Abstract
Innovation is a crucial driver of economic growth, yet it demands significant investments and expertise. Private Equity (PE) funds are increasingly recognized as vital players in providing these resources and facilitating the transition to innovative solutions. With the PE industry reaching $20 trillion in assets under management by 2024, understanding the implications of these investors on the economy is vital. This thesis explores the PE-innovation nexus throughout three chapters. The first chapter presents a systematic review of 80 academic publications, identifying PE funds as innovation seekers, drivers, and enablers. The second chapter analyses the relationship between PE market development and green innovation at the local level, revealing an inverted U-shaped pattern and highlighting the moderating role of territorial environmental attention. Finally, the last chapter investigates a novel approach to investments in the PE industry, namely GP-led transactions via continuation funds, identifying gaps in research and proposing future inquiries. The insights from this thesis emphasize the critical role played by PE investors in advancing technology and promoting societal progress.