Regional Innovation Networks

Which country has the best government–startup relationship in the world? It’s a surprisingly rich question. And one with no single answer. Last month, the UK government appointed Alexandra Depledge, MBE as its first Entrepreneurship Adviser. Her task: tackling the key barriers faced by startups scaling in the UK - no small feat. Other countries have taken different directions. 🇮🇱 Israel: The Yozma model was decades ahead of its time, producing the world’s highest startup density per capita. It combined government risk-sharing with private VC through programs like Yozma, which offered matching funds and favourable buyouts. It helped create Waze, Mobileye and many NASDAQ-listed firms. Much of this was backed by Israel’s Office of the Chief Scientist (now the Israel Innovation Authority), a central force in early-stage tech funding and public-private innovation bridges. 🇪🇪 Estonia: e-Residency turned a small country into a digital powerhouse. Entrepreneurs can set up EU businesses remotely — attracting 120,000+ founders and €67m+ in tax revenue. 🇸🇬 Singapore: The most systematic approach. StartupSG grants and equity (with public/private funds), tax support, and structured business services. It’s the full package. 🇨🇱 Chile: Pioneered the government accelerator model, offering equity-free funding. It’s helped launch 1,800 international startups and build a talent pipeline into South America. 🇨🇦 Canada: Immigration, immigration, immigration. Entrepreneurs securing backing from designated investors can qualify for permanent residency. 🇦🇪 Dubai: Appointed the world’s first Minister of AI and launched innovation-friendly zones like DIFC and Dubai Future Foundation. Policies focus on frontier tech, digital commerce, and global talent. 🇺🇸 USA: Still the gold standard for scale and ambition. While lacking a central startup policy, R&D funding, DARPA, SBIR, and visas like the O-1 create a strong base. Crucially, its risk culture and VC depth do much of the heavy lifting. And then there are the UK and France... one with a new Treasury adviser, the other with unofficial founder back-channels (Xavier Niel and others DMing President Macron). So what works best? Successful models typically: ✔ Share risk (rather than grant cash) ✔ Provide regulatory clarity ✔ Build ecosystems, not just startups ✔ Attract international talent (and support local champions) ✔ Leverage national strengths (digital ID, military tech, tax regimes…) What doesn’t work? Overfunded but underambitious granterpreneurs relying on government rather than markets. Bureaucracy. Pilot programs that never scale. Would love your views. Which countries do this best? And what can the UK learn from them?

The technologies of the future are created and commercialized in innovation hubs that combine scientific excellence with entrepreneurial ambition. There are thousands of such hubs around the world, and our Global Innovation Index (GII) 2025 seeks to shine a light on those doing well through the GII Ranking of World’s Top 100 Innovation Clusters. For the first time, we have included VC data alongside international patent filings and scientific publications. Adding the VC lens has shifted the top of the table slightly, helping to push China’s Greater Bay Area into number one spot, nudging the Tokyo-Yokohama cluster into second, and lifting Silicon Valley from sixth to third spot this year. Beijing was ranked fourth. Each of those clusters led in a different way. Tokyo-Yokohama was the single biggest source of international patent filings, while the Silicon Valley cluster (around San Jose and San Francisco) attracted more venture capital than anywhere else. Beijing led the world in terms of the number of scientific publications. The Greater Bay Area, which encompasses Shenzhen, Hong Kong and Guangzhou, did not lead in any of the three categories, but its strong showings across the board gave it a balanced profile and put it in first place overall. This cluster ranking, as well as our flagship Global Innovation Index (out on 16 September), is designed to help policymakers, business leaders and researchers better understand the local and global innovation landscape, and to design policies that make innovation ecosystems more vibrant. 33 economies are covered by our list of the top 100 clusters, including Germany (which has seven clusters), India and the United Kingdom (four each) and Canada and the Republic of Korea (which has three, like Japan). Propelled by the new methodology and strong performance in VC deals, Indian clusters have made remarkable advancements, with Bengaluru jumping from 56th to 21st position, Delhi to 26th (compared to 63rd) and Mumbai to 46th (compared to 88th). In addition to the dynamic hubs in China and India, six vibrant innovation hubs from middle-income countries also feature in the top 100: Brazil (São Paulo), Egypt (Cairo – the top-100 cluster in Africa), Iran (Tehran), Malaysia (Kuala Lumpur), Türkiye (Istanbul) and Mexico (Mexico City) – which enters the top 100 this year for the first time and makes up the second innovation cluster within Latin America. Outside the top 100, some of the leading middle-income economy innovation clusters are Ankara (Türkiye), Bangkok (Thailand), Buenos Aires (Argentina), Islamabad and Lahore (Pakistan), and Rio De Janeiro and Porto Alegre (Brazil). These clusters show how the combination of strategic investments coupled with supportive policy frameworks can build thriving ecosystems. More: https://lnkd.in/e882jzRp #WIPO #GlobalInnovationIndex #GII2025

USAID was involved in supporting Kenyan startups through various funding initiatives. Notable examples include: BasiGo: Received a $1.5 million grant to pilot and scale electric buses in Rwanda. Maisha Meds: Secured $5.25 million in scale-up stage 3 funding from USAID's Development Innovation Ventures (DIV). Kentaste Products Limited: Launched a $100 million investment to enhance Kenya's coconut industry through processing and value addition. SOLARGEN TECHNOLOGIES LTD. Technologies: Obtained $2.5 million in quasi-equity financing from the USAID Impact for Northern Kenya Fund to implement innovative solutions like solar-powered water purification systems. PULA: Granted $1.5 million to deliver innovative agricultural insurance through technology. Additionally, the U.S. International Development Finance Corporation (DFC) has provided loans to Kenyan companies: Ilara Health: Received a $1 million loan. M-KOPA: Provided with $51 million in debt financing. Twiga Foods: Disbursed a $5 million loan. The current ongoings at USAID underscores the necessity for Kenyan capital stakeholders to explore diverse funding avenues to sustain and grow the country's entrepreneurial ecosystem. There is a video of Jeff Bezos discussing that one of the main reasons for the U.S.'s entrepreneurial success is its exceptional access to risk capital. This got me to reflect on the current mechanisms of capital in Kenya and the need for innovation in the industry to meet the demands of a clearly lucrative market. For instance, the Kenya Bankers Association had the Sustainable Finance Initiative back in 2015. The aim was to equip the financial services sector with the tools necessary to balance business goals with economic development priorities and socio-environmental concerns. Building upon such initiatives, Kenyan banks could collaborate to form a local version of Silicon Valley Bank, distributing risk among themselves while fostering innovation. NSE could develop instruments to attract public investment in startups. By partnering with early-stage investor firms such as Antler, Baobab, and Endeavor, the NSE can identify companies seeking Series A or Series B funding. VCs often rely on private equity sourced from institutional investors like pension funds or insurance firms, which ultimately represent the public's money. Therefore, directly engaging the public to invest in a portfolio of high-risk, high-reward ventures could be a viable strategy, allowing individuals to make decisions aligned with their risk appetite. Additionally, pooling resources from multilateral development finance institutions like AfDB or Afreximbank could provide substantial funding for high-risk, high-return investments. Ultimately, we need to develop mechanisms that enable investment in local enterprises—be they zebras, camels, or giraffes. Through such efforts, Kenya can discover and define its own 'mythical unicorns,' to create a self-sustaining startup ecosystem.

The fortunes of regions in global value chains (GVCs) turn not just on participation but on the interplay of local capabilities and functional specialisation. A recent article by Eduardo Hernández-Rodríguez, Ron Boschma, Andrea Morrison, and Xianjia Ye, just out in Papers in Regional Science, delves into this dynamic, analysing 199 EU regions from 2000 to 2010. The results show how #relatedness in economic activities determines whether #regions climb up to high-value functions or languish in less complex roles. The authors find that regions do not climb the ladder of economic #complexity by chance. Success depends on their ability to build on what they already do well, moving into functions closely aligned with their existing economic strengths. In contrast, regions lacking such related capabilities face the risk of downgrading —losing footholds in critical parts of the value chain. This insight offers a fresh perspective on the "low-complexity traps" that hold back many parts of #Europe, particularly in the south and east of the continent. Yet, this is not a counsel of despair. The research underscores the power of deliberate, targeted strategies. For policymakers, this means discarding one-size-fits-all solutions in favour of bespoke interventions that identify and nurture the latent potential of regions. The #EU’s Smart Specialisation agenda, while a step in the right direction, must go further to integrate how functional complexity works within GVCs. If Europe is to achieve greater #competitiveness and increase its #productivity, this article offers an interesting road map. But the path to progress inevitably passes through regional #cohesion and equitable #growth. It is not about reinventing the wheel but about strengthening the spokes that already exist, enabling regions to connect to the hubs of global innovation and prosperity. For the full paper, see: https://lnkd.in/dbwsNuXY

Wheel for Sustainable Business Innovation 🌎 The sustainability landscape is evolving rapidly, and businesses are increasingly expected to integrate environmental and social considerations into their innovation processes. However, traditional innovation frameworks often fall short by focusing solely on customer needs, financial returns, and technical feasibility, leaving critical planetary challenges unaddressed. A more comprehensive approach is needed—one that embeds sustainability at the core of value creation. The 130+ Value Proposition Types Wheel is a practical tool that helps organizations frame innovation efforts across four key dimensions: People, Planet, Profit, and Progress. It provides over 130 value types that businesses can leverage to ensure their projects contribute meaningful solutions to global challenges such as climate action, resource efficiency, social inclusion, and technological advancement. This approach shifts the focus beyond immediate customer needs to include long-term sustainability impacts across entire ecosystems. By using structured frameworks like this, companies can link their innovation projects directly to UN Sustainable Development Goals (SDGs), addressing critical issues such as climate resilience, biodiversity, and social equity. The tool also encourages the use of metrics to track progress, making sustainability-driven innovation more actionable and measurable across industries. It helps businesses unlock new forms of value while addressing both environmental risks and opportunities. The tool is adaptable to different phases of the innovation process, from identifying unmet needs to scaling solutions in the market. It guides organizations in understanding how their innovations create value in areas such as climate action, circularity, supply chain management, and stakeholder engagement. This makes it relevant for both B2B and B2C companies aiming to enhance their impact while future-proofing their operations. Originally developed by Explorer Labs, this tool has been referenced in the past and continues to remain highly useful as businesses advance their sustainability journeys. As 2025 begins, leveraging tools like this can help organizations move from incremental improvements to transformative solutions, embedding sustainability into innovation processes that deliver lasting value. #sustainability #sustainable #business #esg #climatechange #innovation #SDGs

It’s hard to label what’s happening across the Pacific Northwest. Companies are building autonomy stacks for drones, tanks, and bulldozers. Others are advancing compact fission, modernizing satellite control, deploying surgical robotics, or engineering new approaches to base load energy. They don’t fit cleanly into a single sector (it’s my job to try) — but, we believe, they share a set of structural advantages: access to deep technical talent, proximity to world-class research, physical infrastructure, and enterprise buyers. We call it Cascadian Dynamism. Many founders say, publicly and privately, the PNW is the only place their company makes sense. We identified three areas that make the region an accelerator for these types of companies: they can hire fast, test in real-world conditions, and access early customers within driving distance. Of course, talent remains the main factor. Boeing, Amazon, and Microsoft trained generations of systems engineers and cloud architects. At the same time, AI2, Nvidia Robotics, and UW continue to produce top-tier researchers in machine learning, control systems, and simulation. (In energy, companies like Helion, Zap Energy, Group14, and Sila form one of the most concentrated fusion and battery chemistry talent pools in the world. In space, more than half the satellites in orbit were built in Washington.) The PNW's unique geography also plays a central role. Seattle and Vancouver are port cities embedded in aerospace and logistics networks. Startups are running field tests on farms in Eastern Washington and Oregon, in the Puget Sound, off the Pacific coast, and across rugged inland terrain. They're near experimental utilities, energy infrastructure, and bodies of water critical for cooling and scale. And, finally, the buyer landscape is unusually strong. Cloud providers are expanding datacenter capacity throughout the region. Large manufacturers, utilities, and ag operators offer direct pilots and partnerships. The region is also home to major military installations, including Joint Base Lewis-McChord and Naval Base Kitsap, which create early pathways for dual-use technologies. We mapped more than 80 companies defining this category. Ascend portfolio companies are labeled, and major companies with engineering outposts are highlighted. Full article in the comments. 🇺🇸

These government initiatives would make me much more bullish on our region - I’d say we’re only a few steps away. Governments have long played an essential role in stewarding and building the foundation for nascent startup ecosystems. And they will continue to be important in Southeast Asia’s next phase of growth. Some good steps we’re already seeing from Singapore in particular: ✅ Credit facilities for startups who need it, there’s venture debt but it’s not suitable for all stages. ✅ Co-matching funding to provide more fuel to deep tech startups ✅ Investment into improving SGX - still in progress ✅ Visa for world class founders to move here (i.e. Entrepass) ✅ GTM support via a network of overseas partners in major innovation hubs and key demand markets (i.e. Global Innovation Alliance) But for us to go the distance, the government will need to continue their good work consistently, working more with those close to the ground to provide support where it matters. Because progress is hardly built overnight. Especially in these areas: -Building Our Own Capital Stack: Backing emerging managers and ecosystems -Supporting Zebras: More focus on supporting startups on trajectory to $50M-$200M outcomes, not just unicorns With these rolled out over time, we can expect more capital to be accessible by young companies. In turn, this helps curb the brain drain of brilliant founders going outside our region to find liquidity. Governments definitely have a huge responsibility on their hands. While the regional ecosystem is still finding it’s footing, this support will be essential.

Revolutionizing Food Security: The Power of Public-Private Partnerships to build strategic food buffers!! In the face of unprecedented challenges to food security, India stands at a crossroads. With a population of over 1.4 billion, ensuring access to food for all is a monumental task. The COVID-19 pandemic exposed vulnerabilities in our food supply chain, leading to a critical need for innovative solutions. One path forward that demands our attention is the establishment of strong public-private partnerships (PPPs) to transform the procurement, storage, and distribution of food commodities. The Current Landscape: In recent years, India has faced a trifecta of challenges: 1. Low Food Contingency Buffers: Our strategic reserves of food grains are at critically low levels, leaving us vulnerable to supply shocks and price volatility. This puts the food security of millions at risk. 2. Government Efforts: The government has undertaken a massive endeavor, distributing free food to approximately 800 million people for the past three years and intends to continue doing it over the next few years under various welfare schemes. While commendable, this has strained existing distribution systems. 3. Climate-Related Impacts: The unpredictability of climate patterns has taken a toll on agriculture, affecting crop yields and supply chains. Extreme weather events, such as droughts and floods, threaten food production. The PPP Solution to build robust food buffers: Public-private partnerships hold immense potential in addressing these challenges head-on: 1. Efficient Procurement: By involving private players in food procurement, we can leverage their expertise, resources, and technology to streamline the process. This can help build and maintain adequate food reserves more effectively. 2. Modernized Storage Facilities: Collaboration with private enterprises can facilitate the construction of modern storage facilities equipped with cutting-edge technology to reduce food wastage, ensure quality, and prolong shelf life. 3. Enhanced Distribution Networks: Private sector participation can improve the last-mile delivery of food commodities, ensuring timely access to those in need, even in remote areas. 4. Risk Mitigation: The private sector can provide better solutions to shield the government from various market related risks. Challenges and Opportunities: Creating successful PPPs in the food sector will require addressing several challenges, including aligning incentives, ensuring fair market practices, and establishing regulatory frameworks. However, the potential benefits, including increased food security, reduced waste, and improved farmer incomes, are well worth the effort. #UnclutterFoodAgriculture

Yesterday, the UK Government released its Modern Industrial Strategy and Digital and Technologies Sector Plan. The strategy is ambitious, including a £4 billion capital injection via the British Business Bank to unlock £12 billion in private investment; £670 million for development and adoption of quantum computers, and £54 million for a new Global Talent Taskforce. But beyond the numbers, what matters is this: the government is designing industrial policy with scaling tech companies in mind. At Tech Nation and Founders Forum, we’ve been listening to our community of tech founders across the UK and actively relaying their feedback to No 10, DSIT, and HM Treasury over the last few months, calling for practical changes to unlock growth for UK tech scaleups. It’s clear from this plan that the government have been listening attentively to our founder feedback, and are prioritising tech innovation as a key gateway to growth for our country. What stands out: – Growth capital: Deepening the pool of scaleup capital available to UK founders with increased firepower from the British Business Bank, and a long-overdue move to unlock pension capital now underway. – Talent: Doubling down on how we attract the world’s top talent to choose the UK as home base; the TechFirst programme and AI scholarships show a serious commitment to building the UK’s tech workforce, from school leavers to PhDs to global fellows. – Infrastructure: From regional AI Growth Zones to faster data centre connections, this is the first strategy that sees physical and digital infrastructure as core to scaling startups and focuses on unblocking grid connections so founders from all across the country can scale brilliant ideas. – Regulation and procurement: With the Regulatory Innovation Office, AI sandboxes, and Defence-led R&D pathways, there’s now more room for founders to take the right risks. – Regional innovation: Significant cluster funding with guaranteed local allocations, so that we can turbocharge game-changing tech companies from all corners of the UK. The direction of travel is clear: The UK is committed to cementing its place as a global innovation hub and technology leader, but it takes all of us – founders, investors, enterprise corporations, Big Tech, policymakers, and startup operators – to put this plan into action and deliver its results. This plan is just the beginning, but we’re looking forward to working with the government and our broader Tech Nation community to make it a reality. #IndustrialStrategy #Digital #Tech #UK #ScaleUps #TechPolicy #FoundersForum #TechNation #FoundersPulse #Startups #Founders #Entrepreneurs #ItTakesaTechNation

"This paper explores the potential of dynamic, collaborative public-private governance to foster safe innovation. Drawing from primary research, including interviews with tech industry leaders, U.S. Members of Congress, and staff, and an analysis of 150 AI-related bills introduced by the 118th U.S. Congress, this work identifies emerging areas of alignment between policymakers and industry stakeholders. It also highlights opportunities for a unified national approach, despite the challenges of a fragmented legislative environment. The authors propose a dynamic governance approach that brings government and industry together while combining the foresight of ex-ante measures with the adaptability needed to respond to technological advancements. Coupled with existing ex-post mechanisms, the Dynamic Governance Model creates a comprehensive framework to promote competition, innovation, and accountability. It represents a policy-agnostic extra-regulatory framework, including a public-private partnership for standards setting and a market-based ecosystem for audit and compliance. Ultimately, this governance approach can provide regulatory clarity and predictability, fostering an environment where businesses and innovation thrive while mitigating the risks inherent to AI’s transformative power" Paulo Carvao Slavina Ancheva Yam Atir Shaurya Jeloka Brian Zhou