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Startup Capitalism: New Approaches to Innovation Strategies in East Asia: Appendix: East Asian Startup Policies

Startup Capitalism: New Approaches to Innovation Strategies in East Asia
Appendix: East Asian Startup Policies
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Notes

table of contents
  1. Cover
  2. Title Page
  3. Contents
  4. Acknowledgments
  5. Abbreviations
  6. Introduction
  7. Chapter 1. Analytical Framework
  8. Chapter 2. Japan
  9. Chapter 3. Korea
  10. Chapter 4. Taiwan
  11. Chapter 5. China
  12. Conclusion
  13. Appendix: East Asian Startup Policies
  14. Notes
  15. References
  16. Index
  17. Copyright

Appendix East Asian Startup Policies

TABLE A1.Japan’s startup-centric innovation policies (1948–2023)

Year

Initiative

Innovation policy type

Implementing organization

1951

Guarantees loans of up to twenty-five million yen for companies within five years old

Funding

JFC

1953

JFC for SMEs established with thirteen billion yen

Funding

Central government

1959

Patent Act, Design Act, and Trademark Act all passed into law

Regulation

Central government

1963

Establishment of the Small and Medium Enterprise Basic Law

Regulation

Central government

Three Small Business Investment Companies (SBIC) were formed, in Tokyo, Osaka, and Nagoya, fashioned after the US SBIC program

Funding

MITI

Tsukuba Science City established

Clusters, networks, institutes

National government and Ministry of Education

1967

Tax deduction (20%) on experimental and research expense increments

Taxation

National Tax Agency

1971

Kyoto Enterprise Development, first VC firm, launched

Funding

Local government and private partners

1972

Small and Medium Enterprise Vision

Regulation

MITI

1975

New Business Support Fund: loans to new businesses (within five years of founding)

Funding

National Finance Corporation

Venture Enterprise Center established

Funding

MITI

1982

Japan Associated Finance Co. Ltd. (JAFCO) launched the first limited liability company VC fund in Japan

Funding

Consortium of financial institutions

1983

Deregulation of initial listing requirements for over-the-counter market

Stock market

MOF

1985

Tax deduction (6%) to strengthen SMEs’ Technology Foundation

Taxation

National Tax Agency

1993

Tax deduction on Special Experimental and Research Expense increased to 12%

Taxation

National Tax Agency

1995

New business development program

Funding

Development Bank of Japan

Venture Plaza

Clusters, Networks, Institutes

SMRJ

SME Creative Business Promotion Law

Regulation

Diet

1997

Angel tax incentives launched

Taxation

National Tax Agency

Stock options issuance law passed

Regulation

Central government

1998

Limited Partnership Act for Investment passed

Regulation

Diet

Venture Fair: matching event to introduce products and services of select startups and help them to expand their marketing channels

Clusters, networks, institutes

SMRJ

Government-backed loans (forty trillion yen) for SMEs

Funding

MOF and MITI

1999

Small Business Innovation Research (SBIR)

Funding

SMRJ

Venture Fund: investing in startups at the early stage, less than seven years after foundation

Funding

SMRJ

Industrial Revitalization Law

Regulation

Central government

Mothers (Market for High-Growth and Emerging Stocks, on the Tokyo Stock Exchange) and Centrex (Nagoya Stock Exchange) are launched to encourage growing high-tech company listings

Stock market

Central government

Temporary Work Agency Law and Employment Security Law revised to expand employment placement and job-seeker support

Regulation

Diet

Improvement of entrepreneurship education: for elementary and secondary school students to develop their “entrepreneurship”

Education

MITI

Venture School: short-term intensive training

Education

Local governments

Small and Medium-Sized Enterprise Basic Act amendment: Promotion of Startups

Regulation

Diet

2000

Nasdaq Japan (JASDAQ) launches

Stock market

Central government

New Business Development Fund

Funding

Japan Finance Corporation for Small and Medium Enterprise

Launch of incubation facilities

Clusters, networks, institutes

SMRJ, local governments

Japan Venture Awards

Clusters, networks, institutes

SMRJ

2001

New Business Financing Program: providing loans without security/surety

Funding

JFC

Industrial Cluster Policy

Clusters, networks, institutes

METI

e-Japan strategy launched to boost IT sector competitiveness

Regulation

Cabinet

Pension fund portability

Regulation

MOF

Commercial Law amended to make the system of classified stocks more flexible

Stock market

Diet

J-Net 21: portal site for SMEs

Infrastructure

SMRJ

2002

Cluster Plan

Clusters, networks, institutes

METI

Deregulation of Share Issues and Stock Options

Regulation

MOF

Basic Law on Intellectual Property reformed

Regulation

Diet

2003

IT Startups Support Program

Funding

METI

Tax deduction on the Total Experimental and Research Expense (increased to 10%)

Taxation

National Tax Agency

Dream Gate, startup support platform

Clusters, networks, institutes

VEC

Plan to Promote IT among SMEs

Infrastructure

METI

Program for Training of Venture Capitalists

Education

METI

Challenge Community Creation Program

Education

METI

Business Startup Support Fund

Funding

SMRJ

SME Growth Support Fund and SME Revitalization Fund

Funding

SMRJ

2005

New limited liability corporate and limited liability partnership structures for VC funds

Regulation

Central government

2006

Comprehensive Support Program for Creation of Regional Innovation

Clusters, networks, institutes

JST

Companies Act Amendment

Regulation

Central government

2008

New Startup Fund, the New Business Startup Loan Program, Provision Scheme for Challenge Support and Capital Enhancement, and Loan with Stock Acquisition Rights

Funding

JFC

Re-challenge Support Loans

Funding

JFC

2009

Innovation Network Corporation of Japan Investment program

Funding

METI and 19 corporations

University & Graduate Schools Entrepreneur Education Promotion Network (Japanese)

Education and training

METI

2010

New JASDAQ

Stock market access

MOF

2011

Act to Facilitate Technology Transfer from Universities to the Private Sector Law)

Regulation

Diet

2012

Program for Creating Startups from Advanced Research and Technology

Funding

JST

The SME Business Capabilities Enhancement Support Act

Regulation

METI

Entrepreneurs’ Challenge

Education and training

MIC, NICT

Startup Subsidy

Funding

SMRJ

2013

Center of Innovation Program

Funding

Ministry of Education, Culture, Sports, Science, and Technology (MEXT), JST

Next Generation Technology Transfer Program (NexTEP)

Funding

JST

Micro Enterprise Revitalization Project

Funding

METI

Super Cluster Program

Clusters, networks, institutes

JST

Mirasapo (SME portal)

Infrastructure and government procurement

METI

Article 18 of the Labor Contracts Act

Regulation

Diet

National Strategic Special Zones

Attracting talent and investment

Cabinet Office

High School Student Business Plan Grand Prix

Education and training

JFC

2014

ICT Innovation Creation Challenge Program (I-Challenge!)

Funding

MIC

Government-Public Innovation Program

Funding

MEXT

Support Program of Capital Contribution to Early-Stage Companies

Funding

JST

Taxation to promote companies’ venture investment

Taxation

National Tax Agency

Enhancing Development of Global Entrepreneur Program

Education and training

MEXT

2015

Seed-Stage Technology-Based Startup

Support Program and Startup-Up Innovation

Funding

New Energy and Industrial Technology Development Organization

Strengthening the global venture ecosystem

Clusters, networks, institutes

METI

Act for Demand Creation for SMEs amendment

Infrastructure and government procurement

Diet

Startup Visa in National Strategic Special Zones

Attracting talent and investment

Immigration Bureau of Japan

Jump Start NIPPON

Education and training

METI

Promote the global alliance of Japan’s core companies and SMEs

Attracting talent and investment

METI

Project Creating a Bridge of Innovation between Silicon Valley and Japan

Attracting talent and investment

METI

2016

Open Innovation Platform with Enterprises, Research Institute and Academia

Clusters, networks, institutes

JST

Entrepreneurial Experience Promotion Project for Elementary and Junior Schools

Education and training

MEXT

Female entrepreneurs support network (ten hubs)

Clusters, networks, institutes

METI

Startups in Corporate Alliance

Subsidies of up to seventy million yen for R&D in startups in the program

Funding

NEDO

Formation of Regional Innovation Ecosystem

Funding

MEXT

2018

J-Startup Initiative

Clusters, networks, institutes

METI, New Energy and Industrial Technology Development, JETRO

12-Month Startup Visa Program

Attracting talent and investment

METI and Ministry of Justice

2019

Start Next Innovator 2019

Attracting talent and investment

METI

25% tax incentive on startup investments

Taxation

National Tax Agency

2020

Startup Visa scheme requirements relaxed

Attracting talent and investment

METI and regional governments

2021

Startup Visa eligibility extended to students already residing in Japan

Attracting talent and investment

METI and regional governments

Guidelines for Business Collaboration with Startups

Clusters, networks, institutes

Japan Fair Trade Commission and METI

Startup City Acceleration Project

Clusters, networks, institutes

JETRO

Open innovation tax relief program allows existing companies to deduct from their taxable income 25% of the value of their investments in startups

Taxation

National Tax Agency

2022

Government Pension Investment Fund to increase investment in startups

Funding

Cabinet

Startup Collaboration Strategy

Clusters, networks, institutes

Tokyo Metropolitan Government

Startup Development Five-Year Plan

Clusters, networks, institutes

Cabinet

Tax reforms recommended to enable stock option issuance to nonpermanent employees

Taxation

National Tax Agency

2023

Open innovation tax incentive extended to allow a domestic business corporation or its domestic corporate VC arm to deduct 25% of the cost of a startup acquisition from the income

Taxation

Industry Creation Policy Division, Economic and Industrial Policy Bureau, METI

Small and Medium Enterprise Agency

TABLE A2.Korea’s startup-centric innovation policies (1961–2023)

Year

Initiative

Innovation policy type

Implementing organization

1961

Small and Medium Enterprises Cooperatives Act

Regulation

Central government

Industrial Bank of Korea Act

Regulation

Central government

Small and Medium Industry Bank established

Funding

Small and Medium Industry Bank

Comprehensive Plan on the Promotion of Small and Medium Business

Regulation

Central government

1977

Loan program for SMEs technology development

Funding

Small and Medium Business Administration (SMBA)

1978

Small and Medium Enterprises Promotion Act

Regulation

Central government

1979

Small and Medium Business Promotion Fund

Funding

Small Business Corporation

1982

Ten-Year Long-Term Development Plan for SMEs

Regulation

Central government

1986

Support for Small and Medium Enterprises Establishment Act

Regulation

Central government

1989

Korea Technology Credit Guarantee Fund

Funding

Korea Technology Finance Corporation

1996

Small and Medium Enterprises Promotion Act

Regulation

Central government

Establishment of KOSDAQ

Stock market

KOSDAQ, MOF

1997

Act on Special Measures for the Promotion of Venture Businesses

Regulation

SMBA

1998

Fostering Venture Businesses

Clusters, networks, institutes

Central government

Special Law to Promote Venture Firms

Regulation

Central government

Act on the Special Cases Concerning Support for Technoparks

Regulation

Regional governments

Venture Business Startup Program “Restart Fund”

Funding

Small and Medium Business Corporation

1999

Science and Technology Vision 2025

Clusters, networks, institutes

Central government

National Science and Technology Council (NSTC)

Clusters, networks, institutes

Central government

2001

Act on the Promotion of Technology Innovation of Small and Medium Enterprises

Regulation

SMBA

2002

Korea BioValley (San Diego)

Funding

Federation of Korean Industries

2003

Innovate Korea

Clusters, networks, institutes

Central government

2004

Office of Science, Technology, and Innovation

Clusters, networks, institutes

MoST

2005

Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises

Regulation

SMBA

Korea Venture Investment Corporation (KVIC)

Funding

KVIC

2008

577 Initiative

Clusters, networks, institutes

Central government

Ministry of Education, Science, and Technology (MEST)

Education and training

Central government

Institute for Korea Entrepreneurship Development, Korea Institute of Startup and Entrepreneurship Development (KISED) from 2011

Clusters, networks, institutes

IKED/KISED

2009

Act on the Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets

Infrastructure and government procurement

Central, regional, and local governments

2011

Act on the Fostering of Self-Employed Creative Enterprises

Regulation

SMBA

Angel Investment Matching Fund

Funding

KVIC

2012

Korea Technology Finance Corporation Act amendment

Funding

Korea Technology Finance Corporation

2013

Creative Economy Action Plan

Clusters, networks, institutes

Central government

Ministry of Science, ICT, and Future Planning

Regulation

Ministry of Science, ICT, and Future Planning

Fund of Funds for Industrial Technology Commercialization

Funding

KVIC

Foreign VC Investment Fund

Funding

KVIC

Korea New Exchange (KONEX)

Stock market access

KONEX

2014

Creative Economy Innovation Centers (CCEIs)

Clusters, networks, institutes

Regional and local governments

Act on Support for the Protection of Technologies of Small and Medium Enterprises

Regulation

Central government

2015

Special Act on Support for Small Urban Manufacturers

Regulation

Central government

Angel Fund of Funds

Funding

KVIC

Youth Development Fund

Funding

MOSF

Korea Electric Power Corporation Fund of Funds

Funding

KVIC and Korea Electric Power Corporation

2016

K-Startup Grand Challenge

Attracting talent and investment

National IT Industry Promotion Agency and MSS from 2017

2017

Ministry of SMEs and Startups (MSS)

Regulation

Central government

2018

Scale-Up Co-Investment Fund

Funding

KVIC

KEBHana-KVIC Unicorns Fund of Funds

Funding

KVIC and KEBHana

2019

Strategy to Promote Second Venture Boom

Funding

Central government

SME Policy Deliberation Committee

Regulation

MSS

Global TOP 5 Start-Up City Seoul

Clusters, networks, institutes

Seoul Metropolitan Government

Masterplan for Promoting Women’s Entrepreneurship Activities

Funding

MSS

2020

K-Unicorn project launched

Clusters, networks, institutes

MSS

Pledge to increase the number of energy-related startups to four thousand by 2025

Clusters, networks, institutes

Ministry of Trade, Industry, and Energy

Commitment to invest US$2.2 billion in two thousand green startups over the next five years

Funding

Ministry of Environment

Digital startup investment fund launched with US$339.6 million

Funding

Ministry of Finance

Regulatory change to the Fair Trade Commission Law to allow nonfinancial holding companies to run corporate VC funds

Regulation

Ministry of Economy and Finance

2021

National Pension Service committed US$127.2 million to four Korea VC funds

Funding

National Pension Service

2022

New Entrepreneurship initiative for chaebol, tech giants, and startups to create jobs and tackle social issues

Clusters, networks, institutes

Korea Chamber of Commerce

2023

Startup Korea Fund announced as a fund of funds in which the public and the private sectors jointly invest over US$1.4 billion for four years from 2024 to 2027

Funding

MSS

K-Tech College launched, which will offer training programs in software and provides job placement opportunities with Korean startups to talented students from developing economies

Education and training

MSS

K-Scouter program to identify and nurture foreign startups with high potential in the Korean market

Attracting talent and investment

MSS

TABLE A3.Taiwan’s startup-centric innovation policies (1958–2023)

Year

Initiative

Innovation policy type

Implementing organization

1958

Export-led growth support of SMEs initiated at the urging of US aid

Regulation

Executive Yuan

Six-year science education program initiated to send Chinese scientists to the United States for advanced study

Education and training

Academia Sinica, US AID

1959

National Council for Scientific Development established

Regulation

Executive Yuan

1960

Nineteen-Point Economic and Fiscal Reform Program liberalized trade and encouraged export activity

Regulation

Executive Yuan

Statute for the Encouragement of Investment (SEI) offered tax incentives for export-oriented activity in particular technological areas

Taxation

Ministry of Economic Affairs

1961

Third Four-Year Economic Plan (1961–1964) emphasized labor-intensive export activities

Regulation

Ministry of Economic Affairs

Statute for the Encouragement of Technical Cooperation to foster technology transfer to Taiwan

Attracting talent and investment

Executive Yuan

1963

Council for International Economic Cooperation and Development established

Regulation

Executive Yuan

Taiwan Stock Exchange launched (after being initially formed in 1961)

Stock market

Ministry of Finance

1964

Sino-American Committee on Science Cooperation was created to institutionalize US technology transfers

Attracting talent and investment

Academia Sinica, US National Science Foundation

1965

Statute for the Establishment and Management of Export Processing Zones

Infrastructure

Ministry of Economic Affairs

1966

Working Group for Planning and Development of the Electronics Industry

Clusters, networks, institutes

Council for International Economic Cooperation and Development

Modern Engineering and Technology Seminars established to bring leading engineers and scientists to Taipei

Attracting talent and investment

Ministry of Communications

1973

Industrial Technology Research Institute (ITRI) established to support the hardware industry

Clusters, networks, institutes

Ministry of Economic Affairs

1974

Electronic Research Service Organization (ERSO) established to develop semiconductor industry capabilities

Clusters, networks, institutes

ITRI

SME Credit Guarantee Fund established to boost financing available to SMEs

Funding

Executive Yuan and Ministry of Finance

1976

Very-Large-Scale Integration (VLSI) established

Clusters, networks, institutes

ITRI

1979

Institute for Information Industry (III) established at the urging of K. T. Li to support software firms

Clusters, networks, institutes

Ministry of Economic Affairs

Science and Technology Development Program initiated efforts to attract and employ returnee overseas Chinese in R&D projects

Attracting talent and investment

Executive Yuan, Science and Technology Advisory Group1

1980

Ten Year Economic Development Project (1980–1989); a set of strategic industries was selected according to the two-large (large linkage effects, large market potential), two-high (high rate of value added, high technology intensity), and two-low (low energy intensity, low pollution) criteria

Clusters, networks, institutes

Ministry of Economic Affairs

Hsinchu Park established, after being initiated by the 1979 Science and Technology Development Program, as a technology cluster

Clusters, networks, institutes

National Science Council

1981

Medium and Small Business Administration established to develop and coordinate policy efforts

Regulation

Ministry of Economic Affairs

1983

Regulations for the Administration of Venture Capital Enterprises passed to encourage market development

Regulation

Ministry of Finance

US$72.5 million allocation to further VLSI capabilities to boost semiconductor capabilities

Funding

ITRI

1984

Tax incentives offered to manufacturers who allocate a percentage of revenues to R&D

Taxation

Ministry of Economic Affairs

1985

Development Fund and Chiao Tung Bank provide NT$50 million and NT$30 million, respectively, to the First VC Investment Program

Funding

National Development Fund

1987

TSMC founded by ITRI, Philips, and private investors

Clusters, networks, institutes

ITRI, China Development Corporation

1990

Information and Communications Research Laboratories established to develop advanced and core technologies (for PCs and network communications)

Clusters, networks, institutes

ITRI

1991

Statute for Industrial Upgrading replaces the SEI as tax package for SME R&D incentives

Taxation

Ministry of Economic Affairs

Liberalization of stock market to allow foreign institutional investors to invest in growth list of publicly traded technology firms

Regulation

Ministry of Finance

Development Fund and Chiao Tung Bank provide NT$1 billion and NT$60 million, respectively, to the Second VC Investment Program

Funding

National Development Fund

1992

Banking Law liberalized the banking sector so that commercial banks were more able to lend to small firms

Regulation

Ministry of Finance

1993

Three-year stimulus comprised of US$1.5 billion in loans to SMEs and US$750 million for high-technology enterprises

Funding

Ministry of Economic Affairs

1994

Taipei Exchange (TPEx) established as a public-equities venue for smaller companies

Stock market access

Ministry of Finance

1995

Southern Taiwan Science Park in Tainan, inspired by the Hsinchu Science Park, site approved as part of New Establishment of Science Parks program in the Six-Year National Development Project; focus on optoelectronics and biotechnology

Clusters, networks, institutes

Executive Yuan

1999

Small Business Innovation Research (SBIR) launched to boost R&D spending among small firms

Funding

Ministry of Economic Affairs

2000

Venture capital investor tax credit discontinued on account of political changes and market’s maturity

Taxation

Executive Yuan

2001

Development of the Kaohsiung Science Park and Tainan Science Park ratified

Clusters, networks institutes

ITRI

Issuance of Regulations on the Scope and Guidance of Venture Capital Enterprises (hereafter referred to as “the Scope”); the Financial Holding Company Act in 2001 allowed financial holding companies to invest in venture capital

Regulation

Ministry of Economic Affairs

Plans to strengthen the venture capital industry under the National Development Plan to be matched by the establishment of an NT$100 billion VC fund (NT$30 billion public and NT$70 billion private funding)

Funding

Executive Yuan

2002

Emerging Stock Board created within the Taipei Exchange to help emerging enterprises access the capital market

Stock market access

Ministry of Finance

Six-Year Development Plan 2002–2007 offered incentives to R&D centers for Challenge 2008

Attracting talent and investment

Ministry of Economic Affairs

Business Startup Award established to recognize outstanding startup performances annually

Clusters, networks, institutes

MoEA SME Administration

2003

Hsinchu Biomedical Science Park plans approved to foster a biomedicine-focused cluster

Clusters, networks, institutes

Executive Yuan

SME Online University created to provide accessible business training

Education and training

MoEA SME Administration

2004

Amendment of Regulations on the Scope and Guidance of Venture Capital Enterprises to expand funding channels and ease restrictions on investment scope and fund utilization

Regulation

Ministry of Economic Affairs

2005

National Science and Technology Development Plan (2005–2008) names startup three times

Regulation

National Science Council

Scope revisions require venture capital funds with capital commitments from banks, insurance companies, securities firms, financial holding companies, or pension funds to apply to the Industrial Development Bureau for approval

Regulation

Ministry of Economic Affairs

2006

Relaxed Scope makes it easier for investors to exit their positions by decreasing the required holding time of company securities and lifting the limit on share sales

Stock market access

Ministry of Finance

2008

Challenge 2008 (passed in 2002) to invest NT$30 billion alongside private funding of NT$70 billion in VC

Funding

National Development Fund

2009

National Science and Technology Development Plan (2009–2012) specifies startup competitions and promoting entrepreneurial spirit as key elements

Regulation

National Science Council

2010

InvesTaiwan Service Center established to provide a one-stop shop for investors in the Taiwanese startup ecosystem

Attracting talent and investment

MoEA

2012

In bid to boost software-based gaming startups’ capital markets access, the TPEx launched its online gaming sector index

Stock market access

Ministry of Finance

Bilateral fund of VC fund (Strategic Cooperation on Joint Investments in Venture Capital Funds) with New Zealand created

Funding

National Development Fund

2013

National Science and Technology Development Plan (2013–2016) mentions startup eight times, and entrepreneur* three times

Regulation

Executive Yuan

Launch of From IP to IPO program to enable startups’ scale-up abilities through the provision of mentorship on fundraising negotiations

Education and training

National Science Council

2014

Launch of HeadStart Taiwan, a startup funding program

Funding

National Development Council

Innovation and Startups Taskforce launched to coordinate entrepreneurial capabilities across agencies

Clusters, networks, institutes

Executive Yuan

2015

Taiwan Startup Hub established to provide consulting and advisory services to entrepreneurs

Education and training

Executive Yuan

Contact Taiwan Program approved with the aim of attracting global startup talent

Attracting talent and investment

National Development Council

Taiwan Startup Stadium established as a global ecosystem builder

Attracting talent and investment

National Development Council

Taiwan Rapid Innovation Prototyping League for Entrepreneurs platform activated to connect global hardware startups with partners in Taiwan

Technology infrastructure and government procurement

MoST

The International Entrepreneur Initiative Taiwan established as a single-portal website for entrepreneurial activities

Technology infrastructure and government procurement

MoST

Plans for Taiwan Innovation and Entrepreneurship Center, a state-sponsored innovation office in Silicon Valley, announced

Clusters, networks, institutes

MoST

2016

Launch of the Asia Silicon Valley Development Plan; the Asia Silicon Valley Development Agency is created to coordinate efforts

Clusters, networks, and institutes

National Development Council

National S&T Development Plan (2017–2020) mentions startup eighteen times and entrepreneur eighty-two times and offers startups funding, accelerators, coworking spaces, websites, international links, and so on

Regulation

MoST

2017

5+2 Innovative Industries Plan to promote seven pillar industries, including Internet of Things (branded as Asia Silicon Valley), green energy, biomedicine, national defense and aerospace, new agriculture, and the circular economy

Cluster, networks, institutes

Executive Yuan

Taiwania Capital is founded as a government-run VC fund

Funding

Executive Yuan’s National Development Fund

NT$2 billion Business Angel Investment Program established to extend the startup investment ecosystem

Funding

Executive Yuan’s National Development Fund

2018

Action Plan for Enhancing Taiwan’s Startup Ecosystem initiated

Cluster, networks, institutes

National Development Council

Launch of FinTechSpace, a fintech-focused coworking space in Taipei

Clusters, networks, institutes

Financial Supervisory Commission and Taiwan Financial Services Roundtable

Taiwan Tech Arena established to provide training and international connections for technology startups

Attracting talent and investment

MoST

Women Entrepreneurship Awards launched

Cluster, networks, institutes

MoEA SME Administration

2019

Linkou Startup Terrace established as an international startup-centric innovation hub in a university environment

Cluster, networks, institutes

Executive Yuan

Act for the Recruitment and Employment of Foreign Professionals launches Entrepreneur Visa

Attracting talent and investment

MoST

2020

Taiwan Accelerator Plus creates Advanced Industry Strategic Implementation Plan

Attracting talent and investment

MoEA SME Administration

Project on Promoting Innovative Financing and Commercialization offers a web-based platform to source prototyping manufactures and information on crowdfunding

Infrastructure

MoEA SME Administration

2021

TPEx creates Pioneer Stock Board to assist stock market access for companies operating in strategic industries

Stock market access

Ministry of Finance

Women Entrepreneurship Program to encourage and train female founders

Clusters, networks, institutes

MoEA SME Administration

Next Big program launches, to identify and promote startups internationally

Clusters, networks, institutes

MoEA and NDC

2022

500 Global Accelerator Taiwan run again, with twenty startups

Clusters, networks, institutes

Taiwan Tech Arena and 500 Startups

2023

Next Big startup initiative expanded, selecting 13 startups for backing as Taiwan’s startup island brand ambassadors

Clusters, networks, institutes

MoEA and NDC

TABLE A4.China’s startup-centric innovation policies (1979–2023)

Year

Initiative

Innovation Policy Type

Implementing Organization

1980

State Patent Office of the PRC established

Regulation

State Council

1985

CPC Central Committee Decision on the Reform of the Science and Technology System

Regulation

CPC Central Committee

1986

China New Technology Start-Up Investment Company enables VC funding

Funding

State Science and Technology Commission (SSTC), MOF

1987

Wuhan East Lake Hi-Tech Innovation Center established

Clusters, networks, institutes

Wuhan Municipal Government

1988

Torch Program created, which included technology business incubators and equity funding components

Funding and clusters, networks, institutes

SSTC

Beijing (Zhongguancun) New Technology Industry Experimental Zone approved

Clusters, networks, institutes

State Council

1989

China KZ High Technology Co. Ltd. established

Funding

SSTC, Commission for Science, Technology, and Industry for National Defense, China Merchants Group

1991

National High-Tech Industrial Development Zones established

Clusters, networks, institutes

State Council

National Science and Technology Venture Capital Development Center established

Funding

SSTC, MOF, Industrial and Commercial Bank of China

1993

Law of the People’s Republic of China on Progress of Science and Technology

Regulation

Standing Committee of the National People’s Congress

1994

Nanjing Overseas Students Entrepreneurship Park established

Attracting talent and investment

Ministry of Education, Ministry of Personnel, State Administration of Foreign Experts Affairs, Nanjing Municipal Government

1995

Torch Program Industrial Base prioritization scheme

Clusters, networks, institutes

SSTC

1997

Opinion on Establishing International Enterprise Incubator

Clusters, networks, institutes

SSTC

1998

State Intellectual Property Office of the PRC established

Regulation

CPC Central Committee, State Council

1999

Decision of the CPC Central Committee and the PRC State Council on Strengthening Technology Innovation, Developing High Technology, and Realizing Industrialization

Regulation

CPC Central Committee, State Council

Opinions on Establishing a Venture Investment System

Regulation

MoST, State Development Planning Commission, State Economic and Trade Commission, People’s Bank of China, SAT, China Securities Regulatory Commission (CSRC)

Revision of the Company Law of the PRC

Regulation

Standing Committee of the NPC

Innofund further advanced

Funding

MoST, MOFC

2000

Policies on Encouraging and Promoting the Development of SMEs

Regulation

State Economic and Trade Commission

Opinions on Accelerating the Establishment and Development of High-Tech Entrepreneurship Service Centers

Clusters, networks, institutes

MoST

Amendment to the Patent Law of the PRC

Regulation

Standing Committee of the NPC

SME International Market Development Fund established

Measures for the Administration of the SME International Market Development Fund (Provisional)

Attracting talent and investment

MOF, Ministry of Foreign Trade and Economic Cooperation

(Beijing) Preferential Household Registry (hukou) policy for entrepreneurs

Attracting talent and investment

Beijing Municipal Government

2001

Provisions Concerning the Establishment of Foreign-Funded Venture Capital Enterprises

Regulation

MoST, State Administration for Industry and Commerce (SAIC)

Measures for Administrating Overseas Students Entrepreneurship Parks

Attracting talent and investment

Ministry of Personnel

2002

Law of the PRC on the Promotion of Small and Medium-Sized Enterprises

Regulation

Standing Committee of the NPC

Beijing Venture Award for Outstanding Overseas Returnees

Attracting talent and investment

Beijing Administration of Personnel

2003

Provisions Concerning the Administration of Foreign-Funded Venture Capital Enterprises

Attracting talent and investment

MOFTEC, MoST, SAIC, State Administration of Taxation (SAT), State Administration of Foreign Exchange

Opinions on Further Improving the Operation of High-Tech Enterprise Incubators

Clusters, networks, institutes

MoST

Special Subsidy for SME Service System

Clusters, networks, institutes

MoF

2004

SME Board created

Stock market access

CSRC

Special Fund for SME Development

Funding

MoF, NDRC

Roadmap Scheme for Growth of Tech-Based SMEs

Regulation

Innofund Administration Center, Shenzhen Stock Exchange (SZSE), China Development Bank, National Business Incubator Association, China VC Association

Opinions concerning further promotion of the Establishment and Development of National University Technology Parks to encourage entrepreneurship among university students

Education and training

MoST, MOE

Special Central Government Subsidy for the Establishment of Local SME Platform Service Systems

Clusters, networks, institutes

MoST

2005

Provisions on the Administration of Venture Capital Enterprises

Regulation

NDRC, MoST, MoF, Ministry of Commerce (MOFCOM) PBOC, SAT, SAIC, China Banking Regulatory Commission, CSRC, SAFE

Guidance Opinions on Banks’ Loan Business with Small Enterprises

Regulation

China Banking Regulatory Commission

SME Information Technology Promotion Project

Education and training

NDRC, MIIT

2006

Tax incentives for Technology Innovations by Enterprises

Taxation

MoF, SAT

Opinions on Strengthening the SME Credit Guarantee System

Regulation

NDRC, MOFCOM , PBOC, SAT, China Banking Regulatory Commission

11th Five-Year Plan on University Technology Parks

Education and training

MoST, Ministry of Education

11th Five-Year Plan on Chinese Tech-Based Enterprise Incubators

Clusters, networks, institutes

MoST

Measures for Accrediting and Administering Tech-Based Enterprise Incubators

Clusters, networks, institutes

MoST

2007

Tax incentives for Venture Capital Investments in High-Tech SMEs, for National University Technology Parks, and for Tech-Based Enterprise Incubators

Taxation

MoF, SAT

Tax incentives for High-Tech Enterprises Newly Set Up in Special Economic Zones and in Pudong District of Shanghai2

Taxation

State Council

Priority for independent innovation products in government procurement

Technology,

infrastructure, and

government

procurement

MoST

Venture Capital Guiding Fund for Tech-Based SMEs

Funding

MoF, MoST

Several Opinions on Promoting Development Zone for New and High Technology Industries to Further Develop and to Increase Independent Innovation Capacity

Clusters, networks, institutes

MoST, NDRC, Ministry of Land Resources, Ministry of Construction

2008

Guiding Opinions on the Establishment and Operation of the Venture Capital Guiding Fund for Tech-Based SMEs

Regulation

NDRC, MoF, MOFCOM

Thousand Talents Plan (Recruitment Program of Global Experts Directorate and Office)

Attracting talent and investment

CPC Organization Department

Guiding Opinions on Promoting Employment through Entrepreneurship

Regulation

Ministry of Human Resources and Social Security (MOHRSS), NDRC, MOE, MIIT, MoF, Ministry of Land and Resources, Ministry of Housing and Urban-Rural Development, MOFCOM, PBOC, SAT, SAIC

Creation of Government-Guided Investment Funds

Funding

State Council, MoF, NDRC

Building of Entrepreneurial Cities

Clusters, networks, institutes

MOHRSS

2009

ChiNext

Stock market access

CSRC

Youth Employment and Entrepreneurship Bases Program

Clusters, networks, institutes

Communist Youth League of China

Emerging Industries Venture Capital Program

Funding

NDRC, MoF

Chinese Overseas Students’ Return and Entrepreneurship Support Program

Attracting talent and investment

MOHRSS

2010

China Innovation Relay Network

Clusters, networks, institutes

MoST

Measures for Accrediting University Students’ Technology Entrepreneurship and Internship Bases (Provisional)

Clusters, networks, institutes

Ministry of Education, MoST

National Medium- to Long-Term Talent Development Plan Outline (2010–2020)

Regulation

Central Committee of the CPC, State Council

University Students Entrepreneurship Guidance Program

Education

MOHRSS

2011

Provisional Measures for Promoting SME Development through Government Procurement

Technology infrastructure and government procurement

MoF, MIIT

Innovative Talents Promotion Program

Clusters, networks, institutes

MoST, MoF, MOHRSS

University Graduates Grassroots Nurturing Program

Clusters, networks, institutes

CPC Organization Department, Ministry of Education, MOHRSS, Central Committee of the Communist Youth League of China

12th Five-Year Plan on Science and Technology Development

Regulation

State Planning Commission, MoST

12th Five-Year Plan on SME Growth

Regulation

MIIT

National Fund for Technology Transfer and Commercialization

Funding

MoF, MoST

Opinion on Supporting Overseas Students to Return to China and Start Businesses

Attracting talent and investment

CPC Organization Department, MOHRSS

China Innovation and Entrepreneurship Competition

Clusters, networks, institutes

Torch High Technology Industry Development Center of the MoST, Innovation Fund for Tech-Based SMEs Administrative Center

2012

State Council Opinion on Further Support the Healthy Development of Micro and Small Enterprises, No. 14

Regulation

State Council

Tax incentives for micro and small enterprises

Taxation

State Council

Opinion on Deepening Technology System Reform and Accelerating the Establishment of National Innovation System, No.6

Regulation

CPC Central Committee, State Council

China Innovation and Entrepreneurship Competition

Cluster, networks, institutes

Torch High Technology Industry Development Center of the MoST, Innovation Fund for Tech-Based SMEs Administrative Center

2013

Amendment to the Company Law of the People’s Republic of China

Regulation

Standing Committee of the NPC

Innovation-Based Industrial Clusters

Clusters, networks, institutes

MoST

National Equities Exchange and Quotation

Stock market access

MoF

2014

Roadmap Scheme for Growth of Tech-Based SMEs 2.0

Clusters, networks, institutes

Torch High Technology Industry Development Center of the MoST, SZSE, National Equities Exchange and Quotations Co. Ltd., China Merchants Bank

Notice on the Plan for Deepening the Reform of the Management of Centrally Financed S&T Projects

Funding

State Council

2015

Guiding Opinions of the General Office of the State Council on Expanding Mass Entrepreneurship Space and Promoting Mass Innovation and Entrepreneurship

Regulation

State Council

Master Plan of the Startup Ecosystem Development Strategies

Regulation

State Council

Model Cities for Micro and Small Businesses Entrepreneurship and Innovation

Clusters, networks, institutes

MoF, MIIT, MoST, MOFCOM, SAIC

National Fund for SME Development and National Guiding Fund for Emerging Industries Venture Capital

Funding

State Council

E-commerce Entrepreneurship and Innovation Service Project3

Technology infrastructure and government procurement

NDRC, MOFCOM, PBOC, SAT, SAIC, General Administration of Quality Supervision, Inspection, and Quarantine

13th Five-Year Plan for the Development of National Enterprise S&T Enterprise Incubators

Clusters, networks, institutes

MoST

Chinese Enterprises “Go Global” Innovation and Entrepreneurship Competition

Clusters, networks, institutes

MOFCOM

2016

E-commerce Entrepreneurship and Innovation Service Project

Technology infrastructure and government procurement

NDRC, MOFCOM, PBOC, General Administration of Customs, General Office of SAT, SATC

China Innovation Challenge

Clusters, networks, institutes

Torch High Technology Industry Development Center of the MOST, Innovation Fund for Tech-Based SMEs Administrative Center’

Tax incentives for Tech-Based Enterprise Incubators

Taxation

MoST, SAT

Promoting Continuous and Healthy Development of Venture Capital, No. 53

Funding

State Council

2017

Several Measures for Promoting Innovation Development in Free-Trade Zones

Clusters, networks, institutes

MoST, MOFCOM

Opinions on Promoting the High-Quality Development and the Establishment of an Upgraded Version of Mass Innovation and Entrepreneurship

Regulation

State Council

National High-End Foreign Experts Recruitment Plan

Attracting talent and investment

MoST

Guiding Opinions on Promoting the Development of National University S&T Parks

Clusters, networks, institutes

MoST, Ministry of Education

2017 “Maker China” Small and Medium-Sized Enterprise Innovation and Entrepreneurship Competition (first year)

Clusters, networks, institutes

MIIT, MoF

2018

Measures for the Administration of Technological Business Incubators

Clusters, networks, institutes

MoST

Notice on Tax Policies for Technology Business Incubators, University Science Parks, and Maker Spaces

Taxation

MoF, SAT, MoST, Ministry of Education

Negative List for Market Access established to restrict sectors for private investment; with 151 items

Regulation

NDRC, MOFCOM

2019

Launch of Science and Technology Innovation Board on Shanghai Stock Exchange

Stock market access

Shanghai Stock Exchange

Issuing Several Policies and Measures to Support the Accelerating Innovation and Development of Technological SMEs in the New Era

Clusters, networks, institutes

MoST

Organizing and Recommending National Technological Innovation Demonstration Enterprises, No. 97

Regulation

MIIT

“Little Giants” named as high-growth startups in select industries, such as semiconductors, machinery, and pharmaceuticals

Clusters, networks, institutes

MIIT

Preferential Startup Tax policies; VC investors receive a 70% deduction on taxable income

Taxation

SAT

Issuing the Guiding Opinions on Promoting the Innovation and Development of National University Science Parks

Clusters, networks, institutes

MoST

2020

Foreign Investment Law to standardize corporate structure and governance

Regulation

State Council

Draft rules on limiting monopolistic practices by internet platforms

Regulation

State Administration for Market Regulation

Draft personal data protection plan

Regulation

Cybersecurity Administration

2021

Statement on labor laws’ maximum of forty-four-hour work week

Regulation

Ministry of Labor, High Court

Ban on cryptocurrency and for-profit companies in the Edtech industry (not-for-profit companies cannot go public nor raise foreign investment capital)

Regulation

CPC Central Committee, State Council, PBOC

Plans for a negative list for Variable Interest Entities who list in overseas capital markets

Regulation

CSRC

Creation of the Beijing Stock Exchange to cater to startups

Stock market access

CSRC

2022

Acceptance of Ant Financial application for financial holding company

Regulation

PBOC

2023

Special Provisions regarding Venture Capital Funds simplifies fund registration, offers less frequent inspections by the CRSC, and facilitating exits for qualifying VCs

Regulation

State Council

Launch of US$40 billion state-backed fund to invest in the semiconductor industry, as part of the Big Fund

Funding

MoF

1 The STAG was created by the premier’s office, with K. T. Li leading the formation of the group in 1979.

2 Tax relief from enterprise income tax for the first two years of operations; taxes to be levied at half of the statutory tax rate of 25 percent for the third to the fifth years.

3 For policy details, see Notice from the National Development and Reform Commission and Seven Other Departments on Promoting the Development of e-commerce [in Chinese]. July 30, 2024, http://www.cac.gov.cn/2016-06/01/c_1118968390.htm.

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