Venture Capital and High-Tech Start-Ups in the Italian and German ICT Sector

A Cross-Country Analysis on Actual Trends and Growth Potentials

Master's Thesis , 2010 , 206 Pages , Grade: 1.0

Business economics - Company formation, Business Plans

Now-a-days fundamental changes are taking place in the world as well as in the global economy, where events such as globalization, financial crises, wars, hurricanes and earthquakes – just to new a few of them – are shaping the daily life of million of people. However, to be aware of these events is not possible without another phenomenon that makes information about these extraordinary events available to each of us, i.e. innovation, since without it would not be possible to know about these events.
However, one of the fields where innovation occurs really fast is the field of information and communication technologies (ICT). Indeed, incredible progress in the field of information and communication technologies (ICT) has made things possible today which would have been unthinkable some decades ago, and as ICT continued to spread into all sectors of social and economic life, it became a vital instrument for creating knowledge based society, building and sustaining human development, as well as transforming our world from the industrial society into an informational one.
In this context, by the opening of borders to trade and foreign investment, globalization brings opportunities and pressures for domestic firms in global market economies to innovate and improve their competitive position, and thus contribute to foster the economic growth of a country.
Aware of this, and even though the Lisbon Strategy, set out by the European Council in Lisbon in March 2000, with the aim to make the EU “the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion”, by 2010, did not fully accomplished most of its initial goals, many countries are now starting policies with the aim to develop their strategic innovative sectors in order to compete in the international markets.
Among these countries we can find also Germany and Italy, which aware of their growth po- tentials in some high-tech sectors such as ICT, are seizing the moment by reconsidering new policy actions to cope with the international competitive pressures that the globalization as unleashed in the last few years.
Bearing this in mind, aim of this work is to present the current trends, as well as growth potentials, in the German and Italian ICT sectors by focusing the attention on venture capital and high-tech start-ups.

Inhaltsverzeichnis (Table of Contents)

• Acknowledgments
• List of Figures
• List of Tables
• Nomenclature
• Introduction
• 1 Theory: Concepts & Definitions
  • 1.1 Innovation
    • 1.1.1 Definition of Innovation
    • 1.1.2 What is Innovation About
    • 1.1.3 Innovation and Economic Performance
  • 1.2 Clusters
    • 1.2.1 Definition of Clusters
    • 1.2.2 Innovative Clusters and Typologies
    • 1.2.3 Clusters and Economic Performance
  • 1.3 High-Tech Start-Ups
    • 1.3.1 Definition of High-Tech Start-Ups or New Technology Based Firms (NTBFs)
    • 1.3.2 Steps to an High-Tech Start-Up
  • 1.4 Information and Communication Technologies
    • 1.4.1 Definition of ICT.
    • 1.4.2 Evolution of the ICT sector.
• 2 The Venture Capital Market
  • 2.1 Venture Capital
    • 2.1.1 Historical Overview
    • 2.1.2 Definition of Venture Capital
    • 2.1.3 Sources of Venture Capital: Type and Role of Investors
    • 2.1.4 Benefits of Venture Capital.
    • 2.1.5 Phases of Venture Capital Financing
    • 2.1.6 Venture Capital in Innovative High-Tech Sectors
  • 2.2 The Venture Capital Market in Germany and Italy
  • 2.3 The German Venture Capital Market
    • 2.3.1 University Level Support Factors
    • 2.3.2 The Distribution of Venture Capital Investments in Germany
    • Venture Capital for High-Tech Start-Ups in Germany
  • 2.4 Italian Venture Capital Market
    • 2.4.1 The Distribution of Venture Capital Investments in Italy
    • Venture Capital for High-Tech Start-Ups in Italy
• 3 Determinants of Start-ups
  • 3.1 Factors Fostering the Creation of High-Tech Start-Ups
    • 3.1.1 Local Context Factors
    • 3.1.2 Government Support Factors
    • 3.1.3 Individual Level Related Factors
    • 3.1.4 The German Innovation System
  • 3.2 The German Innovation System
    • 3.2.1 The German Cluster Strategy.
    • 3.2.2 The German System of Coordination of Innovation Policies
    • 3.2.3 The German High-Tech Strategy and the Direct Public Support to High-Tech Start-Ups.
    • 3.2.4 The Regional Distribution of Businesses and High-Tech Start-Ups in Germany
    • 3.2.5 The Regional Characteristics and Locational Determinants of High-Tech Start-Ups in Germany
  • 3.3 The Italian Innovation System
    • 3.3.1 The Italian Cluster Strategy
    • 3.3.2 The Italian System of Coordination of Innovation Policies
    • 3.3.3 The Italian High-Tech Strategy and the Direct Public Support to High-Tech Start-Ups
    • 3.3.4 The Regional Distribution of Businesses and High-Tech Start-Ups in Italy.
    • 3.3.5 The Regional Characteristics and Locational Determinants of High-Tech Start-Ups in Italy
• 4 Two ICT Clusters in Comparison
  • 4.1 The German ICT Sector.
  • 4.1.1 German ICT Industry Segments
  • 4.2 The Italian ICT Sector
  • 4.3 German and Italian ICT Clusters in Comparison
  • 4.4 BICCNET: a German ICT cluster

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The master thesis aims to investigate the venture capital market and its impact on high-tech startups in the Italian and German ICT sectors. By conducting a cross-country analysis of actual trends and growth potentials, the thesis seeks to provide valuable insights into the dynamics of innovation and financing within these two European economies.

• Venture Capital Financing in the ICT Sector
• Cross-Country Comparison of the German and Italian ICT Markets
• Factors Fostering High-Tech Startup Growth
• Role of Innovation Clusters in ICT Development
• Public Policy and its Influence on Startup Ecosystems

Zusammenfassung der Kapitel (Chapter Summaries)

The thesis begins by providing a theoretical framework, outlining the key concepts of innovation, clusters, high-tech startups, and the ICT sector. Chapter 2 then delves into the venture capital market, exploring its history, definition, and role in financing innovative businesses. The chapter also analyzes the venture capital markets in Germany and Italy, highlighting their respective strengths and weaknesses.

Chapter 3 examines the factors that influence the creation and growth of high-tech startups. The chapter analyzes the local context, government support, and individual-level factors that contribute to startup development. It further investigates the innovation systems in Germany and Italy, exploring their strategies, policies, and regional characteristics.

Chapter 4 provides a comparative analysis of the ICT clusters in Germany and Italy. The chapter examines the specific industry segments, growth potentials, and influential factors that drive innovation within these clusters. Finally, the thesis concludes with a detailed analysis of BICCNET, a prominent ICT cluster in Germany.

Schlüsselwörter (Keywords)

The master thesis revolves around the keywords: venture capital, high-tech startups, ICT sector, innovation, clusters, Germany, Italy, cross-country analysis, growth potentials, public policy, regional development, and business ecosystems.

• College: Schmalkalden University of Applied Sciences
• Grade: 1.0
• Author: Fabrizio Milio (Author)
• Publication Year: 2010
• Pages: 206
• Catalog Number: V174732
• ISBN (eBook): 9783640953400
• ISBN (Book): 9783640952946
• Language: English
• Tags: Venture Capital, High-Tech Start-ups, ICT, Torino Wireless, BICCnet, Italy, Germany