Best Practices in Creating a Venture Capital Ecosystem

Venture capital investment has been found to be remarkably effective at stimulating innovation and job growth. Government policy plays an important part in creating an ecosystem in which venture capital and innovation can thrive. Yet government programs have also sunk billions of dollars into misguided efforts to inspire venture capital and innovation. In this paper, we examine the hallmarks of good and bad programs and then consider three programs adopted by governments in Latin America and the Caribbean.