Economia e Politica Industriale

, Volume 43, Issue 1, pp 85–103 | Cite as

The impact of patenting on the size of high-tech firms: the role of venture capital and product market regulation

  • Massimo G. Colombo
  • Kourosh Shafi


We investigate how public policies related to product market regulation (PMR) influence the ability of European young venture-capital (VC) backed firms compared to a sample of matched non-VC backed firms to grow in size in proportion to their innovative activity. Whereas VCs can presumably offer value-added services to overcome the regulatory constraints of PMR, we find that VC-backed firms relative to non-VC backed ones are more adversely sensitive to these policies. This evidence indicates that PMR impedes the most VC-backed firms’ high-potential for innovation-driven growth.


Venture capital Product market regulation Innovation High-tech ventures Public policy 

JEL Classification

G28 Government Policy and Regulation G24 Investment Banking • Venture Capital • Brokerage • Ratings and Ratings Agencies 

Supplementary material

40812_2015_23_MOESM1_ESM.docx (13 kb)
Supplementary material 1 (DOCX 13 kb)


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Copyright information

© Associazione Amici di Economia e Politica Industriale 2016

Authors and Affiliations

  1. 1.MilanItaly

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