Venture Capital and Business Angels and the Creation of Innovative Firms in Poland

Abstract

The article discusses innovations as a strategic instrument that makes firms and the economy more competitive and drives GDP growth. It shows that their creation is determined by the micro- and macroeconomic factors, including the technical, institutional, legislative and capital infrastructure, etc., that comprise the business environment. Special attention is given to private equity and venture capital funds and business angels that are the most interesting types of investors funding risky innovation projects. As well as making funds available, they offer their knowledge, know-how, business contacts and active involvement in the projects they decide to fund. Their nature makes them a perfect vehicle, capable of both stimulating innovation activity and earning relatively high rates of return on the investors’ capital. The article also points out that conditions fostering further development of the described types of entrepreneurship and innovation financing and a dynamic environment generating innovative capacity should be created. © 2011, Versita. All rights reserved.