Can the state replace private capital investors? Public financing of venture capital in Hungary

摘要: It is generally accepted that venture capital exerts a positive influence on economic development, and Hungarian policy, too, regards it as means to accelerate growth, enhance the export capacity of companies, improve employment, increase tax revenues, investments research development expenditures, is, boost overall competitiveness country. Although Hungary boasts an advanced industry in regional comparison, supply small/startup companies especially still unresolved. The successive governments having come power since change political regime declared almost without exception importance capital, made efforts contribute raising its supply. These efforts, however, have been rather ineffective due their exclusive reliance direct state intervention disregard for much more successful western solutions stimulating private sector investors. present paper first describes reasons, areas, indirect forms industry. Subsequently, surveys specific reasons practice so far market. highlights essential difference approach reflected by experiences, respectively, makes proposal how could promote market effectively market-oriented way, with special regard Hungary’s prospective accession European Union 2004. Accordingly, should avoid investment bypassing sector; supplement funds investors co-financier, control co-operation them reducing risks increasing profits associated enjoying preference This would allow realise economy objectives simultaneously.