National, regional and international competitiveness of an economy is increasingly connected to the presence of an environment supportive of innovation and risk-taking. 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.