In 2006, the new start-up subsidy (“Gründungszuschuss”) was introduced in Germany and replaced two earlier start-up support programs for unemployed individuals, i.e., the bridging allowance (“Überbrückungsgeld”) and the old start-up subsidy (“Existenzgründungszuschuss”). End of 2011, the new start-up subsidy was substantially reformed and transformed into a discretionary benefit. The aim of this project is to analyze and compare the new start-up subsidy before and after its reform with respect to the structure of participants, net effects of the subsidy, business dynamics as well as innovation.