Public Policies and Public Programs with a Regional Impact in Promoting Entrepreneurship: The Case Study of Government Backed Venture Capital Schemes in the UK

Abstract

This chapter adds to the growing literature from recent years on innovation finance, innovation systems, and regional economic policy. Although the role of business has been seen as critical within the regional innovation system, the role of business financing intermediaries has received considerably less attention despite their recognised role as a central actor of the system. This chapter focuses on an innovation player that seems to have been neglected by scholars to date, namely the venture capital industry. It examines the role of public policies in promoting entrepreneurship through the UK government backed venture capital schemes. It investigates whether and how the public interventions have changed the availability of venture capital at the UK regional level. It also elaborates on the potential implications of the public sectors's domination in venture capital provision in several UK regions.