Foreign Experiences of Forming Venture Funds in The Innovative Development of The Economy and Their Transformation

Abstract

This article explores international experiences in the formation and transformation of venture funds to support innovative economic development. In the context of global technological advancement, venture capital has become a key mechanism for fostering innovation, particularly in start-up ecosystems. The introduction highlights the growing role of venture funds in bridging financial gaps for early-stage innovations. However, a significant knowledge gap exists regarding how different countries structure and evolve their venture capital models in response to shifting economic demands and innovation policies. The study applies a comparative method, analyzing case studies from countries such as the United States, Germany, South Korea, and Israel. These nations have demonstrated diverse approaches in establishing public-private partnerships, offering tax incentives, and integrating government-backed funds to stimulate innovation-driven entrepreneurship. Findings reveal that successful venture fund systems rely on a combination of regulatory support, investor confidence, and institutional frameworks tailored to local economic contexts. For example, Israel’s Yozma program and South Korea’s growth funds showcase effective government intervention in catalyzing private investment. The results suggest that transformation of venture funds through adaptive policies and financial instruments Mis critical for sustaining innovative growth. The article concludes with implications for emerging economies, emphasizing the need for strategic design of venture fund models that balance state involvement and market-driven dynamics. These insights can guide policymakers and economic developers in leveraging international best practices to build resilient innovation ecosystems through venture funding.