Exploring the impact of innovation intensity on the growth of female-led entrepreneurial firms

Abstract

Purpose: The purpose of this article is to investigate the relationship between gender, innovation and growth in Italian innovative start-ups. Design/methodology/approach: This is a quantitative study based on a sample of more than 4,600 Italian innovative start-ups. In order to ascertain whether female-led firms that invest more in innovation grow more than their male-led counterparts, sales growth is analysed through a fixed-effects regression over the period 2015–2019. Propensity score matching is also used to check for potential selection bias. Findings: Results reveal that innovation is crucial for start-up growth and, most importantly, that female entrepreneurs exploit the potential of innovative activities for their firm’s growth better than their male peers. Originality/value: The results provide important evidence on the link between gender and innovation and how these two elements interact for the growth of firms in their early life. Results also provide insights for policymakers to use in designing programs for promoting female entrepreneurship and participation in science.