The evolution of Venture Capital and Private Equity Investment Models for the development: Europe, USA, and Israel Markets. ''Start Ups Boom'' starting to boostrap High Tech in the Universities

11 I n t r o d u c t i o n GROWTH AND RECESSION, BULL VS BEAR, HOW VENTURE CAPITAL CAN HELP ECONOMY Innovative entrepreneurship is a cornerstone in the economic growth of nations, in the most successful instances the venture capital took on a leading role. In the Italian context as well, the venture capital system might be considered a groundwork in the competition of the country, one of the keys to create long-term prosperity able to generate wealth and employment. Furthermore, the use of venture capital is one of the main vectors of innovation, it is an overall encouragement to improve applied research and to enhance competition between companies. Future development sceneries are various and depend on the choices that will be taken. In this study, I will investigate the most suitable models of development through an international comparison, in which the possible evolution of the ecosystem of innovation World Wide will be explored. Innovation is a cornerstone of modern economic development and it is the “specific tool of entrepreneurs”. Since the first researches carried out by Schumpeter to the theories of endogenous growth, it has been demonstrated how companies, lands, countries rich in high technological innovation, scientific research, investment in human capital and entrepreneurship, lay the best perspectives to the creation of wealth and employment. To this day, the transformative power of ideas is progressively increasing: the current production paradigm is based on knowledge, a context in which information technology and telecommunication innovation allow us to share and modify cognitive constructs on a scale that would have been unthinkable up to a few years ago. There was a short circuit between two phenomena: the increase of extreme technological evolution and the presence of a particular form of capitalism strongly enhancing innovative entrepreneurship in some areas of the world, called Venture Capital. In the most successful examples, such as Silicon Valley, the combination is made of reciprocal feedbacks between development in techno-scientific field, financial innovations (venture capital system), suitable public policies (support on development of human capital,