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Private Equity and Business Angels: An Effect on Innovation
[Capital-Investissement et Business Angels : Un effet sur l’innovation]

Author

Listed:
  • Stéphane Koffel

    (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

  • Jonathan Labbé

    (CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine)

Abstract

Cet article vise à étudier les effets d'un financement par Capital-Investissement et par Business Angels sur l'innovation. En précisant la définition de l'innovation et en la mettant en lien avec le besoin de financement des entreprises pour soutenir cette innovation, nous tentons d'identifier si certains modes de financement ont un impact sur celle-ci. Par la construction d'une base de données regroupant un ensemble d'entreprises financées par Capital-Investissement et par Business Angels dans sept pays européens, et en prenant comme mesure de l'innovation le nombre de dépôt de brevets et le niveau des frais de Recherche et Développement des entreprises de notre échantillon, nous mettons en évidence deux éléments principaux. Le financement par Capital-Investissement et par Business Angels a un effet négatif sur le niveau des frais de Recherche et Développement, et un effet positif sur le nombre de dépôts de brevets. Ces résultats tendent à montrer que le financement par Capital-Investissement et par Business Angels a un effet positif sur l'innovation au sein des entreprises. This study examines how Venture Capitalists' and Business Angels' financing affect innovation. Specifying firms' financing needs and the definition of innovation, we try to identify if financing sources have an impact on innovation. The setting up of a database including a sample of firms with the number of registered patents and R&D expenditure level as measure for innovation and companies funded by venture capital and business angels in seven European countries highlights two important elements. We find that Venture capitalists' and business angels' financing have a negative effect on R&D expenditures and a positive effect on the number of registered patents. These results argue that Venture capital and business angels' funding have a positive effect on firms' innovation.

Suggested Citation

  • Stéphane Koffel & Jonathan Labbé, 2017. "Private Equity and Business Angels: An Effect on Innovation [Capital-Investissement et Business Angels : Un effet sur l’innovation]," Post-Print hal-03000127, HAL.
    • Handle: RePEc:hal:journl:hal-03000127
    Note: View the original document on HAL open archive server: https://hal.science/hal-03000127
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    References listed on IDEAS

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