Abstract:
Modern economic growth theory supports the need of innovation as a key element for long term growth. Public sector support of R&D appears to be determinant.
VC funds have been key instruments in the deployment of public policies aimed to promote innovative entrepreneurship. Although that, outcomes have been ambivalent and evidence shows that a proper design and their complementarity, regarding the private VC sector, must be stressed in order to obtain optimal results. This article offers a panoramic view of such process, and, reviewing the evidence, It proposes a series of public policy recommendations.
Keywords: Venture Capital, Innovation, R&D, public policy.
