IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/248398.html
   My bibliography  Save this article

Veni vidi VC – the backend of the digital economy and its political making

Author

Listed:
  • Cooiman, Franziska

Abstract

Debates on the digital economy neglect its political and financial underpinnings. This article develops the theoretical framework of governing along the investment chain to grasp the backend of the digital economy, that is venture capital and its political underpinnings. Concretely, I focus on the European Investment Fund and how the European Commission uses it to govern along the investment chain into the digital economy. Therefore I conceptualize venture capital from a political economy perspective, situate the European Investment Fund in the European polity, and analyze transformations in the shape of the investment chains, risk-return distribution, and infrastructural power in three distinct periods. I show how in acts of crisis-led institutional innovation, the European Investment Fund has taken a central position in European venture capital investment chains, while skewing the risk-return relationship towards private markets and granting infrastructural power to venture capital funds. This dynamic inhibits the European Investment Fund from taking a progressive and proactive role in European venture capital markets.

Suggested Citation

  • Cooiman, Franziska, 2021. "Veni vidi VC – the backend of the digital economy and its political making," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Latest Ar, pages 1-1.
  • Handle: RePEc:zbw:espost:248398
    DOI: 10.1080/09692290.2021.1972433
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/248398/1/Full-text-article-Cooiman-Veni-vidi-VC.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.1080/09692290.2021.1972433?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniela Gabor, 2021. "The Wall Street Consensus," Development and Change, International Institute of Social Studies, vol. 52(3), pages 429-459, May.
    2. Dan Schiller, 2000. "Digital Capitalism: Networking the Global Market System," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262692333, December.
    3. Benjamin Braun & Arie Krampf & Steffen Murau, 2021. "Financial globalization as positive integration: monetary technocrats and the Eurodollar market in the 1970s," Review of International Political Economy, Taylor & Francis Journals, vol. 28(4), pages 794-819, July.
    4. Taylor, Mark Zachary, 2016. "The Politics of Innovation: Why Some Countries Are Better Than Others at Science and Technology," OUP Catalogue, Oxford University Press, number 9780190464134, Decembrie.
    5. Matthew Soener & Michael Nau, 2019. "Citadels of privilege: the rise of LLCs, LPs and the perpetuation of elite power in America," Post-Print hal-03570839, HAL.
    6. Florian Fastenrath & Michael Schwan & Christine Trampusch, 2017. "Where states and markets meet: the financialisation of sovereign debt management," New Political Economy, Taylor & Francis Journals, vol. 22(3), pages 273-293, May.
    7. Arjalies, Diane-Laure & Grant, Philip & Hardie, Iain & MacKenzie, Donald & Svetlova, Ekaterina, 2017. "Chains of Finance: How Investment Management is Shaped," OUP Catalogue, Oxford University Press, number 9780198802945, Decembrie.
    8. Josh Lerner & Ramana Nanda, 2020. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 237-261, Summer.
    9. Daniel Mertens & Matthias Thiemann, 2019. "Building a hidden investment state? The European Investment Bank, national development banks and European economic governance," Post-Print hal-01621785, HAL.
    10. Martin Kenney & Petri Rouvinen & Timo Seppälä & John Zysman, 2019. "Platforms and industrial change," Industry and Innovation, Taylor & Francis Journals, vol. 26(8), pages 871-879, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cooiman, Franziska, 2022. "Imprinting the economy: The structural power of venture capital," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue OnlineFir, pages 1-1.
    2. Braun, Benjamin, 2021. "From exit to control: The structural power of finance under asset manager capitalism," SocArXiv 4uesc, Center for Open Science.
    3. Franziska Cooiman, 2024. "Imprinting the economy: The structural power of venture capital," Environment and Planning A, , vol. 56(2), pages 586-602, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Franziska Cooiman, 2024. "Imprinting the economy: The structural power of venture capital," Environment and Planning A, , vol. 56(2), pages 586-602, March.
    2. Cooiman, Franziska, 2022. "Imprinting the economy: The structural power of venture capital," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue OnlineFir, pages 1-1.
    3. Hannah Hasenberger, 2024. "What is local government financialisation? Four empirical channels to clarify the roles of local government," Urban Studies, Urban Studies Journal Limited, vol. 61(11), pages 2039-2059, August.
    4. Braun, Benjamin, 2021. "From exit to control: The structural power of finance under asset manager capitalism," SocArXiv 4uesc, Center for Open Science.
    5. Bruno Bonizzi & Annina Kaltenbrunner, 2024. "International financial subordination in the age of asset manager capitalism," Environment and Planning A, , vol. 56(2), pages 603-626, March.
    6. Ali Rıza Güngen, 2023. "New Multilateral Development Banks and Green Lending: Approaching Scalar Complexities in the Global South," Development and Change, International Institute of Social Studies, vol. 54(2), pages 251-279, March.
    7. Michele Cantarella & Chiara Strozzi, 2021. "Workers in the crowd: the labor market impact of the online platform economy [An evaluation of instrumental variable strategies for estimating the effects of catholic schooling]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(6), pages 1429-1458.
    8. Lamberova, Natalia, 2021. "The puzzling politics of R&D: Signaling competence through risky projects," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 801-818.
    9. Mbassi, Christophe Martial & Messono, Omang Ombolo, 2023. "Historical technology and current economic development: Reassessing the nature of the relationship," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    10. Silvia Dalla Fontana & Ramana Nanda, 2023. "Innovating to Net Zero: Can Venture Capital and Start-Ups Play a Meaningful Role?," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 2(1), pages 79-105.
    11. Matteo Aquilina & Giulio Cornelli & Marina Sanchez del Villar, 2024. "Regulation, information asymmetries and the funding of new ventures," BIS Working Papers 1162, Bank for International Settlements.
    12. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    13. Kalayci, Eda & Becker, Jan U. & Barrot, Christian, 2024. "Understanding customers’ choice for digital D2C versus multi-brand operations," Journal of Retailing, Elsevier, vol. 100(2), pages 256-273.
    14. Sarah Armitage & Noël Bakhtian & Adam Jaffe, 2024. "Innovation Market Failures and the Design of New Climate Policy Instruments," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 5(1), pages 4-48.
    15. Berger, Marius & Hottenrott, Hanna, 2021. "Start-up subsidies and the sources of venture capital," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    16. Mac Clay, Pablo & Feeney, Roberto & Sellare, Jorge, 2024. "Technology-driven transformations in agri-food global value chains: The role of incumbent firms from a corporate venture capital perspective," Food Policy, Elsevier, vol. 127(C).
    17. Kristina McElheran & J. Frank Li & Erik Brynjolfsson & Zachary Kroff & Emin Dinlersoz & Lucia Foster & Nikolas Zolas, 2024. "AI adoption in America: Who, what, and where," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 33(2), pages 375-415, March.
    18. Brendan Whitty & Jessica Sklair & Paul Robert Gilbert & Emma Mawdsley & Jo‐Anna Russon & Olivia Taylor, 2023. "Outsourcing the Business of Development: The Rise of For‐profit Consultancies in the UK Aid Sector," Development and Change, International Institute of Social Studies, vol. 54(4), pages 892-917, July.
    19. Andrey Malenko & Ramana Nanda & Matthew Rhodes-Kropf & Savitar Sundaresan, 2021. "Catching Outliers: Committee Voting and the Limits of Consensus when Financing Innovation," Harvard Business School Working Papers 21-131, Harvard Business School, revised Nov 2023.
    20. Filippetti, Andrea & Vezzani, Antonio, 2022. "The political economy of public research, or why some governments commit to research more than others," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:248398. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.