Start-ups formation in Italy: the role of regional innovation systems

What is the role of regional innovation systems in start-up formation? To explain regional variation in start-up rates, we conducted a mixed-methods study based on data from Italy. Through in-depth interviews with entrepreneurs, we assessed the role of RIS in the start-up process. Next, we estimated a multivariate OLS regression model. We found that in Italian regions start-up formation depends on the knowledge generation and diffusion subsystem: quality of research, entrepreneurial education, networking opportunities and access to resources. The innovativeness of regional industrial bases has a limited effect on start-up formation. We interpret the results as an effect of an institutional setting that creates limited incentives for innovative entrepreneurship. Overall, we find that the innovation performance of Italian regions is not associated with start-up formation rates.