Curtis J. Milhaupt and Mark D. West
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199272112
- eISBN:
- 9780191601316
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199272115.003.0003
- Subject:
- Economics and Finance, Financial Economics
Chapters 3 and 4 examine the role of law and informal rules in the financial sector. Examines entrepreneurial finance in Japan, focusing on how the institutional environment associated with Japanese ...
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Chapters 3 and 4 examine the role of law and informal rules in the financial sector. Examines entrepreneurial finance in Japan, focusing on how the institutional environment associated with Japanese corporate governance in its post‐war heyday created problems for start‐up firms by handicapping the development of an active venture capital market. Bubbles notwithstanding, the maturation and dynamism of the venture capital market in the 1990s was one of the signal economic successes of the US in recent years. Not surprisingly, Japan has looked enviously at Silicon Valley. The search for an institutional structure supportive of entrepreneurial finance in Japan has motivated substantial corporate law reform over the past five years.Less
Chapters 3 and 4 examine the role of law and informal rules in the financial sector. Examines entrepreneurial finance in Japan, focusing on how the institutional environment associated with Japanese corporate governance in its post‐war heyday created problems for start‐up firms by handicapping the development of an active venture capital market. Bubbles notwithstanding, the maturation and dynamism of the venture capital market in the 1990s was one of the signal economic successes of the US in recent years. Not surprisingly, Japan has looked enviously at Silicon Valley. The search for an institutional structure supportive of entrepreneurial finance in Japan has motivated substantial corporate law reform over the past five years.
David B. Audretsch, Max C. Keilbach, and Erik E. Lehmann
- Published in print:
- 2006
- Published Online:
- January 2007
- ISBN:
- 9780195183511
- eISBN:
- 9780199783663
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195183511.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter analyzes the role that accessing external finance plays for entrepreneurial firms. It differentiates between access to bank loans and equity provided by venture capital. It is shown that ...
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This chapter analyzes the role that accessing external finance plays for entrepreneurial firms. It differentiates between access to bank loans and equity provided by venture capital. It is shown that equity finance and bank finance are substitutes for knowledge-based entrepreneurial firms. The likelihood of an entrepreneurial firm being financed by venture capital is positively related to the degree of human capital incorporated in the board of management. Similarly, entrepreneurial firms in high-technology and science-based industries are more likely to be financed by venture capital.Less
This chapter analyzes the role that accessing external finance plays for entrepreneurial firms. It differentiates between access to bank loans and equity provided by venture capital. It is shown that equity finance and bank finance are substitutes for knowledge-based entrepreneurial firms. The likelihood of an entrepreneurial firm being financed by venture capital is positively related to the degree of human capital incorporated in the board of management. Similarly, entrepreneurial firms in high-technology and science-based industries are more likely to be financed by venture capital.
Curtis J. Milhaupt and Mark D. West
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199272112
- eISBN:
- 9780191601316
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199272115.001.0001
- Subject:
- Economics and Finance, Financial Economics
Using an institutional and empirical approach, this book analyses the role of formal rules (law and regulations) and informal rules (norms, practices, and shared beliefs) in the Japanese economy. ...
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Using an institutional and empirical approach, this book analyses the role of formal rules (law and regulations) and informal rules (norms, practices, and shared beliefs) in the Japanese economy. Through in‐depth studies of corporate governance and finance, mergers and acquisitions, financial regulation, organized crime, and markets for everything from venture capital to legal talent, Professors Milhaupt and West show that institutions play a crucial and heretofore overlooked role in the structure of the Japanese economy, which often is portrayed as being governed exclusively by interpersonal relations and bureaucratic fiat. As these rules change, Japanese actors are responding, reshaping corporate governance and financial markets, while eroding the bureaucracy's power.Less
Using an institutional and empirical approach, this book analyses the role of formal rules (law and regulations) and informal rules (norms, practices, and shared beliefs) in the Japanese economy. Through in‐depth studies of corporate governance and finance, mergers and acquisitions, financial regulation, organized crime, and markets for everything from venture capital to legal talent, Professors Milhaupt and West show that institutions play a crucial and heretofore overlooked role in the structure of the Japanese economy, which often is portrayed as being governed exclusively by interpersonal relations and bureaucratic fiat. As these rules change, Japanese actors are responding, reshaping corporate governance and financial markets, while eroding the bureaucracy's power.
Nobuyuki Hata, Haruhiko Ando, and Yoshiaki Ishii
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0005
- Subject:
- Economics and Finance, South and East Asia
This chapter examines corporate governance in the context of Japanese venture capital (VC) firms. VC represents a unique combination of network-based equity finance, expertise, and monitoring that ...
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This chapter examines corporate governance in the context of Japanese venture capital (VC) firms. VC represents a unique combination of network-based equity finance, expertise, and monitoring that differs greatly from traditional forms of industrial organization. Several institutional factors have limited the development of early stage VC investment in Japan, such as the bank-based financial system, keiretsu groups, and firm-internal labour markets. Thus, early VC funds were organized by banks and targeted only late-stage ventures. More recently, a new generation of VC has emerged in response to new IPO markets and new legislation regarding corporate spin-offs and restructuring. Younger entrepreneurs take different attitudes towards risk and the nature of the firm, reflected in greater willingness to disclose information and maintain their independence from established organizations. These developments have influenced older venture capitalists to take a more open, equity-oriented approach and suggest an optimistic view of the future potential of VC in Japan.Less
This chapter examines corporate governance in the context of Japanese venture capital (VC) firms. VC represents a unique combination of network-based equity finance, expertise, and monitoring that differs greatly from traditional forms of industrial organization. Several institutional factors have limited the development of early stage VC investment in Japan, such as the bank-based financial system, keiretsu groups, and firm-internal labour markets. Thus, early VC funds were organized by banks and targeted only late-stage ventures. More recently, a new generation of VC has emerged in response to new IPO markets and new legislation regarding corporate spin-offs and restructuring. Younger entrepreneurs take different attitudes towards risk and the nature of the firm, reflected in greater willingness to disclose information and maintain their independence from established organizations. These developments have influenced older venture capitalists to take a more open, equity-oriented approach and suggest an optimistic view of the future potential of VC in Japan.
Mari Sako
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199284511
- eISBN:
- 9780191713705
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199284511.003.0014
- Subject:
- Economics and Finance, South and East Asia
Japan's economic success has been attributed largely to the nature of its national institutions and economic systems, such as relational banking, lifetime employment, and relational contracting in ...
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Japan's economic success has been attributed largely to the nature of its national institutions and economic systems, such as relational banking, lifetime employment, and relational contracting in intermediate product markets. These institutions and systems were tightly linked to facilitate governing the Japanese economy, but more diverse patterns of organizing have become evident since the 1990s. For instance, in financial markets, venture capital funds and IPOs (initial public offerings) have appeared alongside relational banking to finance start-ups. In labour markets, non-standard forms of employment have come to be a significant alternative to the lifetime employment norm. It is clear that the Japanese business system is becoming more diverse from within. But when, why, and how has such organizational diversity come about in Japan? And is such diversity a sign of gradual breakdown of the system, or has it become the very characteristic of the Japanese system? If it is the former, what is the process by which we should expect the emergence of a new system? If the latter, how much diversity can be sustained within a system?Less
Japan's economic success has been attributed largely to the nature of its national institutions and economic systems, such as relational banking, lifetime employment, and relational contracting in intermediate product markets. These institutions and systems were tightly linked to facilitate governing the Japanese economy, but more diverse patterns of organizing have become evident since the 1990s. For instance, in financial markets, venture capital funds and IPOs (initial public offerings) have appeared alongside relational banking to finance start-ups. In labour markets, non-standard forms of employment have come to be a significant alternative to the lifetime employment norm. It is clear that the Japanese business system is becoming more diverse from within. But when, why, and how has such organizational diversity come about in Japan? And is such diversity a sign of gradual breakdown of the system, or has it become the very characteristic of the Japanese system? If it is the former, what is the process by which we should expect the emergence of a new system? If the latter, how much diversity can be sustained within a system?
Steven Casper
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199269525
- eISBN:
- 9780191710025
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269525.003.0004
- Subject:
- Business and Management, Political Economy
Germany has long been categorized as an organized or coordinated market economy. Moreover, a key prediction of comparative institutional theory is that Germany should perform poorly in radically ...
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Germany has long been categorized as an organized or coordinated market economy. Moreover, a key prediction of comparative institutional theory is that Germany should perform poorly in radically innovative industries such as biotechnology. In the mid 1990s, the German government launched a series of wide-ranging public policies with the aim of developing a world-class biotechnology industry. This chapter examines these policies and evaluates their success in creating a sustainable biotechnology industry in Germany. German policies have created a large industry, in terms of the number of companies launched, in a short period of time. However, empirical evidence suggests that this industry has not become sustainable, in terms of generating adequate venture capital finance for companies or generating an active labor market for scientists and managers working within the industry. These problems are linked to long-standing institutional arrangements in the areas of finance, corporate governance, and labor market regulation, suggesting that the ability of governments to circumvent national institutional frameworks may be limited.Less
Germany has long been categorized as an organized or coordinated market economy. Moreover, a key prediction of comparative institutional theory is that Germany should perform poorly in radically innovative industries such as biotechnology. In the mid 1990s, the German government launched a series of wide-ranging public policies with the aim of developing a world-class biotechnology industry. This chapter examines these policies and evaluates their success in creating a sustainable biotechnology industry in Germany. German policies have created a large industry, in terms of the number of companies launched, in a short period of time. However, empirical evidence suggests that this industry has not become sustainable, in terms of generating adequate venture capital finance for companies or generating an active labor market for scientists and managers working within the industry. These problems are linked to long-standing institutional arrangements in the areas of finance, corporate governance, and labor market regulation, suggesting that the ability of governments to circumvent national institutional frameworks may be limited.
Elliot Posner
- Published in print:
- 2005
- Published Online:
- February 2006
- ISBN:
- 9780199283958
- eISBN:
- 9780191603297
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199283958.003.0009
- Subject:
- Political Science, European Union
Small capitalization markets like the US Nasdaq have proliferated in Europe in recent years as part of a broad but uneven process of financial reforms. Though often seen as a fairly direct response ...
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Small capitalization markets like the US Nasdaq have proliferated in Europe in recent years as part of a broad but uneven process of financial reforms. Though often seen as a fairly direct response to financial globalization and market forces, they are, in fact, the product of supranational entrepreneurship and intra-European national rivalries. Nationally-based stock markets suddenly created small-cap markets not because of widely-perceived market pressures, but in response to moves by the European Commission that threatened to replace national markets with European ones.Less
Small capitalization markets like the US Nasdaq have proliferated in Europe in recent years as part of a broad but uneven process of financial reforms. Though often seen as a fairly direct response to financial globalization and market forces, they are, in fact, the product of supranational entrepreneurship and intra-European national rivalries. Nationally-based stock markets suddenly created small-cap markets not because of widely-perceived market pressures, but in response to moves by the European Commission that threatened to replace national markets with European ones.
Don Rose and Cam Patterson
- Published in print:
- 2016
- Published Online:
- May 2016
- ISBN:
- 9781469625263
- eISBN:
- 9781469625287
- Item type:
- chapter
- Publisher:
- University of North Carolina Press
- DOI:
- 10.5149/northcarolina/9781469625263.003.0003
- Subject:
- Business and Management, Innovation
A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, ...
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A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, and sell products and services in exchange for money from the customer. In addition, university startups involve many discrete operations including technology development, product development, sales and marketing, and manufacturing. The university startup is set in the context of an ecosystem composed of the university, people, and money. The university provides the innovation, usually in the form of intellectual property by way of a license, around which the startup is formed. People provide the expertise, management, judgement, decision-making, advice, and connections essential for launching and growing a startup. Money is the fuel to build the startup. It comes in two basic forms: dilutive and non-dilutive. The former involving a sharing of the company ownership and the latter not.Less
A university startup has a number of characteristics, many of which are common to any startup. Central to the startup is the business model, the mechanism by which the company will create, market, and sell products and services in exchange for money from the customer. In addition, university startups involve many discrete operations including technology development, product development, sales and marketing, and manufacturing. The university startup is set in the context of an ecosystem composed of the university, people, and money. The university provides the innovation, usually in the form of intellectual property by way of a license, around which the startup is formed. People provide the expertise, management, judgement, decision-making, advice, and connections essential for launching and growing a startup. Money is the fuel to build the startup. It comes in two basic forms: dilutive and non-dilutive. The former involving a sharing of the company ownership and the latter not.
AnnaLee Saxenian
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199532605
- eISBN:
- 9780191714627
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199532605.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
By 2000, over one-third of Silicon Valley's high-skilled workers were foreign-born, and overwhelmingly from Asia. These US-educated engineers are transforming developmental opportunities for formerly ...
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By 2000, over one-third of Silicon Valley's high-skilled workers were foreign-born, and overwhelmingly from Asia. These US-educated engineers are transforming developmental opportunities for formerly peripheral regions as they build professional and business connections to their home countries. In a process more akin to ‘brain circulation’ than ‘brain drain’, these engineers and entrepreneurs, aided by the lowered transaction costs associated with digitization, are transferring technical and institutional know-how between distant regional economies faster and more flexibly than most large corporations. This chapter examines how Chinese and Indian-born engineers are contributing to highly localized processes of entrepreneurial experimentation in their home countries, while maintaining close ties to the technology and markets in Silicon Valley.Less
By 2000, over one-third of Silicon Valley's high-skilled workers were foreign-born, and overwhelmingly from Asia. These US-educated engineers are transforming developmental opportunities for formerly peripheral regions as they build professional and business connections to their home countries. In a process more akin to ‘brain circulation’ than ‘brain drain’, these engineers and entrepreneurs, aided by the lowered transaction costs associated with digitization, are transferring technical and institutional know-how between distant regional economies faster and more flexibly than most large corporations. This chapter examines how Chinese and Indian-born engineers are contributing to highly localized processes of entrepreneurial experimentation in their home countries, while maintaining close ties to the technology and markets in Silicon Valley.
Donald Clarke
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198289449
- eISBN:
- 9780191684708
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198289449.003.0014
- Subject:
- Business and Management, Business History
Venture capital differed from ICFC's way of doing things. ICFC was a passive investor; venture capital was active. ICFC was long-term; venture capital was short-term. Venture capital looked for ...
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Venture capital differed from ICFC's way of doing things. ICFC was a passive investor; venture capital was active. ICFC was long-term; venture capital was short-term. Venture capital looked for capital profit; ICFC was also concerned with income. ICFC employed its own staff who were not allowed to join boards or become involved in management; venture capitalists were partners and closely involved. ICFC was a generalist with a specialized knowledge of finance; venture capital specialized in a small number of companies in high-growth industries.Less
Venture capital differed from ICFC's way of doing things. ICFC was a passive investor; venture capital was active. ICFC was long-term; venture capital was short-term. Venture capital looked for capital profit; ICFC was also concerned with income. ICFC employed its own staff who were not allowed to join boards or become involved in management; venture capitalists were partners and closely involved. ICFC was a generalist with a specialized knowledge of finance; venture capital specialized in a small number of companies in high-growth industries.
Robert Kneller
- Published in print:
- 2007
- Published Online:
- October 2011
- ISBN:
- 9780199268801
- eISBN:
- 9780191699283
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199268801.003.0004
- Subject:
- Business and Management, International Business, Innovation
This chapter looks directly at Japanese high technology ventures and describes their present situation and future prospects. It presents twenty case studies of ventures in biomedical and ...
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This chapter looks directly at Japanese high technology ventures and describes their present situation and future prospects. It presents twenty case studies of ventures in biomedical and nonbiomedical fields. Several conclusions are drawn based on these case studies. Among them is that (i) the unwillingness of pharmaceutical companies to engage bioventures is hurting them; (ii) most bioventures arise from universities and many of these continue to depend on them for key discoveries; (iii) government support is pervasive; (iv) venture capital is vital for the growth of bioventures; and (v) patents are important.Less
This chapter looks directly at Japanese high technology ventures and describes their present situation and future prospects. It presents twenty case studies of ventures in biomedical and nonbiomedical fields. Several conclusions are drawn based on these case studies. Among them is that (i) the unwillingness of pharmaceutical companies to engage bioventures is hurting them; (ii) most bioventures arise from universities and many of these continue to depend on them for key discoveries; (iii) government support is pervasive; (iv) venture capital is vital for the growth of bioventures; and (v) patents are important.
Steven Casper
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199269525
- eISBN:
- 9780191710025
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269525.003.0005
- Subject:
- Business and Management, Political Economy
National institutional frameworks within the UK are oriented towards the promotion of radically innovative industries such as biotechnology. While the UK does have the best performing European ...
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National institutional frameworks within the UK are oriented towards the promotion of radically innovative industries such as biotechnology. While the UK does have the best performing European biotechnology industry, it lags far behind the productivity of the US industry. The chapter argues that national institutional incentives within the UK are appropriate for biotechnology. However, public policy within the country has not developed an adequate system of commercializing science. Drawing on a case study of the Cambridge UK technology cluster, potential policies that could improve the performance of UK biotechnology sector are discussed.Less
National institutional frameworks within the UK are oriented towards the promotion of radically innovative industries such as biotechnology. While the UK does have the best performing European biotechnology industry, it lags far behind the productivity of the US industry. The chapter argues that national institutional incentives within the UK are appropriate for biotechnology. However, public policy within the country has not developed an adequate system of commercializing science. Drawing on a case study of the Cambridge UK technology cluster, potential policies that could improve the performance of UK biotechnology sector are discussed.
Roderick Martin, Peter D. Casson, and Tahir M. Nisar
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199202607
- eISBN:
- 9780191707896
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199202607.001.0001
- Subject:
- Business and Management, Finance, Accounting, and Banking
Increased engagement by investors with the companies in which they invest has been a major change in Western economies since the 1980s. Shareholder value provides rationale and incentive for investor ...
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Increased engagement by investors with the companies in which they invest has been a major change in Western economies since the 1980s. Shareholder value provides rationale and incentive for investor engagement. The book summarizes the basic principles of shareholder value, and explains the reasons for its growth, especially in the UK and the USA. The authors outline a spectrum of investor engagement ranging from indirect/laissez-faire influence via (threat of) exit to direct intervention in specific areas of management practice. The book focuses on two types of investor, institutional investors and private equity/venture capital investors. Different types of institutional investors have different incentives for engagement, and adopt different methods. ‘Universal investors’ with long time horizons, such as pension funds, have especially strong incentives for engagement, as illustrated by USS Limited. The book distinguishes between institutional investors' routine and extraordinary engagement, and shows how collaboration amongst investors through organizations such as the Institutional Shareholders' Committee offsets the high costs of monitoring and provides means for ensuring compliance with ‘best City practice’. The engagement of private equity funds is illustrated through case studies of equity funds and the portfolio firms in which they invested. But corporate managers are not simply passive reactors to investors' interventions: managers seek to influence investors, for example through managing market expectations. Shareholder value conceptions are not universal: they are strong in the UK and the USA, but are weaker in coordinated market economies such as Germany. The book concludes by evaluating the normative case for shareholder value and investor engagement, arguing that conventional analyses overestimate the efficiency arguments for shareholder value and the equity arguments against shareholder value. The future development of corporate governance is seen to require greater openness and the inclusion of a wider range of interests, not the further enhancement of the protection accorded to shareholder interests.Less
Increased engagement by investors with the companies in which they invest has been a major change in Western economies since the 1980s. Shareholder value provides rationale and incentive for investor engagement. The book summarizes the basic principles of shareholder value, and explains the reasons for its growth, especially in the UK and the USA. The authors outline a spectrum of investor engagement ranging from indirect/laissez-faire influence via (threat of) exit to direct intervention in specific areas of management practice. The book focuses on two types of investor, institutional investors and private equity/venture capital investors. Different types of institutional investors have different incentives for engagement, and adopt different methods. ‘Universal investors’ with long time horizons, such as pension funds, have especially strong incentives for engagement, as illustrated by USS Limited. The book distinguishes between institutional investors' routine and extraordinary engagement, and shows how collaboration amongst investors through organizations such as the Institutional Shareholders' Committee offsets the high costs of monitoring and provides means for ensuring compliance with ‘best City practice’. The engagement of private equity funds is illustrated through case studies of equity funds and the portfolio firms in which they invested. But corporate managers are not simply passive reactors to investors' interventions: managers seek to influence investors, for example through managing market expectations. Shareholder value conceptions are not universal: they are strong in the UK and the USA, but are weaker in coordinated market economies such as Germany. The book concludes by evaluating the normative case for shareholder value and investor engagement, arguing that conventional analyses overestimate the efficiency arguments for shareholder value and the equity arguments against shareholder value. The future development of corporate governance is seen to require greater openness and the inclusion of a wider range of interests, not the further enhancement of the protection accorded to shareholder interests.
Dan Breznitz
- Published in print:
- 2005
- Published Online:
- September 2007
- ISBN:
- 9780199275601
- eISBN:
- 9780191705823
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199275601.003.0004
- Subject:
- Business and Management, International Business
This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the ...
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This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the development of the local software industry was Israel's R&D capabilities, which are diffused throughout the innovation system with their source being the strong academic research apparatus. The chapter also argues that it was the conscious aim of the Israeli state to develop exactly such an industry, and shows that at critical times the state, through the OCS, started catalytic programs to spurred private technological entrepreneurship.Less
This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the development of the local software industry was Israel's R&D capabilities, which are diffused throughout the innovation system with their source being the strong academic research apparatus. The chapter also argues that it was the conscious aim of the Israeli state to develop exactly such an industry, and shows that at critical times the state, through the OCS, started catalytic programs to spurred private technological entrepreneurship.
Steven Casper
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199269525
- eISBN:
- 9780191710025
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199269525.003.0003
- Subject:
- Business and Management, Political Economy
The ability of the US economy to generate new technology industries, such as biotechnology, provides support to the contention that liberal market economies (LMEs) have a comparative institutional ...
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The ability of the US economy to generate new technology industries, such as biotechnology, provides support to the contention that liberal market economies (LMEs) have a comparative institutional advantage in generating radically innovative firms. However, the link between varieties of capitalism and innovation within LMEs has not been systematically explored. This chapter explores the link between institutions and the management of innovative competencies within a successful US biotechnology cluster — San Diego, California. It empirically examines whether national institutional frameworks within the US generate patterns of economic coordination in the areas of finance, employee incentive structures, and labor market organization that benefit firms, and are consistent with predictions of the varieties of capitalism approach. The policy context surrounding the US biotechnology industry is also discussed.Less
The ability of the US economy to generate new technology industries, such as biotechnology, provides support to the contention that liberal market economies (LMEs) have a comparative institutional advantage in generating radically innovative firms. However, the link between varieties of capitalism and innovation within LMEs has not been systematically explored. This chapter explores the link between institutions and the management of innovative competencies within a successful US biotechnology cluster — San Diego, California. It empirically examines whether national institutional frameworks within the US generate patterns of economic coordination in the areas of finance, employee incentive structures, and labor market organization that benefit firms, and are consistent with predictions of the varieties of capitalism approach. The policy context surrounding the US biotechnology industry is also discussed.
Joseph A. McCahery and Erik P. M. Vermeulen
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780199203406
- eISBN:
- 9780191707780
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199203406.003.0005
- Subject:
- Law, Company and Commercial Law
This chapter shows that hybrid business vehicles usually offer firms the freedom to contractually establish the rights and obligations within their organizational structure, which accounts for the ...
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This chapter shows that hybrid business vehicles usually offer firms the freedom to contractually establish the rights and obligations within their organizational structure, which accounts for the popularity of these forms for pooled investments and other risky ventures. While there is great demand for the utilization of these forms, the every-changing nature of the business environment confirms the importance of flexible provisions giving parties not only the opportunity to contract around the company law default rules, but also permitting them to contract into additional protective measures that match their preferences.Less
This chapter shows that hybrid business vehicles usually offer firms the freedom to contractually establish the rights and obligations within their organizational structure, which accounts for the popularity of these forms for pooled investments and other risky ventures. While there is great demand for the utilization of these forms, the every-changing nature of the business environment confirms the importance of flexible provisions giving parties not only the opportunity to contract around the company law default rules, but also permitting them to contract into additional protective measures that match their preferences.
Richard Coopey and Donald Clarke
- Published in print:
- 1995
- Published Online:
- October 2011
- ISBN:
- 9780198289449
- eISBN:
- 9780191684708
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198289449.001.0001
- Subject:
- Business and Management, Business History
3i (Investors in Industry, and formerly the Industrial and Commercial Finance Corporation, etc.) is Britain's leading venture capital company. Founded in 1945 as a result of a combination of ...
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3i (Investors in Industry, and formerly the Industrial and Commercial Finance Corporation, etc.) is Britain's leading venture capital company. Founded in 1945 as a result of a combination of pressures and counter-pressures from political parties, Whitehall, the Bank of England, and the clearing banks, the organization has played a significant role in post-war investment banking and industrial development. The first part of the book traces 3i's history, from the early years of post-war reconstruction and the role played by Piercy and Kinross, through the years of consolidation, to the higher-profile years of the change of name and style and the 1994 flotation. The second part offers an inside view of the workings of this unique institution — the controllers, 3i's role in developing MBOs, methods of assessing risk and return, its relationship with capital markets, etc. During its first fifty years 3i has invested in numerous well known and successful companies — many of these are detailed in the text (such as British Caledonian, Oxford Instruments, Laura Ashley, etc.).Less
3i (Investors in Industry, and formerly the Industrial and Commercial Finance Corporation, etc.) is Britain's leading venture capital company. Founded in 1945 as a result of a combination of pressures and counter-pressures from political parties, Whitehall, the Bank of England, and the clearing banks, the organization has played a significant role in post-war investment banking and industrial development. The first part of the book traces 3i's history, from the early years of post-war reconstruction and the role played by Piercy and Kinross, through the years of consolidation, to the higher-profile years of the change of name and style and the 1994 flotation. The second part offers an inside view of the workings of this unique institution — the controllers, 3i's role in developing MBOs, methods of assessing risk and return, its relationship with capital markets, etc. During its first fifty years 3i has invested in numerous well known and successful companies — many of these are detailed in the text (such as British Caledonian, Oxford Instruments, Laura Ashley, etc.).
Stefanie Franzke, Stefanie Grohs, and Christian Laux
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199253166
- eISBN:
- 9780191601651
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199253161.003.0008
- Subject:
- Economics and Finance, Financial Economics
Presents a survey of the role of initial public offerings (IPOs) and venture capital in Germany after the Second World War and discusses the evidence.Between 1945 and 1983, IPOs and venture capital ...
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Presents a survey of the role of initial public offerings (IPOs) and venture capital in Germany after the Second World War and discusses the evidence.Between 1945 and 1983, IPOs and venture capital financing hardly played a role at all and only a minor role thereafter. The unprecedented boom on the Neuer Markt between 1997 and 2000 provides a striking contrast, but the levels of both activities remained rather low.Understanding the reasons for the low number of IPOs and the fairly low volume of venture capital financing in Germany is important for understanding the German financial system. The potential explanations include differences in mentality, legal and institutional impediments, the availability of alternative sources of financing, and the presence of interest groups (politicians, unions or workers, managers or controlling-owners of established firms, and banks).Less
Presents a survey of the role of initial public offerings (IPOs) and venture capital in Germany after the Second World War and discusses the evidence.
Between 1945 and 1983, IPOs and venture capital financing hardly played a role at all and only a minor role thereafter. The unprecedented boom on the Neuer Markt between 1997 and 2000 provides a striking contrast, but the levels of both activities remained rather low.
Understanding the reasons for the low number of IPOs and the fairly low volume of venture capital financing in Germany is important for understanding the German financial system. The potential explanations include differences in mentality, legal and institutional impediments, the availability of alternative sources of financing, and the presence of interest groups (politicians, unions or workers, managers or controlling-owners of established firms, and banks).
Jianwen Liao, Qian Ye, David Pistrui, and Harold P. Welsch
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195380644
- eISBN:
- 9780199869329
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195380644.003.0006
- Subject:
- Economics and Finance, International, South and East Asia
This chapter looks at venture financing among entrepreneurs in Wuhan, finding that informal finance comprises a large degree of start-up capital. Research has documented the importance of ...
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This chapter looks at venture financing among entrepreneurs in Wuhan, finding that informal finance comprises a large degree of start-up capital. Research has documented the importance of venture-financing and its effects on business survival, growth aspiration and strategy. It reviews the existing research in venture-financing by looking into its effects and various predictors, then highlights the unique operating and institutional environments Chinese entrepreneurs face, providing the context under which venture-financing — from both formal and informal sources — takes place. Empirical results from the survey follow, concluding with policy implications and future research directions.Less
This chapter looks at venture financing among entrepreneurs in Wuhan, finding that informal finance comprises a large degree of start-up capital. Research has documented the importance of venture-financing and its effects on business survival, growth aspiration and strategy. It reviews the existing research in venture-financing by looking into its effects and various predictors, then highlights the unique operating and institutional environments Chinese entrepreneurs face, providing the context under which venture-financing — from both formal and informal sources — takes place. Empirical results from the survey follow, concluding with policy implications and future research directions.
Mary O'Sullivan
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199244867
- eISBN:
- 9780191596735
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199244863.003.0005
- Subject:
- Economics and Finance, Microeconomics
This chapter has two main sections, which contrast the post‐war development of managerial control in the USA in the mass production industries, and the high‐technology industries––as exemplified by ...
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This chapter has two main sections, which contrast the post‐war development of managerial control in the USA in the mass production industries, and the high‐technology industries––as exemplified by the electronics industry. The first, Sect. 4.2, The post‐war governance of mass‐production enterprises, discusses the trend towards strategic segmentation––the emergence of conglomerations and resulting impact on performance, and the emergence of core corporate enterprises. The second, Sect. 4.3, The electronics complex and the governance of innovation, discusses the roles of the federal government and of venture capital, and the abiding importance of the innovative corporation.Less
This chapter has two main sections, which contrast the post‐war development of managerial control in the USA in the mass production industries, and the high‐technology industries––as exemplified by the electronics industry. The first, Sect. 4.2, The post‐war governance of mass‐production enterprises, discusses the trend towards strategic segmentation––the emergence of conglomerations and resulting impact on performance, and the emergence of core corporate enterprises. The second, Sect. 4.3, The electronics complex and the governance of innovation, discusses the roles of the federal government and of venture capital, and the abiding importance of the innovative corporation.
