Private equity and innovation : assessing the impact of private equity investments on Scandinavian portfolio companies

Sæby, Patrick Telle; Sætre, Morten
Master thesis
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http://hdl.handle.net/11250/2407436
Date
2016
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Abstract
We investigate the impact private equity disbursements have on innovation in Scandinavia,

using an empirical methodology developed by Kortum and Lerner (2000). Our sample

consists of PE disbursements, R&D expenditures and granted patents in Norway, Sweden

and Denmark from 1997-2009. Private equity accounted for 12% of patents granted in

Scandinavia, while the ratio of private equity to R&D was above 20%. Our findings are

contradictory to previous empirical studies and imply that private equity was less potent

than R&D in creating innovation from 1997-2009.