The article “Supporting innovation and growth through entrepreneurship: reflections on the German Federal Government's ‘startup strategy’” by Prof. Kuckertz and Prof. Brem takes a critical look at the German government's new “startup strategy” to strengthen the startup ecosystem in Germany. The strategy, which was presented in July 2022, outlines ten fields of action to promote innovative entrepreneurship, which is seen as crucial for economic growth. These fields of action include improving startup funding, facilitating talent recruitment, promoting digital entrepreneurship, supporting women, facilitating academic spin-offs, improving conditions for social and sustainable startups, using startup expertise in public procurement, simplifying access to data, strengthening living labs and including startups in the central area of economic policy.
Kuckertz and Brem emphasize that this is the first time that a German federal government has formulated an explicit startup strategy, which is a significant step given Germany's economic importance and its historical entrepreneurial successes. However, it is criticized that the strategy lacks a theoretical framework.
Further analysis criticizes the strategy's superficial treatment of the most important determinants of entrepreneurial activities. For example, the emphasis on real-world laboratories is viewed critically when similar concepts such as makerspaces are not included. The strategy is a good starting point that still needs to be further developed and implemented in concrete terms. Future research and policy efforts are needed to effectively refine and implement the strategy, including the establishment of clearly measurable targets and performance indicators.
Some of the proposed measures, such as stock option programs for first employees of startups and public funds investing in venture capital, may well prove to be fundamentally positive for the German startup landscape.
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Hanna Dewes
Research Associate