Showing results 1 - 3 of 3
| Josh Lerner | Ramana Nanda
May 14, 2020, Paper, "Governments worldwide have taken steps to bolster their venture capital sectors in response to the COVID-19 crisis. This column questions whether venture-backed innovation is particularly vulnerable to economic downturns, and finds that early-stage venture investment falls sharply during recessions. The quantity and quality of venture-backed innovation declines particularly for early-stage firms, underscoring the concerns…
| Josh Lerner | Ramana Nanda
2020, Paper, "Although late-stage venture capital (VC) activity did not change dramatically in the first two months after the COVID-19 pandemic reached the U.S., early-stage VC activity declined by 38%. The particular sensitivity of early-stage VC investment to market conditions-which we show to be common across recessions spanning four decades from 1976 to 2017-raises questions about the pro-cyclicality of VC and its implications for innovation…
| Ramana Nanda | Tom Nicholas
Did Bank Distress Stifle Innovation During the Great Depression? Ramana Nanda, Tom Nicholas, October 2013, Paper. "We find a negative relationship between bank distress and the level, quality, and trajectory of firm-level innovation during the Great Depression, particularly for R&D firms operating in capital intensive industries. However, we also show that because a sufficient number of R&D intensive firms were located in counties with…