The Italian Start Up Act: a microeconometric program evaluation

Abstract This paper analyzes the impact of Italian Start Up Act which entered into force in October 2012. public policy provides a unique bundle benefits, such as tax incentives, loan guarantees, and more flexible labor law, for firms registered “innovative startups” Italy. legislation has been implemented by government to increase innovativeness small young enterprises facilitating access (external) capital (high-skilled) labor. Consequently, goal our evaluation is assess on equity, debt, employment. Using various conditional difference-in-difference models, we find that innovative startup met its primary objectives. The econometric results strongly suggest startups are successful obtaining equity debt they also hire employees because program participation.