Josh Lerner of Harvard University and NBER reviews “Patenting Life: Tales from the Front Lines of Intellectual Property and the New Biology” by Jorge Goldstein. The Econlit abstract of this book begins: “Explores the legal, commercial, and social debates surrounding the patenting of biological materials, whether living single cells, whole plants or animals, or the inert molecules that they produce or from which they are made.”

This paper studies how investing in venture capital (VC) affects the entrepreneurial outcomes of individual limited partners (LPs). Using comprehensive administrative data on entrepreneurial activities and VC fundraising and investments in China, we find that after investing in a successfully launched VC fund, individual LPs create significantly more ventures than do LPs in funds that failed to launch. These new ventures tend to be high-tech firms with better employment outcomes and more patent activity. Our results suggest that venture investments are a channel through which individual LPs learn.

Do impact investors seek impact, or merely “impact wash”? We provide systematic evidence on the nonfinancial determinants of impact investing. Impact investors focus on firms aligned with the priorities of the federal government and disproportionately invest in economically disadvantaged regions. While we find high levels of coinvestment between impact and traditional investors, we also show that impact investors influence the strategies of their traditional coinvestors, are more likely to fund firms in nascent industries, and invest countercyclically. Finally, we characterize investment heterogeneity based on a novel classification of impact investment theses, with a focus on climate, environment, and jobs and equity.