The Public Venture Policy Menu 44 Policies Public Authorities can Take

There are numerous policy approaches that can be applied or combined to encourage a venture ecosystem’s health. Understanding these policies is critical. This article presents 44 policies, classified into eight categories: funding, taxation, regulation, clusters/networks/institutes, attracting talent and investment, stock market access, technology infrastructure /government procurement, and education/training. Each policy is illustrated with examples and commentary.

Addressing areas from government loans to IP legislation, from entrepreneur training centers to open borders, from primary school curricula to telecom infrastructure, the author first informs the policymaker – and then adds a word of caution: it is risky to try too many approaches at once. Over-engineering the ecosystem is dangerous, too. You need to adapt the policy to local conditions – and this article gives you the raw material to choose from, modify, and combine into the viable strategy you need to successfully navigate the ecosystem.

Appeared in the issue: Coller Venture Review — 2014 -1 — Welcome Issue

List of References: 

• Basich, Zoran. (2010) “Medvedev’s Silicon Valley Dreams Won’t Happen Overnight.” Wall Street Journal. 24 June. Available at:  http://blogs.wsj.com/venturecapital/2010/06/24/medvedevs- silicon-valley-dreams- wont-happen-overnight/. Accessed on 27 August 2013.
• European Commission. (1995) “Green Paper on Innovation”, The European Union. http://europa.eu/documents/comm/green_papers/pdf/com95_688_en.pdf.
• Gulinello, Christopher. (2005) “Engineering a Venture Capital Market and the Effects of Government Control on Private Ordering: Lessons from the Taiwan Experience”, George Washington International Law Review. 37(4): 845-883.
• Mathonet, Pierre-Yves and Thomas Meyer. (2007). J-Curve Exposure: Managing a Portfolio of Venture Capital and Private Equity Funds. West Sussex: Wiley Finance.
• Lerner, Josh. (2009) Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed–and What to Do About It. Princeton: Princeton University Press.
• OECD. (2003) “Venture Capital: Trends and Policy Recommendations”, Paris: OECD Secretariat Science Technology Industry.
• Tech City. (2013) Tech Powers the London Economy: The Tech City 3^rd Anniversary Report.

About the author

Dr. Robyn Klingler-Vidra is a Senior Research Fellow at the Coller Institute of Venture at Tel Aviv University. Robyn’s research interests focus on the role of government policy in building venture capital markets as a means to promote innovation and entrepreneurial clusters. Robyn leads the World Economic Forum’s United Kingdom Executive Opinion Survey on global competitiveness. She teaches international political economy and executive education courses on capital markets, economic competitiveness and innovation at the LSE. Her publications include peer reviewed journal articles on the development of venture capital markets in East Asia, the global localization of Silicon Valley, and how policy models transform as they diffuse. She received her BA in Political Science from the University of Michigan and MSc and PhD in International Political Economy at the LSE.