S. Korea and Israel nurturing ecosystem for ‘global start-up hub’ in Asia and Middle East
아시아와 중동 이끄는 ‘글로벌 스타트업 허브’ 한국, 이스라엘
Israel and South Korea are the two top countries in terms of venture investment against GDP.
Start-ups are at the center of their future industries, so nurturing this sector is crucial.
There seem to be several qualities that two sides have in common that make them start-up powerhouses in the Middle East and Asia.
Lee Kyung-eun outlines what they are.
Israel is known as the “Start-up Nation,” meaning the country basically runs on start-ups.
10 percent of Israel’s total population of 9 million is involved in a start-up the most startups per capita in the world.
4 percent of its GDP goes into R&D for start-ups in the tech sector.
And Israel offers great inspiration for South Korea in its efforts to become a start-up powerhouse as they have some things in common.
According to business magazines like Forbes and Entrepreneur, the key pillar of Israel’s start-up ecosystem is military experience.
It says two or three years of mandatory military service helps people adapt quickly and connect with each other.
South Korean men also have to serve in the military for a little under two years.
Like Korea, Israel lacks natural resources, so it focuses on human resources to offset that.
And now 1.4 million of its people are in the high-tech industry.
This high-quality workforce makes the country a lucrative market for foreign investment, attracting over 350 global R&D centers like those of Google and Microsoft.
These factors are what foreign investors say is attractive about South Korea.
“And in general in Korea business is a relationship based so it requires a little bit more time and commitment but then when you get to know oyur business partner it’s kind of like a deeper and connection.”
“I think Koreans are very creative in terms of technology, we all know it as well as in marketing strategies.”
Given these commonalities, South Korea has been benchmarking Israel’s start-up culture… in ways such as boosting private-public cooperation.
“This is a local incubator that supports start-up companies. It’s based on Israel’s Technological Incubators Program, or TIP.”
Like in Israel, the program is run privately using public funding.
But this year, along with monetary support, the government has pledged some significant deregulation policies.
With this changing business environment, South Korea is expected to raise its national prestige once again… this time as a global start-up hub.
Lee Kyung-eun, Arirang News.
#SouthKorea #ecosystem #startup
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