Press

Interest in local startup ecosystems is higher than ever. Local startup ecosystem issues are taking headlines at startup events, and startup-related academic societies are actively discussing the relationship between startups and regional innovation. Reflecting this trend, startup ecosystems led by the central government have recently begun to be actively discussed at the regional level, which is also a global phenomenon. Local governments in Europe, with legacies of city-states, are competitively building and competing in startup ecosystems. The United States is no different. Apart from federal government policies, state governments are making efforts to attract promising startups by providing startup-friendly environments such as tax benefits. Actual changes are visible in Korea's startup ecosystem, which is operated in a top-down manner led by the government. Small cities and small local governments are building their own startup ecosystems. This is different from the past when they put all their efforts into attracting large corporations. Dongjak-gu Office is intensively supporting the cultivation of a social venture ecosystem centered around the Seongsu-dong area, and Munrae-dong in Seoul, which had many ironworks, is helping manufacturing-focused maker startups. There is also growing news about startup ecosystems in non-capital regions. 'Bounce 2023,' held in early September, is a global startup festival for the Southeast region centered on Busan. At Bounce 2023, the local startup ecosystem was a major theme, with multiple sessions sharing solutions and cases from various local governments seeking to revitalize regional economies through startup development. Another popular theme at the event was Japan's startup ecosystem. There were several related sessions that were so popular that there were not enough seats. I believe the intention was to provide visitors with an opportunity to perceive Busan as a bridgehead for entering the Japanese market, given its geographical proximity. Local governments fostering startup ecosystems through startup events highly related to regional economies are also standing out. The finals of the Suwon Startup Audition, which was held by the Suwon Urban Development Foundation in September, had an unusually large number of manufacturing-based startups. These are startups with high relevance to major industries in the southern Gyeonggi region. An interesting aspect is that despite being an event organized by Suwon City, there were no regional restrictions on applicants. Lee Young-in, President of the Startup Support Center at Suwon Urban Development Foundation, which organized the event, explained the background for this as "to discover entrepreneurs with innovative and creative ideas and attract them to the region, contributing to the activation of local startup ecosystems and the economy." At the same time, by conducting a youth startup audition in which local youth participate, we can infer that the city is looking at the activation of the local startup ecosystem in the long term as well. Local governments facing difficulties in building independent startup ecosystem infrastructure are choosing collaboration with external specialist groups as an alternative. The Localize Project, undertaken jointly by Gunsan in North Jeolla Province and startup education company Underdogs, is a good example. Gunsan is a region rich in history and culture, though resources related to machinery manufacturing or IT are relatively scarce. Reflecting these characteristics, newly emerging startups utilizing local content were fostered in Gunsan, which further led to part of the local regeneration project. The cases of local startup ecosystem activation introduced earlier have one thing in common. They maintained local identity while actively attracting and bringing in external resources. In a similar context, the Science and Technology Policy Institute (STEPI) presents two preconditions for activating local startup ecosystems. The first precondition is "the integration of activities related to the startup ecosystem in the region," which is an action that maintains and strengthens local identity. The second is "the ability of the local ecosystem to evolve on its own." This is advice that expresses concern about the stagnation of local ecosystem construction, but if external resources are actively attracted and invested, the ecosystem can maintain a circulation structure at any time. In summary, the solution to activating local startup ecosystems is a combination of local identity and external diversity. In today's world where regional decline is emerging as a serious social problem, the activation of local startup ecosystems can be a new solution. There are several advantages to fostering startups in regions. With startups as connection points, there are more opportunities for collaboration and linked projects among regional organizations, such as local universities or indigenous companies. Additionally, by bringing in external resources and young talent internally, we can lay the groundwork for revitalizing the regional economy. Since these are projects that local governments can lead without interference from the central government or higher-level institutions, quick implementation and immediate effects can also be expected. With increased interest in local startup ecosystems, there is also growing support from both the public and private sectors. D.CAMP, a startup foundation, has been acting proactively in recent years by periodically hosting events in local startup ecosystems. Creative Economy Innovation Centers in non-capital gateway regions are also actively attracting resources that were previously concentrated in the capital region and expanding exchange opportunities. Now is the time when active participation from local governments is needed. I hope that successful local startup ecosystems will emerge in many places soon.