The impact of hard and soft policy measures on new technology-based firms

Entrepreneurship policies in support of new technology-based firms fall into two main categories of intervention: hard measures (financial-type support such as loans and grants) and soft measures (counselling and business advice services). This study investigates the association between hard and soft support measures delivered to entrepreneurs, and the performance of the subsequently constituted new technology-based firms. The empirical framework analyses the outcomes of the Spinner Programme – a regional policy measure implemented in the Italian region of Emilia-Romagna during 2000-2006. The analysis finds that soft measures are positively related to a higher probability of exiting the market and to higher sales growth. The results also show that the magnitude of the effect of soft measures on growth is greater than the effect of hard measures