Agglomeration and embeddedness of Belgian biotech firms : the role of venture capital
Faculty of Applied Economics
53rd ERSA congress : regional integration : Europe, the Mediterranean and the world economy, 27-31 August 2013, Palermo, Italy
University of Antwerp
The existing literature on cluster embeddedness largely neglects the impact of finance on the development of firms network linkages. This is striking in so far that particularly venture capital is often referred to as smart money providing firms not only with funds but also with network contacts. In order to answer to what extent venture capital impacts portfolio firms territorial and network embeddedness and whether the geographical location of the venture capitalist has an effect on start-ups local anchoring, we apply social network analysis [SNA] to data on venture capital flows. The empirical results retrieved deliver first evidences suggesting that investors exert an influence on the structural network position of their target firms.