To Be Born is Not Enough: The Key Role of Innovative Startups

41 Pages Posted: 15 Feb 2016

See all articles by Alessandra Colombelli

Alessandra Colombelli

Polytechnic University of Turin

Jackie Krafft

Université de Nice Sophia Antipolis

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano; IZA Institute of Labor Economics

Abstract

This paper investigates the reasons why entry per se is not necessarily good and the evidence showing that innovative startups survive longer than their non-innovative counterparts. In this framework, our own empirical analysis shows that greater survival is achieved when startups engage successfully in both product innovation and process innovation, with a key role of the latter. Moreover, this study goes beyond a purely microeconomic perspective and discusses the key role of the environment within which innovative entries occur. What is shown and discussed in this contribution strongly supports the proposal that the creation and survival of innovative start-ups should become one qualifying point of the economic policy agenda.

Keywords: innovation, startups, survival, product innovation, process innovation

JEL Classification: L26, O33

Suggested Citation

Colombelli, Alessandra and Krafft, Jackie and Vivarelli, Marco, To Be Born is Not Enough: The Key Role of Innovative Startups. IZA Discussion Paper No. 9733. Available at SSRN: https://ssrn.com/abstract=2731996

Alessandra Colombelli (Contact Author)

Polytechnic University of Turin ( email )

Corso Duca degli Abruzzi 24
Torino, Torino 10129
Italy

Jackie Krafft

Université de Nice Sophia Antipolis ( email )

250, rue Albert Einstein
Valbonne, 06560
France

Marco Vivarelli

Universita Cattolica del Sacro Cuore, Milano ( email )

Largo Gemelli 1
Milano, 20123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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