Private Equity Can Make Firms More Innovative
Harvard Business Review
JUNE 29, 2015
They found that LBOs not only led to an increase in firms’ patenting, but specifically, an increase in highly cited (a proxy for higher quality) patents. Startups, on the other hand, aren’t debt financed, because they’re too risky and unproven, and have no assets—not so appealing to lenders.
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