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Venture Capital Financing and Green Patenting

Author

Listed:
  • Andrea Bellucci
  • Serena Fatica
  • Aliki Georgakaki
  • Gianluca Gucciardi
  • Simon Letout
  • Francesco Pasimeni

Abstract

This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies’ balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm’s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.

Suggested Citation

  • Andrea Bellucci & Serena Fatica & Aliki Georgakaki & Gianluca Gucciardi & Simon Letout & Francesco Pasimeni, 2023. "Venture Capital Financing and Green Patenting," Industry and Innovation, Taylor & Francis Journals, vol. 30(7), pages 947-983, August.
    • Handle: RePEc:taf:indinn:v:30:y:2023:i:7:p:947-983
    DOI: 10.1080/13662716.2023.2228717
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    1. Tommaso Oliviero & Sandro Rondinella & Alberto Zazzaro, 2024. "Are green firms more financially constrained? The sensitivity of investment to cash flow," CSEF Working Papers 700, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.

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    More about this item

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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