Education appears to be the most important factor in generating the right conditions for startup companies, while many popular theories on creating such conditions might be wrong, according to a new report from the Kauffman Foundation.

The paper, “Beyond Metropolitan Startup Rates: Regional Factors Associated with Startup Growth,” looked into entrepreneurial activity in 356 U.S. metropolitan areas. The study considered the startup rate for all industries, the startup rate for high-tech sectors and the rate for high-growth firms.

Unlike earlier studies, the Kauffman Foundation’s regionally centered analysis found that the public sector has a limited influence on entrepreneurship. The working theory has been that government research spending helps boost the private sector, but area research universities and patents don’t appear to encourage entrepreneurship at a greater rate.

Rather, the paper suggests, it is education that can boost startup activity: Metro areas with more college graduates will lead to a greater number of startups. And, even without more college graduates, a higher rate of high school graduation will add to an area’s startup rate.

The study also revealed:

• Regions with considerable venture capital and other financial investments don’t automatically produce a higher ratio of startups. As a result, focusing on the creation of public venture funds won’t necessarily lead to more startups.

• Supporting high-tech entrepreneurs does not fundamentally lift the general economy. The tech industry mostly breeds tech-related startups, but doesn’t encourage startup creation outside that sector.

• Bigger cities usually have higher rates of entrepreneurship, perhaps because their economies are more varied and flexible compared to smaller communities.

Yasuyuki Motoyama, Ph.D., senior scholar in research and policy at the Kauffman Foundation and co-author of the study, said in a release: “What may surprise people the most is how little has been known about what factors actually impact entrepreneurial growth, which is a primary goal of regions across the U.S. today. These findings provide policymakers with some clear guidance about where to focus their efforts.”