This paper brings a comparative lens to the study of innovation policy and venture capital (VC) in the case of two innovation leaders — the Republic of Korea and Sweden — and Canada, a country with a more challenging history on the innovation front. In all three cases, government policy has focused on measures that address the respective gaps in access to VC, with significant results in VC performance. Korea has taken a highly targeted strategy, centred on start-up and high-technology firms in need of investment and strategic guidance. Sweden as well has pivoted to providing capital at the early stage of firms’ development. While Canada has focused on providing VC at dedicated points along the innovation spectrum, from early to late stage, more recently that targeting has become much more diffuse. Moreover, there has not been sufficient attention to growing small and medium-sized enterprises (SMEs), with the capacity to globally scale. Policy recommendations include the need for a consolidated Venture Capital High-Technology Fund for SMEs that is equipped with clear targets for access to VC, including revenue and employment, asset valuation and research and development expenditures.
