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A Triad Model for Promoting Start-ups: Audition, Incubation, and Venture Capital Funding—Evidence from Kawasaki City

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Abstract

Although several detailed reports have been published about university-based start-ups, there are still only a few quantitative treatments other than case studies on ordinary start-ups. Similarly, it is not easy to find empirical analyses on the effectiveness of various policies for promoting new businesses. This study investigates ordinary start-ups in Japan and examines the effectiveness of municipal support policies by using data from questionnaires on start-ups collected in Kawasaki City. We found that nearly half the sample firms could be characterized as ‘entrepreneurial’ start-ups, which were strongly motivated by innovative development, facing a challenge, and initial public offerings (IPOs). This is contrary to the conventional views that start-ups in Japan are more motivated to ensure independence and continuing business than to promote growth through IPOs. We also found that a triadic support system—based on the articulation between audition, incubation and venture capital funding—is effective for promoting such entrepreneurial start-ups.

Keywords

innovation ecosystem start-up audition incubation venture capital funding 

JEL

L26 R11 

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Copyright information

© Japan Association for Evolutionary Economics 2012

Authors and Affiliations

  1. 1.Faculty of EconomicsSenshu UniversityTokyoJapan

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