The government will devote every effort to supporting Taiwan's startup dreams and putting the island on the world innovation map, Premier Mao Chi-kuo said today at the 2015 MOSA startup conference.
"Taiwan already possesses the technology and talent to meet global competition head on. The government will do its best to help local startups dream big, go global and achieve great success."
MOSA—which stands for Movement, Open, Startup, Accelerate—is the first international startup conference organized by Taiwan's own community. Acknowledging the difficulty in coordinating such a large event, the premier thanked the organizers for their efforts to enhance Taiwan's visibility.
Taiwan offers many advantages in innovation and entrepreneurship, Mao pointed out. First, as home to outstanding software and hardware engineers, Taiwan has a complete supply chain offering design, production, logistics and marketing services. Second, Taiwan provides small-scale, high quality production. Third, the island boasts a solid Internet infrastructure. And fourth, Taiwan offers a safe, convenient and comfortable living environment that's close to mainland China and Southeast Asia, making it an ideal hub for international startups.
Last year, the Executive Yuan set up the Innovation and Startups Task Force to integrate startup resources from the government, the private sector and Silicon Valley. The government also adopted a raft of policies to support startup development, Mao said.
To create an enabling environment, the government eased many laws in order to give startups more fundraising channels. As examples, the Company Act was amended to include a new chapter on closed corporations. An equity-based crowdfunding platform was established in Taiwan, making it the second Asian country to do so. The Limited Partnership Act was enacted to allow for new types of business organizations. The Act Governing Electronic Payment Institutions was passed to allow non-financial institutions to provide electronic payment services. And in March, the government set up the Taiwan Startup Stadium—a startup cluster focusing on the Internet of Things and mobile applications.
Because early-stage startups face financial pressure, the government also invited international venture capitalists to set up joint-venture funds investing in Taiwanese companies, Mao said. So far, five venture capital firms including the U.S.-based "500 Startups" have raised US$450 million.
To take local startups global, the government set up the Taiwan Innovation and Entrepreneurship Center in Silicon Valley, making Taiwan the first country in Asia to do so. Fourteen innovation teams have been selected to go to Silicon Valley so far, and three of them are stationed in well-known accelerators there now.
To increase the flow of talent, technology and capital between Taiwan and Silicon Valley, the government and private organizations have set up the Taiwan Silicon Valley Tech Fund to invest in startups located in Taiwan and Silicon Valley. These early stage investments will establish long-term partnerships and make Taiwan an important partner for global startup supply chains.
Looking ahead, the government's next goal is to create a globally linked startup ecosystem in Taiwan. This two-step effort will include a more robust startup ecosystem and stronger international links.
To build a robust startup ecosystem, the government will allow private companies to take the lead in startup activities while it simply acts as a sponsor or supporter. Domestic and foreign corporations will be encouraged to connect with startups. Their resources and experiences, combined with innovative ideas from startups, will create more opportunities for cooperation. The government will also take active measures to attract international professionals to Taiwan.
To forge stronger international links, the government will continue providing consultation services and send more Taiwanese startups to international accelerators. Outstanding teams will also be sponsored to participate in major startup events. All of these efforts will raise Taiwan's profile in the global community, the premier said.