Governments as Buyers: A Breakthough in Supporting Startup Ecosystem
Abstract
Governments over the world are promoting startups as a mean to develop national economies and encouraging startups to participate in public procurement is a popular instrument whose benefits are supported by empirical evidence. The central and local governments in Vietnam have issued several policies supporting startups within the scope of small and medium enterprise promotion. However, the support is not effective because startups are in nature different from normal small and medium firms. The current public procurement procedures are not appropriate for startups, so a comprehensive innovation in the procurement such as re-designing the contracting procedures and using new methods for communicating public procurement needs would be a breakthrough in promoting startup ecosystem. Keywords: Government, Public Procurement, Startup, Startup Ecosystem JEL code: Z18
