Venture Capitalism, New Markets and Innovation- Led Economic Growth

1 Cristiano Antonelli acknowledges the funding of the European Union Directorate for Research, within the context of the Integrated Project EURODITE (Regional Trajectories to the Knowledge Economy: A Dynamic Model) Contract nr° 006187 (CIT3), in progress at the Fondazione Rosselli. Morris Teubal acknowledges the funding and support of ICER (International Center for Economic Research) where he was a Fellow in the period September-November 2005. The authors are grateful to Gil Avnimelech whose joint work with Morris Teubal has significantly shaped and enhanced this chapter. Preliminary versions have been presented at the Fifth Triple Helix Conference “The capitalization of knowledge: Cognitive, economic, social and cultural aspects” organized in Torino by the Fondazione Rosselli, May 2005, the workshop “The Emergence of Markets and Their Architecture”, jointly organized by CRIC (University of Manchester) and CEPN-IIDE (University Paris 13) in Paris, May 2006 and the workshop “Instituting the Market Process: Innovation, Market Architectures and Market Dynamics” held at the CRIC of the University of Manchester, December 2006. A special acknowledgement is due to L. Bakman for illuminating comments especially in relation to Section 3.