Because innovative entrepreneurship is rare in developing countries.

Using the participation of more than 135 firms in Valle E—where selection processes rely on scores from randomly assigned judges, acting as a laboratory—and taking advantage of exogenous differences in the generosity of the judges’ scores, we demonstrate that:

     • Removing constraints on companies' capabilities unlocks the potential of innovative entrepreneurs, but it does not turn mediocre ideas into high-growth companies.

     • The results show that some high-potential entrepreneurs in developing economies face constraints related to their companies' capabilities, and accelerators can help identify these entrepreneurs and foster their growth.