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Abstract This paper analyzes recent policy initiatives designed to stimulate innovative entrepreneurship in Hong Kong. I construct a conceptual framework informed by the theory of market failure and posit five key obstacles to innovative entrepreneurship in order to examine Hong Kong's efforts through public policy to strengthen innovative entrepreneurship and to offer broad policy prescriptions. Aligning the initiatives undertaken in Hong Kong with the barriers that inform the conceptual framework contributes to scholarship in the area of innovative entrepreneurship, lays the foundation for future research to match policy measures with outcomes in Hong Kong, and aids cross‐cultural research to determine whether aspects of the framing are specific or generalizeable. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.
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