South Korea ranks eighth globally among national innovation ecosystems, according to the latest census presented by Mind the Bridge, while Seoul ranked eleventh among the world’s most developed ecosystems. This assessment is based on the presence of 3,359 Scaleups at the top of the Korean innovation pyramid, alongside a base of nearly 10,000 startups and around 25,000 innovative technology companies that do not rely on venture capital funding.
The article, written by Alberto Onetti, chairman of Mind the Bridge, does not merely present a new ranking; it explains how the innovation economy should be measured. According to the methodology presented by the organization, it is not enough to count startups or measure investment volumes; it is also necessary to consider companies’ ability to scale, corporate and consumer demand, capital, government support, and the extent to which the ecosystem attracts international players.
A Pyramid Distinguishing Startups from Scaleups
The methodology places startups at the base of the pyramid, then distinguishes them from Scaleups that have demonstrated a degree of commercial and funding traction, enabling them to raise more than $1 million in venture capital. Onetti argues that this tier represents a practical indicator of ecosystem maturity, because its number, growth rate, and sectoral distribution provide a clearer picture of the stage the ecosystem has reached.
At the top of the pyramid is a smaller group of companies that have moved beyond their domestic market and achieved genuine international reach, referred to in the article as Scalers and Super-scalers. Separating these companies from the total number of startups is important because a limited number of them may influence the image of an entire economy more than thousands of companies in their early stages.
However, the venture-capital-based pathway does not cover all technological activity. Therefore, the methodology adds innovative small and medium-sized enterprises: established companies that generate revenue and compete through technology and innovation, even if they have not received venture funding. This category is particularly important in South Korea, where government-supported innovation or innovation linked to large corporations has historically played a role alongside the startup pathway.
From Technology Supply to Economic Impact
The analysis emphasizes that the large number of technology companies represents only the supply side. For this supply to translate into economic growth, it needs demand from local and international companies, in addition to consumer demand in sectors that depend directly on the market.
Large companies benefit from solutions offered by startups and Scaleups, and may help introduce them into industry through accelerator programs, corporate client models, corporate venture capital funds, and mergers and acquisitions. According to the article’s latest figures, South Korea has around 130 domestic companies with organized open-innovation activities and approximately 90 international companies with innovation centers in the country.
The ecosystem’s support side includes around 700 investors and more than 550 public and private innovation intermediaries supporting over 800 entrepreneurship and innovation programs. The analysis also notes that private capital comes from angel investors, venture capital funds, and corporate investment funds, while public support includes subsidies, grants, and government programs.
Why Does This Measurement Matter?
The practical value of the methodology, according to Onetti, is not to produce a ranking table, but to diagnose where an ecosystem stands on the innovation life-cycle curve and identify the bottlenecks that hinder companies from moving from one stage to another. The indicators can also be used to compare economies attempting to transition from a “startup nation” model to a “Scaleup nation” model.
The number of innovation centers established by multinational companies or foreign governments provides an indicator of external attractiveness. However, this indicator usually lags behind the ecosystem’s actual progress by about two years and therefore serves, according to the article, more as a tool for subsequent confirmation than as an early warning.
Growth Driven by Long-Term Policy
The analysis describes South Korea’s rise as the result of a strategy that extended over more than two decades, rather than a temporary circumstance. The country began by raising the target framework for research and development spending from a range of 2% to 3% of gross domestic product to a minimum of 5% in 2008.
In 2013, the government strengthened technology entrepreneurship as a strategic pillar of the economy and launched the TIPS program, or Tech Incubator Program for Startup, to support companies in their early stages. Between 2014 and 2015, 17 regional innovation centers were established, known as CCEI, bringing together the large industrial conglomerates known as Chaebols and startup incubation activities.
New regulatory frameworks also created more room for experimentation by technology companies, opened the way for additional forms of financing, and provided incentives for Scaleup financing. Since 2022, dedicated strategies and tools have focused more heavily on deep-tech innovation.
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What has actually changed in the Korean case is the shift from focusing on the number of startups to tracking their ability to grow and scale and their connection to industrial demand. The figures presented point to a broad, multilayered ecosystem, but the article itself cautions that most of them are estimates subject to revision, with the exception of the analytically calculated number of Scaleups.
The source states that ten years ago Korea was approximately 40% smaller than Japan and Germany, close in size to Australia and Spain, and slightly ahead of Singapore and Italy. By 2025, the number of Scaleups had reached 3,233, putting Korea clearly ahead of Germany and Japan, more than twice the size of Spain, and close to twice the size of Singapore. The comparison remains useful for understanding the direction of travel, but it does not eliminate the need to scrutinize company definitions and data sources when comparing countries.