Lessons from government venture capital funds to enable transition to a low-carbon economy: the U.K. case

Owen, Robyn ORCID logoORCID: https://orcid.org/0000-0003-4241-3367 (2021) Lessons from government venture capital funds to enable transition to a low-carbon economy: the U.K. case. IEEE Transactions on Engineering Management . ISSN 0018-9391 [Article] (Published online first) (doi:10.1109/TEM.2021.3094992)

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Early-stage small- and medium-sized enterprise (SME) cleantech innovation, if properly funded, can initiate disruptive low-carbon reduction impacts across a wide range of sectors to meet climate change net zero requirements. The role of venture capital (VC) finance in successfully commercializing new technologies remains contentious, particularly where socio-environmental returns may well be greater than the economic returns that are the exclusive captures of the investors. This article addresses a pertinent question facing government policymakers: how best to support VC to achieve climate change objectives? It focuses on the supply-side policy, design, and implementation of four U.K. government-backed venture capital funds (GVCFs) at various stages of their development. A systems framework and an absorptive capacity learning lens inform a grounded qualitative methodology, spanning a decade of over 100 in-depth interviews with policymakers, fund managers (private and public), alternative finance providers, and low-carbon finance market experts. A model is developed to assess GVCF learning evolution to address the nascent early-stage precommercialization cleantech venture investment market. This avoids the pitfalls of quantitatively analyzing the investment outcomes of these long-horizon investment funds prior to their completion by providing qualitative process findings that inform policy, practice, and theory in the evolving early-stage low-carbon GVCFs

Item Type: Article
Keywords (uncontrolled): Investment, Technological innovation, Government, Venture capital, Research and development, Europe, Software
Research Areas: A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
Item ID: 33708
Notes on copyright: © 2021 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
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Depositing User: Pamela Macaulay
Date Deposited: 12 Aug 2021 10:20
Last Modified: 23 Jun 2022 04:43
URI: https://eprints.mdx.ac.uk/id/eprint/33708

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