Fostering Innovation Through Tax Reforms and Risk Capital Access: An Analysis of Norway's Regional Entrepreneurial Ecosystem in Vestfold and Telemark

The entrepreneurial ecosystem in Vestfold and Telemark, Norway, faces critical challenges that hinder innovation and economic growth. High wealth taxation constrains liquidity and reinvestment, fragmented access to risk capital limits scalability, and weak academiaindustry collaboration stifles innovation. Insights from 14 stakeholders, representing 666 businesses, emphasize the urgent need for reforms. Comparative examples from Sweden, Denmark, and OECD analyses demonstrate how targeted fiscal policies, integrated funding mechanisms, and strengthened partnerships can transform regional ecosystems. This analysis identifies actionable strategies, including tax incentives for reinvested capital, streamlined funding frameworks, and enhanced cross-sector collaboration. By integrating empirical findings with entrepreneurial ecosystem theories, behavioral economics, and OECD best practices, it offers a practical framework for aligning fiscal policies with innovation-led growth. These insights provide a roadmap for policymakers and stakeholders seeking to enhance competitiveness and sustainability in regional contexts.