Assessment of venture capital investments impact on the countries labour productivity

Abstract

The study expands and complements the theoretical and practical aspect of relevant scientific research on the impact of venture capital investments on the countries labour productivity. Researchers have found that innovation leads to the growth of countries labour productivity because innovation creates new products and technologies. It has been established that innovation is closely related to venture capital investments. With the help of innovations that require venture capital investments, a larger production volume is produced, which is associated with an increase in labour productivity. Ensuring financing of innovative companies has a positive external impact on the economy and, at the same time, on labour productivity, so it makes sense for governments to take measures to increase the volume of venture capital investments. Considering to the gap of research on the assessment of the impact of venture capital investments on labour productivity at the macroeconomic level, this article assesses the impact of venture capital investments on labour productivity in the EU-25 countries. Keywords: venture capital investments, EU countries, innovation, labour productivity.