Venture Capital Financing and Green Patenting

Andrea Bellucci; Serena Fatica; Aliki Georgakaki; Gianluca Gucciardi; Simon Letout; Francesco Pasimeni

doi:10.1080/13662716.2023.2228717

Venture Capital Financing and Green Patenting

Andrea Bellucci, Serena Fatica (Corresponding author), Aliki Georgakaki, Gianluca Gucciardi, Simon Letout, Francesco Pasimeni

Technology, Innovation & Society

Research output: Contribution to journal › Article › Academic › peer-review

18 Citations (Scopus)

92 Downloads (Pure)

Abstract

This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies’ balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm’s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.

Original language	English
Pages (from-to)	947-983
Number of pages	37
Journal	Industry and Innovation
Volume	30
Issue number	7
DOIs	https://doi.org/10.1080/13662716.2023.2228717
Publication status	Published - Sept 2023

Keywords

Venture Capital
Sustainable Finance
Finance for Innovation
Equity Financing
Green ventures
Green technology
patents
Patents

Access to Document

10.1080/13662716.2023.2228717

pdfFinal published version, 1.97 MBLicence: CC BY

Cite this

@article{3755dda53e3a4e30861823532536c507,

title = "Venture Capital Financing and Green Patenting",

abstract = "This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies{\textquoteright} balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm{\textquoteright}s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.",

keywords = "Venture Capital, Sustainable Finance, Finance for Innovation, Equity Financing, Green ventures, Green technology, patents, Patents",

author = "Andrea Bellucci and Serena Fatica and Aliki Georgakaki and Gianluca Gucciardi and Simon Letout and Francesco Pasimeni",

year = "2023",

month = sep,

doi = "10.1080/13662716.2023.2228717",

language = "English",

volume = "30",

pages = "947--983",

journal = "Industry and Innovation",

issn = "1366-2716",

publisher = "Routledge Taylor & Francis Group",

number = "7",

}

TY - JOUR

T1 - Venture Capital Financing and Green Patenting

AU - Bellucci, Andrea

AU - Fatica, Serena

AU - Georgakaki, Aliki

AU - Gucciardi, Gianluca

AU - Letout, Simon

AU - Pasimeni, Francesco

PY - 2023/9

Y1 - 2023/9

N2 - This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies’ balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm’s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.

AB - This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset that matches information on equity transactions, companies’ balance sheet variables and data on patented innovation at the firm level over the period 2008–2017. Taking advance of a novel granular definition of green innovative activities that tracks patents at the firm level, we show that green innovators are more likely to receive VC funding compared to other equity financing than firms without green patents. Likewise, a larger share of green vs. non-green patents in a firm’s patent portfolio increases the probability of receiving VC finance with respect to other equity. Robustness checks and extensions tackling several dimensions of heterogeneity confirm the attractiveness of green patenting for VC investment.

KW - Venture Capital

KW - Sustainable Finance

KW - Finance for Innovation

KW - Equity Financing

KW - Green ventures

KW - Green technology

KW - patents

KW - Patents

UR - http://www.scopus.com/inward/record.url?scp=85164569819&partnerID=8YFLogxK

U2 - 10.1080/13662716.2023.2228717

DO - 10.1080/13662716.2023.2228717

M3 - Article

SN - 1366-2716

VL - 30

SP - 947

EP - 983

JO - Industry and Innovation

JF - Industry and Innovation

IS - 7

ER -

Venture Capital Financing and Green Patenting

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this