Why life insurers are key to economic dynamism in Germany / Reint E. Gropp, William McShane
Loading...
Download2.45 MB
Why life insurers are key to economic dynamism in Germany
Discovery
1743479433
URN
urn:nbn:de:gbv:3:2-130100
DOI
ISBN
ISSN
Koordinaten
Skalierung
dc.contributor.contributor
Other contributor
Publication history
Halle (Saale) : Halle Institute for Economic Research (IWH), 01.12.2020
Content
1 Online-Ressource (III, 11 Seiten, 2,45 MB) : Diagramme
Edition
Language
eng
Comment
Abstract
Young entrepreneurial firms are of critical importance for innovation. But to bring their new ideas to the market, these startups depend on investors who understand and are willing to accept the risk associated with a new firm. Perhaps the key reason as to why the US has succeeded in producing nearly all the most successful new firms of the 21st century is the economy’s ability to supply vast sums of capital to promising startups. The volume of venture capital (VC) invested in the US is more than 60 times that of Germany (OECD, 2017). In this policy note, we argue that differences in the regulatory and structural context of institutional investors, in particular life insurance companies, is a central driver of the relative lack of VC - and thereby successful startups - in Germany.
Series
IWH online ; 2020, 6 (December 2020) ppn:837399262