Who creates jobs? Venture capital, research grants, and regional employment in the U.S.
Name
nihms-1033776.pdf
Description
Accepted version
Size
515.65 KB
Format
Adobe PDF
Checksum (MD5)
889d3d014200c7a93aba1537f89f6ac9
Author(s)
Kang, Hyunsung D.
Edelman, Elazer R
Ku, David N.
Date Issued
October 2018
Journal
Industry and Innovation
Publisher
Informa UK Limited
Citation
Kang, Hyunsang D. et al. "Who creates jobs? Venture capital, research grants, and regional employment in the U.S." Industry and Innovation 26, 6 (October 2018): 690–714 © 2018 Informa UK Limited
Version
Author's final manuscript
Abstract
We build on the exploratory and exploitative learning literature that suggests that venture capital and governmental research grants may impact regional employment in a different manner. Using a regional employment dataset in the U.S. (United States) medical device sector, our analysis reveals that research grants contribute to create a greater level of regional employment compared with venture capital funding. Furthermore, the positive effects of both funding sources are more salient when intellectual capital is abundant in the region. More specifically, the interaction effect of research grants and intellectual capital is gradually increased in the long term and eventually becomes greater than that of venture capital and intellectual capital, which is relatively constant. These findings highlight the heterogeneous motivations and consequences of two funding sources that should be considered in the future resource allocation policy accordingly.
MIT Department
Massachusetts Institute of Technology. Institute for Medical Engineering & Science
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1080/13662716.2018.1529555
