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WSJSome – but not too much – government involvement is good for venture capital.

That’s a conclusion of a Globalization of Alternative Investments report issued Tuesday sponsored by the World Economic Forum. The research project, led by Harvard Business School Professor Josh Lerner, examined more than 28,800 enterprises based in 126 countries that received venture capital from 2000 through 2008. They represented a wide range of industries, but many were high-technology companies. The researchers divided the enterprises into three groups: those with only private venture capital, those with less than 50% of their venture capital from government-supported venture groups and those with 50% or more of their venture money from government-supported groups.

The main finding is “the striking result that the strongest performance is associated with moderate levels” of government-supported venture capital. These enterprises generally did better than those with extensive government venture capital and those with none. Performance measures were based on whether the enterprise went public or was acquired and the value of the enterprise at that liquidity event. Researchers also scored enterprises with moderate levels of government support highest for innovation based on patents filed.

Original Article: Study Finds Some Government Help Good For Venture Capital - Venture Capital Dispatch - WSJ