Startup Capitalism

The last few decades have seen East Asian governments provide increasing support for startups—new, high-growth, technologically oriented firms. Yet, as the authors observe, such initiatives do not necessarily benefit the growth of startups as challengers to large, established firms. Rather, they often enable startups to function as boosters for the competitiveness of these firms. Startups, in short, are both disruptors to and resources for big businesses.

Klingler-Vidra and Pacheco Pardo demonstrate this dual role by examining the evolution of startup-centric policies in Japan, South Korea, Taiwan, and China. They show that in the region, what they call startup capitalism—an economic and political system in which startups contribute to employment, innovation, and growth—can take multiple forms. Rich with empirical detail, Startup Capitalism reveals how and why startups can end up working with—or even for—large firms to drive a country's technological capabilities.