Exploring the Role Governments Play in Fostering Innovation Across APAC
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Australia India Youth Dialogue Launch. Photo courtesy of Dickie Currer-Ganguli.
Article Summary
- Government policy significantly influences the success of innovation ecosystems across the APAC region, either by fostering growth through stability or hindering it with bureaucracy.
- Consistent, long-term regulatory frameworks in countries like Singapore and South Korea demonstrate how governments can effectively enable collaboration between universities, investors, and startups.
- The most successful ecosystems emerge when governments focus on reducing administrative friction and providing stable conditions rather than attempting to control innovation cycles.
By Dickie Currer-Ganguli
One key conclusion stands out.
Governments cannot build startup ecosystems alone. But they can absolutely determine whether those ecosystems have the chance to succeed.
This insight comes from this last year working with governments, founders, investors and ecosystem builders across 10 countries in the Asia-Pacific region.
During that time, I’ve seen first hand how government policy and intervention can dramatically shape the success or failure of innovation ecosystems.
Some governments understand how to create the conditions for startups and technology companies to thrive.
Others unintentionally slow innovation through bureaucracy, inconsistent policy or over-management.
One of the biggest lessons I’ve learnt is that consistency matters far more than announcements.
Many governments launch ambitious “future economy” strategies, billion-dollar innovation funds or national startup campaigns.
But founders and investors rarely make long-term decisions based on speeches or political branding exercises.
They respond to stable regulation, predictable policy and confidence that support programs will still exist several years from now.
A strong example of this is Singapore, which has spent decades building a highly coordinated innovation ecosystem, focused on talent, infrastructure, global connectivity and access to capital.
In the “Little Red Dot” (Singapore’s nickname), government agencies work closely with universities, investors and multinational corporations, while startup founders benefit from relatively efficient regulation and strong international links – with the government acting as an enabler for this cross ecosystem collaboration to take place.
Importantly, Singapore’s approach has remained consistent over time. Rather than chasing short-term trends, it has focused on building long-term capability.
The same can be said for South Korea, whose government has combined strong industrial capability with growing startup support.
South Korea government investment in advanced manufacturing, deep technology and research commercialisation has created an environment where startups can connect with large corporations and global supply chains.
Seoul’s startup ecosystem has become increasingly international, with a government backed Global Startup Center recently launched in the affluent Gangnam district, aimed at creating a landing pad for Entrepreneurs from across the world.
Dickie Currer-Ganguli at the HICOOL Global Entrepreneur Summit 2025. Photo courtesy of Dickie Currer-Ganguli.
My home country of Australia doesn’t always receive the same recognition as larger Asian ecosystems, but it has built a strong culture of entrepreneurship supported by world-class universities, relatively transparent regulation and growing investor networks.
Programs supporting research commercialisation and startup growth have improved significantly over the last decade, though the country still lags behind in converting that research into commercial outcomes.
The recent debate over the scrapping of the Capital Gains Tax discount for startups has also cast doubt over the government’s commitment to making Australia a place where innovation can thrive.
Another common problem I encountered that stifles innovation is excessive bureaucracy.
In several emerging startup ecosystems across Southeast Asia, founders still face lengthy company registration processes, unclear regulations and slow-moving government systems.
Indonesia is a good example of an ecosystem struggling with this challenge.
With a younger population of 287 million and one that embraces entrepreneurship and technology, the county has enormous potential.
Though, in reality, founders often face complex regulation, inconsistent policy implementation and administrative barriers that can slow startup growth. While progress is being made, many entrepreneurs still describe the system as difficult to navigate.
Founders in the Philippines face similar issues.
The country has an incredibly strong talent pool, with high levels of digital engagement and growing startup activity, yet infrastructure gaps and fragmented government coordination continue to limit ecosystem growth.
Internet connectivity, access to capital and policy consistency remain challenges for many founders.
There is significant potential in the ecosystem, but stronger long-term coordination between government, universities and private sector stakeholders is still needed.
Entrepreneurs in Pakistan face an uphill battle for different though equally challenging reasons.
The country has produced impressive founders and strong entrepreneurial ambition despite difficult conditions.
However, political instability, inconsistent regulation and economic uncertainty continue to create major barriers for startups and investors.
Many talented founders eventually relocate overseas in search of more stable environments, resulting in a loss of local capability and investment potential.
Perhaps the most important lesson from my time across APAC is that thriving innovation ecosystems require patience.
Ecosystems are not built in two-year political cycles.
They develop over decades through trust, collaboration and long-term investment in people and capability.
The governments making the greatest impact across APAC are those that understand their role is not to control innovation, but to create the conditions where innovation can thrive.
When governments provide stability, reduce friction and empower entrepreneurs, startups and technology companies are far more likely to succeed. When they create uncertainty, bureaucracy or dependency, ecosystems struggle.
After a year working across APAC, I’m convinced that government involvement matters enormously.
The challenge is not whether governments should support innovation ecosystems, but whether they can do so in a way that empowers founders rather than puts constraints in their way.
A fine balance to strike, but one which can lead to great economic gains amid global volatility and transition.
While many governments publicly support innovation, the practical experience for founders can be very different.
In some cases, entrepreneurs spend more time navigating paperwork and approvals than building products or finding customers.
