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Supporting innovative entrepreneurship: an evaluation of the Italian "Start-up Act"

Author

Listed:
  • Francesco Manaresi

    () (Directorate General for Economics, Statistics and Research, Bank of Italy)

  • Carlo Menon

    () (Laterite)

  • Pietro Santoleri

    (Institute of Economics and EMbeDS, Sant'Anna School of Advanced Studies)

Abstract

The role of innovative start-ups in contributing to aggregate economic dynamism has attracted increased attention in recent years. While this has translated into several public policies explicitly targeting them, there is little evidence on their e ectiveness. This paper provides a comprehensive evaluation of the "Start-up Act", a policy intervention aimed at supporting innovative start-ups in Italy. We construct a unique database encompassing detailed information on firm balance-sheets, employment, firm demographics, patents and bank-firm relationships for all Italian start-ups. We use conditional difference-in-differences and instrumental variable strategies to evaluate the impact of the "Start-up Act" on firm performance. Results show that the policy induces a significant increase in several firm outcomes whereas no effect is detected in patenting propensity and survival chances. We also document that the policy alleviates nancial frictions characterizing innovative start-ups through the provision of tax credits for equity and a public guarantee scheme which, respectively, trigger an increase in the probability of receiving VC and accessing bank credit.

Suggested Citation

  • Francesco Manaresi & Carlo Menon & Pietro Santoleri, 2020. "Supporting innovative entrepreneurship: an evaluation of the Italian "Start-up Act"," Mo.Fi.R. Working Papers 163, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  • Handle: RePEc:anc:wmofir:163
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    More about this item

    Keywords

    Start-ups; Entrepreneurship policy; Policy Evaluation; Firm performance;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation

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