State-Backed Venture Capital and Technology Clusters in Europe

This article examines how state-backed venture capital (VC) has influenced the development of technology clusters in Europe. It reviews Europe’s venture financing gap and the growing role of public investment in startup ecosystems, highlighting cases like France and Poland where government initiatives have bolstered local tech clusters. The analysis finds that public involvement – as an anchor investor or fund-of-funds – has been crucial in catalyzing VC markets and nurturing innovation hubs. Based on these insights, the paper offers recommendations for Ukraine to leverage statebacked VC in developing its own technology clusters.