Mena Investment Policy Brief

National, regional and international competitiveness of an economy is increasingly connected to the presence of an environment supportive of innovation and risktaking. Innovation is gaining prominence on agendas of governments throughout the world who increasingly appreciate the need to develop knowledge-based economies as a prerequisite to competitiveness and growth. Given this recognition, it should be of little surprise that policy design to support innovation in the private sector has become a hotly debated issue in both OECD and MENA countries alike. A consensus that public policy has a role in facilitating entrepreneurial activity seems to have emerged. Since a key barrier to entrepreneurship is a lack of capital to formalise creative ideas into concrete and realistic business plans, public sector involvement to bridge the financing gap can be useful.