2024 White Paper on Startups
Startups are a key driving force behind national economic innovation
and development. They not only advance technological applications but also
facilitate industrial upgrading and transformation, creating job opportunities. This
aligns with President Lai's vision of establishing an "innovative entrepreneurial
rainforest ecosystem." The government has identified "five trusted industry
sectors" - semiconductors, artificial intelligence (AI), defense, security and
surveillance, and next-generation communications - as focal points of national
industrial development. By leveraging semiconductors and AI as dual-core
industries, Taiwan aims to secure pivotal positions within global supply chains,
attract investment, and draw top-tier talent. This will further expand strategic
national investments, enhance innovation and entrepreneurship capabilities, and
strengthen Taiwan's competitiveness in emerging global industries.
According to the latest Global Entrepreneurship Monitor report, Taiwan
ranks third globally in national entrepreneurial environment. Taiwan leads in
several key areas, including physical infrastructure, commercial and professional
infrastructure, and government policy on taxation and bureaucracy, surpassing
neighboring countries like Japan, South Korea and Thailand. This reflects
Taiwan's favorable conditions for startup growth. The government will continue
to support startups in driving Taiwan's economic growth through funding, talent
cultivation, market access and international expansion initiatives.
After more than a year of planning, the Ministry of Economic Affairs has
released its first White Paper on Startups. This document provides a global
perspective on Taiwan's current innovation and entrepreneurship landscape,
analyzing the development status and challenges faced by startups. It also
consolidates inter-ministerial resources in areas such as funding access,
market expansion, talent development and innovation research. Moving
forward, the White Paper will be published annually to serve as a reference for
all stakeholders, maximizing the synergy of Taiwan's startup ecosystem and
contributing to national economic development and competitiveness.
As of the end of 2024, there were over 9,500 startups with strong innovation
capabilities in Taiwan. Their primary sectors include healthcare, media and
entertainment, food and beverages, consumer products, hardware manufacturing,
and software applications. Among these, the energy, biotechnology and
healthcare industries have garnered the most investor interest. Additionally, net
zero emissions and green energy sustainability have emerged as the fastest
growing investment sectors in response to market demands. Overall, startups
in green energy sustainability, biotechnology and healthcare have flourished
under policy guidance. In recent years, the government has further leveraged
Taiwan's competitive advantage in semiconductor manufacturing, integrating it
with the development of generative AI to drive digital applications growth and
encourage more technology talent to engage in innovation and entrepreneurship,
strengthening the foundation for future industrial expansion.
It is my sincere hope that this White Paper will provide a deeper
understanding of Taiwan's thriving innovation and startup ecosystem. I also extend my gratitude to the editorial committee and all colleagues whose dedication has made this publication possible. We welcome feedback from all sectors to gather valuable insights that will inform future policy planning.
Kuo Jyh-huei, Minister of Economic Affairs
Executive Summary
The entrepreneurial environment in Taiwan holds a competitive edge on the global stage, making Taiwan an ideal location for startup development. This is attributed to multiple factors, including Taiwan's world-leading manufacturing and innovation capabilities, industrial clusters, high quality of life, and cultural integration. In particular, a comprehensive industrial value chain, highly skilled research talent, and startup-friendly policies form the core competitiveness of Taiwan's startup ecosystem. According to the Global Entrepreneurship Monitor (GEM) report, Taiwan ranks third globally in its entrepreneurial environment, excelling especially in infrastructure and policy support. Similarly, StartupBlink's report places Taiwan's startup ecosystem 22nd worldwide, highlighting its strengths in industrial innovation, hardware manufacturing, and human resources, all of which have drawn the attention of global entrepreneurs.
As of the end of 2024, Taiwan was home to 9,576 startups, demonstrating the vibrant dynamism of its startup ecosystem. Taiwanese startups are primarily in artificial intelligence, biotechnology and pharmaceuticals, and cultural and creative industries. In addition, the investment sector, incubators, and government agencies provide multi-level support to startups.
In the area of investment, angel investors focus on healthcare, software, and hardware; venture capital focuses on healthcare, biotechnology, and energy, while corporate venture capital leans toward energy, hardware, and manufacturing. These diverse investment strategies not only reflect the market's keen interest in innovative technologies and sustainable development but also highlight Taiwan's potential in the relevant technological fields. During business growth, incubators focus on startups in cultural and creative industries, artificial intelligence, and biotechnology. They provide startup guidance, resource connections, and industry exchanges to help startups grow quickly and expand their market networks. For their part, accelerators are playing an increasingly prominent role in the startup ecosystem, with services covering biotechnology, artificial intelligence, and clean technology. They are critical drivers that enable startups to connect with corporate resources and expand into international markets.
Government agencies closely collaborate across education, research, funding, and market access. To meet the needs of startups at different stages of development, they offer diverse financial support, including grants, loans, and investments. For market expansion, the government facilitates entry into domestic and international markets through international exhibitions, innovation parks, and corporate collaborations. Talent development strategies enhance the competitiveness of entrepreneurial teams, complemented by support services that include regulatory consultations, technological R&D, and information platform support.
Looking ahead, Taiwan will continue to strengthen international cooperation, attract more global capital and talent, and deepen policy innovation and market integration to further enhance the competitiveness of its entrepreneurial environment. In addition, by strengthening industrial clusters and optimizing infrastructure, Taiwan will continue supporting startups in achieving their goals, attracting international talent, driving innovation, and fostering economic growth.
For the full report, please check the attached file.
