(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.
