The creation of cleantech startups at the local level: the role of knowledge availability and environmental awareness

In this paper, we explore which local factors affect the creation of cleantech startups in a geographical area. Specifically, we note that these startups combine innovation and attention to the environment. Thus, we consider two primary sets of local factors: the availability of scientific and technological knowledge and the environmental awareness of local governments and communities as the main drivers of the creation of cleantech startups. Using a dataset of 393 cleantech startups created between 2012 and 2014 and extracted from the Italian official database of innovative startups, we estimate negative binomial regressions whose dependent variable is the number of cleantech startups created in each of the 110 Italian provinces. The results highlight that both the local availability of scientific and technological knowledge and the local environmental awareness are crucial determinants of cleantech entrepreneurship in a geographical area. We discuss the implications of these results for policymakers who intend to stimulate this type of entrepreneurship.