1. Home
  2. Studies
  3. Start-ups and economic growth in an international comparison: To what extent do start-ups and venture capital serve as growth drivers
Klaus-Heiner Röhl / Leonie Heuer IW-Report No. 44 2. December 2021 Start-ups and economic growth in an international comparison: To what extent do start-ups and venture capital serve as growth drivers

This IW Report analyses the importance of entrepreneurial activity and Venture Capital for economic growth. Potential growth has declined significantly in the highly developed countries in recent years.

Download PDF
To what extent do start-ups and venture capital serve as growth drivers
Klaus-Heiner Röhl / Leonie Heuer IW-Report No. 44 2. December 2021

Start-ups and economic growth in an international comparison: To what extent do start-ups and venture capital serve as growth drivers

Download PDF Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

This IW Report analyses the importance of entrepreneurial activity and Venture Capital for economic growth. Potential growth has declined significantly in the highly developed countries in recent years.

A major reason seems to be the decline in productivity growth resulting from technological progress and the use of human capital. New companies can help innovations to break through faster and they can use human capital more productively than incumbents, but a revolving door effect is also possible, with new firms pushing existing ones out of the market. Start-ups, many of which are financed by venture capital, are considered to be particularly important for disruptive innovations and the implementation of productive digital technologies. Previous empirical studies on the growth effects of start-ups have not been entirely conclusive, but they have shown predominantly positive correlations. The IW Report concludes with an international panel study that considers entrepreneurship and venture capital. It shows a positive and mostly significant to highly significant growth effect of the two variables for highly developed countries, depending on the chosen model specification.

Download PDF
To what extent do start-ups and venture capital serve as growth drivers
Klaus-Heiner Röhl / Leonie Heuer IW-Report No. 44 2. December 2021

Start-ups and economic growth in an international comparison: To what extent do start-ups and venture capital serve as growth drivers

Download PDF Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Skills, entrepreneurship and new business models
Jörg Bienert / Klaus-Günter Deutsch / Hans-Peter Klös / Klaus-Heiner Röhl IW-Policy Paper No. 13 23. August 2018

Skills, entrepreneurship and new business models

This paper identifies key areas for leaders to keep the “German model” successful, from developing digitized business cases to future skill requirements and ways to foster entrepreneurship.

IW

Read the article
Klaus-Heiner Röhl at the Journal of Small Business and Entrepreneurship External Publication 10. May 2018

Entrepreneurship: A comparative study of the interplay of culture and personality from a regional perspective

Many parts of Europe are lagging behind the United States in the number of successful start-ups as most European regions are characterized by little entrepreneurial activity. Innovative start-ups aiming to become global companies are scarce, reducing the ...

IW

More about this topic

Content element with id 8880 Content element with id 9713