By definition startups have a chance of failing. Betting Chile's software strategy on 25 startups is a risky business. I don't see why lower taxes will reduce

By definition startups have a chance of failing. Betting Chile's software strategy on 25 startups is a risky business. I don't see why lower taxes will reduce entrepreneurship there or introduce only outsourcing -- won't the locals use this chance to create their own startups ? There are many things to discuss here but I assume some countries either culturally or financially encourage enterprises. If Chile doesn't have the right legal, tax and socio-educational framework then startups will never migrate there. There are just too many aspects to look at but I do believe that a contest with some $40K prizes can't beat lowering taxes.