This paper addresses the question of the efficacy of R&D policy measures in support of high-tech start-ups. We show that subsidies awarded on a competitive basis lead to a positive effect, while those assigned through an automatic procedure do not.

We empirically investigate firm dissolution in high-tech sectors by distinguishing between closure and merger/acquisition (M&A) and discussing the different antecedents of the effects of age and initial size on the two dissolution types.