Economy and Venture Capital

Philippe TIBI Professeur d'économie, école Polytechnique. Contact : philippe.tibi@gmail.com.

François VÉRON Newfund. Contact : veron@newfund.fr.

Europe is dramatically lagging behind the USA and China in innovation and this weighs on its economic development. Savings and talent are available though. The transformation of savings into equity and cultural factors are the missing links. More specifically are lacking essential ingredients such as the ability to accept ambition, and institutions and governance adapted to the development of entrepreneurship. This article explores the way to a new economy and the role of venture capital.