Abstract: This paper first established a theoretical framework to describe the mechanism of innovation & entrepreneurship policy on micro-entrepreneurship behavior. Based on this framework, we use 580 observation samples from 58 countries between the period of 2007-2016 to conduct empirical tests, which verified the moderate effect of innovation & entrepreneurship policy on early-stage entrepreneurial behavior. The results show that, first of all, venture capital and perceived entrepreneurial opportunities have significant positive impact on early-stage entrepreneurial behavior. Secondly, the innovation & entrepreneurship policy does not directly affect entrepreneurial activities, but plays an important moderate role by increasing the positive impact of venture capital and entrepreneurial opportunities on early-stage entrepreneurial behavior. Last but not least, the different developing stage of the countries, the innovation & entrepreneurship culture and the related infrastructure also played important roles in the early stage of entrepreneurial behavior in the whole society. The research results helps to enrich the contents of the research on entrepreneurship behavior and also provides a reference for making policy decisions on innovation and entrepreneurship based on the characteristics of entrepreneurship.

Key words: innovation and entrepreneurship policy, total early entrepreneurship, venture capital, entrepreneurial opportunities, mechanism