Venture capital as a part of regional innovation system is assumed to play an important role for the commercialisation of innovative ideas and the development of high-technology industries in a region. This paper deals with the regional distribution of venture capital and its explanation. Venture-backed firms are mostly located in urban districts. It is expected that the technological and knowledge capacity of a region, the number of attractive firms at the venture capitalist? point of view and the local availability of venture capital are the most important factors to explain the regional differences. Results of a multivariate analysis emphasise that districts participated the BioRegio contest are attractive regions for venture capital inflows. On the contrary to predictions, the local availability of venture capital has no significant impact on the number of venture-backed firms in districts.
Engel, Dirk (2003), Determinanten der regionalen Verteilung Venture Capital-finanzierter Unternehmen, Jahrbuch für Regionalwissenschaft 23, im Erscheinen.