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Does language prevent policy take-up? Evidence from the Italian Start-up Act

Michele Cantarella, Nicolò Fraccaroli and Roberto Volpe

Research Policy, 2024, vol. 53, issue 6

Abstract: Does ethnolinguistic diversity prevent policy adoption? The implementation of the Italian Start-up Act of 2012 in the bilingual (German and Italian) region of Trentino-Alto Adige offers the ideal setting to investigate this question. The Act sets up a scheme of benefits which young firms can access by registering as “innovative start-ups” on a voluntary basis. We find that policy take-up has been persistently lower in areas of the region with more German speakers, as local firms with German-named administrators are less likely to register as start-ups than firms with Italian-named ones. These findings are robust to firm characteristics and regional heterogeneity and are also visible within mixed-language municipalities. Furthermore, text analysis on press sources suggests that this national policy was much more extensively covered in the Italian-language local media, while a survey of local residents indicates that German speakers have lower knowledge of national policies unless they are embedded in multilingual networks.

Keywords: Ethnolinguistic asymmetries; Start-ups; Innovation policy; Network embeddedness (search for similar items in EconPapers)
JEL-codes: D83 M13 O32 O38 Z13 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:53:y:2024:i:6:s0048733324000532

DOI: 10.1016/j.respol.2024.105004

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