Abstract
The Capital Markets Union (CMU) aims to strengthen markets and investments in the EU. In the context of innovative SMEs (start-ups and scale-ups), the CMU's goal is to make more capital available to these businesses. However, greater volumes of available venture can address only part of the problem. We argue that although the CMU may be a necessary step, it has to be situated in a much broader discussion about how to create successful innovation ecosystems. Such an approach highlights the sector-specific needs of start-ups (and scale-ups) and the importance of mobilizing other players, particularly established corporations. This paper gives an empirical example from the artificial-intelligence sector.
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