Publications

Preface—Venture Capital and Technology: What's Next?
Anna Copeland Wheatley
This issue of the Economic Review features three articles that examine the impact of venture capital on technological innovation, economic growth, corporate development, and other issues.

Corporations and the Financing of Innovation: The Corporate Venturing Experience
Paul A. Gompers
This article explores the history, structure, and performance of corporate venture programs in the United States over the past forty years.

On the Fundamental Role of Venture Capital
Thomas Hellmann and Manju Puri
In terms of total dollars invested, 2001 ranks as the venture capital industry's third-best year, and the developments of 2001 are simply an anomaly in an otherwise exceptional growth curve. The article examines the significance of this difference between short- and long-term performance.

Boom and Bust in the Venture Capital Industry and the Impact on Innovation
Josh Lerner
After more than two decades of dramatic growth in the venture capital industry, the recent sharp decline in venture capital activity has raised concerns about the implications for technological innovation. This article argues that venture capital may have a powerful impact on innovation, but this effect is far from uniform.

Reserve Requirements: A Modern Perspective
Scott E. Hein and Jonathan D. Stewart
The discussion in many money and banking textbooks would suggest that the Federal Reserve requires depository institutions to hold a minimum level of non-interest-earning reserves because (1) reserve requirements are a monetary policy tool that allows the Fed to expand the money supply and lower interest rates, and (2) reserve requirements improve the safety and soundness of depository institutions. This article argues that this "conventional wisdom" view is too narrow.