FOSTERING STARTUP ECOSYSTEMS THROUGH JAPANESE ENTREPRENEURSHIP IN LOWER-MIDDLE-INCOME ASEAN ECONOMIES

This study explores the development of startup ecosystems and entrepreneurship in middle-income ASEAN countries, highlighting the crucial role of Japanese entrepreneurs. It examines how collaborations between Japanese and ASEAN startups can address the lower-middle income trap (LMIT) and promote sustainable economic growth. The research underscores the importance of policy reforms in education, technical training, and human resource development to align efforts between Japan and ASEAN, fostering mutual benefits and enhancing ecosystem resilience. Using a qualitative mixed-method approach, the study identifies essential practices for successful partnerships, including effective mentorship and knowledge transfer, which significantly boost local startups' technological and strategic capabilities. Cultural adaptation is identified as vital for aligning with local business practices, market conditions, and regulatory environments, facilitating smoother integration and collaboration. Strategic investments and resource allocation by Japanese partners are pivotal for scaling startups, providing necessary financial and technical support. The establishment of long-term partnerships ensures sustained and mutually beneficial collaborations. The study incorporates a framework and emphasizes the need to expand it to address emerging technologies, institutional challenges, and policy recommendations, thereby enhancing its comprehensiveness and practical relevance. The findings offer valuable insights into building resilient startup ecosystems and fostering entrepreneurship in middle-income ASEAN countries, emphasizing the indispensable role of international collaboration in achieving long-term economic development and overcoming the LMIT, ultimately contributing to a more integrated and dynamic regional economy.