IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i18p8284-d1749844.html
   My bibliography  Save this article

Startups in a Remote Region: Policy Implications from the Israeli Experience

Author

Listed:
  • Raphael Bar-El

    (Public Policy & Administration Department, Ben Gurion University of the Negev, Beer-Sheva 8410501, Israel
    Department of Applied Economics and Administration, Sapir Academic College, Shaar Hanegev 7956000, Israel)

  • Liran Maymoni

    (Public Policy & Administration Department, Ben Gurion University of the Negev, Beer-Sheva 8410501, Israel
    Department of Applied Economics and Administration, Sapir Academic College, Shaar Hanegev 7956000, Israel)

Abstract

Startups are typically concentrated in major urban centers, while their presence in peripheral regions remains limited, raising important questions about the spatial distribution of innovation and entrepreneurship. This study investigates how different types of startups respond to disparities in regional ecosystem factors, with a focus on the role of support mechanisms in shaping location decisions. We conducted a survey of 202 startups, including 157 located in the Tel Aviv metropolitan area and 45 in the peripheral city of Be’er-Sheva. The survey assessed startup typologies such as innovation strategy, international orientation, and R&D intensity, alongside perceptions of the importance and availability of key ecosystem resources. Logistic regression analysis indicated that startups in peripheral regions rely more heavily on government financial support, pointing to a structural market failure that requires targeted policy intervention. In contrast, startups in central regions benefit from stronger proximity-based advantages, particularly collaboration with suppliers and consumers. Startups engaged in open innovation or with international links were especially dependent on external ecosystem resources. These findings highlight the need for differentiated, evidence-based policies to support entrepreneurial activity in peripheral regions, strengthen local innovation ecosystems, and promote more balanced patterns of regional economic development.

Suggested Citation

  • Raphael Bar-El & Liran Maymoni, 2025. "Startups in a Remote Region: Policy Implications from the Israeli Experience," Sustainability, MDPI, vol. 17(18), pages 1-15, September.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:18:p:8284-:d:1749844
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/18/8284/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/18/8284/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:18:p:8284-:d:1749844. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.