Understanding the Hong Kong Startup Ecosystem: A Framework and Future Directions

Abstract

<p>I frame the development of the startup ecosystem in Hong Kong from a qualitative firm-level microeconomic point of view. Through field research and in-depth background interviews with multiple ecosystem participants (startups, academics, venture capitalists, and executives at private, government, and educational entities) I present a framework of the ecosystem that uses the startup as the unit of analysis. By relating the ecosystem structure to the life cycle of the startup, we show how the different elements interact with each other, where additional resources and efforts should be expended given Hong Kong’s state of development. I also provide some high-level policy insights that could inform the design and refinement of Hong Kong’s startup ecosystem. These recommendations focus mainly on building up support for the early commercialization stages of the startup, where the failure rate is highest. </p>