For American and Canadian investors looking to put their money into tech start-ups,The Economist provides a quick overview of business environments in China, India, Singapore, South Korea, Hong Kong and Taiwan, and Vietnam.
China's capital city Beijing remains the hot spot for Asia's Internet, mobile clean technology and bio-tech start-up markets. Citing its three leading universities, advanced infrastructure, and the presence of many venture capital firms and angel investor,The Economist refers to Beijing as, "Asia's most developed and competitive centre of entrepreneurial activity."
However, the City's competitive environment and its air pollution are making Shanghai, home to China's leading digital media and entertainment start-ups, an attractive alternative.
India's democratic society, judicial system based on English common law, independent media and widespread use of English draw North American investors. Negatives include bureaucratic institutions and a government that is "sometime less than welcoming" to foreign investors. Bangalore, home of the multinationals Wipro and Infosys, is India's start-up hot spot, which is otherwise centered in Delhi and Mumbai.
Among Asian countries, Singapore stands out for its business-friendly government policies which have turned it into Southeast Asia's financial and commercial hub, and are now helping to grow its tech start-up environment. Government support, which includes providing new tech businesses with office facilities, training and mentoring, seed funding and grants, has created what The Economist calls, "a healthy start-up ecosystem that is bubbling with activity - from grass-root social events to larger venture-related conferences. "
Although it has a highly developed Internet and mobile infrastructure, venture capital investments and angel investments lag in South Korea. Giants Samsung and SK Telecom dominate the market but, The Economist reports, "tech entrepreneurship is not generally considered a promising pursuit for a young graduate."
Hong Kong and Taiwan, both global high-tech manufacturing hubs, are still gathering momentum. The focus is on nurturing local entrepreneurs with grass-root incubator programs and government-sponsored science and technology parks. And Vietnam is still a "new frontier" with a mixture of "local home-made techies" and "culturally savvy expatriates."
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