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In Which Regions Do Governmental, Independent, and Corporate Venture Capital Firms Invest? An Empirical Investigation across 402 German Regions

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Contemporary Developments in Entrepreneurial Finance

Part of the book series: FGF Studies in Small Business and Entrepreneurship ((FGFS))

Abstract

We analyze the distribution of venture capital (VC) investments across German regions and explore the geographical determinants of these investments. So far, little is known about the regional determinants of governmental (GVC), independent (IVC), and corporate (CVC) VC firms and about whether these types of VC firms invest in different regions. Combining a dataset of 402 German districts, our regressions show that regions with a higher supply of human capital and knowledge creators attract a significantly higher number of GVC investments. Moreover, we find a significant difference in economically weaker regions but do not find a metropolitan bias. Hence, GVC firms do not invest more frequently in rural regions per se and do not prevent regional disparities more often than other types of VC firms. The implications of these findings for high-tech firms and regional policy are discussed.

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Authors and Affiliations

  1. Trier University, Trier, Germany

    Christian Masiak, Christian Fisch & Joern H. Block

  2. Department of Applied Economics, School of Economics, Erasmus University Rotterdam, Rotterdam, Netherlands

    Christian Fisch & Joern H. Block

Authors
  1. Christian Masiak
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  2. Christian Fisch
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  3. Joern H. Block
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Correspondence to Christian Fisch .

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Editors and Affiliations

  1. Trier University, Trier, Germany

    Alexandra Moritz  & Joern H. Block  & 

  2. Fulda University of Applied Sciences, Fulda, Germany

    Stephan Golla

  3. University of Siegen, Siegen, Germany

    Arndt Werner

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Masiak, C., Fisch, C., Block, J.H. (2020). In Which Regions Do Governmental, Independent, and Corporate Venture Capital Firms Invest? An Empirical Investigation across 402 German Regions. In: Moritz, A., Block, J.H., Golla, S., Werner, A. (eds) Contemporary Developments in Entrepreneurial Finance. FGF Studies in Small Business and Entrepreneurship. Springer, Cham. https://doi.org/10.1007/978-3-030-17612-9_8

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