• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.14 no.3
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• pp.169-183
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• 2019

Should a startup file for a patent subject to imitation in its quest to attract venture capital(VC) investors? Considering the US pharmaceutical biotechnology industry context, this paper attempts to answer this question by investigating the relations between the number of applied patents of startups, patent imitability, and the total amount of money the startups received as their first VC funding round. Data of 157 US-based pharmaceutical biotechnology startups founded in between 1995 and 2005 are analyzed. Empirical results from this study show that the number of applied patents is positively related to the total amount of money received at the time of the first funding round, and patent imitability is negatively related to the total amount of money received as first VC funding round. Nonetheless, the interaction term between the number of applied patents of startups and patent imitability came out as positive, raising interesting questions and implications for innovation-oriented startup entrepreneurs. The current study's empirical findings suggest that, in the pharmaceutical biotechnology sector, VC investors pay attention to the quantity and quality of the patents possessed by startups when they decide the level of funding. In particular, imitability of applied patents may not be a one-sided concept related to negative features such as the weak protectability of an invention. Rather, patent imitability may be a multi-facet element which also contains positive attractiveness of the startup's invention. Furthermore, it seems that the positive side of imitability can be augmented by the number of applied patents.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.6
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• pp.1-16
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• 2021

The purpose of this study is to examine how the Korean government has intervened in the venture capital market so far and empirically investigate whether the government's policies on venture capital have stimulated venture capital's early-stage investment. To this end, this study classified the government's market intervention in the venture capital market by stage by studying the related literature and applying and analyzing the case in Korea. And, this study empirically analyzed the effectiveness of the Korean government's policy to revitalize the early-stage investment of venture capital, which is the most important purpose of government intervention. For empirical analysis, yearly data from 2004 to 2018 provided by the Korea Venture Capital Association and Korea Fund of Funds were analyzed using time series statistical analysis and macrodynamics. As a result of the case study, the Korean government has intervened in the venture capital market through direct investment for 25 years, and has been intervening through indirect investment for the next 18 years. As a result of time-series statistical analysis, the government's fiscal investment to increase the formation of venture capital funds and the increase in the ratio of special-purpose funds that mandate a certain percentage of early-stage investment increased the early-stage investment of venture capital. However, macrodynamics showed a trend in the opposite direction from this time series statistical analysis from 2016. In conclusion, this study interprets the trend in the opposite direction to the time series statistical analysis results as the government's erroneous regulation on the venture capital investment method and the recent lack of effectiveness of direct intervention through the government's indirect investment method. In addition, based on the results of case studies and empirical studies, this study made six policy proposals necessary for indirect government intervention.

• Information Systems Review
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• v.8 no.1
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• pp.63-80
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• 2006

This paper suggests a normative performance measurement model for B2B e-marketplace. The model is for the neutral and systematic sourcing B2B e-marketplace. It is based on BSC that is very powerful and sound tool among all the available performance measurement systems. In addition, we used AHP to make the model more structured and to draw weights of performance measures from experts. We derived main features and factors affecting performance of e-business companies and especially of B2B e-marketplaces based on literature. In order to make the model usefulness, we co-worked with some experts who are engaged in real Korean B2B e-marketplaces. They included venture capitalists, top managers of B2B e-marketplaces, and consultants. By their assistances, we could find important evaluating factors and define the hierarchical structure. After defining the hierarchical structure, the expert group decided weights of performance indicators through the designed questionnaires. The weight for each measure was calculated using geometric mean of the questionnaire response. We made the case studies of two real Korean B2B e-marketplaces to apply the suggested model with some adjustments. The results of the case studies were so satisfactory that the suggested performance measurement model for B2B e-marketplace is useful and applicable to the real world.