Korean startups fall short on global readiness, finds Open Innovation Trend survey

There is a need for Korean startups to enhance their global outreach and growth in the worldwide market, a survey conducted by Korea International Trade Association (KITA) has revealed. According to the survey conducted by the Korea International Trade Association (KITA), multinational tech companies such as Microsoft, Google, and Intel highly value innovation from Korean startups. Still, they need more readiness for global expansion.

The survey, called the Open Innovation Trend survey, involved 102 global companies listed on the Fortune Global ranking. Over half of the surveyed companies (55%) identified “competitiveness in innovative technology” as the strength of Korean startups. Korean startups received a score of 7.4 out of 10 regarding technology competitiveness, comparable to Silicon Valley-based enterprises. However, the global readiness and business model differentiation scores were lower at 6.1 and 6.4, respectively.

Open Innovation has become a popular concept in the global corporate community. It involves expanding the scope of value creation by sharing complementary ideas and skills to advance technology and services. Large companies nowadays prefer to acquire or merge with smaller ventures or startups to achieve new growth instead of relying solely on internal research and development. This is because investing in R&D has become more expensive, and there is a greater risk associated with developing new products due to the rapid pace of technological evolution.

The survey has shown that nine out of ten global companies are planning to continue or expand their open innovation partnerships with startups. This bodes well for Korean enterprises, as these companies have approved Korean startup technologies. However, it is vital to address the issue of Korean startups’ need for more readiness for global expansion.

According to the survey, 57% of global companies advisedKorean startups to participate in more global exhibitions to showcase their new technologies and test their global capacity and market adaptability. Although a record number of Korean startups participated in CES 2023 in Las Vegas earlier this year, they need more than just exposure to global audiences. They also require increased test beds to prove the applications of their technology, according to KITA.

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