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Yinan Qiu on Cross-border Venture Capital, Knowledge Spillover, and Innovation Collaborations: Evidence From US VC Investments

Yinan Qiu
March 26, 2024
12:20 pm - 1:15 pm
Student Research Workshop

More from this series
Room 108

This work in progress investigates the role of cross-border venture capital (VC) investments in facilitating international knowledge spillovers. Analysis focuses on US VC investments from 1995 to 2023, using patent citations as a proxy for measuring knowledge spillover. The staggered DID analysis shows that, post investments, foreign patents invested by US VCs experience an average increase of 0.26 in US citations annually, compared to the control group. Notably, this effect persists for 6 years following the investment. Further, I implement an IV design and estimate that the VC investments cause an 0.44 (61.1% of  the pre-investment mean) increase in the number of annual US citations per patent. Additionally, I find that international knowledge spillover through VC is concentrated near investor locations, consistent with existing literature on the localization of knowledge spillovers.