Can government intervention make firms more investment-ready? A randomized experiment in the Western Balkans

Ernest Dautović, Ana Paula Cusolito and David McKenzie

No 2391, Working Paper Series from European Central Bank

Abstract: Innovative firms with good ideas may still struggle to fine-tune them to the stage where they can attract outside funding. We conduct a five-country randomized experiment that tests the impact of an investment readiness program. Firms then pitched their ideas to independent judges. The program resulted in a 0.3 standard deviation increase in the investment readiness score. Two years later, the average impacts on firm investment outcomes are positive, but small in magnitude, and not statistically significant. Larger and statistically significant impacts on receiving outside funding occur for smaller firms, and for firms with lower likelihoods of otherwise being funded. JEL Classification: L26, M2, M13, O1

Keywords: entrepreneurship; equity investment; innovation; randomized controlled trial; start-ups (search for similar items in EconPapers)
Date: 2020-04
New Economics Papers: this item is included in nep-ent, nep-exp and nep-sbm
Note: 2777855
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Can Government Intervention Make Firms More Investment Ready? A Randomized Experiment in the Western Balkans (2021)
Working Paper: Can Government Intervention Make Firms More Investment-Ready? A Randomized Experiment in the Western Balkans (2018)
Working Paper: Can government intervention make firms more investment-ready ? a randomized experiment in the Western Balkans (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20202391

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