VENTURE CAPITAL AND ITS IMPACT ON INNOVATIVE AND ECONOMIC GROWTH OF COUNTRIES
Keywords:venture capital, innovative growth, economic growth, entrepreneurship
The article considers the essence of economic and innovative development as well as innovative entrepreneurship. An analysis of venture capital volumes and GDP indicators for selected countries is conducted. The main relationships and factors influencing venture capital processes, such as risk and information asymmetry, are highlighted. The role of venture capital in the innovative and economic development of countries, the practical content of some of the above theoretical provisions are studied. The gap in venture capital issues between countries is also shown. Thus, the gap between the level of development of venture business in the United States and European countries, as well as Japan and Israel, remains significant. The question remains as to why the United States is a leader in the venture capital business. One of the reasons is a developed capital market with the appropriate infrastructure and its main participants. Another reason is less developed (and / or different) social security systems, which forces people to look for other ways to ensure old age through the mechanisms of the private pension system.
Further directions of research on building a model of possible options for innovative development based on the revival of venture capital and the development of innovative entrepreneurship for developing countries are identified. The article notes the stimulating effect of venture capital in the country's innovation and economic growth, as well as the unanimity of conditions and factors influencing the process of venture investment. This also requires further study, as the question of the gap between economic growth, innovation and venture capital for individual countries remains open. Additionally, it is not substanstially analysed, whether the present central bank policy has influenced investors decicions and when this might change.