Download lseGC_30may2012_moulton

Moulton’s Unasked For Views on
UK Growth
• The economy will grow c.1.5% pa better if the public
sector is cut back to 40% or less of GDP. (Would be
consequences!)
• The education system should be more focussed on
vocational subjects. Less university especially in nonvocational areas.
• The MPC’s main inflation target needs to be reviewed
for its relevance to growth. (MPC effectiveness
questionable too.)
• Science and technology policy needs to be more
focussed. We could use a CERN – not penny
packets scattered all over the place.
Venture Capital
• Small & weak in Europe – better in USA
• Many big names in European early-stage venture capital in the late
1990s have moved upstream to buyouts (Apax), disappeared
(NetPartners, 3i), been acquired (Quester, Frontiers Capital), or seen
their investment teams move on (Add Partners, Atlas Ventures)
Venture Capital
25
20
Not much backing of
innovation is visible
15
10
5
140.0%
120.0%
Dot com bubble
bursts
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Investments by European Venture
Capital Funds (1999-2011 in €bn)
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
0
Venture Capital as % of PE (1999-2011)