The Role of the State in the Creation and Development of an Ecosystem of Venture Capital Investment, Startups and Technological Innovations in the Israeli Economy

Alexey S. Larionov ()
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Alexey S. Larionov: Institute of Oriental Studies, Russian Academy of Sciences, Moscow, Russian Federation

Finansovyj žhurnal — Financial Journal, 2025, issue 2, 100-121

Abstract: State programs for support, development and stimulation of venture capital investment implemented in the State of Israel between 1990 and 2024 have created a world-class innovation ecosystem. This study is devoted to the role of the state in stimulating venture capital investment within the country as part of the creation and development of the technological sectors of the state economy. The author formed a comprehensive view through the prism of Israel’s historical experience on the system of state support for venture investors, identifying elements of successful state experience that can be replicated in other countries. The advantages and disadvantages of key state support programs for the innovation ecosystem were considered: Magnet, Magneton, Magnet Consortia, Tnufa, Yozma, Yozma-2, Superfund, the incubator and accelerator programs. The results of the state support programs were evaluated through an analysis of their impact on the KPIs of the venture ecosystem in Israel. The relevance of the research topic is due to the growing role of state institutions and programs in supporting and stimulating the innovative economy, developing small technology companies, attracting venture capital investment to achieve technological sovereignty of the country.

Keywords: startups; R&D; innovation; venture capital investment; technology sector; universities; technology transfer (search for similar items in EconPapers)
JEL-codes: G21 G23 G24 O30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:250207:p:100-121

DOI: 10.31107/2075-1990-2025-2-100-121

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