The impact of government sponsored venture capital funds’ on innovation in Lithuania

Abstract

Governments wide world have implemented various instruments seeking to enhance the development of innovative small and medium sized Enterprises (SMEs). Previously, the venture capital market was scrutinized in various aspects mainly in the context of developed countries (United States, Canada, Australia, France, UK, Japan and etc.). Recently JEREMIE (Joint European Resources for Micro to Medium Enterprises) initiative took place in Lithuania and other European countries. It is a possibility for local governments through the EU structural funds to finance SMEs in cooperation with financial intermediaries. The paper aims to reveal the impact of government sponsored venture capital funds’ on innovation in small country, focusing on Lithuania’s case.