New business formation plays an important role for economic development. Therefore, policy makers put emphasis on fostering start-up activity. Aims and scope of entrepreneurs can be just as heterogeneous as the structure of new ventures. The project "New business formation and the labor market...

The present paper investigates the effectiveness of R&D subsidies given to start-ups. Taking an aggregate view rather than evaluating a single program, we estimate the impact of R&D subsidies on start-ups’ employment growth and their patent output. A unique data set on start-ups in the East...