Impact case study database

4.1. Pathways to impact

Mason’s long-term impact strategy has brought international recognition through significant contributions to our understanding of entrepreneurship and the conditions that support the emergence of HGFs. This has directly informed supranational, national and regional policies and practices, as outlined below:

4.2. Informing the supranational policy environment

The underpinning research has informed the policy-influencing communities of the OECD and EU by presenting additional understandings on ways that targeted support mechanisms can promote entrepreneurial activity. For instance, in November 2013, Mason was keynote speaker at an OECD workshop in The Hague, where he presented the highly-influential invited paper [3.1], which has subsequently been cited in 902 related articles according to Google Scholar . In March 2014, Mason presented an invited contribution on ‘High-Growth Firm Policies’ at the European Commission Conference on Innovation Policies. His research is cited extensively throughout the final report [5A], which stresses the importance of equity finance for policymakers, particularly by private venture capital and angel investors.

4.3. Informing policy within the UK

Building upon this high-level influence, “Mason’s advice and expertise has been invaluable in the implementation of several major policies by the Department of Business Energy and Industry Strategy (BEIS)” (confirmed by statement **[5B]**). In 2017, the UK Government embarked on a Patient Capital Review, which investigated the availability of long-term finance for innovative firms. The review made use of Mason’s publications [3.2, 3.5], with the former paper deemed important enough to be referenced in the official consultation document published in August 2017 [5C]. Statement [5B] confirms the use of the underpinning research and adds that: “ these papers, coupled with direct submissions provided the review with recognition of business angels as ‘smart’ investors that are perfect patient investors.”

Mason’s research, “again had a direct impact on government policy in 2018” [5B]. He submitted a comprehensive and highly-informative submission during a consultation to amend the Enterprise Investment Scheme’s fund structure (with the intention of improving the supply of capital to knowledge-intensive companies). This submission was, “relevant to the decision not to restrict reliefs for business angels”, as under the Enterprise Investment Scheme, angels are eligible for both income tax and capital gains tax relief (confirmed by statement **[5B]**). Since the 2017 review, the UK Government has taken significant steps in implementing its Patient Capital Action Plan. For example, it launched British Patient Capital and a new Regional Angels Programme in 2018.

The Economic Adviser for Business Finance at BEIS wrote, “Professor Mason’s extensive writings on the VC [venture capital] market and business angels have acted as a highly useful asset for the department. His provision of not only tailormade submissions to address topics that were of particular interest to BEIS but regular on-hand informal advice has resulted in Professor Mason consistently surpassing his own very high standards for engaging with government on pertinent issues of the day.” [5B].

4.4. Stimulating business angel investment activity in the UK and Scotland

In 2015, an Outstanding Impact in Business Award [5D] recognised the significant contribution of Mason and Harrison’s research towards stimulating business angel investment in the UK (a market worth approximately GBP750 million per annum). Mason has worked alongside investor groups to promote the role of business angels to policymakers as a key source of entrepreneurial finance. His research has also fed directly into ‘investment readiness’ programmes (which help to understand how business angels operate and what they are looking for, so that entrepreneurs can make more effective pitches). This activity has resulted in more businesses seeking finance from angel investors, and thus more investments being made (confirmed by short film **[5E]**).

For example, the Scottish Angel Capital Association (LINC) plays an active role in an angel ecosystem now recognised as among the most developed in Europe. The Chief Executive said, “Mason has been a leading researcher and influencer in the business angel ecosystem in Scotland and beyond for many years.” Mason’s research (prior to joining the UofG in 2012) was crucial in introducing and promoting the concept of ‘investment readiness’, resulting in the development of programmes to address the knowledge and skills gap across the UK. The Chief Executive of LINC Scotland confirms that, “the effectiveness and sophistication of these [programmes] were enhanced by later studies such as…” [3.4, **3.6]**… “This has undoubtedly contributed to the fact that between August 2013 and December 2018 the annual number of companies funded, and amount invested, almost doubled.” (confirmed by statement **[5F]**). With the support of Mason’s research, angel investments in Scotland have increased from approximately GBP27 million in 2013 to approximately GBP64 million in 2018 (figures confirmed by report **[5G]**).

4.5. Stimulating business angel investment activity in Canada and Sweden

Mason’s research has played a key role in raising the profile of business angels among policymakers and investors in Canada. Mason was invited by the National Angel Capital Organization (NACO) to be lead author of their annual Investment Activity Reports 2015–2019. The CEO wrote, ‘NACO’s annual Angel Activity Reports have drawn distinctly and materially upon Professor Mason’s research and expertise and have recently found that every $1.00 of angel investment results in $156.00 in revenue for angel-backed companies, tangibly growing the Canadian GDP. These reports are vital in demonstrating to policymakers the important role that Angels play in Canada’s entrepreneurial ecosystem. With the support of Professor Mason’s policy recommendations in 2017, the Government of Canada created the Women Entrepreneur Fund to support female and indigenous entrepreneurs. This $30 million fund was fully allocated in 2019 and supported 320 female-led businesses, with six already receiving additional angel investments valued at $1.5 million.’ (confirmed by statement **[5H]**).

The Manager for Innovation, Science and Economic Development, Canada, confirms that: ‘NACO’s annual Report on Angel Investing in Canada is the only comprehensive data set in Canada on angel group investment. It plays a valuable role helping government to understand how the financing of the entrepreneurial ecosystem works. It contributes to the evidence that the government needs to develop its programs, such as the support for angel investing that is delivered through Regional Development Agencies’ (confirmed by email **[5I]**). With support from Mason’s research and the Canadian Government, the number of angel group investments increased from 283 in 2015 (worth approximately CAD133.6 million) to 583 in 2018 (worth approximately CAD142.8 million) [5H].

Beyond Canada, a range of international operators have benefited from Mason’s analysis. For instance, the Chief Executive of LINC Scotland also confirms that, “operators in Scotland have benefited from analysis at a market level both UK-wide and overseas, giving the ability to benchmark with studies such as […] the longitudinal annual series for the National Angel Capital Organisation (Canada)”. Furthermore, from 2015 onwards, Mason was asked to evaluate Swedish co-investment funds and invited to co-author a report on financial exits, which was presented to the Swedish Government in 2017. An Analyst from the Swedish Agency for Growth Policy Analysis wrote, “Mason’s research was informative in terms of establishing evidence around a gap in the supply of equity capital in Sweden […] since the presentation of the report it has been a serious interest and [informed] a much more intense discussion about exits in general as well as a more specific discussion about exit-centric approaches and entrepreneurial recycling.” (confirmed by collated evidence **[5J]**).