ACross-BorderAcceleration
Program:TheCaseofSlovenia
andItaly
tinabratkoviˇckregar
UniversityofPrimorska, Slovenia
tina.bratkovic.kregar@fm-kp.si
mitjaruzzier
UniversityofPrimorska, Slovenia
mitja.ruzzier@fm-kp.si
Startups and smesare considered to be key players in the eco-
nomic development of nations. That means it is necessary to es-
tablish an ecosystem that will allow these firms to develop and
grow. Our paper deals with the role of regional innovationecosys-
tems in the process of developing andnurturing these companies.
In particular, we investigate the role of a cross-border collabora-
tion in establishing a regional innovationecosystem that goes be-
yond borders, and provide evidence of a successful cross-border
collaboration between Italy andSlovenia. Based on primary and
secondary data collection, an integrated model of a cross-border
acceleration program was developed. Our findings have impor-
tant implications for cross-border collaboration in thearea of es-
tablishing cross-border accelerator programs, and represent an
example of best practice in this filed. In the future consideration
of support and encouragement of innovation ecosystems, cross-
border collaboration shouldbe seen fundamental forefficient
technology and knowledge transfer from research institutions to
companies.
Key words: entrepreneurship, innovationecosystem, startup,
accelerator, cross-border collaboration
https://doi.org/10.26493/1854-4231.15.241-264
Introduction
Successful startups and small and medium enterprises (smes) have
the ability to create new jobs and contribute to the economic wel-
fare. Especially startups are considered to be a key player in the
economic development. In order to support the development and
growth of startups and smes, a suitable ecosystem needs to be de-
veloped to provide external support and appropriate environmental
conditions for their survival and growth (Ojaghi, Mohammadi, and
management15 (4):241–264
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Tina Bratkoviˇ c Kregar and Mitja Ruzzier
Yazdani, 2019, Tripathi et al. 2019b). Among the various actors and
types of support, accelerator programs have been identified as an
importantpartoftheentrepreneurialecosystem(Cohenetal.2019).
The region’s business ecosystem may determine the success of
firm development. A worldwide example for a region that is best
known for its successful startup creation is the Silicon Valley in
NorthCalifornia(usa)(Tripathietal.2019b).Itisacknowledgedthat
the main reason for the success of the Silicon Valley is the spirit of
cooperation.Therelationshipsestablishedamongitsnetworkmem-
bersfacilitatetheexchangeofresourcesandenableinnovativecom-
panies togrow and become highly profitable (Amadeo 2020).
Basedontheawarenessabouttheimportanceofproximitytosup-
pliers,customersandtechnologytoachieveacompetitiveadvantage,
theideaofdevelopingasuitableinnovationecosystemintheItalian-
Slovenian cross-border region was born. It was called the Cross-
border AccelerationBridge for entrepreneurs– cab. The purpose of
thisprogramwastoempowerlocalresources,becomeafacilitatorin
the startup phase, support smesin the process of internationaliza-
tionandencouragetheexchangebetweenindustryandresearchers.
The main questions investigated during the project were related to
theneedsofcompaniesintheItalian-Sloveniancross-borderregion,
like what do new firms actually need to survive and grow and what
do smesneed in order to go international. Around these two key
questions the integrated model of a cross-border acceleration pro-
gramwas jointly designby Italianand Slovenian partners.
Theaimoftheprogramwastoprovideanewcross-borderservice
that will become a fundamental part of the innovation ecosystem
of Alpe-Adria. By establishing relationships among research insti-
tutions,universities,companiesandorganizationsforentrepreneur-
shipsupportfromthreeregions(FriuliVeneziaGiulia(Italy),Veneto
(Italy) and Slovenia), one of the main outputs would be a consoli-
dated cross-border network that will provide innovative services to
fosterentrepreneurshipinthecross-borderareaandalsobeyondit.
Infact,pastresearchhasshownthatlanguageandlegislativeissues
might be barriers for practical cross-border cooperation, but on the
other hand differences in culture and technology may facilitate the
cross-border knowledge transfer(Makkonenetal. 2018).
The main objectives of our study are to present the role and im-
portanceofinnovationecosystemsandacceleratorsintheprocessof
firm development and technology transfer from research centres to
business, and to present the case study of the cross-border collabo-
ration between Slovenia and Italy in co-establishing a cross-border
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acceleration program. In order to achieve our goals, we developed
two researchquestions:
1.How do accelerators contribute to the development and growth
of startups and smes?
2.What are the key elements of a cross-border acceleration pro-
gram based on the specific needs of Slovenian and Italian com-
panies?
To answer these two questions, a structured literature review
on startups and acceleration programs was conducted, an analy-
sis of the Smart Specialization Strategy (s3)of Friuli Venezia Giulia,
Veneto and Slovenia was performed to identify the best opportunity
areas of cross-border collaboration between the two countries, and
a comparative analysis of entrepreneurship support systems in the
Italian-Slovenian cross-border regionwas conducted.
TheoreticalBackground
The economic growth of a country heavily depends on the abil-
ity of its companies to develop innovative products and services
(FritschandNoseleit2013,Tripathietal.2019b).Indevelopinginno-
vative products, startups have a key role, since their primary cause
ofbirthistheirinnovationcapability(Ojaghi,Mohammadi,andYaz-
dani 2019). They have the ability to disrupt an existing market and
scale themselves into unicorns (Tripathi et al. 2019a). Today, due to
the increasedopenness ininnovation andtechnology, the entrybar-
riers for new startups are lower than in past (Ojaghi, Mohammadi,
and Yazdani2019).
Startups can be defined as temporary organizations in search for
the right, repeatable and scalable business model or as organiza-
tionswiththeaimofcreatingnewproductsunderuncertaincircum-
stances with limited experiences and inadequate resources. They
cannot be treated just as smaller versions of big companies (Blank
andDorf2012;ClarysseandBruneel2007;Ojaghi,Mohammadi,and
Yazdani 2019, Ries 2011; Tripathi et al. 2019b). Startups are seen as
majorsourceofinnovation, sincetheyconstantlyseekfornewtech-
nologies to develop new products and redesign new business mod-
els (Kohler 2016).They represent an effective mechanism for creat-
ing new jobs in developing countries (Humala 2015). Statistical data
show that annually startups create an average of 3 million new jobs
only in the United States.
Therefore, the policy makers responsible for the employment
growthshoulddefinitelygiveaspecialemphasistothistypeofcom-
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panies and develop measures that contribute to their development
(Kane 2010).
Startups might be seen as the key drivers of innovativeness and
growth in the nowadays society, but at the same time they are ex-
tremely vulnerable, and therefore require special external support.
Startups are new-born companies that are exposed to numerous
challenges, like for example the shortage of resources (Ojaghi, Mo-
hammadi,andYazdani2019).Theyareforeignersonthemarketand
thereforetheylackreputationandmarketknowledge(Lichtenthaler
and Ernst 2008). Research shows that most early-stage startups fail
within two years from their establishment, mainly because they fail
to achieve a good problem-solution fit and becausethey fail to learn
during the process of customer and product development. Hence, in
order to increase the survival rate of startups, a suitable innovation
ecosystem that provides them with adequate support from product
idea development until market entrance is needed (Tripathi et al.
2019a).Theaimofeverystartupistobecomeasteadyandindepen-
dent company.
innovationecosystem
Past research has confirmed that in order to foster the development
of startups,anadequateecosystemmust be developed aroundthese
firms (Tripathi et al. 2019a). During the literature review on this
topic, we came across different naming of ecosystems, like for ex-
ample startup ecosystem, business ecosystem, innovation ecosys-
tem and entrepreneurial/business ecosystem. The differences are
mainly due to different points of view from which an ecosystem is
considered. For example, the innovation ecosystem is focused on
innovation, while the business ecosystem is usually focused on a
product, customeror anindustry (Ojaghi,Mohammadi,andYazdani
2019). The innovation ecosystem is often understood as a synony-
mous with the business ecosystem, since both are focused on cre-
ating a collaborative network that aims at innovation by adopting a
systematic approach (Fenga et al. 2019). Some authors believe that
thereshould beadistinction betweenanentrepreneurialecosystem
and startup ecosystem, since promoting entrepreneurship and star-
tupsaretwodifferentthings.Though,theyareinter-reliant(Tripathi
etal. 2019b).
Cohen (2006) describes the entrepreneurial ecosystem as a geo-
graphic region, in which interdependent actors mutually interact to
createnewventuresovertime(likestartups,butnotonly).Thesein-
terdependent actors may have impact on the formation and growth
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oftheentiregroupaswellasonthewholeeconomy.Cukier,Kon,and
Thomas (2016) defined a startup ecosystem also as limited region
within ‘one-hour travel’rangethatconsistsofpeople, theirstartups,
and support organizations that aim at creating new startup com-
panies and contribute to the evolvement of the already established
ones.
The innovation ecosystem similarly as the startup ecosystem rep-
resentstheinfrastructurethatenablesthedevelopmentofnewcom-
panies and supports the existing ones. Since it is focused on a re-
gion, it also contributes to the creation of jobs in a particular region
orcountry,employslocalresources,andcontributestothegrowthof
domesticproducts(Tripathietal.2019b).Further,itconsistsofanet-
work of different stakeholders who are embedded in this ecosystem
(e.g.entrepreneurs,universities,researchcentres,investors,funding
institutions, local authorities, etc.). The network provides its mem-
bers the access to resources, information and other type of sup-
port and encourages the establishment of new companies and their
growth (Tripathi et al. 2019b). Startups have a fundamental part in
the ecosystemsince they representthe drivers of innovation, but on
the other hand their survival and success mainly depend on the re-
sources from other actors embedded in the ecosystem (Ojaghi, Mo-
hammadi, and Yazdani, 2019). Therefore, both startups and exist-
ing companies can benefit from each other. Startups may benefit
fromlargenetworksanddiverseresourcesofthealreadyestablished
companies,while big companies canbenefit fromthe innovative ca-
pabilities of nascent startups (Alberti and Pizzurno 2017).
Entrepreneurs, demography, finance, market, education, human
capital, technology and support were recognized as the eight fac-
tors of a startup ecosystem. On the other hand, the key players in
providing support in startup ecosystem are the government, legal
framework, media, mentors, events, incubators, and also accelera-
tors (Tripathi et al.2019b).In the next section,the focus is on accel-
erators, since the main objective of the project cab was to develop
an accelerator program that will promote the development of inno-
vative companies and technology transfer in the Italian-Slovenian
cross-border region.
accelerators
Intheearlystageoffirmdevelopment,entrepreneursneedthesup-
port of incubators to transform product ideas into real business, but
in later stages of firm development they need the advanced sup-
port of accelerators to make their companies grow and further de-
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velop. In fact, intensive mentorship and further funding are nec-
essary to accelerate the business (Tripathi et al. 2019b). Although
bothacceleratorsandincubatorsoffersimilarserviceslikenetwork-
ing and business consultancy, there are substantial differences in
their objectives. In contrast to incubators, the purpose of accelera-
tors is not to provide long-term assistance in terms of physical and
administrative services. They have a more active role with the fo-
cusonnurturingratherthanjustsupporting.Besides,theyaremore
profit-oriented than incubators. On the contrary, incubators hold a
more passive role with the predominant focus on support. Further,
acceleratorsoftenprovidefinancialpackagesbeforethestartupsare
even formed (Ojaghi, Mohammadi, and Yazdani 2019). In compar-
ison to incubators, accelerators offer more services to early-stage
businesses. Apart from coaching and educational services, acceler-
ated companies get also access to the accelerator’s alumni and their
networks (Mansoori, Karlsson,and Lundqvist 2019).
The defining features of accelerators are fixed-term and cohort-
based educational and mentorship programs for startups founders
(Cohen et al. 2019). By joining an accelerator program, startup
founders are exposed to various mentors like accomplished en-
trepreneurs, venture capitalists, business angels, corporate execu-
tivesetc.Attheendoftheprogram,thereisapubliceventorganized
(‘Demo day’), during which all participating startups present (pitch)
their business ideas to potential investors. Y Combinator is known
as the first accelerator program in the world, established in 2005 in
Silicon Valley. In 2016, there were already more than 2000 acceler-
ator programs all over the world (Fehder and Hochberg 2017). The
data show an increased interest in this type of startup support in
recentyears.
Themainpurpose ofacceleratorprogramsistoseedstartupcom-
panies. They aim at supporting startup founders to develop their
business ideas and make them investment-ready. Accelerators pro-
vide a supportive environment with numerous possibilities of peer
learning,opportunityidentification,networkingandreferrals(Man-
soori, Karlsson, and Lundqvist 2019). They are often established by
its founders and local governments with the aim to transform their
local economies through the development of startup technological
clusters in their regions. Accelerators do not affect only the acceler-
ated companies, but they have also a great impact on the entire re-
gion (Fehder and Hochberg 2017). The latter finding is definitely in
favour of the development of the cross-border accelerationprogram
cab and the multiplying effects that such a program could have on
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theentireItalian-Sloveniancross-borderregion.Inthenextsection,
the methodology usedto reachthe researchgoalsis presented.
ResearchMethodology
In this paper, the case study methodology is applied. Case study is
a form of qualitative research approach that facilitates exploration
of a phenomenon within its context using a variety of data sources
(Baxter and Jack 2008). This approach is largely used in social sci-
ences, especially in practice-oriented fields, like for example man-
agementand education. Inorder to achievea thorough understand-
ing of the problem, both qualitative and quantitative approaches
should be used in the case study (Biba Starman 2013). Therefore,
the case study approach can be seen as a frame that incorporates
variousresearchmethods.Thelatterenablestheresearchertothor-
oughly understand multiple facets of the explored complexed phe-
nomenon (Baxter and Jack2008;Simmons 2009).
Whenever a case cannot be considered without its context, the
case study approach should be chosen (Baxter and Jack 2008). The
latter applies also in our case, wherethe context in which the cross-
border accelerator was developed is fundamental and has key im-
plicationsforthedevelopmentofitsprogram.Thecontextualcondi-
tions related to specific needs of startups and smesare relevant for
understanding the elements that a cross-border accelerator should
have to best address these needs. Qualitative case study methodol-
ogy was also recognized as being very valuable for evaluating pro-
grams (Baxter and Jack 2008), which also confirms our decision of
adopting the case study methodology to evaluate the development
and implementation of the cross-border accelerationprogram cab.
Inthisresearch,thecaseunderanalysisisthedevelopmentofthe
cross-border acceleration program cab. The current research was
conducted within the project Interreg Italy – Slovenia (2014–2020)
Cross-border acceleration bridge – cab, and represents a key step
in increasing the understanding of the role of accelerators in pro-
moting entrepreneurship and innovation among startups and smes.
With this research we shed light on the needs and specifics of local
companiesinthecross-borderareaofItalyandSlovenia.Therefore,
itrepresentsthebasisforthesuccessfulpilot implementationof the
cab accelerationprogram.
In order to reach the aims of the study, various research meth-
ods were adopted. First, the analysis of recent literature on startups
andacceleratorprogramswasperformedinordertoidentifykeyac-
celerator features, key success factors of business accelerators, key
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performanceindicators andother important elementsrelatedtoour
researchproblem.Second,acomparativeanalysisoftheSmartSpe-
cializationStrategy(s3)ofVeneto,FriuliVeneziaGiuliaandSlovenia
was conducted. The latter was a key step in identifying areas with
most potential for a cross-border cooperation. Third, based on the
research results the business model of the cross-border accelera-
tionprogramwasdesigned(adaptedfromOsterwalderandPigneuer
2010), and finally the integrated model of the cross-border business
acceleration – cab was developed. Below, a more detailed descrip-
tion of the researchprocess is provided.
A structured literature review on startups and accelerators was
conducted in order to obtain an in-depth understanding of startups,
their characteristics, needs and the role of acceleration in their de-
velopment. The structured literature review was conducted by us-
ing the qualitative data analysis software nvivo. There were three
sources of data used in the structured literature review. The first
source represented journal articles in Scopus and ebscodatabase.
The keyword searchwas performed within titles, abstracts and key-
words of the articles and enabled us to find relevant articles and
generate the data being sought (‘accelerator’ and ‘startup’, ‘acceler-
ator’ and ‘SME’, ‘business accelerator’,‘business acceleration’). The
second sources of data were internet search on the most important
consultancy companies and their publications and research reports
on the topic of business acceleration. The third source of data rep-
resented the specific research on national and international insti-
tutions (local and national governments, European Union, United
nations), and their publications. When collecting data, time period
from 2011 to 2017 was covered. From initial few hundred abstracts,
42 documents were later on in-depth analysed. By type, the anal-
ysed sources were formed by journal articles (60%), consulting re-
ports (33%) and institutional reports (7%). Most sources were from
2017 (38%) and 2016 (29%). The analytical framework for the struc-
tured literature review included 312 nodes in 16 categories of anal-
ysis. The topics covered in the literature review were the following:
acceleratorfeatures,acceleratorbusinessmodel,typeofaccelerator,
selection process, key performance indicator, key success and risk
factors and most promising industries for acceleration.
In order to better understand what type of support services are
currentlyprovidedbysupportinstitutionstocompaniesintheItalian-
Slovenian cross-border region, a comparative analysis of cross-
border startup supporting systems were performed. The latter was
achieved by collecting primary data with a questionnaire that was
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developed and distributed online among support institutions in the
cross-border area. In total, 25 incubators and accelerators were in-
cluded in the survey. The results of these researches were helpful
for designing the key elements of the program of the cross-border
accelerationprogram.
In addition, two multidisciplinary research workshops were per-
formed in order to exchange knowledge and best practices among
key stakeholders in the cross-border innovation ecosystem in the
areaoffirmacceleration.ThefirstworkshopwasconductedinKoper
at the University of Primorska (Koper, 30. 5. 2018), while the sec-
ond one in Trieste at the University of Trieste (Trieste, 29. 11. 2018).
The participants of both workshops were the stakeholders of the
cross-border innovation ecosystem (like academics, entrepreneur-
ship support organizations, companies, research centres etc.). Be-
sides exchanging best practices in the area of acceleration, the par-
ticipants alsobrainstormedon whatshould be thevalueproposition
of the new cross-border servicefor business acceleration.
In the next section, the main researchresults arepresented.
researchresults
Onthebasisoftheanalysisofrecentliteratureonstartupsandaccel-
erator programs, the main features of accelerators were identified.
The main mission of accelerators is to foster the entrepreneurial
ecosystem and generate opportunities. They can be either industry
focused (diversification/specialization) or geographic focused (re-
gional/global).Intermsoffundingstructure,acceleratorscanbepri-
vate, public or both (hybrid). Further, they can be established for-
profit or non-for-profit. Most often the accelerationprogramis from
threetosixmonthslong,andrunbyamanagementteamwithexten-
sive managerial skills and experiences. Usually, there are classes of
startups joining the program rather than individual companies. The
investment in startups can be of various types (equity, equity-free
grant,convertibleloanornoinvestmentatall).Thekeyfeaturesare
summarizedintable 1.
Amongthesupportservicesthatanaccelerator’sprogrampackage
should include, thefollowing serviceswereidentified intheexistent
literature (Bagnoli, Massaro,and Bravin2019):
 Structured mentoring
 Training programs (local mentor and international support sys-
tem)
 Knowledge sharing workshops
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table1 The KeyFeatures of Accelerators
Mission Foster the entrepreneurialecosystem and opportunity
generation
Specialism Industry focus: diversification, specialization
Geographic focus: regional (local/cross-border), global
Fundingstructure Private
Public
Hybrid
Investments Equity
Equity-free grant
Convertible loan
Loan
No investment
Managementteam Manager profile and experience
Duration Generally, from 3to 6 months
Cohort Cohorts or classes of startups rather than individual
companies
Legal form For profit
Non profit
 Networking opportunities
 Co-working space
 Interaction withmanagementteam
 Demodays(pitch infront of qualified investors)
 Funding opportunities
 Customer development initiatives
 Identification of partners
 Marketintelligence
 Support in business model design
Basedontheonlinesurveyconductedamongtheacceleratorsand
incubators in the cross-border area of Italy and Slovenia, we found
thatmostorganizationsincludedinthestudyarefocusedonspecific
sectorsorgroups of them.Theymost oftenfocusontechnology sec-
tor, followed by accelerators operating in the field of finance, health
andbiologicalsciences(Bagnolietal.2019).Basedonthenumberof
sourcesintheanalysedliteraturethatconsideredaspecificindustry
as a promising industry for acceleration, we developed a list of most
promisingindustriesfor acceleration:
 Technology, media and telecommunications (9 of 42 sources)
 Financial services(7 of 42sources)
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 Healthand healthcare(7 of 42sources)
 Consumer goods (4of 42 sources)
 Education (4 of 42sources)
 Agriculture and food production (3 of 42 sources)
 Entertainment (2 of 42 sources)
 E-business (2 of 42 sources)
 Cloud Services(2 of 42sources)
 Biotechnology (2 of 42 sources)
 Drones (2 of 42sources)
 Realestate(2 of 42sources)
 Publishing (1 of 42sources)
 Biological sciences(1 of 42sources)
 Energy (1of 42 sources)
 Water andhygiene (1 of 42 sources)
 Environment (1 of 42 sources)
 Business and productivity (1 of 42sources)
 Marketingandadvertising (1 of 42 sources)
 Creativeindustries (1 of 42sources)
When taking into consideration also the results of the analysis of
theSmartSpecializationStrategy(s3)ofVeneto, Friuli VeneziaGiu-
lia and Slovenia, the following most promising industries for cross-
border accelerationwere selected(Bagnoli etal.2019):
 Healthcare/Life-science
 ict
 Financialand business service
 Consumer good/Retail
 Agriculture & Food
 Education
 Energy
 Biotech
 Logistic & Distribution
 Media & Entertainment
 Hospitality/Travel/Tourism
The identification of synergies and complementary areas in the
cross-border regions of Italy and Slovenia enables policy-makers
of both countries to develop instruments and measures that best
meet the needs of the cross-border innovation eco-system and its
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stakeholders.Thelatterleadstoanincreasedefficiencyofallinvest-
ments, a more efficient knowledge and technology transfer from re-
searchcentrestoindustryandahighercompetitivenessoftheentire
area. For these reasons, the Regional Smart Specialization Strate-
gies (ris3)in question representanessential element indeveloping
the cross-border accelerator cab. A combination of characteristics
ofboth ItalianandSlovenian marketiskeyforthedevelopment and
promotionofinnovativenessofstartupsand smesinthearea.Slove-
nia with its specifics (like small size, diverse market needs etc.) can
represent the perfect laboratory in the initial stages of firm devel-
opment and product validation, while Italy with its 60 million pop-
ulation is an ideal environment for expansion and preparation for
internationalization.
When developing the cab acceleration program, therefore a spe-
cial emphasis should be given to the above listed industries. The
most promising industries should be thus included among the se-
lection criteria during the selection process of firms that will partic-
ipate in the acceleration program. The selection process of startups
for acceleration usually includes several stages and is based on dif-
ferentselectioncriteria.Basedonthestructuredliteraturereview,we
identified 13selection criteria:
 Business idea (4 of 42 sources)
 Industry (2 of 42 sources)
 Job creationpotential (2 of 42 sources)
 Technicalknowledge (2 of 42 sources)
 Portfolio logic (1 of 42sources)
 Level of innovation (1 of 42 sources)
 Potential for global growth (1 of 42sources)
 Internal resourcesand motivation (1 of 42 sources)
 Leadershipqualities of the founders (1 of 42 sources)
 Accelerator’sabilitytoincreasethevalueofstart-upsinthepro-
gram(1 of 42 sources)
 Developed prototypes (1 of 42 sources)
 Idea potential in solving realproblems (1 of 42sources)
 Already obtained funding (1 of 42sources)
One of the biggest challenges facing accelerators is how to mea-
sure their effect. Since not all accelerators purse the same goal, it
isdifficulttodeterminewhatthekeyperformanceindicatorsare.The
resultsofthestructuredliteraturereviewonthekeyperformancein-
dicators show that the three most cited key performance indicators
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in the literature are: (1) Impact on the ecosystem (8 of 42 sources),
(2) Survival rateof startups (7of 42sources)and(3) Subsequent in-
vestments (5 of 42 sources). The list of the most cited key perform-
ance indicators includes alsothe following indicators:
 Number of applications to join the program (4 of 42sources)
 Funds obtained by the startups (4 of 42sources)
 Partnerships createdby startups (3 of 42 sources)
 Percentageof acquisitions (3 of 42sources)
 Distribution of performance(3of 42sources)
 Number of acceleratedactivities (3 of 42 sources)
 Number of exits executed (2of 42 sources)
 Number of employees in the firms (2 of 42sources)
 Acceptancerate (2 of 42 sources)
 Financial support obtained from startups (2 of 42sources)
 Marketcapitalizationof startups (2 of 42 sources)
 Profits of the acceleratedstartups (2 of 42 sources)
 Startups admittedin top accelerators(2 of 42sources)
 Alumni satisfaction(2 of 42 sources)
 Classsize(2of42sources)
 Number of investors at Demo days(2 of 42sources)
 Failure rate (2 of 42 sources)
 Sources of financing (2 of 42sources)
 Rate of return on the investment – roi(2 of 42sources)
 Number of new createdjobs (2 of 42 sources)
 Financial sustainability (2 of 42 sources)
 Success rate(2 of 42sources)
 Reputation (2 of 42sources)
 Yearsof experience (1 of 42sources)
 International partners andmentors (1 of 42 sources)
 Innovation goalsachieved (1 of 42 sources)
 Acquiredknowledge(1of42sources)
Acceleratorsfacesimilar challengeswhenit comesto indicate the
key success factors, since not all accelerators have the same goals.
Therefore, it is particularly hard to define the metrics for success.
In the existent literature, there are many success factors indicated
for business accelerators. Based on the structured literature review,
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we developed a list of specific elements that were most often con-
sideredasa keysuccessfactor for accelerators.The list includes the
following factors:
 Mentorship (26of 42 sources)
 Network of partners (20of 42sources)
 Events as networking opportunities (11 of 42sources)
 Alumni network (9 of 42sources)
 Brand(8of42sources)
 Definition of clearlong-term goals (7 of 42sources)
 Qualityoftheprogram(7of42sources)
 Startups financial support (7 of 42 sources)
 Acceleratorteam (6 of42 sources)
 Dialogue (5 of 42 sources)
 Strongbacking(5of42sources)
 Links with sources of financing (5 of 42 sources)
 Strategic alignment(4 of 42 sources)
 Clear definition of the process and selection criteria (4 of 42
sources)
 Product expertise (4 of 42sources)
 Business skills (4 of 42sources)
 Quality of experts involved (4of 42 sources)
 Set transparentand alignedobjectives(3of42sources)
 Extracurricular programs (3 of 42sources)
 Efficient organization (3 of 42 sources)
 Right startupportfolio size(3 of 42 sources)
 Definition of a clearvalue proposition (3 of 42sources)
 Well-defined metrics for monitoring the success of startup (3 of
42 sources)
 Action orientation (3 of 42sources)
 Urgencycreatedby time-limitedprogram (3 of 42sources)
 Location (3 of 42 sources)
 Quality of applications (3 of 42sources)
 Education offered(2 of 42sources)
 Independent team of startupadvocates (1 of 42sources)
 Performanceindicator (1of 42 sources)
 Time limited support (1 of 42 sources)
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table2 Key SuccessFactors of Business Accelerators
Strategy Definition of clear long-term objective
Settransparentandaligned goals
Strategicalignment
Definition of a clear value proposition
Program Quality of the program
Extra-curricularprogram
Startupfinancial support
Action orientation
Urgencycreated bytime-limited program
Network Network of partners
Alumninetwork
Eventsas network opportunities
Links to sources of funding
Resources Brand
Location
Procedure Effective organization design
Clear definition of selection process andcriteria
Rightstartup portfolio size
Definition of metrics to trach startup success
Quality of applications
Team and capabilities Accelerator team
Mentorship
Dialogue
Strongbacking
Productandbusiness expertise
Quality of experts involved
We have further clustered the above listed key success factors of
business accelerators into six groups: (1) Strategy, (2) Program, (3)
Network, (4) Resources, (5) Procedure, and (6) Team and capabil-
ities. The latter is represented in table 2. Each group represents a
key elementof the accelerator’s business model.
On the other hand, in the existent literature there is little discus-
sion on the main key risk factors of business accelerators. We have
identified the following ones: (1) Financial risk, (2) Risk of market
saturation,(3)Riskofdisconnectionfromthecommunityoflocalin-
vestment,and (4) Risksrelatedto emergingmarkets.
Basedontheabovepresentedresearchresults,thebusinessmodel
of the cab acceleration program was designed. The key elements of
the business mode are presentedin table 3.
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table3 cab Accelerator Business Model
Customers Startups
smes
Investors
Value proposition Fast validation
Program Structuredmentoring
Regular counselling
Training program
Business andproduct advice
Networking
Funding
Sharedopen space
Alumni services
Process Technical assistance
Mentoring
Monitoring
Education
Financial assistance
Communication
Events
Demo days
Society Developmentof the ecosystem
Regional development
Regional collaboration
Continuedonthenextpage
Customers represent the heart of any business model (Oster-
walder and Pigneuer 2010). In the case of the cab acceleration pro-
gram,startups, smesandinvestorsarethemaincustomersegments.
The value proposition of the cross-border accelerator for its cus-
tomer segments is the opportunity to validate their product and
service ideas. Besides validation, the program of the cross-border
accelerator will offer also the following services: structured men-
toring, regular counselling, training program, business and product
advice, networking, funding, shared open space and alumni service.
The most important resources required to make the business model
of cab workareaskilledmanagementteam,substantialfinancialre-
sources and the cab brand. The main processes that will need to be
regularlyconductedinordertorunthebusinessmodelaretechnical
assistance, monitoring, mentoring, education, financial assistance,
communication, organization of different events and Demo days.
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A Cross-Border Acceleration Program
table3 Continuedfromthepreviouspage
Resources Brand
Management team
Financial resources
Partners Mentors
Venture capitalists
Angel investors
Alumni network
Revenuestream Shares
Fees
Rentals
Events
Sponsorship
Cost structure Equity
Salaries
Rentals
notes Adapted from Bagnoli, Massaro, andBravin (2019).
The main strategic partners that will support the business model of
cab arementors,venturecapitalists,angelinvestorsandtheAlumni
network. Through regional collaboration and development of the
ecosystem also other stakeholders of the cross-border region (‘so-
ciety’) will participate in the new cross-border acceleration service.
cab will generaterevenues through shares,fees,rentals,events and
sponsorship. Among the most important costs that will occur while
running the cab business model aresalaries,rentalsand equity.
IntegratedModeloftheCross-BorderBusinessAcceleration cab
Themainresultofthisresearchistheintegratedmodelofthecross-
borderacceleratorprogram.Thismodelwillallowtotestandimple-
ment the cross-border service of business acceleration for startups
and smes.Whendevelopingthemodelofthecross-borderaccelera-
tor,thedifferencesbetweentheneedsandcharacteristicsofstartups
and smeswere also considered (Ojaghi, Mohammadi, and Yazdani
2019).
The model was developed by integrating the research findings
from the structured literature review, the comparative analysis of
support services in the Italian-Slovenian cross-border region and
by considering the findings of two multidisciplinary research work-
shops, during which best practices among the cross-border innova-
tionecosystemstakeholderswereexchanged.Thefinalmodelofthe
cross-border accelerator program cab is presented in table 4. It in-
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table4 The Integrated Model of the Cross-Border Business Acceleration – cab
Mission Foster the cross-
border en-
trepreneurial
ecosystem and
opportunitygen-
eration for star-
tupsand smesin
theprogram area
Resources Funding. cab Project Interreg
Italia-Slovenia; Fundingfrom pri-
vate investors (business angels,
venturecapital funds ...);Funding
from corporations; Funding from
local, national, andinternational
institutions
Network. 8 project partners;20
beneficiaries; 100 mentors (country
mentors, lead mentors); 100 con-
sultants
Identified
needs
Startupsand
smesneedmore
effective techno-
logical transfer
from research in-
stitutions
Program Investing. Noequity
Support. Mentoring (accessing lo-
cal mentors, establishing an in-
ternational supportteam);Train-
ingprograms; Office space; Work-
shops; cab points;Networkoppor-
tunities; Integration with manage-
mentteam; Fundingopportunities;
Customer development initiatives;
Identification of partners;Review
of business models/strategies; Pi-
lot test and case studies; Market
intelligence; Pitching opportuni-
ties; Epitches; Knowledge sharing
workshops/webinars
Post-program. Alumni services;
Follow-on funding
Continuedonthenextpage
cludesalltheelementsnecessarytoimplementacross-borderaccel-
erator with the aim to increase the efficiency of technology transfer
fromresearchtobusinessandtopromotetheinnovationecosystem.
Themodelhasbeenalreadysuccessfullyimplementedandtestedon
a group of 20 startups and smes.
PilotImplementationoftheCross-BorderBusiness
Acceleration cab
Throughout theentiredurationoftheaccelerationprogram(6mon-
ths), the cross-border accelerator cab provided to its beneficiaries
formalandinformallearning.Thelatterwasachievedthroughthree
cab points (Friuli Innovazione, Cà Foscari University and abc Ac-
celerator)thatweredevelopedduringtheproject.Throughintensive
mentorshipandtheorganizationofnumerousworkshopsitsubstan-
tially improved the knowledge andskills of the acceleratedstartups,
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A Cross-Border Acceleration Program
table4 Continuedfromthepreviouspage
Aims and
purpose
Improvement
of theprogram
area’s innovation
capacity; Creation
of an Italian &
Slovenian net-
work to test and
implementin the
long runanew
cross-border ser-
vice for business
acceleration, able
to promotein-
vestments inthe
r&dof innovative
products/services
andto transfer
technologies from
r&dcentersto
firms
Selection Criteriaforstartups. Legal entity
atthe endin the programarea;
Business idea; Working prototype
(product/servicewith global, in-
novativeand technologically ad-
vancedpotentiality, readyfor mar-
ket tests); Coachability (techni-
calexpertise, strong lead founder,
innovativeness, idea solves a real
problem,potential for job creation)
Criteriafor smes. (1) Eligibility:
Legal or operational offices in the
programarea; At least 5 years;
Numberof employees morethan
20or turnover morethan eur5
mio; (2) Quality: Business idea;
Coachability (technicalexpertise,
strong lead founder, innovative-
ness, idea solves a real problem,
potential for job creation)
Specialism (1)Geographic
focus: cross-
border; (2) No
sector focus: di-
versification
Key per-
formance
indicators
No. of innovative services, products
andtools transferred to firms; No.
of research institutes participating
in crossborder, transnational, in-
terregional projects; No. of compa-
nies thatcooperate with research
institutes; No. of investors at cab
Demodays; No. of applications,
percentageof venturesreceiving
next-stage funding; percentageof
venturesacquired
notes Adapted from Bagnoli et al. (2019).
smesandprojectpartnersaswell.Thetopicsdiscussedduringthese
practical workshops included business model design, unique value
propositiondesign,makingbusinessindifferentcultures,rapidpro-
totyping and modern ictin entrepreneurship (e.g. 3dprinting, vir-
tual reality). By adopting different approaches of diffusing knowl-
edge and innovative practices among companies and project part-
ners, an environment of mutual learning was established.
The model adopted within the cab project enabled all project
partners and other actors of the cross-border innovation ecosystem
tocollaboratetogetheronthedevelopmentandgrowthofcompanies
with high potential in terms of added value. The ability of compa-
nies to conduct business in two languages, in two different cultures
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Tina Bratkoviˇ c Kregar and Mitja Ruzzier
and on two different markets will definitely represent a competitive
advantage for all the involved companies. Besides the increased co-
operation among the actors of the innovation ecosystem, also new
opportunities for match-making between young entrepreneurs and
potential investors within the Italian-Slovenian cross-border region
will arise. The cab program with its support of mentors gives to
young, promising entrepreneurs the opportunity to transform their
innovative business ideas into a real-life business, and become a
fundamental part of the innovation cross-border ecosystem.
DiscussionandConclusions
We must be aware that startups are not just smaller versions of big
companies, therefore they face different challenges, which calls for
an appropriate environment, in which these firms can survive and
grow. The primary goal of startups is to survive and find the right
problem-marketfitforthenewideatheyareintroducingonthemar-
ket,whichusuallyisnotanissueforalreadyestablishedcompanies.
The external support to startups must be provided by various actors
that together form the innovation ecosystem that operates in a spe-
cificregion.Amongthemostimportantactorsofanecosystemthere
are entrepreneurs, universities, research centres, financial institu-
tions, investors and entrepreneurshipsupport organizations.
In our opinion, encouraging cross-border collaboration brings
many advantages to the region’s innovation ecosystem. First, it em-
powers local resources and provides a stimulating environment, in
which the transfer of knowledge between industry and researchers
in the cross-border area is fostered and supported by appropriate
services. Second, cross-border collaboration may lead to the devel-
opment of a network that will provide both startups and smeswith
the access to market, new opportunities, infrastructure and knowl-
edge. The latter will result in higher competitiveness of all sectors
in the region. Startups and smesby co-existing in anecosystemcan
both benefit from each other. Startupscanfastentheircommer -
cialization process by making partnerships with already established
companies, while smescangetaccessto theinnovation capabilities.
In the Italian-Slovenian cross-border region there are three uni-
versities,namelyUniversityofPrimorska(Koper,Slovenia),Univer-
sity of Trieste (Trieste, Italy) and Cà Foscari University of Venice
(Venice, Italy), which by our opinion represents a significant com-
petitive advantage for the regional innovation ecosystem and may
support the development of cab.First, universities through vast en-
trepreneurial education contribute to the development of entrepre-
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A Cross-Border Acceleration Program
neurship among youth. Second, they help to develop new knowl-
edge that drives innovation. Our findings suggest that this model of
cross-border accelerationcansuccessfullybe developed only where
there is substantial support of organizations like universities, re-
searchcentresand potential investors in the ecosystem.
cab is currently similar to a startup. First, it is in its early stage of
growth. Second, it has limited resources,since it is funded by an In-
terregprogram.Hence,themostimportantthingistofindasustain-
able business model and an appropriate accelerator program that
will allow cab to function also after the project and its funding will
be completed. We are aware that there is still plenty room for fur-
ther improvements that will be done after a careful follow-up and
evaluation of the project activities.
The current study is limited to a case study, where the case un-
der analysis was the cross-border collaboration between Italy and
Slovenia in co-developing a cross-border accelerator program. For
this reason, it cannot be representative. Given the diversity of every
country, eachcross-bordercollaboration depends onthe specificsof
theinvolvedcountries(likeeconomicstructure,mostpromisingsec-
tors, characteristics of the entrepreneurial ecosystem, firms’ needs,
smartspecializationstrategyetc.).Infutureresearch,amultiplecase
study approach involving diverse forms of cross-border cooperation
might be used to shed new light on the research problem. However,
webelievethatbyanalysingthecaseof cab,wecouldprovideanin-
sight in the many benefits that might arise from a cross-border col-
laboration (likemoreefficientemploymentof localresources,better
access to market, new opportunities, infrastructure and knowledge,
more efficient technology transferfrom researchto business and an
overall increase in the innovation capabilities of firms). The ability
of companies to conduct business in two languages, in two different
cultures and on two different markets represents a key competitive
advantage of companies and might bring them many opportunities
for further internationalization.
Hence, by addressing the case study on the cross-border collab-
oration between Italy and Slovenia in co-developing an accelera-
tion program, we aim to direct the attention of policy makers to the
many benefits that such program might have for regional innova-
tion ecosystemsof eumember states.Basedon our research,wear-
gue that cross-border collaboration should be seen fundamental for
efficient technology and knowledge transfer from research institu-
tions to companies. Most important, the current case study under-
lines the importance of eu-funding in facilitating cross-border col-
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Tina Bratkoviˇ c Kregar and Mitja Ruzzier
laborationandinnovationtransferbetween eucountries.Webelieve
policy makers should undertake cross-border initiatives that will
support the development of innovation ecosystems, through which
theinnovationcapacityandproductivityofregionswillbeincreased
in the long run. By identifying synergies and complementary areas
incross-borderregions,policy-makerscandevelopinstrumentsand
measures that can better address the needs of the cross-border in-
novation ecosystemand its stakeholders.
The program cab represents an example of good practice in this
area,andshouldbetakenassuchwhendevelopingcooperationpro-
grams and other initiatives to exploit the untapped growth potential
inborderareasof eumemberstates.Itisespeciallyimportanttofos-
tersustainabletrustbetweenneighbouringcountries,inordertoes-
tablish mature and integrated cooperation approaches and prevent
brain drain from border areasto national centres.
Acknowledgements
This work was supported by the project Interreg Italy-Slovenia Cross
Border Acceleration Bridge – cab. Operation co-funded by the Euro-
pean Regional Development Fund.
Notes
The cross-border acceleration program cab was developed within the
project Interreg Italy – Slovenia (2014–2020) Cross-border acceleration
bridge – cab. Operation co-funded by the European Regional Devel-
opment Fund. The project cab deals with a common challenge of the
Italian-Slovenian cross-border region, which concerns how to increase
the effectiveness of technology transfer from research to business with
thegoal of improving the region’s innovationcapacity. The main goal of
cabwasto create anetworkof Italian andSloveniansactors who would
develop, test and implement a new cross-border service for business
acceleration, capable of promoting investments in the development of
innovativeproducts,servicesandfosteringtechnologytransferfromre-
search centers to companies. The lead partner (Friuli Innovazione Re-
searchandTechnologyTransferCentre)andotherprojectpartners(abc
Accelerator, Cà Foscari University of Venice, University of Triste, Uni-
versity of Primorska, Chamber of Commerce and Industry of Slovenia,
Gruppo Euris Srl, Start com d.o.o.) aimed at increasing the opportuni-
ties of startups and smesin the cross-border area to collaborate with
r&dinstitutions andto get access to international markets.
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