Developing a Framework for Promoting the Growth of Digital Startups

• Country: Indonesia
• Summary: Developing a Framework for Promoting the Growth of Digital Startups
• IDT Ref No: 52865390
• Deadline: 18 May 2021
• Financier: Other Funding Agencies
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
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• Description:
• Developing a Framework for Promoting the Growth of Digital Startups Digital startups attract talent and funding, catalyse local innovation, and create jobs. At the same time, they help transform economies by driving innovation and collaborating with traditional sectors to increase productivity and competitiveness of their legacy systems. A conducive ecosystem—made up of entrepreneurs, talents, enablers, and funders - is crucial for the emergence of viable startups, and its global connectedness essential for reaching scale. According to the Global Startup Ecosystem Report 2020, Asia accounts for 30% of the world-s top-ranking ecosystems. However, these are still concentrated in more developed countries on the continent. Governments that realize the value of fostering entrepreneurship have been active enablers through policies and incentives as well as early-stage funders. ASEAN digital integration requires a conducive business environment in which budding digital enterprises can grow into a dynamic, innovative business ecosystem. In a fast-transforming digital world, competitiveness is no longer just about attracting talent and investment, it is also about driving, fostering, and supporting innovation. From startups to government bodies, organisations must be able to think critically and solve problems creatively. Together, these abilities contribute to a country-s overall resilience, adaptability, and competitiveness. This includes assisting budding digital enterprises as they navigate the business ecosystem and contribute to the digital economy—from the ease of starting a business to complying with digital regulations. The ASEAN Digital Integration Index (ADII) adopted in 2020 evaluates how well the environment in ASEAN promotes innovation and entrepreneurship: the availability of venture capital, the proportion of gross domestic product (GDP) used on research and development (R&D), how easy or challenging it is for innovative companies to grow, how easy it is to start a business, and how intellectual property creation is encouraged and protected (Pillar 5). According to the ADII Report, ASEAN scores very inadequately in terms of the proportion of GDP spent on R&D. This illustrates that there are still very few resources prioritized for investing into domestic innovation. At the same time, intellectual property protection frameworks are also insufficient which restricts the incentives of innovators and investors to create new products and services in ASEAN. On a positive note, it remains relatively easy to start a business in ASEAN, with high growth potential for innovative companies and where venture capital funding is fairly available. The challenge therein for ASEAN Member States (AMS) is to be able to bridge this gap and channel more resources to promote innovation and entrepreneurship by dedicating more funding to R&D and to enhance intellectual property frameworks so businesses and innovators are better incentivized to take advantage of the conducive business environment. On the other hand, a study by Google, Temasek and Bain Co., as published in the 2019 E-Conomy South East Asia (SEA) Report, more than USD 37 billion of capital had flowed into the Internet economy of SEA over the last four years (2016-2019). While the majority had gone to e-commerce and ride hailing unicorns, investments in nearly 3,000 startups in the region remained sizable, according to the report. A growing number of aspiring unicorns had emerged and was on the lookout for late-stage funding to scale further. Regional and global investors, particularly from China, are geared up for this opportunity, ready to back companies for longer and with more resources. The study identified that digital talent remained a pressing constraint despite many efforts by the digital industry players to fill the gap. Under the ASEAN Digital Master Plan 2025 which has recently been adopted by the 1st ASEAN Digital Ministers Meeting (ADGMIN) in January 2021, the development of a framework that encourage the development and growth of digital start-ups in ASEAN was also identified as a high priority agenda for ASEAN to support the increased capacity for business and people to participate in the digital economy. The project will identify and verify the key factors that affect the growth of digital statups in ASEAN and, based on the findings, develop a policy framework to promote digital startups. The framework will focus on government measures needed to create and preserve startup ecosystems which include financial assistance, incentives for research and development, talent and skills development, support programs (e.g., incubators, accelerators, scale-up initiatives, and mentorships), and creating a conducive regulatory environment for the growth of startups. The policy framework lays the conceptual foundation for the design of national startup ecosystems in ASEAN. Further to promoting an enabling startup ecosystem, it will delve into the challenges faced by entrepreneurs that are specific to digital startups, whose products or services tend to be disruptive to the traditional industries and increasingly challenged by emerging government restrictions due to their negative impacts on the market and society such as uneven playing field between online and offline companies, monopoly by big technology companies, data privacy issues, etc. The digital startups in the 3IR (platform economy) and 4IR (automation) era also typically require different types of R&D and, consequently, different talent-mix as compared to non-digital startups. The goal of this project is to establish an enabling ecosystems for digital startup. It is envisaged that once the framework is established and adopted, relevant ministries in the AMS will make best practicebased policies that will nurture/foster startup ecosystems, particularly in promoting growth of digital startups in their respective countries. The Technical component should present the following information: • A brief discussion indicating the bidder-s understanding of the needs of the project; • A brief analysis of key issues; • A methodological discussion of how the bidder proposes to address those needs including assessment of key issues, analytical strategies that will underlie the project, specific techniques to be utilised, and practical discussion of possible limitations in carrying out the project; • A detailed work plan that specifies activities to be undertaken, expected outputs and deliverables, resources to be utilised and timing; • Staffing and management plan; • A discussion on how measures to ensure the future sustainability of the outcomes of the project will be addressed; • CVs of all proposed experts; • Brief discussion of firm-s past experience in undertaking similar work and brief summaries of all projects undertaken.
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