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The Effects of Place-based Startup Policy Mix on Local Entrepreneurship : Evidence from City Government Survey in Japan

Author

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  • OKAMURO, Hiroyuki
  • NISHIMURA, Junichi

Abstract

Place-based economic policies have attracted research attention. Previous studies have discussed the advantages of local governments due to the heterogeneity of local conditions and environment. In recent years, most Japanese cities have provided various types of startup support for various types of potential founders and startups for regional revitalization. However, no empirical studies have addressed local startup support by considering and comparing different types of startup support. Based on our original survey data of Japanese cities, we fill these gaps by estimating the effects of city-level startup support on local startup activities by comparing different support measures. Using a city-level panel dataset with seven periods over 20 years and panel fixed effect models, we find that both hard support (subsidies) and soft support (seminars) have positive and significant effects on the number of new establishments, whereas subsidies reduce the average size of new firms, suggesting a trade-off between policy goals.

Suggested Citation

  • OKAMURO, Hiroyuki & NISHIMURA, Junichi, 2026. "The Effects of Place-based Startup Policy Mix on Local Entrepreneurship : Evidence from City Government Survey in Japan," Discussion paper series HIAS-E-157, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    • Handle: RePEc:hit:hiasdp:hias-e-157
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    References listed on IDEAS

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    1. Hiroyuki Okamuro & Junichi Nishimura, 2021. "Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs [The Impact of R&D Subsidies on R&D Employment Composition]," Science and Public Policy, Oxford University Press, vol. 48(6), pages 829-840.
    2. Erik Stam, 2015. "Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1759-1769, September.
    3. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    4. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    5. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    6. Santarelli, Enrico & Piergiovanni, Roberta, 1995. "The Determinants of Firm Start-up and Entry in Italian Producer Services," Small Business Economics, Springer, vol. 7(3), pages 221-230, June.
    7. Hiroyuki Okamuro & Junichi Nishimura, 2015. "Local Management of National Cluster Policies: Comparative Case Studies of Japanese, German, and French Biotechnology Clusters," Administrative Sciences, MDPI, vol. 5(4), pages 1-27, November.
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    More about this item

    Keywords

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    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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