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Small Business Economics

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03-06-2021

The effects of venture capital investments on industrial innovative opportunities and technological arbitrage opportunities

Authors: Fangqing Wei, Yi Yang, Yao Chen, Feng Yang

Published in: Small Business Economics | Issue 4/2022

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Abstract

This study investigates how venture capital (VC) investments flowing into an industry impact both the innovative opportunities and technological arbitrage opportunities presented in the industry. After examining 855 industry-year observations for 45 industries in the USA for 1997–2015, we found that VC investments moderate the effects of new venture entry rates on innovative opportunities and technological arbitrage opportunities at the industry level. Additionally, industry concentration and industry dynamism influence the moderating effects of VC investments on the relationships between new venture entry rates and both types of entrepreneurial opportunities. Our study not only contributes to the growing research on innovative opportunities and technological arbitrage opportunities, it also provides managerial implications for both entrepreneurial companies and policymakers.

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The data for new establishments/active firms are available from 1997.

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Title: The effects of venture capital investments on industrial innovative opportunities and technological arbitrage opportunities
Authors: Fangqing Wei
Yi Yang
Yao Chen
Feng Yang
Publication date: 03-06-2021
Publisher: Springer US
Published in: Small Business Economics / Issue 4/2022
Print ISSN: 0921-898X
Electronic ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-021-00511-7

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