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South Korea ranks high in global R&D investment comparisons, with a GDP ratio of 4.55 percent. The public sector plays an active role in the promotion of startups as well as conducts a number of programs across central and local governments.
FREMONT, CA: The biological metaphor of the ecosystem has long been utilized to explain the assumption that market actors not only compete but rather seek to profit from the sharing of networks, resources, and ideas.
Collaboration between the public and private sector
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South Korea ranks high in global R&D investment comparisons, with a GDP ratio of 4.55 percent. The public sector plays an active role in the promotion of startups as well as conducts a number of programs across central and local governments. Close collaboration with the private sector is quite common to many public programs. TIPS (Investment Accelerator – Driven Tech Incubator Program for Startup) is a long-standing initiative that raises funds for startups to enter incubators and accelerators run by private investors, such as Hyundai Motor Group and KB Investment.
Sandboxes for Regional Regulatory
While sectoral and industrial integration plays an essential part in encouraging startups, further action is needed to sustain and scale new ventures. In his first year in office, President Moon Jae-in introduced a nationwide strategy for the Fourth Industrial Revolution. The promotion of startups is a central feature of the policy plan. In particular, the government has been working towards the implementation of regulatory sandboxes. To date, seven different cities and regions have been identified as regulatory sandboxes in their respective industries, ranging from healthcare to security. For instance, the City of Busan is becoming a center for experiments on blockchain regulation and smart city innovation.
Pangyo and Seoul
Despite efforts to disperse innovation and entrepreneurship regionally, a large portion of startup activities remains within Seoul and the neighboring province of Gyeonggi. Pangyo Techno Valley is home to a growing group of new and established technology companies in the province. According to a recent study, as of March 2019, there were 154 accelerators in South Korea, one hundred of which were headquartered in Pangyo and Seoul.
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