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274high-skill jobs (Reypens et al., 2020). Scholars have suggested that the state could take an “entrepreneurial” role with regard to investing in emerging HGEs in order to stimulate innovation and entrepreneurship (Link & Scott, 2010; Mazzucato, 2011). This chapter contributes to this area by discussing which policy instruments are appropriate for HGE policy. As we will see, a large number of policy areas should be taken into account when considering HGE policy. As a consequence, a challenge for HGE policy is to coordinate the many existing initiatives from small- and mediumsized enterprise (SME) policy and entrepreneurship policy such that they can be evaluated accurately and implemented more effectively.

This chapter begins by setting out some stylized facts on HGEs and discussing the key issues and rationales surrounding HGE policy (Sect. 2). We then discuss the various areas relating to HGE policy instruments, ranging from areas such as finance, innovation, skills to labor market regulation. HGE policies have had varying levels of success, and in Sect. 3 we try to identify some success stories as well as areas for improvement, and suggest some explanations for what works well and what does not. Our main policy suggestions (Sect. 4) are that policymakers should engage in critical listening to stakeholders, that HGE policy should identify the decision points (e.g., growth trigger points) to leverage the impact of growth stimuli, that HGE policies require incentives that are set up consistent with up or out dynamics, and that HGE policies should be coordinated across government departments to