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The National Assembly Futures Institute publishes reports that predict and analyze the changes in the future environment based on a comprehensive perspective, and derive mid- to long-term national development strategies in consideration of the preferences of the citizens
(23-02 Working Paper) Research on Legislative and Policy Directions for Activating the Venture and Startup Ecosystem

Date : 2023-12-31 item : 23-02 Working Paper P.I : Yeo Yeong-jun

(23-02 Working Paper) Research on Legislative and Policy Directions for Activating the Venture  and  Startup  Ecosystem

Historically, South  Korea  experienced rapid economic growth  through effective  technological learning,  assimilating advanced  technologies and knowledge with remarkable efficiency. However, the legacy of a government-led, catch-up strategy has introduced a degree of institutional rigidity, hindering the transformation and diversification of technological learning capabilities into a more dynamic innovation system. This study highlights concerns that current  policies may be  insufficient  in  fostering a vibrant  innovation ecosystem and generating positive  spillovers through diversity expansion.

As the Fourth  Industrial Revolution and digital transformation accelerate, countries worldwide are engaging in comprehensive technological competition. Domestically, South  Korea  faces a growth stagnation trap, constrained by the limitations of its traditional growth model reliant  on  established corporations and industrial structures. Unquestionably, a structural overhaul towards securing future  growth  engines and fostering new industries is essential for South  Korea's rise to  global prominence.  This necessitates a clear shift towards enhancing the venture and startup ecosystem.

Emerging as a leading nation in ventures and startups is increasingly recognized as a condition  for success, given the  global economic rivalries today. The government institutions, along with the  National Assembly, are keen on  pooling wisdom to support this transition. As part of these efforts, our research delves into the critical issues faced by ventures and startups at various stages of growth within  the  transitioning Korean  economy. We propose legislative and  policy tasks aimed at creating a healthy and  dynamic ecosystem   for ventures and   startups.

To address these challenges, we systematically outline institutional  limitations and    policy issues  inherent  in  Korea’s  innovation and corporate  support frameworks. Furthermore,  we present government policy recommendations designed to address these challenges and   support the transition towards an entrepreneurial economy. This   study’s implications extend   beyond   specific industries or companies,  advocating  for a collective  embrace  of the entrepreneurial  spirit  and  continuous evolutionary      development  among various stakeholders in Korea’s innovation  system.