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Explanation: The sentence suggests that the government’s policies are aimed at promoting or encouraging innovation and entrepreneurship. Foster → Means to support, encourage, or promote growth, which fits the context. Hinder → Means to slow down or create obstacles, which is the opposite of the intended meaning. Obstruct → Means to block or prevent, which does not fit. Discourage → Means to dissuade or prevent progress, which contradicts the sentence. Thus, "foster" is the correct choice.
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