Policies for Financing Entrepreneurship through Venture Capital: Learning from the Successes of Israel and Taiwan

Robyn Klingler-Vidra, Martin Kenney, Dan Breznitz

Research output: Contribution to journalArticlepeer-review

353 Downloads (Pure)

Abstract

The success of Silicon Valley as a hub for rapid-innovation growth has motivated policy-makers around the world to initiate policies trying to mimic it. These policy initiatives raise the question of whether globalisation should encourage innovation policy-makers to aim for institutional convergence and close imitation, or for institutional hybridisation and local experimentation. This paper explores this question by focusing on venture capital creation policy. Using two national cases, Israel and Taiwan, we show that policy effectiveness was not the result of simple imitation. Instead, policy performance is determined by degree of fit with local financial conditions and the position of the local ICT industry within global production networks. We then consider the implications of our study for understanding the development of national VC industries and the industries they fund with the primary message being that there is no singular model for venture capital market development. Instead, policy-makers need to understand the local context with its assets and liabilities. Of particular importance are local financing conditions, firm capabilities, and the existing position of local firms within the global production networks of the ICT industry.
Original languageEnglish
JournalInternational Journal of Innovative Research and Development
Publication statusAccepted/In press - 29 Jun 2016

Fingerprint

Dive into the research topics of 'Policies for Financing Entrepreneurship through Venture Capital: Learning from the Successes of Israel and Taiwan'. Together they form a unique fingerprint.

Cite this