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Events

Creative Destruction and Venture Capital Investment

 

When: 2:00 pm, June 19, 2019

Where: Room A-3C, Building No. 25, Weijin Road Campus

Speaker: Wang Wei, Associate Professor fromCleveland State University

About the Lecture: We examine the real effect of venture capital (VC) investment on public incumbents in the same Fama-French 49 industry. We construct four measures of creative destruction: i) firm permutation within industry rankings, ii) growth variability between industry winners and losers, iii) firm exit, and iv) turnover of industry leading firms. VC investment is positively associated with future change in all four measures, both in the home industry and in neighboring industries. R&D investment is negatively associated with all four creative destruction measures, consistent with it proxying for investment by entrenched incumbents seeking to improve existing technologies rather than disruptive innovation.

All students and staff of Tianjin University are welcome.