With 150 startups, this is much more interesting. For less than the tax abatements to incentivize a single tire factory, they're getting hundreds of active entrepreneurs in their country. Who knows if it will work or not (I'm optimistic), but this is so hilariously cheap for a national program. I'm pretty sure it will work out better than advertising in the WSJ for a month or two.
I think the program could result in a little collaboration between locals and foreign startups short term, with the rub-off effect resulting in increased entrepreneurial activity by locals mid to long term.
Real question is whether the govt stays the course and fosters the right environment along the way, i.e. ensuring that the right tax/legal/political/social incentives are there to encourage Chilean entrepreneurs (the longterm target) to start and retain companies in Chile to boost its economical growth.
As evidence of the governments commitment in chile, consider this: They fund Venture Capital programs as well. As I understand it they have an existing program that provide funding to VCs as a forgivable loan. If the VC is successful they payoff the loan with reasonable interest. If the VC folds, the loan is forgiven.
I read they are also working on (or recently created) another program whereby the government provides funding for Venture Capital but participates as a financial partner in the returns, which, if successful, means the government would be able to put the returns into future VC funds without any further cost to the government.
I think the biggest problem is that the VCs don't have enough startups to invest in.
