This publication supports policymakers in Eastern Europe and the South Caucasus sub-region in designing effective policies that optimize the potential for innovative, high-growth entrepreneurship. These countries are transitioning to a knowledge-based economy, a shift which requires important structural transformation and the identification of key drivers to make this happen. Due to their potential in facilitating job growth and value creation, innovative high-growth enterprises (IHGEs) can become one such key driver of this transformation. Through their experimentation with new ideas and response to new incentives (e.g. technological, regulatory and market trends), IHGEs can contribute to the necessary structural economic changes, while creating new market niches and positive societal spill-overs (e.g. meeting societal challenges).