Selecting start-up support projects based on market failure theory
During the last years major market-oriented economies have installed differently designed promoting institutions. Most of them declare in their statutes ‘correcting market failure’ as a fundamental goal regarding start-up support. But recent studies have shown that other economic goals outrank this aim. To resolve this existing dichotomy between the motivation and the practical design of public intervention is the goal of this paper. To this end, we develop, using the Analytical Hierarchy Process, a decision tool, which incorporates the market failure theory as its foundation. With this study, we contribute to the public policy research by introducing a new multi-attributive decision model as well as to the entrepreneurship arena by introducing the Analytical Hierarchy Process as a methodology that can be used to structure and solve complex public policy decision problems.