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"The most likely scenario is (1) that no government will successfully establish a startup hub" Take a look at HaiDian/ZhongGuanCun in Beijing, chock full of st
by newhouseb 18y ago
"The most likely scenario is (1) that no government will successfully establish a startup hub"
Take a look at HaiDian/ZhongGuanCun in Beijing, chock full of startups big and small. From my understanding, the reason entrepreneurs flocked there originally was because HaiDian offered huge tax breaks versus the rest of China (for the explicit purpose of developing a high-tech industry).
In my eyes, HaiDian is a huge counter-example for the first point--not forgetting of course that the economic climate in China is one of urbanization unseen since the American Industrial Revolution.
- benmathes 18y agoPG does appear to assume ease of movement by potential founders to current startup hubs. Large cultural and language barriers remove this ease of movement. Perhaps a more rigorous claim is that there will be very few startup hubs per largely-different (culture,language) region.
- jedavis83 18y agoYou're making a substantial assumption, which is that startups look for tax incentives when founding. Since nearly all startups are unprofitable for a while, I suspect that most don't really care what the tax codes in the area are, as long as they aren't ridiculous (insert your version of this accordingly). I feel tweaking tax codes to encourage startups won't have its intended consequence, but rather encourage established companies to try to pretend that they're startups. They are much more likely to have the resources to chase tax incentives than a real bootstrapping startup.