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Innovative start-ups in Italy: their special features and the effects of the 2012 law

Author

Listed:
  • Paolo Finaldi Russo

    (Banca d'Italia)

  • Silvia Magri

    (Banca d'Italia)

  • Cristiana Rampazzi

    (Banca d'Italia)

Abstract

In 2012 the Italian Parliament introduced into Italian law a special section in the Companies Register and a large number of financial incentives to create a favorable environment for the development of �innovative start-ups� (ISUPs). In this paper we compare ISUPs with other start-ups. In accordance with the eligibility criteria established by law, ISUPs show a striking capacity for innovation apparent in a higher incidence of intangible assets and the longer time it takes to begin selling their products. ISUPs also report higher investment rates and stronger growth in sales and assets, while their financial structures are characterized by higher capitalization and greater availability of liquid assets. Based on propensity score matching, we also highlight some direct effects of the 2012 law on their financial structures, almost exclusively on ISUPs operating in the service sectors: their external funding, either debt or equity, increases more than for other similar firms; higher investment rates are specifically associated with a stronger upsurge in their capital.

Suggested Citation

  • Paolo Finaldi Russo & Silvia Magri & Cristiana Rampazzi, 2016. "Innovative start-ups in Italy: their special features and the effects of the 2012 law," Questioni di Economia e Finanza (Occasional Papers) 339, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_339_16
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    References listed on IDEAS

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    Cited by:

    1. Francesco Manaresi & Carlo Menon & Pietro Santoleri, 2021. "Supporting innovative entrepreneurship: an evaluation of the Italian “Start-up Act” [The effects of entry on incumbent innovation and productivity]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(6), pages 1591-1614.
    2. Mellace, Giovanni & Ventura, Marco, 2019. "Intended and unintended effects of public incentives for innovation. Quasi-experimental evidence from Italy," Discussion Papers on Economics 9/2019, University of Southern Denmark, Department of Economics.
    3. Francesco Biancalani & Dirk Czarnitzki & Massimo Riccaboni, 2022. "The Italian Start Up Act: a microeconometric program evaluation," Small Business Economics, Springer, vol. 58(3), pages 1699-1720, March.
    4. Riccardo Gianluigi Serio & Maria Michela Dickson & Diego Giuliani & Giuseppe Espa, 2020. "Green Production as a Factor of Survival for Innovative Startups: Evidence from Italy," Sustainability, MDPI, vol. 12(22), pages 1-12, November.
    5. Riccardo Gianluigi Serio & Maria Michela Dickson & Diego Giuliani & Giuseppe Espa, 2020. "Green production as a factor of survival for innovative startups. Evidence from Italy," Papers 2005.12102, arXiv.org.
    6. Mellace, Giovanni & Ventura, Marco, 2023. "The short-run effects of public incentives for innovation in Italy," Economic Modelling, Elsevier, vol. 120(C).
    7. Roberto Antonietti & Francesca Gambarotto, 2018. "I luoghi fertili per l?innovazione. uno studio sulla localizzazione delle start-up innovative in Italia," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(3), pages 52-61.
    8. Roberto Antonietti & Francesca Gambarotto, 2020. "The role of industry variety in the creation of innovative start-ups in Italy," Small Business Economics, Springer, vol. 54(2), pages 561-573, February.

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    More about this item

    Keywords

    start-ups; financing innovation; equity; financial structure. Classification-JEL: G24; G32; H81; O38;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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