Government agencies in Taiwan have taken measures to foster innovation and entrepreneurship in recent years, with the National Science and Technology Council (NSTC), Ministry of Economic Affairs (MOEA), and National Development Council (NDC) offering subsidies and guidance to foster more US$1 billion unicorns and accelerate industrial transformation into knowledge and applied services. Yet many of these startups have failed to rise out of the doldrums: even though their founders have vanished, these companies still exist in name only without being dissolved.
In response to inquiries from DIGITIMES, Lewis Chen, general director of the Commercialization and Industry Service Center at the Industrial Technology Research Institute (ITRI) and the NSTC's Taiwan Tech Arena (TTA), notes that the TTA has nurtured 1,069 alumni over the past seven years who have founded innovative startups, and startup survival rates have been as high as 87% if defined as whether a company has dissolved.
However, once startups exhaust funding from the "three Fs"—family, friends, and fools—more than 90% eventually fail. Even if a startup does not formally dissolve, it may lack steady revenue or employees and only exist in a semi-dormant state.
As Chen notes, after tracking startups that have received government and accelerator support and investment over the past seven years, the TTA has identified three main trajectories for entrepreneurs. Firstly, some return to the workforce and join other companies, often driven by the need to repay debts. Secondly, after training at TTA, some entrepreneurs develop an interest in working within legal entities such as ITRI and other government organizations. Thirdly, some prepare anew to launch new ventures for their second or third attempts at entrepreneurship.
Chen adds that TTA hosts nine accelerators, and entrepreneurs whose first ventures fail but find new ideas can submit proposals again to the NSTC. Upon approval, they can participate alongside TTA startup teams in international flagship events like CES and VivaTech, which could provide a viable path going forward.
Expanding collaboration between the industrial and academic centers to stimulate innovation and entrepreneurship remains a key focus of the NSTC's policy plan for 2026. To this end, the NSTC will accelerate the commercialization of R&D results, connect with global startup resources, encourage AI startups, and build an innovative entrepreneurial ecosystem.
On the TTA's plans for its sites in northern and southern Taiwan (at Taipei Arena and Tainan's Shalun region, respectively), the TTA will continue to connect with local and international accelerators, attract local and foreign startup teams, and invite top global entrepreneurs to Taiwan to foster development and exchanges. The goal is to assist startups in going overseas, participating in major exhibitions, securing international funding and orders, integrating into global markets and ecosystems, and strengthening corporate clusters and local advantages for transformative innovation.
Article edited by Jack Wu