Jump to ContentJump to Main Navigation
New Perspectives on Industrial Policy for a Modern Britain$
Users without a subscription are not able to see the full content.

David Bailey, Keith Cowling, and Philip Tomlinson

Print publication date: 2015

Print ISBN-13: 9780198706205

Published to Oxford Scholarship Online: August 2015

DOI: 10.1093/acprof:oso/9780198706205.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 08 July 2020

Harnessing the Private Sector to Enhance Industrial Innovation

Harnessing the Private Sector to Enhance Industrial Innovation

(p.131) Chapter 8 Harnessing the Private Sector to Enhance Industrial Innovation
New Perspectives on Industrial Policy for a Modern Britain

Gordon Murray

Weixi Liu

Marc Cowling

Oxford University Press

This chapter explores the financing of small and medium-sized businesses (SMEs) through venture capital. Problems of asymmetric information, risk assessment, and the appropriation of rents (from innovation) often lead to a sub-optimal allocation of funding for early start-up firms. To address this ‘financing gap’, ‘hybrid’ venture capital schemes exist, whereby the state acts as a special limited partner and channels funds into capital constrained, but high potential, young enterprises through private sector venture capital firms. The chapter explores the efficacy of the Australian scheme through a comparative econometric study (1997–2009) of the performance of firms accessing funding from the scheme and those funded solely through private venture capital. It reveals significant support for the scheme, with Institute of International Finance (IIF) supported firms more likely to be start-ups in high technology-based sectors, and also more likely to access follow-on finance as their business grows.

Keywords:   venture capital, innovation, hybrid schemes, SMEs, financing gap

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .