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Local industrial structure, agglomeration economies and the creation of innovative start-ups: evidence from the Italian case

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  • Claudia Capozza
  • Sergio Salomone
  • Ernesto Somma

Abstract

We explore the local factors associated with the emergence of innovative start-ups fostered by a targeted industrial policy intervention in Italy. We focus on the local industrial fabric and the agglomeration mechanisms, namely localization (specialization) economies, diversification economies and the proximity to large firms. Results show that both localization economies and diversification economies are at play. Notably, a greater presence of large firms at local level seems to support the creation of innovative start-ups. Other factors, such us the presence of technical and scientific universities and the urbanization, are found to encourage their formation. The contribution of local factors to the innovative start-up creation is found to be different depending on the regional development conditions. Our analysis outlines the features of a local ecosystem favourable to the emergence of these firms, providing policy makers with suggestions for moulding industrial policies to regional specific needs and to better exploit the local opportunities.

Suggested Citation

  • Claudia Capozza & Sergio Salomone & Ernesto Somma, 2018. "Local industrial structure, agglomeration economies and the creation of innovative start-ups: evidence from the Italian case," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 30(7-8), pages 749-775, August.
    • Handle: RePEc:taf:entreg:v:30:y:2018:i:7-8:p:749-775
    DOI: 10.1080/08985626.2018.1457087
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    Cited by:

    1. Guilherme Fowler A. Monteiro & Adriana Bruscato Bortoluzzo & Pedro Lipkin P. Rosa, 2021. "Is there heterogeneity among persistent high‐growth firms?," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2272-2292, December.
    2. Zhangqi Zhong & Lingyun He, 2022. "Macro-Regional Economic Structural Change Driven by Micro-founded Technological Innovation Diffusion: An Agent-Based Computational Economic Modeling Approach," Computational Economics, Springer;Society for Computational Economics, vol. 59(2), pages 471-525, February.
    3. Leonardo Mazzoni & Niccolò Innocenti, 2024. "What conditions favor high-potential entrepreneurship? Unpacking the nexus between the industrial structure and startup typologies," Small Business Economics, Springer, vol. 62(3), pages 1201-1222, March.
    4. Li, Junwei & Liu, Wenxiao & Du, Lei & Xiao, Jin, 2024. "High-tech industry agglomeration and regional green development: An analysis of spatial Durbin model," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    5. Götz Marta, 2019. "Unpacking the provision of the industrial commons in Industry 4.0 cluster," Economics and Business Review, Sciendo, vol. 5(4), pages 23-48, December.
    6. Frank Crowley & Declan Jordan, 2022. "Do local start-ups and knowledge spillovers matter for firm-level R&D investment?," Urban Studies, Urban Studies Journal Limited, vol. 59(5), pages 1085-1102, April.
    7. Ismaëlh Cissé & Jean Dubé & Cédric Brunelle, 2020. "New business location: how local characteristics influence individual location decision?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 185-214, February.
    8. Leonardo Mazzoni & Massimo Riccaboni & Erik Stam, 2024. "Entrepreneurial Ecosystems and Interregional Flows of Entrepreneurial Talent," Papers in Evolutionary Economic Geography (PEEG) 2426, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2024.
    9. Wan Li & Bindong Sun & Shuaishuai Han & Xiaoxi Jin, 2023. "Does Urban Agglomeration Discourage Entrepreneurship in China? Micro-Empirical Evidence from China," Land, MDPI, vol. 12(1), pages 1-14, January.
    10. Song Wang & Jiexin Wang & Chenqi Wei & Xueli Wang & Fei Fan, 2021. "Collaborative innovation efficiency: From within cities to between cities—Empirical analysis based on innovative cities in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1330-1360, September.
    11. Lars Speckemeier & Dimitrios Tsivrikos, 2022. "Green Entrepreneurship: Should Legislators Invest in the Formation of Sustainable Hubs?," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    12. Kai Chang & Huijia Zhang & Boyang Li, 2024. "The Impact of Digital Economy and Industrial Agglomeration on the Changes of Industrial Structure in the Yangtze River Delta," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9207-9227, June.
    13. Wooseung Lee & Boyoung Kim, 2019. "Business Sustainability of Start-Ups Based on Government Support: An Empirical Study of Korean Start-Ups," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    14. Allan O’Connor & David Audretsch, 2023. "Regional entrepreneurial ecosystems: learning from forest ecosystems," Small Business Economics, Springer, vol. 60(3), pages 1051-1079, March.
    15. Ren Lu & Qi Lu & Daguo Lv & Yuxiang Huang & Shuping Li & Ze Jian & Torger Reve, 2020. "The Evolution Process Of Entrepreneurship Studies In The 21st Century: Research Insights From Top Business And Economics Journals," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 922-951, September.
    16. Xin Dai & Jie Tang & Qin Huang & Wenyue Cui, 2023. "Knowledge Spillover and Spatial Innovation Growth: Evidence from China’s Yangtze River Delta," Sustainability, MDPI, vol. 15(19), pages 1-26, September.
    17. Du, Gang & Li, Wendi, 2022. "Does innovative city building promote green logistics efficiency? Evidence from a quasi-natural experiment with 285 cities," Energy Economics, Elsevier, vol. 114(C).
    18. Porto-Gomez, Igone & Zabala-Iturriagagoitia, Jon Mikel & Leydesdorff, Loet, 2019. "Innovation systems in México: A matter of missing synergies," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    19. Kai Du & Allan O’Connor, 2021. "Examining economic complexity as a holistic innovation system effect," Small Business Economics, Springer, vol. 56(1), pages 237-257, January.

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