The Role of Government Support in Developing Startup Ecosystems: A Case Study of Yogyakarta and Surakarta, Indonesia
Abstract
Technology startups in Indonesia have experienced rapid growth in recent years, reflecting a broader global trend in which startups have become central drivers of innovation and economic development. This study explores the critical role of government support in shaping and developing startup ecosystems, focusing on two emerging innovation hubs in Indonesia: Yogyakarta and Surakarta. Drawing from qualitative data, including interviews, field observations, and document analysis, the research examines how government initiatives, public policies, and multi-stakeholder collaboration contribute to the growth of local startups and creative enterprises. The study highlights key strategies such as government support, incubation programs, and infrastructure development that foster a supportive environment for entrepreneurial activity, based on the frameworks of governance and institutional theory. The findings indicate that while government involvement is essential, sustainable ecosystem development requires synergistic partnerships among government, universities, the private sector, and civil society, reflecting the principles of the Triple Helix model. This paper contributes to the broader discourse on innovation governance and offers policy insights relevant to other developing regions seeking to strengthen their startup ecosystems.
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PDFDOI: http://dx.doi.org/10.17576/ebangi.2025.2204.38
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