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Taiwan Startup Ecosystem Report

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Taiwan Startup Ecosystem Report Taiwan Startup Ecosystem Report 2021 In partnership with: Taiwan Startup Ecosystem Report Contents Foreword ...................................................................................................................3 Taiwan Tech Arena ...................................................................................................4 Country Overview ....................................................................................................5 Startup Ecosystem Overview .................................................................................6 Startup Ecosystem Characteristics ........................................................................7 SWOT Analysis ....................................................................................................... 14 Incorporation and Legal Aspects ........................................................................ 17 Taiwan’s Performance in StartupBlink’s ranking ................................................ 18 Main Ecosystem Stakeholders ............................................................................. 21 Information Sources .............................................................................................. 30 p. 2 Taiwan Startup Ecosystem Report Foreword Taiwan has been working towards becoming a “sustainable human-centric smart nation” since 2016. Apart from Digital Nation and Innovative Economic Development Program (DIGI+) and the 5+2 Innovative Industries Program, we have proposed three main visions — innovation, inclusiveness, and sustainability — to guide the direction of Taiwan’s science and technology policies as well as R&D development toward 2030. As the innovation hub of the Asia-Pacific region, Taiwan is renowned for its outstanding high- tech R&D capacity, highly-trained professionals, and thriving networks of entrepreneurs which enable our startup ecosystem to achieve steady continuous growth. To ensure sustainable growth, the Ministry of Science and Technology (MOST) launched Taiwan Tech Arena to serve as the bridge connecting our startups to the high-tech industries, local as well as international, and to global resources. Officially launched in June 2018, TTA’s vision is to build a vibrant international startup ecosystem in Taiwan. Our comprehensive approach includes partnership with accelerators, investors and enterprises. In less than 3 years, we have proudly supported more than 380 local and international startups. And we are determined to move forward with our pursuit for we believe that improvements to the tech sector will also improve our nation as a whole. Along with the COVID-19 pandemic challenges, the pandemic also brings opportunities, one of which is the rapid acceleration of Taiwan’s healthcare and biotech R&D. Through collaboration, industry integration and our strength in advanced technologies, Taiwan, with MOST as the key driving force of deep tech innovation, has inimitable advantages in taking healthcare, biotech, smart application, green energy and other industries to the next level. Director General, Department of Academic-Industrial Collaboration and Science Park Affairs, Ministry of Science and Technology CEO, Taiwan Tech Arena p. 3 Taiwan Startup Ecosystem Report Taiwan Tech Arena Taiwan Tech Arena (TTA) is a flagship startup ecosystem development program launched by the Ministry of Science and Technology with the goal to foster innovation and entrepreneurship and serve as the global innovation stage for Taiwan’s startup ecosystem. Officially launched in June, 2018, TTA’s vision is to ultimately build a vibrant international startup ecosystem in Taiwan. TTA focuses on AI, software, and semiconductor related startups. We work with local and international accelerators with expertise in different domains as well as networks of investors and enterprises. We provide a state-of-the-art, spacious and friendly co-working space in the heart of Taipei which houses 5 of our accelerator partners and up to 80 startups at any given moment. The co-working space also serves as an activity venue and networking hub for entrepreneurs, investors, and corporates to increase engagement and promote collaboration. TTA offers inbound program from foreign startups who wish to launch their business in Taiwan while our outbound program supports Taiwan startups to expand internationally and launch in other countries, particularly the US. To enhance Taiwan’s image as a startup island nation, we have led as many as 100 Taiwan startups to join international exhibitions such as CES, Web Summit, and Echelon Asia Summit under the same booth — Taiwan Pavilion to create greater impact and exposure. Apart from investor networks of our accelerator partners, TTA also works closely with many investor groups, especially CVCs of our corporate partners who look to our startups for innovation and solutions to keep them ahead of the game. To date, TTA has proudly supported almost 400 local and international startups. For more information, visit us at www.taiwanarena.tech instagram.com/taiwanarena.tech linkedin.com/company/taiwantecharena twitter.com/taiwantecharena facebook.com/taiwantecharena p. 4 Taiwan Startup Ecosystem Report Country Overview Taiwan’s economy has traditionally been centred around its export driven manufacturing sector, and the nation continues to be a leading global supplier of hardware to prominent companies in various technological verticals. In the last 20 years, the country’s overall economy has seen steady year on year growth with GDP per capita at $55,078 in 2019, three times what it was in 1998 ($18,694*). The role Taiwan plays as a manufacturer of hardware to companies around the world gives it a unique and resilient position in the global economy*. Over the last ten years, Taiwan’s economy has seen a shift from the manufacturing industry to the technology sector. The number of companies specializing in software development, cloud computing, and big data has skyrocketed, while R&D spending as a percentage of GDP has risen significantly, surpassing that of the United States, Germany, and Japan in 2018*. Taiwan’s capital, Taipei (6.7m population), consisting of New Taipei (4.0m) and Taipei (2.7m), is the cultural, economic, and political center of the country. It is home to just under a third of the total Taiwanese population and has been central to the rapid development of the nation. Though the city of Taipei has a large population and has become a diverse and exciting international hub, Taiwan is also home to other rapidly developing cities providing a culturally rich yet less expensive alternative to the capital. One such city is Taichung (2.8m), where the Ministry of Economic Affairs launched the Taichung Taipei Software Park in 2018 to support entrepreneurs in the tech industry. Taoyuan Other important cities include Kaohsiung (2.8m), Taoyuan (2.2m) Hsinchu – home to Taoyuan Hutoushan Innovation Hub inaugurated in 2019, Tainan (1.9m) and Hsinchu (0.4m), where in 1980 the Taichung government built the Hsinchu Science Park. As of now, there are around 400 tech companies based in the park (many of them in the Semiconductor industry). The park also has additional locations in Jhunan, Yilan, Tainan Longtan, and Tongluo. Kaohsiung p. 5 Taiwan Startup Ecosystem Report Startup Ecosystem Overview Taiwan has an interesting and vibrant startup ecosystem – ranked StartupBlink 30th in StartupBlink’s 2020 report – as well as substantial potential for further growth into a globally recognized hub (see tables 1, 2, 3 and 4). The nation is already an international powerhouse in the hardware industry, thanks to efforts from both the public and private sectors 30 over the last 50 years. Ranking The country can become stronger in other technology sectors too, if it manages to leverage valuable government support, the technical capabilities of its people, and decades of experience in Hardware technology. There are a few weaknesses Taiwan must tackle, such as a generally risk-averse culture and a medium sized population, which requires international expansion and scaling in order to build startups with high valuations. Several external factors will also play a part in determining Taiwan’s success as an internationally recognized startup hub, such as the ever changing geopolitical situation and shifts in the global economy. The ecosystem consists of a wide variety of stakeholders reflecting different aspects of innovation, such as startups in growing verticals like hardware & IoT, robotics, artificial intelligence, healthtech, and blockchain. Besides startups, Taiwan has an increasing number of corporations supporting the ecosystem with their resources (e.g. TSMC Taiwan and Hermes-Epitec), investors (e.g. WI Harper Group and Taiwania Capital), universities supplying world-class talent (e.g. National Taiwan University and National Tsing Hua University), accelerators and incubation centers (like IAPS and BE Accelerator), government agencies and support programs (like Taiwan Tech Arena and the Taiwan entrepreneur visa), co-working spaces (like Makerbar Taipei and Futureward), and dedicated tech events (like InnoVEX and Meet Taipei). All of this describes a country with the will, resources, and tools to become a high level innovation center. If Taiwan can leverage its strengths to overcome the challenges it faces, and grow faster and better than its competing regional ecosystems, Taiwan has the potential to nurture a high number of quality global startups. p. 6 Taiwan Startup Ecosystem Report Startup Ecosystem
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