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Startup Capitalism: New Approaches to Innovation Strategies in East Asia: Index

Startup Capitalism: New Approaches to Innovation Strategies in East Asia
Index

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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

Index

Note: Page numbers followed by letters f and t refer to figures and tables, respectively.

  • Abe, Shinzo, 174n16
  • accelerator(s), 10, 30, 172n7; Amazon Web Services (AWS), 138; in Taiwan, 86
  • Acemoglu, Daron, 24
  • Acer, 85, 94, 98, 132
  • Acs, Zoltan, 172n6
  • Aghion, Philippe, 11, 24
  • Akaura, Tohru, 56
  • Alibaba, 104; Chinese government and, 20, 101, 107, 119, 121, 135, 171n10; global success of, 116, 144; split of, 101, 121; and Taobao Villages, 118–19; VC investments by, 112
  • Alliance Ventures, 51
  • Amazon: antitrust case against, 142–43; dominance over markets, 137, 144
  • Amazon Web Services (AWS): and National Science Foundation, 5; Startup Loft Accelerator of, 138; and Taiwanese startups, 86
  • Anchordoguy, Marie, 55
  • angel investors: China's policies encouraging, 114; Japan's policies encouraging, 44, 49, 146t; Korea's policies encouraging, 71, 152t; Mark I-styled approaches and, 32; Taiwan's policies encouraging, 93, 159t
  • Ant Financial, IPO of, 107, 121
  • Appelbaum, Richard, 27
  • Apple, Taiwanese cloning industry and, 94
  • Appropriate Technologies movement, 143
  • Arm, SoftBank's acquisition of, 87, 173n11
  • artificial intelligence (AI): Chinese policies supporting, 116, 122; Japanese efforts to develop, 131; startups as resources for big business in, 4; US-China competition in, 142
  • Asia Silicon Valley Development Plan (Taiwan), 95, 96
  • Atkinson, Robert, 11, 14–15, 138
  • Baark, Erik, 27
  • Baidu, 104, 107, 112, 177n3
  • bankruptcy reform: in China, 110; in Japan, 46; Mark I policies and, 30, 110
  • Baslandze, Salome, 141
  • Beijing Stock Exchange, 113, 132
  • big business: dominance in 21st century, 6, 137–38, 139; and innovation, 5, 39, 40, 58; negative connotations of, 11, 136–37, 142–43; startup capitalism and, 9, 11–12, 135–36, 140; startups viewed as (open) innovation resources for, 1–4, 9, 10–13, 28, 39, 58, 61, 62, 70–71, 130, 138. See also large companies/corporations
  • Big Data Regional Innovation Hubs (US), 5
  • Big Is Beautiful (Atkinson and Lind), 11, 14–15, 138
  • biotechnology sector, efforts to develop, 27; China's, 116, 177n7; Korea's, 71, 75; Taiwan's, 82, 90, 93, 95, 96, 99, 127, 157t, 177n16
  • Blank, Steve, 13
  • Blockbuster, demise of, 5
  • blockchain, Chinese policies supporting, 107, 119, 122
  • BMW, and startup partnerships, 5
  • Brain Korea 21 (BK21) program, 70, 74
  • Buffet, Warren, 137
  • business dynamism, decline in, 6; explanations for, 3–4, 21–22, 137–38, 139
  • ByteDance, 113, 171n10, 177n3
  • catch-up technologies/technology transfer: in China, 105, 114, 122, 128; developmental state and, 7, 33–34; in Japan, 42, 53; in Korea, 64, 65; in Taiwan, 87, 94, 127
  • Centers for the Creative Economy and Innovation (CCEIs, Korea), 1, 3, 10, 66, 135–36
  • Centrex (Japan), 49, 146t
  • chaebol: as beneficiaries of startup policies, 79, 126–27, 135–36, 140; centrality to technology upgrading and employment, 26, 74, 75–76, 78; decrease in employment opportunities at, 68–69; developmental state and, 61–66; discrediting of/pressure for reform, 65, 66, 76, 78, 175n4; investment in startups/corporate VC funds, 4, 61, 72–73, 80, 132, 174n1, 174n3; open innovation context and, 75; partnerships with startups, 10, 20, 61, 66–67, 126–27, 135–36; predatory potential of, 13, 67; startup experience prior to employment at, 70–71
  • Chang, Morris, 82, 95, 142, 176n11
  • Chen, Sun, 85
  • Chen Yun, 177n8
  • Chesbrough, Henry, 12, 27, 66, 141
  • Cheung, Tai Ming, 35, 123
  • Chiang Kai-shek, 84, 175n3
  • China: analytical and empirical importance of, 4; big businesses in, regulatory crackdowns on, 20, 101–2, 106–7, 171n10; continuity and change in, 120–23, 120f, 125, 125f, 128; developmental state in, 103–6, 124, 128, 177n8; employment policies in, 21, 104, 105, 106, 108–10, 120, 120f, 121, 133, 178n9; financing for innovation in, 104–5, 110–14, 120, 120f, 121–22, 132; hybrid approach to innovation in, 101–2, 128, 171n6, 172n5; innovation policies in, 21, 35, 105, 114–17, 120, 120f, 122, 131; institutional coevolution in, 130, 135; Mark I alignment of policies in, 20, 21, 101, 114, 117, 120, 122, 123, 128; Mark II alignment of policies in, 20, 128; middle-income trap and, 177n2; and overseas Chinese, policies to attract back, 108–9, 114–15; Silicon Valley investments in, 113–14; size of firms in, 103, 106–8, 120–21, 120f, 125f, 128; social purpose of innovation policies in, 35, 105–6, 117–19, 120, 120f, 122–23, 133, 134; startup policies in, 4, 15, 20, 21, 102, 103–4, 120–23, 128, 161t–169t; state-owned enterprises (SOEs) in, 103, 106, 120, 172n5, 179n19; and Taiwan, 89, 93, 96–97; US trade war with, 2, 107, 113; VC markets in, 4, 104–5, 112, 120, 122; work culture in, 106, 133; WTO entry and innovation policies in, 102, 108, 115, 123. See also specific institutions and programs
  • China Venturetech Investment Corporation, 104, 122, 177n6
  • ChiNext (China), 112, 113, 122, 132, 178n15
  • Chips Act (EU), 5, 35–36
  • Cho, EunYoung, 27
  • Chun Doo-hwan, 63, 64
  • comparative capitalism, startup-centric approaches from perspective of, 2–3, 23
  • Cool Japan, 48
  • coordinated market economy (CME): institutional components of, 6, 23, 31; Japan as, 39; startup-centric approaches and movement away from, 3
  • Council for Economic Planning and Development (CEPD, Taiwan), 85, 91, 130
  • Coupang, as VC investor, 174n1
  • COVID-19 vaccine development, 2
  • creative destruction: absence in startup capitalism, 9, 100, 130, 139; endogenous growth theory on, 11; level of economic development and, 16; Mark I model and notion of, 8, 10, 28, 139–40
  • Creative Economy Action Plan (Korea), 19, 77, 126
  • credit-based finance. See debt-based finance
  • critical technologies: capabilities in, as social purpose of innovation, 35–36; Chinese policies supporting, 21, 106, 116, 119, 121; East Asian countries and, 34; startups considered as resources for big business in, 4. See also emerging technologies
  • Crouch, Colin, 32
  • cryptocurrency, China's policies on, 107, 123, 168t
  • Dahlander, Linus, 138
  • Daum (search engine), 65
  • Debanes, Pauline, 130, 135
  • debt-based finance: in China, 110, 111, 112, 114, 121; coordinated market economy (CME) and, 6, 31; developmental state and, 7, 63; equity-based finance as complementary to, 132
  • decentralization, China's startup policies and, 105–6, 117–18, 122, 134
  • Deng Xiaoping, innovation policies under, 103, 105, 177n8
  • Denso, and Rapidus joint venture, 57
  • developmental environmentalism, 144
  • developmental state(s), 6–7, 23; attributes of, 3, 7, 171n1; changes in, conceptualizations of, 24; in China, 103–6, 124, 128, 177n8; and export-led growth model, 7, 62, 63; financing (for innovation) in, 30, 31; incremental innovation in, 33–34, 41, 63; institutional components of, 9, 15; in Japan, 19, 26, 33–34, 39–42, 124, 125; in Korea, 35, 61–64, 80, 124, 126, 174n2; large companies, 3, 7, 15, 26–27; Mark II paradigm aligning with, 9, 24; open innovation models and persistence of, 21, 135–36; and radical innovation, move toward, 7, 34; small firms in, 171n1, 174n2; and social purpose, 35; startup capitalism in relation to, 1, 3, 134–36; status of, debates on, 7–8, 21, 134; in Taiwan, 4, 82, 83–85
  • DiDi Chuxing, 107, 177n3
  • diversity. See social inclusion
  • East Asian countries: analytical and empirical importance of, 4; continuity and change in, 124–25, 125f; convergence of startup policies across, 129–34, 129f; developmental past of, 1, 124; developmental state adapting to startup capitalism in, 135–36; economic success of, interpretations of, 171n1; open innovation model and advantages for, 22; social purpose of innovation policies in, 34–35; startup-centric initiatives in, expectations regarding, 1, 3. See also specific countries
  • East Asian Financial Crisis (EAFC): impact on China, 102; impact on developmental state, 7; impact on Korea, 65, 66, 68, 78, 79, 80, 126, 131, 175n8
  • eBay, 137
  • education programs, entrepreneurship/high-tech, 17t, 30; in China, 106, 118, 163t–165t; in Japan, 53–54, 147t–149t; in Korea, 70, 74, 80, 152t, 153t; in Taiwan, 86, 88, 89, 154t, 157t, 158t
  • 863 Program (China), 105, 177n7
  • electric vehicles, China's policies on, 34, 116
  • Electronic Research Service Organization (ERSO, Taiwan), 94, 155t, 176n14
  • Emerging Stock Board (Taiwan), 92, 132, 157t
  • emerging technologies: China's policies on, 15, 106, 116, 177n7; startup policies focusing on, 4, 9, 10, 11, 130, 140, 142; Taiwan's policies on, 4, 20, 21, 90, 96, 98, 99, 100, 127, 131. See also critical technologies; specific technologies
  • employment/labor market(s): China's startup policies and, 21, 104, 105, 106, 108–10, 120, 120f, 121, 133, 178n9; convergence across East Asian countries, 129, 129f, 131, 132–33; coordinated market economy (CME) and, 6, 23; developmental state and, 7; Japan's startup policies and, 45–49, 57, 58–59, 58f, 125f, 126, 130, 132–33; Korea's startup policies and, 68–71, 78–79, 79f, 80, 125f, 126, 130, 132–33; liberal market economy (LME) and, 6, 23; lifetime, in Japan, 29, 40–41, 45, 47, 49, 58, 126; lifetime, in Korea, 29, 63, 80; in Mark I paradigm, 25f, 29–30; in Mark II paradigm, 25f, 29; startups and problems related to, 13–14; and study of startup capitalism, 19, 24; Taiwan's startup policies and, 83, 87–91, 98–99, 98f, 125f, 128, 132
  • environmental innovation, 144
  • equity-based finance: in China, 104–5, 110–14, 121–22, 123; convergence across East Asian countries, 129, 129f, 130, 131–32; in Japan, 49–50, 52, 57, 58f, 59, 126, 130; in Korea, 71–72, 80, 126, 130; liberal market economy (LME) and, 6, 31; in Taiwan, 84, 85, 88, 91–93, 99, 125f, 128
  • European Union (EU), Chips Act, 5, 35–36
  • evolutionary economics, 4, 8
  • exports, developmental state and, 7, 62, 63
  • Fairchild Semiconductor, 88
  • Fields, Karl, 83
  • financial technology (fintech): Korea's startup policies and, 66; Taiwan's startup policies and, 90, 96, 99, 160t
  • financing for innovation: in China, 104–5, 110–14, 120, 120f, 121–22, 132; convergence across East Asian countries, 129, 129f, 130, 131–32; developmental state and, 30, 31; in Japan, 49–52, 57, 58f, 59, 125f, 126, 130, 132; in Korea, 69, 71–73, 78–79, 79f, 80, 125f, 126, 130, 132; in Mark I paradigm, 25f, 31–33; in Mark II paradigm, 25f, 31–33; and social purpose, 15; and study of startup capitalism, 19, 24; in Taiwan, 84–85, 91–93, 98f, 99, 125f, 128, 131–32
  • 5G, China's development of, 116, 119
  • 500 Startups: Japan's partnership with, 30, 42, 51; Taiwan's partnership with, 86, 93
  • foreign investment, efforts to attract: in China, 104, 111, 113–14, 122, 168t; in Japan, 43, 52; startup policies and, 17t; in Taiwan, 86–87, 92–93
  • foreign talent, efforts to attract: in China, 104, 116; in Japan, 30, 45, 47–48; in Korea, 70; Mark I model and, 30; in Taiwan, 86, 88–89, 90, 98, 127
  • Formosa Plastics, 85, 132, 175n2
  • France, startup policies in, 5
  • Friedman, David, 173n1
  • Fujitsu, in R&D consortia, 26
  • Fukumoto, Takuya, 44, 54
  • Furuya, Hajime, 54
  • Galapagos Syndrome, 53
  • Gann, David M., 138
  • General Motors, 136, 143
  • Germany, Silicon Saxony in, 5
  • Ghosh, Shikhar, 13
  • gladiatorial entrepreneurs, 171n6, 172n5
  • global financial crisis (GFC): impact on China, 118, 123; impact on Korea, 69, 74
  • Gold, Thomas, 85
  • Google X, 14–15
  • Government Pension Investment Fund (GPIF, Japan), 52, 173n3
  • Greene, J. Megan, 83
  • green technologies: Korea's policies on, 153t; Taiwan's policies on, 82, 95, 96, 99, 127, 130, 159t
  • Grove, Andy, 138
  • Hall, Peter, 6
  • Hata, Nobuyuki, 45
  • Heisei recession (Japan), 7, 55, 125, 174n13
  • high-tech industries development zones (HIDZs, China), 105, 117–18, 122, 179n20
  • Hirai, Takuya, 54
  • HiSilicon, 116
  • Hitachi, investment in startups, 50
  • Holroyd, Carin, 56
  • Honda, fund of funds of, 51
  • Howitt, Peter, 11, 24
  • Hseih, Wen, 87
  • Hsinchu Park (Taiwan), 20, 85, 88, 94, 131, 155t; returnees from US in, 88–89, 99, 176n8
  • Hsu, Ta-Lin, 176n11
  • Huang, Yasheng, 177n4, 179n19
  • Huawei, 102, 104, 119, 121; semiconductor subsidiary of, 116
  • Hu Jintao, startup policies under, 106, 108–9, 110, 111, 117–18, 121, 122
  • hukou social registration system (China), startup policies and, 104, 133
  • Hyundai, innovation policies and, 66
  • Ibata-Arens, Kathryn, 40, 173n1
  • IBM: crackdown on Taiwanese cloning industry, 94; and National Science Foundation, 5; and Rapidus, 57
  • inclusive innovation, 143
  • incremental innovation: China and, 105; coordinated market economy (CME) and, 6, 23, 31; developmental state and, 33–34, 41, 63; Mark II paradigm and, 25f, 33–34; move to radical innovation from, 34; and wages, 40–41
  • incubators, startup, 30; vs. accelerators, 172n7; in China, 104, 105, 109–10, 111, 117–18, 161t; in Japan, 43, 54, 147t; in Korea, 66, 71, 74; in Taiwan, 86, 87, 90
  • industrial policy, startup policies as contemporary form of, 2, 18
  • Industrial Technology Research Institute (ITRI, Taiwan), 85, 87, 88, 89, 92, 93–94, 176n11; support for private companies, 99, 127, 176n11
  • Innofund (China), 104, 111, 178n12
  • innovation: big business and, 5, 39, 40, 58; China's policies promoting, 21, 35, 105, 114–17, 120, 120f, 122, 131; convergence across East Asian countries, 129–30, 129f, 131; and economic growth, neo-Schumpeterian economics on, 8; environmental, 144; inclusive, 143; Japan's policies promoting, 52–55, 57, 58f, 59, 125f, 126, 131; knowledge economy and changes in, 141; Korea's policies promoting, 73–76, 78, 79, 79f, 80–81, 125f, 126, 131; public policies and, need to reconsider, 139; Schumacher's understanding of, 143; Schumpeterian understandings of, 5, 8–9, 14, 24, 140–41, 143; startup capitalism and, 4, 141–42; Taiwan's policies promoting, 83–84, 93–95, 98f, 99, 125f, 127–28, 131; type of, and study of startup capitalism, 19, 24. See also incremental innovation; Mark I paradigm; Mark II paradigm; radical innovation
  • innovation imperative, 2
  • "innovation theater," 13
  • Instagram, 104
  • institution(s): conceptualization of, 23; fundamental to studying startup capitalism, 18–19, 23–24
  • institutional coevolution, startup capitalism as form of, 130–31, 135
  • Intel, 10, 138
  • intellectual property (IP): China's policies on, 115; US challenges to Taiwanese cloning industries, 94
  • internet technologies: China' policies on, 101–2, 116, 119, 128, 168t, 178n10; dominant firms in, efforts to constrain, 137, 144, 168t; Japan's policies on, 50; Korea's policies on, 65, 74; Taiwan's policies on, 87, 95, 96, 159t
  • internships, at startups, 47, 49, 58
  • InvesTaiwan Service Center, 92–93
  • iParks (Korea), 71, 74
  • Ishii, Yoshiaki, 43, 47, 48, 50
  • Israel, Yozma fund in, 32–33
  • Japan: analytical and empirical importance of, 4; as archetypal CME, 39; continuity and change in, 57–60, 58f, 124, 125–26, 125f; developmental state era in, 19, 26, 33–34, 39–42, 124, 125; employment policies in, 45–49, 57, 58–59, 58f, 125f, 126, 130, 132–33; and entrepreneurship, cultural norms regarding, 45, 55–56, 58–59; financing for innovation in, 49–52, 57, 58f, 59, 125f, 126, 130, 132; and foreign talent, efforts to attract, 30, 45, 47–48; Galapagos Syndrome in, 53; Heisei recession in, 7, 55, 125, 174n13; innovation policies in, 52–55, 57, 58f, 59, 125f, 126, 131; institutional coevolution in, 130, 135; large firms in, 26, 39, 42–45, 57–58, 58f, 130, 142; lifetime employment in, 29, 40–41, 45, 47, 49, 58, 126; Mark I alignment of policies in, 40, 46–47, 49–50, 53, 54, 58, 59; Mark II alignment of policies in, 19, 20–21, 39, 40, 44, 50, 52, 57–58, 59, 135; MITI supercomputer consortium in, 26, 33–34; open innovation model in, 4, 19, 40, 43–45, 51, 53–54, 58, 59, 60, 126, 130, 136; and Silicon Valley partnerships, 4, 48, 56, 57; social purpose of innovation policies in, 19, 41–42, 55–57, 58f, 59, 125f, 126, 133–34; startup policies in, 4, 19, 20–21, 38–39, 42–45, 51–52, 57–60, 125–26, 145t–150t; venture capital (VC) markets in, 49–50. See also keiretsu; specific institutions and programs
  • Japan External Trade Organization (JETRO), 30, 48, 50, 150t
  • Japan Finance Corporation (JFC), 50, 56, 145t, 147t–149t
  • JASDAQ, 49–50, 132, 147t, 148t
  • JD.com, 177n3, 179n18
  • Jiang Zemin, 103, 110
  • job creation: China's startup policies and, 105, 106, 108, 118, 121, 122–23; developmental state and, 7, 35; Japan's startup policies and, 133–34; Korean startup policies and, 69–70, 76–77, 78; startup capitalism and, 13–14, 139, 143
  • Jobs, Steve, 138
  • Johnson, Chalmers, 39
  • Johnstone, Bob, 173n1
  • J-Startup Initiative (Japan), 3, 19, 38, 44, 126, 139, 150t; ultimate beneficiaries of, 44, 54, 58, 136
  • kaizen, and incremental innovation, 41
  • Kakao, as VC investor, 4, 174n1
  • Kariyazono, Soichi, 54
  • keiretsu, 26, 173n1; financing of, 31, 42; and incremental innovation, 41; investment in startups, 49, 50–51, 52, 132, 173n8; as key partners and beneficiaries of Japan's startup policies, 19, 39, 42–43, 54–55, 57, 60, 126, 136, 140; labor force changes in, 46; and main banks, 41, 60, 173n1; and open innovation system, 43, 44; and social purpose, 41–42; welfare programs of, 173n6
  • Kenney, Martin, 176n8
  • Kim Dae-jun, startup policies under, 76
  • Kim Young-sam, startup policies under, 64, 65, 70, 71
  • Kioxia (Toshiba), and Rapidus, 57
  • Kishida, Fumio, 19, 38, 42, 52, 56, 126
  • Kodak, demise of, 5
  • Koike, Yuriko, 43, 56
  • KONEX (Korea), 72, 132
  • Koo, Wellington, 90
  • Korea: analytical and empirical importance of, 4; continuity and change in, 78–81, 79f, 124, 125f, 126–27; "delivery wars" in, 13; developmental state era in, 35, 61–64, 80, 124, 126, 174n2; employment policies in, 68–71, 78–79, 79f, 80, 125f, 126, 130, 132–33; external relations and innovation policies in, 64–65; financing for innovation in, 69, 71–73, 78–79, 79f, 80, 125f, 126, 130, 132; innovation policies in, 73–76, 78, 79, 79f, 80–81, 125f, 126, 131; institutional coevolution in, 130–31, 135; long-term employment in, 29, 63, 80; Mark I alignment of policies in, 75, 79, 80; Mark II alignment of policies in, 19, 20–21, 61–62, 79, 126, 127, 135; open innovation model in, 4, 19, 61, 62, 75, 130, 135–36; size of firms in, 26, 61, 65–68, 79, 79f, 125f, 126, 130; social purpose of innovation policies in, 64, 76–78, 79f, 81, 125f, 126, 133, 134; startup policies in, 1, 4, 19–21, 61, 65–68, 126–27, 151t–153t. See also chaebol; specific institutions and programs
  • Korea Advanced Institute of Science and Technology (KAIST), 64
  • Korea BioValley, San Diego, California, 71
  • Korea Institute of Science and Technology (KIST), 64
  • Korea Institute of Startup & Entrepreneurship Development (KISED), 72, 152t
  • Korea Technology Finance Corporation, 71
  • Korea Trade-Investment Promotion Agency (KOTRA), 74
  • Korea Venture Investment Corporation (KVIC), 69, 71–72, 152t–153t
  • KOSDAQ, 72, 132, 151t, 174n3
  • K-Startup Grand Challenge, 66–67, 127
  • Kuomintang (KMT), 83, 84, 175n2
  • Kushida, Kenji, 47
  • labor market(s). See employment
  • large companies/corporations: as beneficiaries of startup policies, 48–49, 135–36, 140, 141; in China, 20, 101–2, 106–7, 121, 171n10; developmental state and, 3, 7, 15, 26–27; in Japan, 26, 39, 42–45, 57–58, 58f, 130, 142; in Korea, 26, 61, 65–68, 79, 79f, 125f, 126, 130; in Mark II model, 9, 10, 25f, 26–27, 28; in open innovation systems, 3, 10–11, 12–13, 28, 58, 135–36, 141; predatory potential of, 12–13; reliance on external resources, 27; in Schumpeterian paradigms of innovation, 5, 9, 15, 141; and social purpose, 14–15; in US, relationship between state and, 136, 140. See also big business; chaebol; keiretsu
  • Lee, Aileen, 171n2
  • Lee, David, 68
  • Lee, Kai-fu, 115, 142
  • Lee Chang-yang, 73
  • Lee Hae-jin, 69
  • Lee Myung-bak, innovation policies under, 66, 69, 70, 74, 76–77
  • Lenovo, 177n3
  • Li, Kwoh-ting (K. T.), 84, 91, 94, 176n11
  • liberal market economy (LME): institutional components of, 6, 23, 31; and radical innovation, 3, 6, 23; startup-centric approaches and, 2–3
  • Li Keqiang, 109–10
  • limited partnership (LP), 32, 132
  • Lind, Michael, 11, 14–15, 138
  • liquid crystal displays (LCDs), Taiwan's efforts to develop, 95, 99, 127
  • Liu, Manhong Mannie, 178n13
  • Lotte, investment in startups, 73
  • Lu Yongxiang, 119
  • Lynskey, Michael, 41
  • Ma, Jack, 101, 107, 138
  • Ma, Pony, 107
  • Macron, Emmanuel, 5
  • Made in China (MIC) 2025 initiative, 34, 116, 119, 122
  • Mahoney, James, 24
  • main banks (Japan), 173n2; investment in startups, 19, 51–52, 57, 59, 126; and keiretsu, 41, 60, 173n1
  • Malerba, Franco, 12
  • Market for High-Growth and Emerging Stocks (Mothers, Japan), 49, 146t
  • Mark I paradigm, 8, 25–26, 25f; and bankruptcy reform, 30, 110; China's startup policies and, 20, 21, 101, 114, 117, 120, 122, 123, 128; conflation with Mark II paradigm, 12; creative destruction in, 8, 10, 28, 139–40; East Asian countries' convergence in direction of, 129–30; employment policies in, 25f, 29–30; financing for innovation in, 25f, 31–33; Japan's policies aligning with, 40, 46–47, 49–50, 53, 54, 58, 59; Korea's policies aligning with, 75, 79, 80; new entrants/startups in, 8, 10, 27–28, 141; pushback against approaches aligning with, 142; and radical innovation, 25f, 33; size of firms in, 8, 10, 25f, 27–28; social purpose in, 25f, 36; startup policies aligning with, 9, 10, 24; Taiwan's policies aligning with, 20, 21, 83, 85, 90, 93, 94, 98, 99, 135
  • Mark II paradigm, 9, 25–26, 25f; China's startup policies aligning with, 20, 128; conflation with Mark I paradigm, 12; employment policies in, 25f, 29; financing for innovation in, 25f, 31–33; and incremental innovation, 25f, 33–34; Japan's startup policies aligning with, 19, 20–21, 39, 40, 44, 50, 52, 57–58, 59, 135; Korea's startup policies aligning with, 19, 20–21, 61–62, 79, 126, 127, 135; open innovation variety of, 10–11, 12, 24–25, 27, 29; size of firms in, 9, 10, 25f, 26–27, 28; social purpose in, 25f, 36; startup policies aligning with, 10–11, 140
  • Ma Ying-jeou, 97
  • McKern, Bruce, 105
  • Miao Wei, 110
  • Microsoft, startup partnerships of, 5
  • middle-income trap, 7, 96, 177n2
  • Ministry of Economy, Trade, and Industry (METI, Japan): central role of, 59, 130; and Silicon Valley study trips, 56; startup initiatives of, 38, 43, 44, 47, 48, 50, 53–54, 56, 147t–150t
  • Ministry of Education, Science, and Technology (MEST, Korea), 74, 152t
  • Ministry of Industry and Information Technology (MIIT, China), 20, 102, 110, 116, 163t–168t
  • Ministry of Knowledge Economy (Korea), 77
  • Ministry of Science, ICT, and Future Planning (Korea), 75
  • Ministry of Science and Technology (MoST, China), 104, 109, 111, 114, 115, 130, 162t–168t
  • Ministry of Science and Technology (MoST, Korea), 64, 152t
  • Ministry of Science and Technology (MoST, Taiwan), 86, 130, 159t–160t, 176n9
  • Ministry of SMEs and Startups (MSS, Korea), 19, 67, 70, 126, 130–31
  • MITI (Japan), 26, 33–34, 39, 42, 55
  • Mitsubishi, 26, 51, 173n1
  • Mitsubishi UFJ Bank, 57, 173n2
  • Mitsui, 50, 173n1
  • Moon Jae-in, startup policies under, 19, 66, 67, 70, 71, 72, 75, 77, 126
  • The Myth of Capitalism (Tepper), 11, 137
  • Namba, Tomoko, 140
  • National Development Fund (Taiwan), 91, 92, 93
  • National Fund for Technology Transfer and Commercialization (China), 113, 178n17
  • national innovation system (NIS) policy, 16
  • National Science Foundation (NSF, US), 5
  • national security, social purpose of, 25, 35; in China, 35, 105, 113, 119, 120, 122, 123, 133; developmental state and, 7; innovation policies and, 2, 4–5, 35–36; in Japan, 42, 134; in Korea, 78; in Mark I and II paradigms, 25, 25f; in Taiwan, 83, 95–97, 98f, 99–100, 133
  • Naver, 65, 69, 80, 174n1
  • NEC, 26, 57
  • Nesta, 5
  • new entrants: in Mark I model, 8, 10, 27–28, 141. See also startup(s)
  • Nineteen-Point Program (Taiwan), 84, 176n4
  • Nippon, 50
  • Nissan, 45, 51, 173n1
  • Nomura Securities, 51
  • nonportable pensions: in Japan, 41; Mark II paradigm and, 29
  • NTT DOCOMO, 50, 57
  • open innovation model(s), 3, 9, 10–11, 24–25, 27, 135; as challenge to Silicon Valley approach, 22; in China, 102; in East Asia, 4; in Japan, 4, 19, 40, 43–45, 51, 53–54, 58, 59, 60, 126, 130, 136; in Korea, 4, 19, 61, 62, 75, 130, 135–36; large companies/corporations in, 3, 10–11, 12–13, 28, 58, 135–36, 141; and market concentration, 137–38; and persistence of developmental state, 21, 135–36; potential risks in, 12–13; startups in, 4, 12, 27, 28, 60; in Taiwan, 86–87, 98; win-win scenarios in, 12
  • optoelectronics, Taiwan's efforts to develop, 95, 99
  • Orsenigo, Luigi, 12
  • Park, Chisung, 35
  • Park Chung-hee, 62, 64
  • Park Geun-hye: Samsung scandal and, 175n4; startup policies under, 19, 66, 67, 70, 71, 72, 75, 77, 126
  • Park Jae-hyun, 67
  • patient capital, 6, 31, 63, 171n4, 172n8
  • Pegasus Tech Ventures, 42
  • pension(s): increased portability of, in Japan, 45, 58, 132–33; increased portability of, in Korea, 69, 80, 132–33; Mark I paradigm and, 30; Mark II paradigm and, 29; nonportable, 29, 41
  • pension funds: Japanese, startup investments by, 52, 59, 60, 132; and Japan's postwar development, 41; Korean, startup investments by, 72, 132
  • personal computer (PC) industry: in Japan, 41, 131; in Taiwan, 85, 94, 127
  • Plug and Play, 30, 45
  • Porter, Michael, 12, 43, 137
  • Post Bank (Japan), 41, 52
  • Presidio Ventures, 50
  • ProLogium, 5
  • quantum computing, startups and, 4, 5, 113
  • radical innovation: changes over time, 172n10; China's policies supporting, 21, 114, 116–17, 120, 120f, 122, 123; East Asian countries' convergence toward, 34, 129–30, 129f, 131; Japan's policies supporting, 52–55, 57, 58f, 59, 125f, 126, 131; Korea's policies supporting, 75, 78, 80–81, 125f, 126; liberal market economy (LME) and, 3, 6, 23; Mark I paradigm and, 25f, 33; and national security, 35–36; Taiwan's policies supporting, 83–84, 93–95, 99, 125f, 127–28
  • Rapidus (joint venture), 56–57
  • regional development, startup policies focused on, 143; in China, 105–6, 117–19, 122, 134; in Korea, 66
  • Renault, 51
  • renewable energy sector, China's efforts to develop, 116, 128
  • Riney, James, 51
  • Robinson, James, 24
  • robotics: China's policies supporting, 119, 122; startup policies and, 4, 34; Taiwan's policies supporting, 94
  • Roh Moon-hyun, 74, 76
  • Roh Tae-woo, 64, 65
  • Roland, Gerard, 35
  • Samsung: and C-Lab (Creative Lab), 66; scandal involving, 175n4; as VC investor, 4, 80, 174n1
  • Saxenian, AnnaLee, 88
  • Schaede, Ulrike, 135, 174n14
  • Schumacher, E. F., 143
  • Schumpeter, Joseph, on innovation patterns, 5, 8–9, 14, 24, 140–41, 143
  • secondments, at startups, 29, 48, 49, 58, 133
  • Seko, Hiroshige, 38
  • semiconductor industry: China's policies on, 21, 102, 106, 116, 119, 121, 122, 128, 172n5; Japan's efforts to promote, 56–57, 59, 131; and national security, 35–36; startups considered as resources for big business in, 4; Taiwan's dominance in, 4, 82, 88, 89, 94–95, 96, 99, 100, 127, 176n14; US policies on, 138
  • Semiconductor Manufacturing International Corporation (SMIC, China), 106, 116, 119, 172n5; state and, 21, 102, 121, 128
  • Sequoia China, 108, 113
  • Shanghai Stock Exchange, 104, 107; STAR market of, 113, 122, 132
  • Shen, Neil, 107, 113
  • Shenzhen Stock Exchange (SZSE), 104, 111, 112; ChiNext, 112, 113, 122, 178n15
  • Silicon Catalyst, 57
  • Silicon Valley: challenges to myth of, 2, 22, 139; Chinese policies modeled on, 103, 177n3; incumbent dominance in, 139; international efforts modeled on, 137, 139; investments in China, 113–14; Japanese policies inspired by, 53; Japan's partnerships with, 4, 48, 56, 57; Korea's partnerships with, 71, 74; negative reaction to growing power of, 142–43; Taiwanese engineers returning from, 88–89, 176n8; Taiwan's partnerships with, 86, 88–89, 90, 176n11
  • size of firms: in China, 103, 106–8, 120–21, 120f, 125f, 128; developmental state and, 7, 15, 26–27, 171n1, 174n2; in Japan, 26, 39, 42–45, 57–59, 58f, 125f, 126; in Korea, 26, 61, 65–68, 79, 79f, 125f, 126, 130; in Mark I paradigm, 8, 10, 25f, 27–28; in Mark II paradigm, 9, 10, 25f, 26–27; in study of startup capitalism, 19, 23–24, 28; in Taiwan, 4, 28, 82–83, 84, 85–87, 94, 97, 98, 98f, 125f, 127, 128, 130. See also large companies; small- and medium-size enterprises (SMEs)
  • SK Telecom, and startup partnerships, 66
  • small- and medium-size enterprises (SMEs): in China, and innovation activities, 103; in developmental state, 171n1, 174n2; Taiwan's support for, 4, 28, 82–83, 84, 85–87, 94, 97, 98, 98f, 125f, 127, 128, 130
  • Small Business Innovation Research program (SBIR): Chinese version of, 111; Japanese version of, 53
  • SME Administration (Taiwan), 85–86, 89–90, 97
  • SMRJ Venture Fund (Japan), 49, 56
  • social inclusion, startup policies promoting, 134, 143; in China, 118–19, 134; in Japan, 56, 134; in Korea, 134; in Taiwan, 97. See also women
  • social purpose, 34–36; assessment of, approaches to, 18; China's innovation policies and, 35, 105–6, 117–19, 120, 120f, 122–23, 133, 134; convergence across East Asian countries, 129, 129f, 133–34; definition of, 34; developmental state and, 35; domestic and external aims of, 35–36; Japan's innovation policies and, 19, 41–42, 55–57, 58f, 59, 125f, 126, 133–34; Korea's innovation policies and, 64, 76–78, 79f, 81, 125f, 126, 133, 134; large companies/corporations and, 14–15; startup capitalism and, 143–44; startups and, 15; in study of startup capitalism, 19, 24; Taiwan's innovation policies and, 95–97, 98f, 99–100, 125, 127, 133, 134
  • SoftBank (Japan): and Arm, 87, 173n11; as flagship of "new economy," 50; and JASDAQ, 49–50, 132; and Rapidus, 57; and stock option allowances, 46; Vision Fund of, 52, 174n11
  • Son, Masayoshi, 52, 173n11, 174n15
  • Sony, 50, 51, 57
  • Soskice, David, 6
  • STAR market (China), 113, 122, 132
  • startup(s): and economic performance indicators, questioning of, 139; in Mark I model, 8, 10, 27–28; open innovation model and, 4, 12, 27, 28, 60; optimal way of engaging, search for, 9; perceived weakness of, 71; politicians' incentives for supporting, 142; in Schumpeterian understanding, 5, 8; and social purpose, 15; use of term, 85; viewed as disruptors, 2, 3, 8; viewed as resources for big business, 1, 2, 3, 4, 9, 10, 28, 39, 61, 62, 70–71, 130, 136, 138
  • startup capitalism: absence of creative destruction in, 9, 100, 130, 139; and big business, 9, 11–12, 135–36, 140; CME (Mark II) version of, 21, 24, 25–26, 25f; continuity and change in, 3, 8, 15, 135; definition of, 3; developmental state adapting to, 3, 134–36; epoch of, 2, 139; global implications of, 136–40; hybridity of public policies in, 9–10, 11–12, 15, 21; and innovation in 21st century, 141–42; institutional arenas fundamental to studying, 18–19, 23–24; as institutional coevolution, 130–31, 135; and job creation, 13–14, 139, 143; LME (Mark I) version of, 21, 24, 25–26, 25f; vs. neoliberal convergence, 3, 9; open innovation variety of, 11, 21, 22, 24–25; presumptions underpinning, 141; as socio-economic management, 144; vs. stakeholder capitalism, 143; unanswered questions about, 2; variations in, 3, 4, 9, 21. See also startup policy
  • Start-Up Chile, 30, 139
  • Startup Ecosystem Consortium (Japan), 19, 28, 126
  • startup policy: alignment with Mark II paradigm, 10–11, 140; assessment of, approaches to, 17–18; calls for reconsidering, 139; as contemporary form of industrial policy, 2, 18; existing research on, 16; typologies of, 16–17, 17t. See also under specific countries
  • state-owned enterprises (SOEs), in China: innovation by, 103, 106, 120, 172n5; share of, 179n19
  • State Science and Technology Commission (SSTC, China), 105, 161t
  • Statute for the Encouragement of Investment (SEI, Taiwan), 84, 91, 154t, 156t, 176n4
  • stock markets, startup-friendly: challenges around, 172n9; in China, 113, 122, 132; convergence across East Asian countries, 132; in Japan, 49–50, 132; in Korea, 72, 80, 132, 174n3; state policies supporting, 31; in Taiwan, 92, 93, 132. See also venture capital (VC) market(s)
  • stock options, and labor markets, 46
  • Sumitomo Corporation, 26, 44, 50–51, 173n1
  • Sung, Chang-Yong, 174n2
  • Tainan Park (Taiwan), 95, 156t
  • Taipei Exchange, 92, 93, 132
  • Taiwan: analytical and empirical importance of, 4; continuity and change in, 82–83, 97–100, 98f, 124–25, 125f, 127–28; cultural values favoring entrepreneurship in, 83; developmental state era in, 4, 82, 83–85, 124; Economic Cooperation Framework Agreement with China, 93, 96–97; economic miracle of, state's role in, 175n1; employment policies in, 83, 87–91, 98–99, 98f, 125f, 128, 132; financing for innovation in, 84–85, 91–93, 98f, 99, 125f, 128, 131–32; import-substitution industrialization in, 175n2, 177n18; innovation policies in, 83–84, 93–95, 98f, 99, 125f, 127–28, 131; institutional coevolution in, 130, 135; Mark I alignment of policies in, 20, 21, 83, 85, 90, 93, 94, 98, 99, 135; Nineteen-Point Program in, 84, 176n4; open innovation efforts in, 86–87, 98; semiconductor industry of, 4, 82, 88, 89, 94–95, 96, 99, 100, 127, 176n14; and Silicon Valley partnerships, 86, 88–89, 90, 176n11; small-firm orientation of, 4, 28, 82–83, 84, 85–87, 94, 97, 98, 98f, 125f, 127, 128, 130; social purpose of innovation policies in, 95–97, 98f, 99–100, 125, 127, 133, 134; startup policies in, 4, 20, 85–87, 97–100, 127–28, 131, 142, 154t–160t. See also specific institutions and programs
  • Taiwania Capital, 93
  • Taiwan Innovation and Tech Arena (TITAN), 86
  • Taiwan Semiconductor Manufacturing Company (TSMC), 4, 94–95, 98, 130, 131; founding of, 176n11, 176n14; Germany and, 5; government policies and, 82, 95, 99, 100, 127, 142; open innovation strategies of, 20, 83, 87
  • Taiwan Startup Stadium (TSS), 86
  • Taobao Villages (China), 109, 118–19, 134
  • tax incentives, for startups/VCs: in China, 108, 114; convergence across East Asian countries, 132; ineffectiveness of, 172n6; in Japan, 45, 49, 50; Mark I paradigm and, 30; and social purpose, 15; in Taiwan, 84, 85, 88, 91–92, 176n12
  • Techstars, 30
  • telecommunications: China's policies supporting, 106, 116, 177n7; Taiwan's policies supporting, 94
  • Telefonica, and startup partnerships, 5
  • Teller, Astro, 14
  • Tencent, 104, 116; Chinese government and, 107, 119, 171n10; VC investments by, 112
  • Tepper, Jonathan, 11, 137
  • Terasaki, Hisaaki, 50
  • Thelen, Kathleen, 24
  • Thousand Talents Plan (China), 114–15, 116
  • Thurbon, Elizabeth, 24, 35, 144
  • TikTok, 103, 177n3
  • Torch Program (China), 103, 104, 105, 161t, 177n3
  • Toshiba, 57, 173n1
  • Toyota, 50, 57, 173n1
  • Toyota Open Labs, 45
  • Tsai, Lucas, 87
  • Tsai Ing-wen, 82, 96, 142
  • Tsuchikawa, Gen, 51
  • UMC (Taiwan), 88, 99, 176n14
  • unicorn(s): in China, 4; in France, 5; in Japan, 38–39, 44, 52, 54; in Korea, 61, 72, 75, 153t; startup capitalism and, 10, 11–12, 13, 15, 140; term, 171n2
  • United States: chips act in, 35; corporation-startup partnerships in, 5; decline in business dynamism in, 6; industrial concentration in, 137; state-big business relations in, 136, 140; trade war with China, 2, 107, 113; VC-backed companies in, failure rates of, 13. See also Silicon Valley
  • US Agency for International Development, programs in Taiwan, 84–85, 88
  • US Steel, 15
  • Uzzaman, Anis, 42
  • varieties of capitalism (VoC), 6, 23; institutional components of, 9, 15, 23
  • venture capital (VC), 31–32; Chinese corporations and, 112, 178n13; Chinese government and, 104, 111–13, 122, 177nn5–6; convergence of East Asian governments' policies on, 131–32; as debt-based financing for later-stage firms, 49; funds of funds, 32–33, 51; as hybrid form of financing within Mark I, 32; Japanese corporations (keiretsu) and, 49, 50–51, 132, 173n8; Japanese government and, 43, 44, 49; Korean corporations (chaebol) and, 4, 61, 72–73, 80, 132, 174n1, 174n3; Korean government and, 69, 71–72; and startups, 5, 32; system benefits of, 12, 32; Taiwanese government and, 91–92, 99, 132, 176nn11–12
  • Venture Capital Guidance Fund for Emerging Industries (China), 112, 178n17
  • venture capital (VC) market(s): in China, 4, 104–5, 112, 120, 122; government efforts to grow, 32–33; in Japan, 49–50; in Korea, 80; in Taiwan, 4, 92–93, 99
  • Vogel, Steven K., 173n1
  • Wade, Robert, 83
  • WeChat app, 116
  • Weiss, Linda, 35
  • Whitley, Richard, 35, 83, 84, 175n2
  • Wilson, Charles, 136, 179n2
  • women, startup policies focused on, 134, 143; in Japan, 56, 174n16; in Korea, 77–78, 134; in Taiwan, 97
  • Wong, Joseph, 27, 177n16
  • World Trade Organization (WTO), China's accession to: and foreign firm production facilities in China, 108; impact on Korean manufacturing, 68; and innovation policies, 102, 123; and IP protection, 115
  • Wuhan East Lake Hi-Tech Innovation Center, 106
  • X-Hub inbound program (Japan), 30
  • X-Hub Tokyo, Outbound Program, 48
  • Xi Jingpin, startup policies under, 106, 107, 109–10, 112–14, 116, 119, 121, 122, 123, 131, 178n17
  • Y Combinator, 30
  • Yeung, Henry, 27
  • Yip, George, 105
  • Yonekura, Seiichiro, 41
  • Yoon Suk-yeol, startup policies under, 70, 73, 75, 78
  • Young Entrepreneurs Startup Academy (Korea), 69, 70
  • Yozma fund (Israel), 32–33
  • zaibatsu, 26
  • ZGC Innovation Center, 114
  • Zhang, Daniel, 101, 177n1
  • Zhang, Lin, 109
  • Zhongguancun Science Park (China), 103, 105, 114, 177n3
  • Zhu Rongji, 177n8
  • Zhu Zhixin, 112
  • Zider, Bob, 13
  • ZTE Corporation (China), 102, 106, 121
  • Zuckerberg, Mark, 137
  • Zysman, John, 32

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