In Which Regions Do Governmental, Independent, and Corporate Venture Capital Firms Invest? An Empirical Investigation across 402 German Regions

  • Christian Masiak
  • Christian FischEmail author
  • Joern H. Block
Part of the FGF Studies in Small Business and Entrepreneurship book series (FGFS)


We analyze the distribution of venture capital (VC) investments across German regions and explore the geographical determinants of these investments. So far, little is known about the regional determinants of governmental (GVC), independent (IVC), and corporate (CVC) VC firms and about whether these types of VC firms invest in different regions. Combining a dataset of 402 German districts, our regressions show that regions with a higher supply of human capital and knowledge creators attract a significantly higher number of GVC investments. Moreover, we find a significant difference in economically weaker regions but do not find a metropolitan bias. Hence, GVC firms do not invest more frequently in rural regions per se and do not prevent regional disparities more often than other types of VC firms. The implications of these findings for high-tech firms and regional policy are discussed.


Corporate venture capital Governmental venture capital Independent venture capital Localization Region Venture capital 


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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Christian Masiak
    • 1
  • Christian Fisch
    • 1
    • 2
    Email author
  • Joern H. Block
    • 1
    • 2
  1. 1.Trier UniversityTrierGermany
  2. 2.Department of Applied EconomicsSchool of Economics, Erasmus University RotterdamRotterdamNetherlands

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