Regional Determinants of Product Innovations in Start‐Ups Across Urban and Rural Regions in Germany

ABSTRACT In this study, we examine how region‐level determinants, measured through entrepreneurial ecosystem (EE) elements, influence product innovation in high‐tech start‐ups differently across urban and rural regions in Germany. This study contributes to the scientific debate by integrating the EE concept into the regional innovation literature, uncovering whether and how regional conditions shape product innovations in start‐ups differently in different locations. We differentiate between incremental and radical product innovations using firm‐level data from the IAB/ZEW Start‐up Panel during 2007–2014. The findings show that while certain region‐level determinants may facilitate or hinder innovation, their impact varies depending on the type of region. Policies aimed at fostering product innovations in high‐tech start‐ups should be aligned with this.