This paper is concerned with the attempts of the Small and Medium Enterprise Development Bank of Thailand (SME Bank) to move towards becoming a technology bank to support the generation of new businesses and innovations. Being the bank for technology-based businesses to increase the nation's innovation capacity is the great challenge for SME Bank, as it needs to garner integrated financial and entrepreneurial support as well as a network of alliances. The paper proposes a model based on venture capital management for changing the innovative environment to create a technology economy. These innovative initiatives at SME Bank would be useful for economies in other developing countries to launch programmes supporting the diffusion and commercialization of innovations.
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