The Role of Public Venture Capital Funds in Regional Innovation Ecosystems

The concept of regional innovation ecosystems has gained significant attention in recent years, with a growing recognition that these systems are crucial for driving economic growth and competitiveness at the local level. At the heart of these ecosystems are venture capital funds, which play a vital role in mobilizing resources and expertise to support innovative start-ups and small businesses.

One type of venture capital fund that has gained popularity in recent years is the public venture capital fund. These funds are backed by government agencies or other publicly funded institutions and are designed to promote economic development and innovation at the regional level. However, there is limited research on the role of public venture capital funds in regional innovation ecosystems.

This paper aims to fill this knowledge gap by examining the relationship between public venture capital funds and other players in the innovation ecosystem, such as universities, incubators, research institutes, and business support organizations. Using an online survey of venture capitalists, we investigate the frequency of interaction between venture capitalists and other members of the innovation ecosystem and explore whether this frequency is associated with the nature of the venture capital fund.

Our findings suggest that publicly backed venture capital funds interact more frequently with other players in the innovation ecosystem compared to private venture capital funds. This is consistent with our expectation that public venture capital funds are more likely to be dependent on public support and resources, which can lead to a greater emphasis on collaboration and networking.

The results of this study have important implications for both academics and practitioners. For academics, the findings provide new insights into the role of public venture capital funds in regional innovation ecosystems and highlight the need for further research on the relationship between different types of venture capitalists and other players in the ecosystem. For practitioners, the study provides evidence that publicly backed venture capital funds can play a vital role in mobilizing resources and expertise to support innovative start-ups and small businesses.

In conclusion, this paper highlights the importance of public venture capital funds in regional innovation ecosystems and their potential to drive economic growth and competitiveness at the local level. By understanding the role of these funds in networking and collaboration with other players in the ecosystem, we can better design policies and programs to support innovation and entrepreneurship in regions.

Public venture capital fund