Explaining venture capital and technology commercialization in EU countries through dynamic modeling

Abstract

Technology commercialization is envisioned as an important indicator of economic growth through academic environment. The assurance of financial capital to accelerate the technology commercialization is a big challenge for European countries and above that, European Venture Capital (VC) market has not been fully exploited according to its potential. Using a dynamic model approach on 21 European Union countries data from 2007 to 2013, we found an empirical stance for an interaction between research and development (R&D) expenditure and VC for accelerating technology commercialization in the form of contemporary patents and startups. The results depict that venture capitalists are more oriented towards startups as compared to patenting activity. The application of dynamic model approach helped to generalize the results across Europe and for other developed countries. Particularly, the study argues that a contemporary knowledge and simulation of VC in framing the innovation system and promising the business formation is much desired. In line with the perspective of innovation led ecosystem, an active contribution and understanding of VC would also be acknowledged. (C) 2018 Published by Future Academy www.FutureAcademy.org.UK