ABSTRACT
This chapter provides an analytical comparison of incentives and supports concerning financing innovation of startups by specialized innovation financing agencies in eight countries. It also explores the variations and similarities between countries’ financial support for startups and how each national innovation agency assists them. To that end, we have developed a policy mix of innovation financing instruments for startups. Our findings demonstrate the attention of innovation agencies in several issues, such as supporting technological collaboration and promoting commercialization. Some agencies adopt a more comprehensive approach, while others have a less broad view of innovation in the design and implementation of financial support. The intensity and proportion of attention given to supporting innovation’s demand and supply sides vary. Our findings suggest that co-investment models and funding innovative projects as an investor are notable aspects that innovation financing agencies should consider. Innovation financing agencies are also expected to offer financial and business consulting services to startups, long-term low-interest loans, and networking financial support at different levels, i.e., innovators, researchers, and university spin-offs. We provide recommendations for strengthening startup innovation finance strategies. Innovation agencies are recommended to define their duties in a symbiotic way that avoids crowding-out private investors and firms.
