Startup ecosystem

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A startup ecosystem is formed by people in startups in their various stages, and various types of organizations in a location (physical or virtual) that are interacting as a system to create and scale new startup companies. These organizations can be further divided into categories such as universities, funding organizations, support organizations (like incubators, accelerators, co-working spaces etc.), research organizations, service provider organizations (like legal, financial services etc.) and large corporations. Local Governments and Government organizations such as Commerce / Industry / Economic Development departments also play an important role in a startup ecosystem. Different organizations typically focus on specific parts of the ecosystem function and startups at their specific development stage(s).^[1][2][3]

Emerging startup ecosystems are often evaluated using tangible metrics like new products, patents, and venture capital funding. However, Hannigan et al. (2022)^[3] argue that understanding these ecosystems requires considering cultural factors alongside material ones. They emphasize that cultural elements, such as community engagement and shared values, play a crucial role in the growth and success of emerging startup ecosystems. By incorporating both cultural and material perspectives, policymakers can better design incentives and regulations to foster economic growth and innovation in these ecosystems. This approach suggests that building cultural infrastructure is as important as financial and technical support in developing thriving entrepreneurial environments.

Silicon Valley, NYC, Singapore and Tel Aviv are considered examples of global startup ecosystems.