The Effects of Place-based Startup Policy Mix on Local Entrepreneurship: Evidence from City Government Survey in Japan

Hiroyuki Okamuro and Junichi Nishimura

No HIAS-E-157, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: Place-based economic policies have attracted research attention. Previous studies have discussed the advantages of local governments due to the heterogeneity of local conditions and environment. In recent years, most Japanese cities have provided various types of startup support for various types of potential founders and startups for regional revitalization. However, no empirical studies have addressed local startup support by considering and comparing different types of startup support. Based on our original survey data of Japanese cities, we fill these gaps by estimating the effects of city-level startup support on local startup activities by comparing different support measures. Using a city-level panel dataset with seven periods over 20 years and panel fixed effect models, we find that both hard support (subsidies) and soft support (seminars) have positive and significant effects on the number of new establishments, whereas subsidies reduce the average size of new firms, suggesting a trade-off between policy goals.

Keywords: startup; entrepreneurship; place-based policy; policy mix; city (search for similar items in EconPapers)
JEL-codes: H71 L26 M13 R58 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2026-03-24
New Economics Papers: this item is included in nep-ent, nep-sbm and nep-uep
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