This paper examines pre-start determinants of the demand for publicly fundedexternal support to new ventures. It also investigates the effects of different types of suchsupport on subsequent firm growth. Adopting resource-based and information asymmetryapproaches, the paper argues that the entrepreneurs who ask for publicly funded pre-startsupport are more likely to face information asymmetries with regard to resource providers,which in turn depend on their level of human and social capital. It also suggests thatintangible support oriented towards knowledge generation would be the most beneficial. Aseries of two-stage treatment effects models applied to a representative sample of new firmsin Navarra (Spain) offer considerable support to our predictions. Implications for research andpolicy are discussed.
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