@article{1f5e6ab7f27d445eba90a831620033e5,
title = "The distinctiveness and diversity of entrepreneurial ecosystems in China, Japan, and South Korea: an exploratory analysis",
abstract = "Entrepreneurial ecosystems at the regional level have been intensively studied in Western countries, but much less so in East Asia. We study five major ecosystems located in Tokyo, Seoul, Beijing, Suzhou, and Chongqing, focusing on the business conditions for information technology (IT) start-ups. Our domain analysis reveals that these entrepreneurial ecosystems differ in various important aspects from leading Western counterparts such as Silicon Valley. Furthermore, we find differences in the growth and internationalization of firms across entrepreneurial ecosystems in China, Japan, and South Korea. Public policy should focus on supporting high-potential start-ups and strengthening the ecosystems{\textquoteright} global outreach.",
keywords = "China, Domain analysis, Entrepreneurial ecosystems, IT start-ups, Japan, South Korea",
author = "Martin Hemmert and Cross, {Adam R.} and Ying Cheng and Kim, {Jae Jin} and Florian Kohlbacher and Masahiro Kotosaka and Franz Waldenberger and Zheng, {Leven J.}",
note = "Funding Information: In all three countries, national policy programs include financial support policies for start-ups and other policies aimed at improving their business environment. Financial support policies consist of direct funding and loan support programs for start-ups and indirect funding support by the augmentation of “fund-of-funds” for venture capital investment. Other support policies include a wide variety of measures, such as education and information-sharing programs, the organization of entrepreneurship and networking-related events, support for the creation of incubators, and reforms that eliminate legal obstacles and regulatory uncertainties. Funding Information: Driven by national- level programs; focus on financial support Funding Information: In Korea, the ratio of VC investment to gross domestic product (GDP) is one of the highest worldwide, except for North America, and various successful Seoul-based start-ups have received major VC investments. However, while private VC is relatively abundant for mature start-ups with established business models, VC is scarcely available for early-stage start-ups. Korean VC firms tend to be cautious and conservative, as they often evaluate start-ups based on current financial indicators instead of growth potential (Ministry of Science, ICT and Future Planning 2015). The government is therefore focusing on early-stage start-ups with financial support policies. Approximately half of the government start-up funding is invested in companies that have been in business for less than 3 years. Most of the government financial support consists of grants and loans at low interest rates. Overall, the availability of financial resources for start-ups in Seoul is reasonably good. However, weak exit models are raising concerns. There are few IPOs and even fewer acquisitions (Ministry of SMEs and Startups 2017). Funding Information: Start-up finance in Suzhou is supported by a highly developed financial industry, complemented by a pioneering cross-border financing platform for local firms. Local government agencies have specifically worked to build a financing platform for start-ups in Suzhou in order to acquire foreign financing. Furthermore, there is sufficient governmental seed funding for early-stage start-ups (SIP China-Singapore Suzhou Industrial Park 2016). However, private equity finance markets in Suzhou are less developed than in Beijing. As a result, it is more challenging for Suzhou-based start-ups to secure financial support from local private investors. By the Funding Information: Acknowledgements This research has been supported by a Korea University Future Research Grant and a Korea University Business School Research Grant, by JSPS Kakenhi Grant Numbers 15K17131 and 18K12847, by the European Union{\textquoteright}s Horizon 2020 Research and Innovation Programme under the Marie Sk{\l}odowska-Curie Grant Agreement No. 645763, and by Research Development Fund RDF15-02-50 awarded by Xi{\textquoteright}an Jiaotong-Liverpool University (XJTLU). The China National Science Fund for Young Scholars (71602013), Chongqing Social Science Planning Project (2015PY31), and the Fundamental Research Funds for the Central Universities (106112017CDJXY020003) supported Ying Cheng{\textquoteright}s research work in this paper.",
year = "2019",
month = jul,
day = "1",
doi = "10.1057/s41291-019-00070-6",
language = "English",
volume = "18",
pages = "211--247",
journal = "Asian Business and Management",
issn = "1472-4782",
publisher = "Palgrave Macmillan Ltd.",
number = "3",
}