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The Role of Public Funding Agencies for Startup Promotion: An International Comparison

  • Volker Schulte,
  • Beat Birkenmeier

摘要

The chapter analyses the political and economic conditions for the establishment of state-financed funding agencies to support startups. Both the advantages and disadvantages of state intervention are analyzed. When receiving government funding, the risk of inefficiently designing processes and value chains increases. It may lead to less diligent evaluation and decisions about costs and questions about the best use of spending public money. This can severely impact the profitability or even the viability of business. Further, there is a risk that government funding will demand public documentation or influence on the company.