This article investigates the financial innovation system, a crucial sectoral innovation system
underlying the national innovation system, and business finance issues upon start-up financing to
support technology and innovation development. The study highlights the importance of US
government financing programmes as a successful model of national institutional framework in
promoting economic performance and utilizes the case of Thailand to explore the dynamics of the
financial innovation system. The paper examines the government policies and financing
programmes of major institutions legitimizing technology and innovation financing activities
such as the Ministry of Finance,Ministry of Science and Technology andMinistry of Industry. The
results provide empirical evidence of the financial innovation system and useful implications for
policy makers to strengthen the national capabilities in science and technology
