SusTec article published in the Journal of Business Venturing

The article shows that venture capital investments in the global solar photovoltaic (PV) industry are driven by foreign policy incentives, and that the positive impact of foreign policies on domestic VC deals is greater if there are favorable domestic policy incentives in place and if foreign policy incentives are similar to those used domestically. For policy makers, these findings suggest that domestic demand-side incentives may also benefit foreign firms, but that countries cannot simply free-ride on foreign institutions, since domestic policy incentives may be required to reap the benefits of foreign policy incentives. For entrepreneurs, these findings imply that locating their business in countries with favorable policy conditions is important not only because it allows them to directly benefit from the corresponding incentives, but also because domestic policy incentives help start-ups to benefit from favorable policy conditions abroad--an effect we label "the double impact of institutions. The article can be downloaded Download here.