Micro-econometric analysis of innovative start-ups: the role of firm-specific factors and industry context in innovation propensity

We explore the innovation-enabling factors in young innovative companies (YICs) considering different elements of firm-specific absorptive capacity along with factors related to the industrial structure. Evidence from Italian YICs, known as innovative start-ups whose creation was prompted by the Start-up Act in 2012, shows that absorptive capacity factors matter with differences for product and process innovation. Moreover, the configuration of the industry context remarkably shape innovation, providing implications for policy-makers seeking to improve the national competitiveness by sustaining new ventures of high technological value