Editorial Board

Governments Shouldn't Help Startups

What should governments do to encourage startups? Maybe nothing.

July 14, 2016 at 10:00 PM UTC

By The Editorial Board

The Editorial Board publishes the views of the editors across a range of national and global affairs.

Not magic.
Photographer: Dimas Ardian/Bloomberg

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By most measures, Southeast Asia is a thrilling frontier for the tech business. It’s the world’s fastest-growing online market. About 70 percent of its population is under 40. Economic growth is brisk. Smartphone sales are surging. Even Eduardo Saverin, erstwhile Facebook impresario, is bullish.

So it’s understandable that governments across the region are creating funds to invest in local startups, hoping to foster new tech hubs. Thailand, for one, is doling out $570 million with the aim of generating 10,000 startups by 2018. Such efforts are ambitious, well-meaning and almost certainly misguided.