public policy for entrepreneurship and venture capital n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Public Policy for Entrepreneurship and Venture Capital PowerPoint Presentation
Download Presentation
Public Policy for Entrepreneurship and Venture Capital

Loading in 2 Seconds...

play fullscreen
1 / 12

Public Policy for Entrepreneurship and Venture Capital - PowerPoint PPT Presentation


  • 121 Views
  • Uploaded on

March 6, 2012. Turning Research into Action: Symposium of Ontario Research Chairs in Public Policy. Public Policy for Entrepreneurship and Venture Capital. Panelists: Bogdan Buduru Senior Economist, Industry Canada Douglas Cumming Professor and Ontario Research Chair

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Public Policy for Entrepreneurship and Venture Capital' - hansel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
public policy for entrepreneurship and venture capital

March 6, 2012

Turning Research into Action:

Symposium of Ontario Research Chairs in Public Policy

Public Policy for Entrepreneurship and Venture Capital

Panelists:

BogdanBuduru

Senior Economist, Industry Canada

Douglas Cumming

Professor and Ontario Research Chair

Schulich School of Business, York University

Maxx-PhillippeHollott

Manager, Access to Capital Secretariat

Ontario Ministry of Economic Development and Innovation

Jim Pullen

Partner, Concert Partners

ontario versus peers gdp per capita

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

GDP / Capita

Venture Capital / Capita

Ontario versus Peers: GDP Per Capita
  • US $47,482
  • California $51,914
  • New York $57,423
  • Massachusetts $58,108

Canada $47,605

Quebec $40,394

Ontario $46,303

Alberta $70,826

ontario versus peers venture capital gdp

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

GDP / Capita

Venture Capital / Capita

Ontario versus Peers: Venture Capital / GDP

Investments for Funds Focused in Seed, Early Stage and Expansion Stages in Canada by Province, 2004 – 2008

This figure summarizes investments per GDP for funds focused at the seed, early and expansion stage investments relative

to GDP by all types of investors for all industries in select US states and Canadian provinces, January 2004 – December 2008.

Data source: Thompson Financial SDC VentureXpert.

vc gdp ontario versus massachusetts

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

GDP / Capita

Venture Capital / Capita

VC / GDP: Ontario versus Massachusetts
  • 12.8 times the amount of new capital commitments to newly established VC funds in Massachusetts on a per GDP basis than Ontario.
  • Required an additional $37.5 billion of new capital committed for Ontario to be at the level of VC per GDP that is comparable to Massachusetts-based VC funds.
r d gdp access to capital essential

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

R&D / GDP – Access to Capital Essential

Gazelles – Access to Capital Essential

R&D / GDP – Access to Capital Essential

Norway

Luxembourg

Netherlands

USA

Australia

Canada

Slovak

Republic

Ireland

Belgium

UK

France

Austria

Poland

Portugal

Spain

Iceland

Czech Republic

Turkey

Hungary

Italy

Correlation (Access to Venture Capital, R&D/Capita) = 0.39

Correlation (Access to Bank Capital, R&D/Capita) = 0.26

canada is behind in share of gazelles access of capital essential

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

R&D / GDP – Access to Capital Essential

Gazelles – Access to Capital Essential

Canada is Behind in Share of Gazelles - Access of Capital Essential

Canada ranks 24th in the World in Access to Capital

Behind peers: Australia, New Zealand, US, UK, Ireland, etc

types of policy responses

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

Legal / Regulatory / Tax

Government Venture Capital Funds

Innovation Centers

Types of Policy Responses
  • Legal / Regulatory / Tax
  • Government Venture Capital Funds
  • Innovation Centers
world bank doing business reports country rankings

Legal / Regulatory / Tax

Government Venture Capital Funds

Innovation Centers

  • Ontario and Canada are Behind
  • Sources of Canadian Inefficiency
  • Policy Remedies
  • Topics for Discussion
World Bank Doing Business Reports: Country Rankings
2 government venture capital funds

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

Legal / Regulatory / Tax

Government Venture Capital Funds

Innovation Centers

2. Government Venture Capital Funds

LSVCCs became dominant

with massive tax breaks, not

performance (next slide)

Sources: Cumming and MacIntosh, 2006, 2007;

Cumming and Johan, 2009.

2 government venture capital funds1

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

Legal / Regulatory / Tax

Government Venture Capital Funds

Innovation Centers

2. Government Venture Capital Funds

LSVCC tax incentives in Ontario phased out in 2011.

This figure helped push us in the right direction!

Sources: Cumming and MacIntosh, 2006, 2007;

Cumming and Johan, 2009.

3 innovation centers

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

Legal / Regulatory / Tax

Government Venture Capital Funds

Innovation Centers

3. Innovation Centers
  • Centers like the Investment Network of the Innovation Synergy Center, Markam (now “ventureLab”), facilitate strong entrepreneurial outcomes
    • $6,545,000 in financing, while the program costs were totaled at $662,360, thereby giving a ratio of financing raised per dollar of cost at only $0.10.
  • Empirical evidence needs to control for endogeneity and selection effects.
    • Cumming and Fischer (2012 Research Policy)
    • Causal relation between mentor hours and sales and angel capital
    • Correlation, not causation, between mentor hours and patents and alliances
sampling of topics for discussion

Ontario and Canada are Behind

Sources of Canadian Inefficiency

Policy Remedies

Topics for Discussion

Sampling of Topics for Discussion
  • Which polices best stimulate gazelle entrepreneurs and more R&D in Canada so that we can catch up to competing jurisdictions?
  • How successful should will the Ontario Venture Capital Fund (OVCF) be, as well as companion programs such as the OETF and IAF?
  • Should Ontario provide tax breaks to large companies to invest in venture capital funds?
    • Should Ontario provide tax breaks to top tier venture capital funds?
    • Lower tax rates overall for everyone? Or capital gains tax rates?
  • How to best design programs like the Investment Network at the Innovation Synergy Center, Markham (now “ventureLab”)? How much funding to allocate to early stage programs relative to others?