This paper examines the effects of scientific knowledge and technological knowledge on new product early-stage entrepreneurial activity. The moderating effect of government intervention on the above relation is also examined by using the measure of economic freedom. For the analysis, a cross-country panel from 2002 to 2012 is used. The results indicate that technological knowledge is positively related to new product early-stage entrepreneurial activity and this relationship is strengthened when there is less government intervention. In addition, the negative relationship between scientific knowledge and new product early-stage entrepreneurial activity is attenuated when there is more government intervention. The implications of this study are to promote new product early-stage entrepreneurial activity (1) scientific knowledge, which is far away from commercialization process requires more government interventions; and (2) technological knowledge, which is close to commercialization requires less government interventions.