Purpose

This paper aims to examine the relationship between terrorism and innovation and the moderating role of venture capital.

Design/methodology/approach

The paper has used panel data from 140 countries covering the period of 2007–2016 and has analysed the data by using generalised method of moments instrumental variables (GMM-IV) estimation method to control for unobserved endogeneity among the variables.

Findings

The authors find that terrorism has negative impact on innovation. Interesting results emerge when we separated the developed countries from others. The results show that the impact of terrorism on innovation is lower in developed countries. This is due to the fact that strong institutional settings in developed countries make the investors confident by providing support and incentives. Better institutional settings in developed countries also help to reduce uncertainty, which maximise innovation and minimise terrorism risk. The authors also find that venture capital positively moderates the terrorism and innovation relationship. This implies that by providing sufficient fund for technological development, venture capital may help to reduce terrorism risk.

Practical implications

These results may guide the policy makers to find a business solution instead of lengthy political solution to mitigate terrorism risk in emerging countries. Overall, this paper will provide the basis for improving the counter-terrorism approaches from an innovation perspective.

Originality/value

The paper has used terrorism and venture capital data from 140 countries and finds interesting results that may help the policy makers to reduce the effect and intensity of terrorism in emerging countries.

中文翻译：

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恐怖主义、创新和风险投资

目的

本文旨在研究恐怖主义与创新之间的关系以及风险投资的调节作用。

设计/方法/方法

本文使用了2007-2016年期间140个国家的面板数据，并采用广义矩工具变量法（GMM-IV）估计方法对数据进行了分析，以控制变量之间未观察到的内生性。

发现

作者发现恐怖主义对创新有负面影响。当我们将发达国家与其他国家分开时，就会出现有趣的结果。结果表明，恐怖主义对创新的影响在发达国家较低。这是因为发达国家强大的制度环境通过提供支持和激励措施使投资者充满信心。发达国家更好的制度环境也有助于减少不确定性，从而最大限度地提高创新并最大限度地降低恐怖主义风险。作者还发现，风险投资正向调节恐怖主义与创新的关系。这意味着通过为技术发展提供充足的资金，风险投资可能有助于降低恐怖主义风险。

实际影响

这些结果可能会指导政策制定者寻找商业解决方案，而不是冗长的政治解决方案来减轻新兴国家的恐怖主义风险。总体而言，本文将从创新的角度为改进反恐方法提供基础。

原创性/价值

该论文使用了来自 140 个国家的恐怖主义和风险投资数据，发现了可能有助于决策者降低新兴国家恐怖主义影响和强度的有趣结果。