Due to the collected data and the extensive and interdisciplinary analysis carried out in the project, the recommendations will help developing more integrated policy approaches that promote entrepreneurship, growth and social inclusion at university locations. The policy recommendations will refer to local entrepreneurship creation, strategies to avoid brain drain and improved cooperation between universities, firms and local authorities.
1. The Basic
(Small cities near rural areas with socioeconomic and demographic issues, poor infrastructure, and a low industry mix.)
Local and Regional Policies
Succession Entrepreneurship Program: Many small businesses in these regions face closure due to a lack of successors. Create a matchmaking platform where aging business owners can connect with entrepreneurial students willing to take over. Offer tax breaks for student takeovers and facilitate "trial run" internships.
Public-Private Microbusiness Funds: Establish a municipal microloan program (€5,000–€15,000) for startups addressing local needs (e.g., AgriTech, tourism, small-scale manufacturing).
Cooperative Business Models: Promote student-run cooperatives in key industries like local food production, rural logistics, and community-based digital services.
Affordable Workspaces: Convert underused public buildings into affordable co-working hubs with priority access for student entrepreneurs.
University Policies
Entrepreneurship in All Programs: Integrate basic business courses into all disciplines, particularly in fields relevant to the region (agriculture, tourism, environmental sciences).
Successor Entrepreneurship Training: Offer courses on business acquisition alongside traditional startup modules.
University-Business Connection: Inspire students to complete an internship in a local SME to build familiarity with regional business opportunities.
Concrete Incentives
Takeover Incentives: Offer municipal grants (e.g., €10,000) for students taking over existing local businesses.
No-Tax Period for Startups: Provide two years of local tax exemption for graduates launching or taking over a business.
Business Incubation Vouchers: Cover the first year of business consultancy, legal, and accounting fees for new student-led businesses.
2. The Emerging
(Peripheral cities with low population density, historically dependent on agriculture or traditional manufacturing, struggling with economic transformation.)
Local and Regional Policies
Industrial Transition Startups: Provide grants and mentoring for startups tackling smart manufacturing, green energy, circular economy, and IT-based logistics.
Tech & Innovation Parks: Convert abandoned industrial sites into innovation zones, offering tax incentives to startups setting up there.
Cluster-Based Incubation: Develop regional startup clusters linked to the main industries of the region (e.g., textile innovation, sustainable packaging, local bioeconomy).
University Policies
Strategic Business Partnerships: Universities should partner with businesses to co-create applied research projects.
Entrepreneurial Degree Tracks: Allow students to replace traditional theses with business development projects.
Joint Training with SMEs: Encourage shared training programs where students gain hands-on experience in SME-led innovation projects.
Concrete Incentives
Prototype Development Grants: Provide small grants (e.g., €3,000–€10,000) for student startups creating new industrial solutions.
Low-Cost Business Space in Industrial Areas: Offer rent-free spaces in converted industrial buildings.
Industry-Sponsored Startup Challenges: Organize entrepreneurship competitions where winning ideas receive funding & mentorship from regional firms.
3. The Advanced
(Mid-sized cities with some agglomeration effects but facing low innovation and economic stagnation.)
Local and Regional Policies
Innovation-Driven Business Support: Create city-backed venture capital funds that co-finance high-tech and service-based student startups.
Flexible Regulatory Environment: Implement fast-track business registration for student ventures and offer simplified tax filings.
Special Economic Zones for Startups: Develop "Startup Innovation Districts" that provide low-rent office spaces and business-friendly regulations.
Follow-On Growth Grants: Provide second-stage grants for startups that show revenue growth but need capital for scaling after 3 to 7 years.
Targeted Scale-Up Fund: Provide €100,000–€500,000 convertible loans for startups that need growth capital but do not yet qualify for VC funding.
Regional Market Access Accelerator: Co-finance participation in national/international trade fairs and export programs for student-founded businesses.
University Policies
Corporate-Startup Incubation Program: Create university-backed accelerators in partnership with local firms, where startups receive seed funding.
Flexible Entrepreneurial Degree Tracks: Allow students to replace traditional theses with business development projects.
Revenue-Based Incubation Model: Instead of time-limited incubators, startups remain in the university ecosystem as long as they show revenue growth.
Post-Startup Mentorship Program: Launch a "Second-Stage Startup Club" (after 3 years since founding), providing scaling mentorship, financial strategy consulting, and investor matchmaking.
Concrete Incentives
Survivor Grants: €30,000–€100,000 grants for startups that reach Year 3 and show potential.
Deferred Taxation for Expanding Startups: Suspend local taxes for 2 additional years if startups reinvest profits into hiring or expansion.
City-Backed Credit Guarantees: Provide loan guarantees for student startups needing bank financing after Year 3.
4. The Frontrunner
(Cities with high economic activity, strong R&D investment, and international appeal but lacking local job-market integration for graduates.)
Local and Regional Policies
High-Growth Sector Integration: Strengthen connections between universities and high-tech sectors (AI, fintech, biotech).
Talent Retention Incentives: Offer cash bonuses or subsidized housing for graduates launching businesses in the city.
Regulatory Sandbox for Startups: Allow experimental business models to operate under relaxed regulations (e.g., AI-driven finance, shared mobility).
Post-Accelerator Scale-Up Fund: A fund for startups transitioning from incubators to full-scale operations, providing expansion capital.
Corporate Partnerships for Scaling: Offer tax breaks & subsidies for large firms partnering with student startups on joint ventures and pilot projects.
University Policies
University Venture Fund (Seed + Scale-Up Stages): Provide funding for R&D-based student startups.
Interdisciplinary Startup Teams: Facilitate cross-disciplinary startup teams, matching business students with engineers, designers, and social scientists.
"From Lab to Market" Program: Extend support for R&D startups beyond prototyping into early commercialization and mass production.
International Entrepreneur Residency Program: Offer long-term work permits & residency visas for foreign graduates building businesses in the region.
Deferred Office Space Costs: Allow startups in university-linked incubators to pay rent based on revenue rather than fixed costs.
Concrete Incentives
Scale-Up Tax Relief: Reduce corporate taxes for startups surpassing €1 million revenue within 5 years.
Public Procurement for Startups: Reserve 5% of municipal contracts for innovative startup solutions.
Municipal Customer Vouchers: Offer city-sponsored vouchers (e.g., €5,000) for residents & businesses to purchase services from local student startups.
Policies for Increasing Regional Integration of Universities in the Regional Innovation Network
Redefine the University’s Mission: Beyond Education & Research
Universities should integrate "Third Mission" activities, which include economic and societal engagement, into their strategic plans to ensure that their role extends beyond education and research. This requires defining clear key performance indicators (KPIs) for regional engagement, such as the number of university spin-offs, the volume of joint research and development projects with local businesses, and the extent of external collaborations that contribute to regional innovation. To institutionalize this commitment, universities should establish dedicated impact units that focus on fostering regional development, supporting entrepreneurship, and strengthening business engagement. These units would serve as central coordination hubs, ensuring that university initiatives align with the economic and innovation needs of the region.
Create a Regional "Innovation Council"
Universities should institutionalize structured cooperation with local firms, municipalities, policymakers, and chambers of commerce to ensure that academic activities are closely aligned with regional economic priorities. This collaboration should be formalized through regular meetings, where stakeholders can discuss pressing economic challenges, identify innovation opportunities, and align university research with real-world industry and policy needs. To ensure a comprehensive and inclusive approach, these meetings should bring together a diverse group of participants, including students, researchers, business leaders, and policymakers, fostering a dynamic exchange of knowledge and perspectives that supports regional development and entrepreneurial growth.
Become a hub through accessible entrepreneurial & innovation infrastructure:
To establish universities as regional innovation hubs, they should develop multi-use university innovation districts that integrate research, entrepreneurship, and industry collaboration. This involves creating university-led innovation parks that bring together startups, research labs, and corporate R&D units in a shared ecosystem. These spaces should include co-working areas and low-rent incubator zones, providing affordable and flexible workspaces for student and faculty startups. To ensure continuous engagement between academia and business, business accelerator programs should be embedded within university campuses, allowing industry partners to interact regularly with entrepreneurial talent and emerging technologies. Universities should invest in cross-disciplinary experimentation spaces that promote collaboration between students, researchers, and local entrepreneurs. Universities should establish physical spaces where individuals from different disciplines can prototype ideas and develop early-stage projects together. Special emphasis should be placed on interdisciplinary teamwork, ensuring that engineers, business students, designers, and social scientists collaborate effectively on innovation-driven solutions.
Building a Strong University Brand in the Regional Innovation Ecosystem
Universities must position themselves as anchor institutions of innovation, actively shaping the regional economy and reinforcing their role as hubs of entrepreneurship and technological advancement. To achieve this, universities should systematically market their economic and innovation impact by publishing annual reports detailing the number of startups created, research commercialized, and industry partnerships formed. These reports should not only highlight success stories but also communicate the university’s broader contribution to regional economic growth. Additionally, establishing a University Innovation Council—which includes representatives from media, business, and government—would help amplify the visibility of university-led entrepreneurial initiatives and ensure that stakeholders recognize the institution’s role in fostering innovation. Beyond visibility, universities must actively attract investors by positioning themselves as investment hubs where regional and international venture capitalists can discover high-potential startups. To facilitate this, universities should host an annual University-Industry Innovation Summits, where emerging ventures and research-driven businesses can present their ideas to investors and corporate partners. By creating an ecosystem where funding opportunities are regularly introduced, universities can increase the likelihood that promising startups secure long-term financial backing, reducing the common challenge of early-stage businesses failing due to lack of capital.
