Høyvekstbedrifter og regionale finansieringssystemer
(2012) In Meddelande från Institutionen för kulturgeografi och ekonomisk geografi. Avhandlingar- Abstract
- The purpose of the thesis is to increase understanding of the impact of financial institutions on regional growth. It helps to develop established concepts and perceptions on the impact of financial institutions on economic development in less well-functioning regions.
Agglomeration theory is based on a general assumption of a reduced likelihood of economic cooperation through increased geographical distance. This study analyzes whether high-growth firms in less central regions have poorer access to risk capital. Three concepts are central to the thesis: financing, high-growth firms and centrality. Financing, because capital is a necessary prerequisite for entrepreneurship and an important part of the innovation system,... (More) - The purpose of the thesis is to increase understanding of the impact of financial institutions on regional growth. It helps to develop established concepts and perceptions on the impact of financial institutions on economic development in less well-functioning regions.
Agglomeration theory is based on a general assumption of a reduced likelihood of economic cooperation through increased geographical distance. This study analyzes whether high-growth firms in less central regions have poorer access to risk capital. Three concepts are central to the thesis: financing, high-growth firms and centrality. Financing, because capital is a necessary prerequisite for entrepreneurship and an important part of the innovation system, high-growth firms because they are important for employment and the country's competitiveness, and centrality because the financial system in less central areas is generally not as well developed as in larger agglomerations.
Risk capital is ordinarily defined as venture capital. In this study, risk capital is also defined as high-risk loans without security, granted to innovative high-growth firms. In this manner one includes the entire supply-side when one considers the geographical capital gap. The study looks at funding issues in general for high-growth firms and how the financial system in less well-functioning regions such as Innlandet works. The findings can be summarized as follows: Although the capital markets do not work perfectly, high-growth firms encounter few financing obstacles, regardless of location. Furthermore, banks are an important source of risk capital for high-growth firms in Innlandet, particularly the savings banks. The study confirms that geographical proximity is important for developing social proximity and trust between bank and business, thereby reducing information asymmetry. The banks' appetite for risk must be considered in light of the savings banks' purpose and history. Their appetite for risk is explained by the regional added value benefits. These benefits, in addition to the corporate financial returns, mean that as a whole it is rational for the banks to provide such financing. The main conclusion is that the reason for few high-growth firms in less efficient regions such as Innlandet is probably to only a minor degree due to lack of risk capital. One important explanation is local banks. Regional development would probably be even worse without these institutions. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/2521271
- author
- Dobloug, Tore Anstein LU
- supervisor
- opponent
-
- Professor Vatne, Eirik, Norges Handelshøyskole
- organization
- alternative title
- High Growth Firms and Regional Financial Systems
- publishing date
- 2012
- type
- Thesis
- publication status
- published
- subject
- keywords
- Regional Financial Systems, Gazelles, High Growth Firms, Risk Capital, Bank Finance, Financing, Regional Development, Centrality
- in
- Meddelande från Institutionen för kulturgeografi och ekonomisk geografi. Avhandlingar
- issue
- 2
- pages
- 175 pages
- publisher
- Department of Social and Economic Geography, Lund University
- defense location
- Sal 128 (Flygeln), Geocentrum I, Sölvegatan 10, Lund
- defense date
- 2012-06-01 10:00:00
- ISBN
- 978-91-7473-325-9
- language
- Norwegian
- LU publication?
- yes
- id
- eaf08484-f111-4793-b7d7-6c11011c7a91 (old id 2521271)
- date added to LUP
- 2016-04-04 11:19:13
- date last changed
- 2019-08-16 15:31:15
@phdthesis{eaf08484-f111-4793-b7d7-6c11011c7a91,
abstract = {{The purpose of the thesis is to increase understanding of the impact of financial institutions on regional growth. It helps to develop established concepts and perceptions on the impact of financial institutions on economic development in less well-functioning regions.<br/><br>
<br/><br>
Agglomeration theory is based on a general assumption of a reduced likelihood of economic cooperation through increased geographical distance. This study analyzes whether high-growth firms in less central regions have poorer access to risk capital. Three concepts are central to the thesis: financing, high-growth firms and centrality. Financing, because capital is a necessary prerequisite for entrepreneurship and an important part of the innovation system, high-growth firms because they are important for employment and the country's competitiveness, and centrality because the financial system in less central areas is generally not as well developed as in larger agglomerations.<br/><br>
<br/><br>
Risk capital is ordinarily defined as venture capital. In this study, risk capital is also defined as high-risk loans without security, granted to innovative high-growth firms. In this manner one includes the entire supply-side when one considers the geographical capital gap. The study looks at funding issues in general for high-growth firms and how the financial system in less well-functioning regions such as Innlandet works. The findings can be summarized as follows: Although the capital markets do not work perfectly, high-growth firms encounter few financing obstacles, regardless of location. Furthermore, banks are an important source of risk capital for high-growth firms in Innlandet, particularly the savings banks. The study confirms that geographical proximity is important for developing social proximity and trust between bank and business, thereby reducing information asymmetry. The banks' appetite for risk must be considered in light of the savings banks' purpose and history. Their appetite for risk is explained by the regional added value benefits. These benefits, in addition to the corporate financial returns, mean that as a whole it is rational for the banks to provide such financing. The main conclusion is that the reason for few high-growth firms in less efficient regions such as Innlandet is probably to only a minor degree due to lack of risk capital. One important explanation is local banks. Regional development would probably be even worse without these institutions.}},
author = {{Dobloug, Tore Anstein}},
isbn = {{978-91-7473-325-9}},
keywords = {{Regional Financial Systems; Gazelles; High Growth Firms; Risk Capital; Bank Finance; Financing; Regional Development; Centrality}},
language = {{nor}},
number = {{2}},
publisher = {{Department of Social and Economic Geography, Lund University}},
school = {{Lund University}},
series = {{Meddelande från Institutionen för kulturgeografi och ekonomisk geografi. Avhandlingar}},
title = {{Høyvekstbedrifter og regionale finansieringssystemer}},
url = {{https://lup.lub.lu.se/search/files/5746015/2534812.pdf}},
year = {{2012}},
}