ADVANCE Fellows Award: Studies in Financial Institutions and Markets

Johns Hopkins University, Baltimore MD

Investigators

Abstract

The primary focus of this ADVANCE Fellows award is on new research and educational activities related to the development and influence of venture capital (VC) institutions. The VC research will look back over the past fifty years to pinpoint the functions of venture capitalists, explain the appearance of specialized VC firms, and identify institutional sources of risk capital before the advent of the VC industry. Using international comparisons, the research will examine the influence of legal, political, and economic contests on institutional design. The study will also explore further hypotheses about the link between capital markets and venture capital provision. International comparison will undoubtedly uncover a range of institutional structures and will therefore raise the further question of the relative efficiency of different forms of VC provision. The second component of the VC research project builds on the first, and explore the impact of venture capital on the economy. The fundamental question is whether there is more innovation or high-tech growth now than there was before the advent of the VC industry, and if so, whether such rapid growth truly stems from the burgeoning of VC finance. Critical to this line of research is establishing rigorous ways to measure innovation and high-tech growth as well as the impact of VC financing thereon. This project will take a longer-run view than past studies and will compare the US with a range of other countries, including some that have developed few or no specialized VC firms. In addition to large-scale statistical analysis, the VC projects will include case studies of specific countries, industries, and firms in order to elaborate on the general phenomena uncovered by the econometric work. The PI will also work on completing two book manuscripts related to banking history. The PI will be engaged in a range of educational activities, including teaching courses to graduates and undergraduates and advising students. Students will also assist with the research projects. This award is supported through the NSF ADVANCE Program. The overall mission of the ADVANCE Program is to increase the participation of women in the scientific and engineering workforce through the increased representation and advancement of women in academic science and engineering careers.