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The Effectiveness of the Finnish Pre-Seed and Seed Policy Schemes to Promote Innovative High-Growth Entrepreneurial Ventures

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  • Luukkonen, Terttu

Abstract

This report assesses the effectiveness of the supply and demand side policy initiatives in Finland targeted at pre-seed and seed stage businesses, particularly from the viewpoint of high-growth ventures. In order to obtain a yardstick by which to judge the current policy mix in Finland, this study focuses on systemic functions which these policies can be expected to fulfil to promote a viable high-growth entrepreneurial eco-system. When considering the features of major policy initiatives the study draws on analysis of venture capital policies and especially of typical failures in policy initiatives, as presented by Lerner (2009). The study assesses existing pre-seed and seed stage policy schemes and even though the present policy mix has successful elements, it also exhibits serious flaws in programme design and implementation, which may be counteractive to the achievement of the policy objectives. There is also a need to improve overall policy coordination and strategic leadership in the promotion of high-growth ventures.

Suggested Citation

  • Luukkonen, Terttu, 2010. "The Effectiveness of the Finnish Pre-Seed and Seed Policy Schemes to Promote Innovative High-Growth Entrepreneurial Ventures," Discussion Papers 1221, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1221
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    References listed on IDEAS

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    1. Gordon Murray & Ari Hyytinen & Markku Maula, 2009. "Growth Entrepreneurship and Finance," Chapters, in: Reinhilde Veugelers (ed.), The Evaluation of the Finnish National Innovation System, pages 147-202, The Research Institute of the Finnish Economy.
    2. Giovanni Dosi & Richard R. Nelson, 2000. "An Introduction to Evolutionary Theories in Economics," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 11, pages 327-346, Edward Elgar Publishing.
    3. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    4. Gil Avnimelech & Morris Teubal, 2008. "Evolutionary targeting," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 151-166, April.
    5. Scott Shane, 2009. "Why encouraging more people to become entrepreneurs is bad public policy," Small Business Economics, Springer, vol. 33(2), pages 141-149, August.
    6. Charles Edquist & Terttu Luukkonen & Markku Sotarauta, 2009. "Broad-Based Innovation Policy," Chapters, in: Reinhilde Veugelers (ed.), The Evaluation of the Finnish National Innovation System, pages 11-70, The Research Institute of the Finnish Economy.
    7. Avnimelech, Gil & Teubal, Morris, 2006. "Creating venture capital industries that co-evolve with high tech: Insights from an extended industry life cycle perspective of the Israeli experience," Research Policy, Elsevier, vol. 35(10), pages 1477-1498, December.
    8. Alessandro Rosiello & Morris Teubal & Gil Avnimelech, 2008. "Towards the Framing of Venture Capital Policies: a Systems-Evolutionary Perspective with Particular Reference to the UK/Scotland and Israeli Experiences," ICER Working Papers 21-2008, ICER - International Centre for Economic Research.
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    More about this item

    Keywords

    venture capital -directed policy;

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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