Venture’s economic impact in Australia

Douglas Cumming; Sofia Johan

doi:10.1007/s10961-014-9378-3

Venture’s economic impact in Australia

Douglas Cumming^*, Sofia Johan

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › peer-review

27 Citations (Scopus)

Abstract

We empirically compare the contributions of venture capital (VC) and private equity backed firms, including those backed by government subsidized innovation investment funds (IIFs), in the Australian economy by analyzing employment, R&D, patents, time to IPO, and market capitalization from market inception to August 2012. Overall, the data highlight a central role for VC and IIF investment in facilitating R&D, innovation, and economic growth. Our IIF findings highlight the success of government sponsorship of VC under the Australian program design, which is sharply in contrast with the lack of success of government venture programs in other countries.

Original language	English
Pages (from-to)	25-59
Number of pages	35
Journal	Journal of Technology Transfer
Volume	41
Issue number	1
DOIs	https://doi.org/10.1007/s10961-014-9378-3
Publication status	Published - 1 Feb 2016

Bibliographical note

Funding Information:
We are indebted to the Social Sciences and Humanities Research Council of Canada, the Australian Private Equity and Venture Capital Association (AVCAL), and the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) for financial support. We owe thanks to Asish Naik, Vikrum Vijayarajan, and Warner Wu for research assistance. Also, we owe thanks to the seminar participants at the AVCAL Workshops in Sydney and Melbourne in September 2012, the French Finance Association Conference Participants in May 2013, the Financial Management Association Conference Participants in October 2013, the Technology Transfer Society Conference Participants in November 2013, as well as Tricia Berman, David Brown, Jeremy Chrisp, Joshua Funder, Shanon Glenn, Tom Honeyman, Derek Kerr, Kathy Nielsen, Roger Price, Kar Mei Tang, Brigitte Smith, Stephen Thompson, Malcolm Thornton, Silvio Vismara, Sam Waring, and Katherine Woodthorpe for helpful comments and suggestions. This paper was awarded the best paper prize by AVCAL in 2013.

Publisher Copyright:
© 2014, Springer Science+Business Media New York.

Keywords

Government policy
Market capitalization
Patents
Private equity
R&D
Venture capital

ASJC Scopus subject areas

Business and International Management
Accounting
General Engineering

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/s10961-014-9378-3

Australian Private Equity and Venture Capital Association (AVCAL) Research Prize for Venture’s Economic Impact in Australia
Cumming, D. (Recipient), 2013
Prize: Prize (including medals and awards)

Cite this

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Venture’s economic impact in Australia

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

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Prizes

Australian Private Equity and Venture Capital Association (AVCAL) Research Prize for Venture’s Economic Impact in Australia

Cite this