Can government intervention make firms more investment-ready? A randomized experiment in the Western Balkans
Innovative firms with good ideas may still struggle to fine-tune them to the stage where they can attract outside funding. We conduct a five-country randomized experiment that tests the impact of an investment readiness program. Firms then pitched their ideas to independent judges. The program resulted in a 0.3 standard deviation increase in the investment readiness score. Two years later, the average impacts on firm investment outcomes are positive, but small in magnitude, and not statistically significant. Larger and statistically significant impacts on receiving outside funding occur for smaller firms, and for firms with lower likelihoods of otherwise being funded.
Year of publication: |
2020
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Authors: | Cusolito, Ana Paula ; Dautovic, Ernest ; McKenzie, David J. |
Publisher: |
Frankfurt a. M. : European Central Bank (ECB) |
Subject: | Gründungsförderung | Investitionspolitik | Wirkungsanalyse | Unternehmensgründung | Private Equity | Risikokapital | Südosteuropa | start-ups | innovation | equity investment | entrepreneurship | randomized controlled trial |
Saved in:
freely available
Series: | ECB Working Paper ; 2391 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
ISBN: | 978-92-899-4034-4 |
Other identifiers: | 10.2866/131051 [DOI] 1694832058 [GVK] hdl:10419/229005 [Handle] RePEc:ecb:ecbwps:20202391 [RePEc] |
Classification: | L26 - Entrepreneurship ; M2 - Business Economics ; M13 - Entrepreneurship ; O1 - Economic Development |
Source: |
Persistent link: https://www.econbiz.de/10012422053