NBER

Olav Sorenson

Yale School of Management

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Yale University

NBER Working Papers and Publications

August 2018The Persistent Effect of Initial Success: Evidence from Venture Capital
with Ramana Nanda, Sampsa Samila: w24887
We use investment-level data to study performance persistence in venture capital (VC). Consistent with prior studies, we find that each additional IPO among a VC firm's first ten investments predicts as much as an 8% higher IPO rate on its subsequent investments, though this effect erodes with time. In exploring its sources, we document several additional facts: successful outcomes stem in large part from investing in the right places at the right times; VC firms do not persist in their ability to choose the right places and times to invest; but early success does lead to investing in later rounds and in larger syndicates. This pattern of results seems most consistent with the idea that initial success improves access to deal flow. That preferential access raises the quality of subsequent ...

Published:

May 2017Innovation Policy in a Networked World
in Innovation Policy and the Economy, Volume 18, Josh Lerner and Scott Stern, editors
Social relationships channel information, influence, and access to scarce resources. As a consequence, social networks—the patterns of these relationships across the members of a community—influence who comes up with important innovations, whether and how rapidly those innovations get adopted, and who has the ability to commercialize them. They therefore also affect the overall rate at which innovation occurs in the economy. This paper provides an introduction to and review of the research on social networks most relevant to innovation, with a particular focus on the earliest stages of the innovation process. It then discusses the likely consequences of a variety of policy interventions that could either reduce the importance of social relationships to innovation or alter the patterns of r...
Innovation Policy in a Networked World
w23431
Social relationships channel information, influence, and access to scarce resources. As a consequence, social networks – the patterns of these relationships across the members of a community – influence who comes up with important innovations, whether and how rapidly those innovations get adopted, and who has the ability to commercialize them. They therefore also affect the overall rate at which innovation occurs in the economy. This essay provides an introduction to and review of the research on social networks most relevant to innovation, with a particular focus on the earliest stages of the innovation process. It then discusses the likely consequences of a variety of policy interventions that could either reduce the importance of social relationships to innovation or alter the patterns ...
January 2010The Migration of Technical Workers
with Michael S. Dahl
in Cities and Entrepreneurship, Edward L. Glaeser, Stuart S. Rosenthal and William C. Strange, organizers

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