Overcoming the dark side of subnational start-up support policies: a pilot project for facilitating cross-border cooperation in Europe

ABSTRACT

Business start-up support policies have gained significant attention from policymakers, largely due to their immediate impacts and the positive media coverage they receive. However, the widespread adoption of these policies has often led to a fragmented landscape characterised by limited coordination, especially in countries with multi-tiered governmental structures. As a result, the full potential of public investments is hindered. This study aims to identify and address the key challenges associated with these policies, offering valuable insights drawn from a collaborative initiative within the Galicia–Northern Portugal Euroregion. The findings provide practical and scalable guidance for research institutions, businesses, and policymakers seeking to establish effective partnerships, prioritise objectives and achieve substantial impact in cross-border regions.

KEYWORDS:

• entrepreneurship; start-up support policies; subnational policies
• Galicia–Northern Portugal Euroregion; cross-border cooperation

JEL:

• M13
• O2

ACKNOWLEDGEMENTS

We extend our gratitude to the knowledge transfer unit of REDE (with special thanks to Andrea Ogando) for their support in implementing Sherpa. We also acknowledge the valuable comments and feedback from the editors and reviewers, as well as the insights shared by our colleagues during the XXXI Spanish Academy of Management (ACEDE) Conference and the VIII International Workshop on Entrepreneurship Research GEM-ACEDE.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Additional information

Funding

The Spanish and Galician administrations financially supported this research through project PID2022-136983NB-I00, funded by the Agencia Estatal de Investigación, and grant ED431C 2022/37, funded by the Consellería de Cultura Educación e Ordenación Universitaria, Xunta de Galicia. Additionally, this study benefited from the outcomes of project 0466_SHERPA_DO_MAR_1_E, co-financed by the European Regional Development Fund (ERDF) through the Interreg V-A Spain–Portugal Program (POCTEP) 2014–2020.