Venture Capitalists in Systems of Innovation

In contemporary literature on venture capital financial infrastructures are identified as major contributors to a large proportion of today's innovations. Yet quite contradictory the literature on systems of innovation,hardly ever treat venture capitalists as a coherent actor in neither national nor regional innovation systems.In attempt to locate and determine the potentials and importance of the venture capitalists in the innovation system a two-dimensional taxonomy is constructed and used to illuminate their role and position. The taxonomy gains insights through theoretical reasoning and the possible location is exemplified by a case of the Danish venture capital market. It is argued in this article that venture capitalists stand a better chance of realizing their potential when they take and are given direct and formal responsibility in the innovation system. In relation hereto, the authors thus present initiatives to be taken to raise venture capitalists to a more direct and formal role in the context of systems of innovation.Key words: Venture capital, innovation systems, innovation.