I am here in Taipei at the invitation of Yen-Shiang Shih, Minister of Economic Affairs, to give the keynote address at the International Innovation, Entrepreneurship and Incubation Forum, one of the signature events of Global Entrepreneurship Week. In this small but powerful island, 26 major GEW events are taking place this week, all under a theme of “Startup Taiwan!” and endorsed by President Ma Ying-jeou. After strong waves of entrepreneurship in the past--largely in response to returned-diasporans’ entrepreneurship--the region is seeking a renewed innovative push to maintain its status as one of the Asian Tigers.

The entrepreneurs who transformed this region from a fishing island in the 60s to a high-tech powerhouse have been able to manage risk on an international scale. GEW, hosted by the Small and Medium Administration (SMEA)--part of the Ministry of Economic Affairs (MOEA)--is being widely developed to encourage the next generation of risk-takers. Many I spoke with today told me that too many Taiwanese still opt for big, well-known firms as a career path and that it has been Taiwanese returnees, like EZTABLE’s founder Alex Chen, who have been driving a return to the region's  entrepreneurial roots.

In short, President Ma Ying-jeou’s administration is trying to diversify the economy and has identified six major industries to develop, including biotech and green energy. The International Technology Research Institute (ITRI) and 30+ more incubators (e.g. appWorks) here are preparing to scale up next generation revolutionary ideas.   

Part of the plan is to comb the world for talent in a quest to once again reinvent the region. Our conference today gathered experts and incubators from countries across the globe in an effort to better understand the emerging competition among nations for the most attractive startup ecosystem and to find ways to tap into what is a growing network of startup communities ripe with talent. GEW is part of that broader strategy to focus on new and young firm formation and it was very clear there is a careful iterative process underway to do it right.

The irony did not escape me that, while at that moment in Washington, DC, the Secretary of Energy was before the House Energy and Commerce Committee explaining massive losses and failed public investments in cleantech firms, Dr. Robert Sun-Quae Lai, Director General of SMEA, was explaining to me that they had long ago figured out that government cannot pick winners and how SMEA always requires matching private investment before committing any public investments in new firms. In my meetings with private foundations and public agencies here alike, I sensed a very considered approach to fostering an environment conducive and appealing to spurring new firm formation.

This region is well educated, disciplined and hard-working. Now, Global Entrepreneurship Week and blogs such as TechOrange and Taipei StartupDigest--an events list curated by entrepreneurs for entrepreneurs--are starting to connect the local startup community. On that list is a much awaited Startup Weekend coming to Hsinchu City on December 2 – 4, 2011. My prediction is this will be just the beginning of a new wave of startup fever across this island.

tags: Ma Ying-jeou, Ortmans, Startup Digest, Startup Weekend, TechOrange