@techreport{Heneric2004Birth,
abstract = {We answer the questions, how many firms acting in the modern German biotechnology
industry are funded by venture capital companies (VCC) as well as
equity funded by corporate investors. The theory suggests a high relevance of
VCC as venturing partner of high-tech projects. In addition we argue that corporate
investors are a venturing partner of firms with high-risk projects to a
lower extent. Incumbents,however, are confronted with some opportunities in
the low-risk area of the biotechnology industry to secure an optimal supply for
the current product pipeline.Our empirical results emphasize a crucial importance
of venture capital as financial resource for high-risk projects: whereas 42
percent of all healthcare developer in the early stage are venture-backed
firms, only a small share of low-risk projects received venture capital. The results
for corporate investors are reversible.Fewer high-tech projects and more
low-risk projects compared to VCC are equity financed by corporate investors.
The econometric analysis suggests that the observed pattern is mainly
driven by the level of project risk and hence, supports all our hypotheses.},
author = {Oliver Heneric and Dirk Engel and Claire Champenois},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C25; L21; G32; 330; Biotechnology; Start-ups; Venture Capital; Discrete Choice; Biotechnische Industrie; Unternehmensgr\"{u}ndung; Risikokapital; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {16},
title = {The Birth of German Biotechnology Industry : Did Venture Capital run the show?},
type = {RWI Discussion Papers},
url = {http://hdl.handle.net/10419/18567},
year = {2004}
}
