Fostering Academic Entrepreneurship for Economic Development: Challenges, Frameworks, and Strategies in ASEAN

Abstract

The economies of ASEAN countries have experienced growth, but many find themselves stuck in the "middle-income trap" for an extended period. Overcoming this trap is crucial as it is linked to issues such as limited job opportunities and unstable income, especially in Southeast Asia. To avoid this trap, promoting innovation is recommended, with the startup ecosystem seen as a key driver of economic growth since the 2010s. Accelerating business development through startup promotion has become a benchmark for achieving economic development. Encouraging entrepreneurship, particularly through startups, plays a significant role in boosting economies. Academic entrepreneurship, involving students, governments, and private enterprises, has emerged as an important approach. However, middle-income ASEAN economies, especially in the lower-middle-income bracket, face challenges in promoting academic entrepreneurship due to resource, funding, and connection limitations. To address this, a conceptual framework was developed to understand the theoretical relationship between the economic development stage and entrepreneurship through startups. Panel data analysis using natural logarithmic data revealed that entrepreneurship via startups is a significant predictor and a substantial factor in promoting economic development. Building on the panel data analysis results, a strategic framework for promoting economic development through entrepreneurship via startups was formulated through qualitative analysis. This involved integrating insights from academic entrepreneurship policies and the current development conditions in six selected middle-income ASEAN economies, along with the status of the startup ecosystem. Notably, there is a need for further development in financial and educational support to encourage young university students to establish companies in collaboration with governments and enterprises. Tailoring startup policies to the development status of each country is desirable.