Innovative startups and their traditional peers: Further evidence using performance and survival analysis

This study assesses the Italian Startup Act, introduced in 2012, to promote in-novative entrepreneurship. Focusing on manufacturing firms registered between2014 and 2017, we compare innovative startups with non-innovative peers usingmatching techniques, survival analysis, probit models, and panel regressions.Findings reveal that innovative startups exhibit stronger financial structures,higher survival rates, and fewer credit constraints, though they take longer toachieve profitability. Firms with greater leverage are more likely to register asinnovative, while larger firms are less inclined to do so. Intellectual property (IP)compliance correlates with higher survival and stronger patent activity. Theseresults offer insights into industrial policy effectiveness. While the Startup Actsupports financial access and firm resilience, its potential to drive innovation andIP development remains underexploited. Our analysis suggests the need for moretargeted, regionally nuanced interventions to enhance the policy's impact andbetter support the growth of Italy's innovation-driven startup ecosystem.