Innovative startup localization determinants and origin: A Rome city case study

Abstract

The aim of this paper is to analyze innovative startup localization determinants, taking into account a range of factors related to town planning subjects, too. We also focused on the role played by the Fab Labs and coworking as well as on startupper characteristics (e.g. age, previous employment status, business motivation, etc.). The analysis is based on a dataset including information deriving from a survey on 127 innovative startups located in the city of Rome at a district level, linked to other business register (administrative archive) data in addition to geo-referencing analysis. Our findings are that logistics are the main determinant of innovative startup localization for older startuppers in particular while younger startuppers pay more attention to real estate costs and proximity to home. The presence of Fab Lab spaces and coworking is the second determinant, especially for innovative startups located in the city center. Furthermore, our analysis also reveals that the majority of startuppers are people who have previously worked as employees, professionals, etc. on the basis of know-how acquired during their working careers. Moreover, the results suggest that social relationships and the family are the main two contexts in which people develop an entrepreneurial spirit. Finally, policy implications for the town planning agenda linked to entrepreneurship theme are also discussed.

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