tech sector only in those countries where banks are not allowed to offer equity financing. To explain this fact, I develop a simple principal-agent model of start-up financing with both private information and hidden actions in which the equity investor can vary the level of control over the firm and the debt investor cannot. The model shows that when three commonly documented characteristics of the high-tech industry coexist, namely: (i) a high degree of information asymmetry, (ii) a high level of uncertainty about returns, and (iii) a large amount of R&D investments preceding production, then the ability to reallocate control rights that are contingent on performance becomes the key. Unlike debt contracts, equity contracts specify detailed provisions regarding the allocation of control rights. Thus, venture capitalists as equity holders have a clear advantage in financing young high-tech firms in places where banks are not allowed to offer equity contracts; in countries with no such restriction, they no longer have such an advantage. This result helps explain why most European governments’ efforts in promoting venture capital activities failed to attract such investments in the high-tech sector.

Characteristics, Features of Development, Regional and Sectoral Determinants of High-tech Business in Russia

2017 ◽  
pp. 142-154 ◽  
Author(s):  
A. Yusupova ◽  
S. Khalimova
Keyword(s):  
Regression Analysis ◽  
Performance Indicators ◽  
Sustainability Assessment ◽  
Business Development ◽  
High Tech ◽  
Assessment Data ◽  
High Tech Sector ◽  
Fast Growing ◽  
High Level

The paper deals with the research devoted to characteristics of high tech business development in Russia. Companies’ performance indicators have been analyzed with the help of regression analysis and author’s scheme of leadership stability and sustainability assessment. Data provided by Russia’s Fast Growing High-Tech Companies’ National Rating (TechUp) during 2012-2016 were used. The results have revealed that the high tech sector is characterized by high level of uncertainty. Limited number of regions and sectors which form the basis for high tech business have been defined. Relationship between innovation activity’s indicators and export potential is determined.

(Development of the High-Tech Sector of the Economy in Russia)

2018 ◽  
Author(s):  
Vera Barinova ◽  
Stepan Zemtsov ◽  
T. Lanshina
Keyword(s):  
High Tech ◽  
High Tech Sector

Collaboration Among Silicon Valley Venture Capitalists

2019 ◽  
pp. 200-219
Author(s):  
Lyda Bigelow ◽  
Jennifer Kuan ◽  
Kyle Mayer
Keyword(s):  
Venture Capital ◽  
Regulatory Focus ◽  
Regional Differences ◽  
Silicon Valley ◽  
Psychological Effects ◽  
Venture Capitalists ◽  
Regulatory Focus Theory ◽  
Industry Clusters ◽  
Entrepreneurial Ventures ◽  
Point Of Entry

Regional differences among industry clusters have long been a puzzle, especially when performance differences are significant. This chapter examines the case of venture capital investing, in which Silicon Valley differs from the rest of the world despite attempts to imitate its model. The point of entry in this chapter is the contract between venture capitalist and entrepreneur. Although such contracts have been analyzed in other research, this chapter argues that the psychological effects of different contract styles are of primary importance to innovative outcomes of entrepreneurial ventures. Thus, it argues that regulatory focus theory, which considers the psychological effects of contracting, is essential to understanding differences in practice and outcomes in venture capital clusters.

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