Start-Up Act, the Human Capital of Entrepreneurs and the Start-Up Size of Young Innovative Companies

Download or read book Start-Up Act, the Human Capital of Entrepreneurs and the Start-Up Size of Young Innovative Companies written by Emanuele Giraudo and published by . This book was released on 2018 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: Innovative entrepreneurship plays a key role for the economy development and several policy interventions are usually implemented to support and sustain the phenomenon, at least in numerical terms. However previous studies highlight that is not the number of startups which enhance the economic and welfare growth, while it is proved that is the quality of the entrepreneurial teams, in terms of education and work experience, that the policy is able to mobilize that matter most. Our empirical analysis is carried out studying the effect of the 221/2012 law, the Italian policy intervention aimed at subsidizing Young Innovative Companies (YICs). We focus on the entrepreneurs' human capital characteristics of the newly borne startups and analyse if the policy was able to change the typical profile, in terms of human capital characteristics, of individuals pursuing the innovative entrepreneurial career. Our preliminary empirical analysis based on 400 YICs founders shows that the policy was capable (more than the ex-ante situation) to stimulate younger individuals with a stronger background in term of (specific) work experience to start their business. We interpret this as a positive signal in terms of the capability of the policy to select the most promising entrepreneurs. But when we look at the startup size of the newly created firms, which represents a good predictor of new firm survival chances, we do not observe any significant difference before and after the policy implementation.