The Effectiveness of Financing Mechanisms for the Start-Up Ecosystem within the Context of Government Innovation Policy

Abstract The article explores current issues related to how Georgia funds its start-up ecosystem within the framework of state innovation policy. Today, developing the start-up ecosystem is important for driving the country’s economic growth and enhancing its innovative potential. The effectiveness of funding mechanisms and their alignment with the country’s economic conditions are crucial in this process. The study's findings show that Georgia’s funding mechanisms have a significant impact on the start-up ecosystem; however, their success is limited by restricted access to capital, low investor involvement, and regulatory challenges. The research emphasizes the difficulties in Georgia’s innovation policy and points out gaps in the funding systems of the start-up ecosystem. As a result, the study suggests several improvements, such as diversifying financial tools, strengthening collaborations between the government, the business sector, and higher education institutions, and adopting a more adaptable regulatory approach. These findings can provide a useful basis for future planning and implementation of the country's financial and economic strategies, as well as for improving innovation efforts and increasing the competitiveness of the local innovation landscape.