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Further evidence on the geographical concentration of venture capital investments

Author

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  • Simon K. Medcalfe

    (Augusta University)

  • Mark A. Thompson

    (Augusta University)

Abstract

This study provides an alternative examination into the dynamics of US venture capital investments across different geographical markets. A simple concentration index is developed to measure the size of venture capital investments by region relative to the US total venture capital investments. The time-series properties of this concentration index are examined; in particular, a series of unit root tests are employed to examine whether shocks to the index are temporary. Findings indicate that the geographical concentration of venture capital is increasing over time but shocks are temporary.

Suggested Citation

  • Simon K. Medcalfe & Mark A. Thompson, 2017. "Further evidence on the geographical concentration of venture capital investments," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 229-235, July.
    • Handle: RePEc:spr:lsprsc:v:10:y:2017:i:2:d:10.1007_s12076-017-0184-z
    DOI: 10.1007/s12076-017-0184-z
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    More about this item

    Keywords

    Venture capital investments; Regions; Shocks; Unit root tests; Concentration;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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