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Venture Capital, The Public Sector And The High-Technology Industry

Author

Listed:
  • AVI MESSICA

    (Technology Management Department, Holon Institute of Technology, 52 Golomb St., P.O.B 305, Holon 58102, Israel)

  • TAMIR AGMON

    (Graduate Business School, The College of Management, 7 Itzhak Rabin Boulevard, P.O.B 9017, Rishon Le-Zion 75190, Israel)

Abstract

We studied the optimal funding of the public sector for the Hi-Tech industry in the presence of short-term, cyclical, venture capital (VC) funding by constructing a decision-making model that results in the optimal governmental support and a model that accounts for the dynamics of the VC industry. We found that the VC industry is highly correlated with the NASDAQ stock index and that the optimal public policy for funding the Hi-Tech sector should be anti-cyclical, dynamic, and conditioned on the VC investments. The models and their validation are discussed as well as the practical implications for policy and decision makers.

Suggested Citation

  • Avi Messica & Tamir Agmon, 2008. "Venture Capital, The Public Sector And The High-Technology Industry," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 105-122.
    • Handle: RePEc:wsi:ijitmx:v:05:y:2008:i:01:n:s0219877008001291
    DOI: 10.1142/S0219877008001291
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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