Evaluation of Private-Driven Tech Incubator Program for Startups

Published on June 24, 2024
Published by Economic Industrial Program Evaluation Division, Budget Analysis Department

   Tech Incubator Program for Startups (TIPS) is a tech startup support project where start-ups that have been selected using private sector expertise and capabilities are offered with technology development and commercialization funds. From 2013 to 2023, TIPS has become the government's flagship start-up support project, aiding over 2,800 start-ups and generating a total of 13 trillion won in follow-up investments.
   Recently, the government has continued to expand the TIPS program by strategically nurturing start-ups in new ‘super gap’ industry sectors and establishing new support projects for global advancement. However, despite a total investment of 2.3 trillion won by 2024, there has been a lack of comprehensive inspection by the government and the National Assembly regarding the appropriateness of the fiscal investment scale and the efficiency and effectiveness of the project's operation.
   Against this background, this report introduces the overall status of the TIPS project and reviews major issues and improvement measures in terms of its operation management system, task support system, and performance management system.
   The review indicates the necessity to analyze the appropriate project scale and prepare a mid- to long-term fiscal investment plan before further budget expansion. Additionally, it highlights the need to strengthen the management and supervision of the operating organization to increase professionalism and accountability. TIPS operators must also develop a comprehensive support system to discover start-ups, improve investment performance, and help start-ups reach exit (investment recovery) stages such as IPOs and M&As.