The Effects of Matching Grants on Technology Startups: The Case of Korea’s TIPS

doi:http://dx.doi.org/10.1596/40932

Publication:
The Effects of Matching Grants on Technology Startups: The Case of Korea’s TIPS

dc.contributor.author	World Bank
dc.date.accessioned	2024-01-22T17:05:55Z
dc.date.available	2024-01-22T17:05:55Z
dc.date.issued	2024-01-22
dc.description.abstract	This report investigates the case of a Korean public-private matching grant program called the Tech Incubator Program for Startup (TIPS). Launched in 2013, the program provides a package of support to selected startups, including matching grant for research and development (R and D) and mentorship, for up to three years. After ten years in operation, TIPS is particularly well suited to answer the question of whether public funding can help startups innovate and subsequently improve their performance. Using a dataset that includes 1,650 startups that applied for TIPS between 2013 and 2020, this research analyzes the effects of TIPS on recipients’ performance and offers empirical evidence to inform entrepreneurship policy. The results show that TIPS positively affected startup performance one year after selection in terms of innovation input and output, although it did not have a significant effect on revenue or research collaboration activities. The report concludes with five lessons derived from Korea’s policy experience in designing and implementing TIPS: (i) a well-designed coordination mechanism may serve as a viable public-private partnership model for fostering innovative startups, (ii) a co-investment model can crowd in private investment and achieve a multiplier effect by reducing the risk of investment in early-stage startups, (iii) complementary supports that target different stages of the startup lifecycle are needed, (iv) patient capital and continuity in entrepreneurial policy with a long-term view are key to nurturing a vibrant entrepreneurial ecosystem, and (v) constant engagement with beneficiaries through data collection and monitoring enables the development of a dynamic monitoring and evaluation mechanism.	en
dc.identifier	http://documents.worldbank.org/curated/en/099522101172436756/IDU1fd10b128162ba146981b5451f8c8e1523006
dc.identifier.doi	10.1596/40932
dc.identifier.uri	https://openknowledge.worldbank.org/handle/10986/40932
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	TIPS
dc.subject	TECH INCUBATOR PROGRAM FOR STARTUP
dc.subject	MATCHING GRANTS
dc.title	The Effects of Matching Grants on Technology Startups	en
dc.title.subtitle	The Case of Korea’s TIPS	en
dc.type	Report
dspace.entity.type	Publication
okr.crossref.title	The Effects of Matching Grants on Technology Startups: The Case of Korea’s TIPS
okr.date.disclosure	2024-01-22
okr.date.lastmodified	2024-01-17T00:00:00Z	en
okr.doctype	Economic & Sector Work
okr.docurl	http://documents.worldbank.org/curated/en/099522101172436756/IDU1fd10b128162ba146981b5451f8c8e1523006
okr.guid	099522101172436756
okr.identifier.docmid	IDU-fd10b128-62ba-4698-b545-f8c8e1523006
okr.identifier.doi	http://dx.doi.org/10.1596/40932
okr.identifier.externaldocumentum	34240020
okr.identifier.internaldocumentum	34240020
okr.identifier.report	186999
okr.import.id	2950
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099522101172436756/pdf/IDU1fd10b128162ba146981b5451f8c8e1523006.pdf	en
okr.region.administrative	East Asia and Pacific
okr.region.country	Korea, Republic of
okr.topic	Science and Technology Development::Technology Innovation
okr.topic	Finance and Financial Sector Development::Mutual Funds
okr.unit	EFI-EAP-FCI-Finance-1 (EEAF1)