Intelligent risk-taking key to Singapore's next chapter

The state still has an important role to play but it is the private sector that should take ownership of the innovation era.

- Tan Chin Hwee and Kif Ho

Singapore's story has always been one of turning challenge into opportunity. We now face a new challenge: How to build on our success and secure our place in a future driven by innovation. Talent and capital are more mobile than ever and the winners will be the countries that can attract and redirect these resources most effectively.

The roles of the state and the private sector will also come into focus as these may have to evolve with the times.

Innovation hubs abroad offer valuable lessons. Silicon Valley thrives on its deep pool of private funding and a culture where failure is a vital part of the learning process. China has leveraged its vast domestic market and a powerful synergy between state goals and intense private-sector competition.

Other nations have found success by playing to their unique strengths. Israel became a “Startup Nation” partly through its landmark Yozma programme in the 1990s, a master stroke in de-risking foreign investment.

The government co-invested in new venture funds as a junior partner, giving experienced global venture capitalists the option to buy out its share cheaply. This didn't just import capital; it imported an invaluable risk appetite. Similarly, Taiwan's dominance in semiconductors was born from strategic state investment.

This state-as-innovator model is part of our own DNA. The Government has laid a strong foundation, creating the essential “hardware” through funding schemes and world-class infrastructure. Our history is filled with bold, state-led initiatives that solved critical challenges, from the creation of Jurong Island to the development of Newater.

The goal, therefore, is not to invent a new capability, but to reapply this proven strength to foster a bottom-up, privately driven innovation ecosystem.