This chapter explores the transformative role of digital technologies in shaping modern startup ecosystems. It begins by tracing the historical evolution of digital innovation, from early computing to the internet and then artificial intelligence (AI), highlighting how these advancements have recently changed the nature of innovation. The chapter then examines the resurgence of entrepreneurship in the digital age, contrasting Schumpeter’s early theories with the contemporary reality of startup ecosystems. Key themes include the symbiotic relationship between digital technologies and startup ecosystems, the characteristics of digital-era innovation, and the pivotal role of venture capital. The discussion sets the stage for understanding how East Asia’s unique ecosystems, examined in later chapters, have emerged as critical players in this global phenomenon.