This paper examines how and why the Korean online gaming industry gained dominance in the global market, despite US and Japanese competition in related gaming sectors. It examines how far this was stimulated by government intervention and how far it was due to private entrepreneurs. Using case studies of innovative firms, it argues that, whilst interventionist industrial policy was influential, the most important factors were changing market conditions, investment in higher education and telecommunications infrastructure. These created profit opportunities that Korean entrepreneurs were able to exploit through the foundation of new firms and access to university-based social networks.
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