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Smart Specialisation Strategy required regional authorities to identify technological domains where to concentrate investment in R&D and innovation. Their choices should originate from an analysis of regional strengths, aiming to identify those domains with the greatest potential for innovation and diversification. This paper aim to assess the degree of relatedness between chosen technological...
Research Summary: We develop a two‐step selection model between entrepreneurial ventures and venture capital (VC) investors in a thin VC market. The model predicts that in a thin VC market, the availability of VC reduces the propensity of firms to self‐select into the market for VC (demand‐side selection) but not the probability that firms entering the market for VC will receive financing (supply‐side...
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