Venture capital, the public sector and the high-technology industry

Avi Messica, Tamir Agmon

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


We studied the optimal funding of the public sector for the Hi-Tech industry in the presence of short-term, cyclical, venture capital (VC) funding by constructing a decision-making model that results in the optimal governmental support and a model that accounts for the dynamics of the VC industry. We found that the VC industry is highly correlated with the NASDAQ stock index and that the optimal public policy for funding the Hi-Tech sector should be anti-cyclical, dynamic, and conditioned on the VC investments. The models and their validation are discussed as well as the practical implications for policy and decision makers.

Original languageEnglish
Pages (from-to)105-122
Number of pages18
JournalInternational Journal of Innovation and Technology Management
Issue number1
StatePublished - 1 Jan 2008
Externally publishedYes


  • Hi-Tech
  • Public sector
  • government
  • high technology
  • investment
  • venture capital


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