The paper aims at analyzing the evolution, over the last years of crisis, of public intervention supporting equity investments through innovative partnerships with private investors. The need for public intervention stems from capital market failures, particularly at the venture capital stage, worsened by the recent crisis notably for young innovative small and medium-sized enterprises, which are a potential driver of development and economic growth. After outlining the reference framework, the paper first describes the international context and then focuses on the situation in Italy and the Veneto region. The analyzed empirical facts shed light on the importance of shaping the normative and cultural environment, besides having direct public intervention through equity investment. Moreover public intervention in the medium-to-long run needs to help develop capital markets, and avoid excessively straining public finances.
Keywords: Public Support to Venture Capital, Public-Private Partnerships, Market Failures, Economic Crisis
Jel Code: G28; L32; M13