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Seung Hoon Jang, Jung Seek Kim and Jonathan Ohn

This study aims to examine the mechanisms that influence how Korean high-tech ventures are formed. For this purpose, the authors begin by reviewing major determinants of entrepreneurial activities based on relevant theories and literature of entrepreneurship. The history and characteristics of the Korean economy, especially in regard to entrepreneurial firms, are further investigated, supporting the theory that Korean ventures are essentially nurtured by the Korean and local governments. The literature review and case analysis provide that these major institutional factors act as mechanisms that contribute to the birth of high-tech firms, resulting in innovative results and new value creation. Both scholars and practitioners can gain insight by focusing on how revolutionary new firms have been in shaping one of the most innovative countries in the world.