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Startups, Innovation and Performance: An Empirical Analysis in the Italian Context Using SMAA-S

Since 2012, with the Growth Decree 2.0, the Italian Government has been engaged in promoting the establishment and the growth of new innovative startups with a high technological value. The general objective of the policy is to promote sustainable growth, technological advancement and innovation. In the Decree framework, startups have to own an innovative character that is identified by at least one of the following three criteria: investments in research and development, qualified workforce, holding patents or registered software. Such three characteristics can be considered as innovation inputs able to create the conditions for a competitive advantage and greater economic performance. The research objective is to analyze how innovation inputs in innovative startups affect their economic performance. Each input factor can have a different impact on the company profitability. To this end, we apply the methodology SMAA for strategic management analysis and assessment (or SMAA-S) to detect the relation between innovation and profitability in Italian startups.