Measuring the Spillovers of Venture Capital


Schnitzer, Monika (LMU München)
Watzinger, Martin (LMU München)


We provide the first measurement of knowledge spillovers from venture capital-financed companies onto the patenting activities of other companies. On average, these spillovers are nine times larger than those generated by the R&D investment of established companies. Spillover effects are larger in complex product industries than in discrete product industries. Start-ups with experienced inventors holding a patent at the time of receiving the first round of investment produce the largest spillovers, indicating that venture capital fosters the commercialization of technologies. Methodologically, we contribute by developing a novel definition of the spillover pool, combining citation-based and technological proximity-based approaches.


venture capital, spillovers, innovation


G24; O30; O31; O32


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Measuring the Spillovers of Venture Capital
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