Arizona has slipped in several areas of technology-based economic development in recent years, leaving the state "solidly behind" peer states such as Colorado, Oregon, Utah and New Mexico, says a report from the California-based research group the Milken Institute.

To catch up and succeed, the state needs to expand its research base, improve access to capital, develop more skilled and educated workers, and create a better game plan to attract and retain high-tech companies, Milken concluded in a study sponsored by Science Foundation Arizona.

IMAGINE a planetarium-style presentation about the future of technology, followed by a tour of dozens of hands-on exhibits — whether of sandlike microparticles that flow like liquid in a beaker, pictures that appear three-dimensional or concrete that floats.

Is it the latest science museum, or a new Disney attraction? No, it’s the “World of Innovation” showroom, a cornerstone of the 3M Company’s customer innovation center at its headquarters in St. Paul.

Since it is the Christmas holiday, and I am spending the week in southern Spain with my family, I have not been focusing too heavily on economic data and have instead been reading lots of different stuff, including Frederic Wakeman´s excellent The Fall of Imperial China, about the transition from the Qing, especially the late Qing, to the early Republic. Among other things I have been reading there is a very interesting article in the Winter 2010 edition of National Affairs, by Jim Manzi, and AI entrepreneur and senior fellow at the Manhattan Institute, that discusses the US within what he calls “the inherent conflict between the creative destruction involved in free-market capitalism and the innate human propensity to avoid risk and change.”

What’s better than cash and prizes for your business in the new year? Lots of new contests and competitions for entrepreneurs and small businesses to enter in 2010, including a bunch in January. This listing is updated every two weeks and brought to you as a community service by Small Business Trends and Smallbiztechnology.com.

FOR the many disappointments of the recent climate talks in Copenhagen, there was at least one clear positive outcome, and that was the progress made on a program called Reducing Emissions From Deforestation and Forest Degradation. Under this program, key elements of which were agreed on at Copenhagen, developing countries would be compensated for preserving forests, peat soils, swamps and fields that are efficient absorbers of carbon dioxide, the primary heat-trapping gas linked to global warming.

This approach, which takes advantage of the power of nature itself, is an economical way to store large amounts of carbon. But the program is limited in that it includes only those carbon sinks found on land. We now need to look for similar opportunities to curb climate change in the oceans.

1991 was when India achieved its second independence – that of economic liberalization. But, in retrospect, one has to say that it has been far more than just economic liberalization. It also liberated the mind of the baggage of self-doubt, low confidence and ignorance. It has therefore been my belief that those born around or after 1991 would be the change agents of India. Entrepreneurship and entrepreneurial thinking would be the vehicles of change.

On Christmas Eve, millions of children around the world are nestled in their beds while visions of Santa Claus dance in their heads.

But how did the jolly old elf become part of the holiday tradition?

While historians disagree on the particulars, most believe the familiar image of Santa as a fat, jolly gift-giver with a white beard, dressed in a red suit and driving a sleigh full of toys is an invention of 19th-century literary artists, but one which has ancient European roots.

In 2000, California's unemployment rate was 4.9 percent. Venture capital funding hit $41 billion. Jobs and income were rising after a five-year spurt during which California outpaced the nation in virtually every major economic measure.

In 2009, the state's unemployment rate will average 11.7 percent. The state has lost more than 1 million jobs in the latest recession. Venture capital funding plummeted in the first half of 2009. The state and nation have seen losses in the value of homes and retirement savings. Fear and caution abounds in the land. Both the state and nation will end the decade with fewer jobs than existed 10 years ago.

In today's economy we are seeing the fruits of an industry, driven by stock holders (greed) vs. value (stewardship). These companies; because of the high margins they received at one time, did not feel that their course of action would catch up with them; but it did, thus the correction in the market or the crash of 2008.

There is nothing worse than feeling the stress of Guido, (venture capitalists, investors) calling in their portion of the pie or dictating company decisions based on the desire for gain without the contribution of value (i.e. innovation or the creation of new markets). These types of pressure scream high margins, low morale or loyalty within the company. When you have low morale in the organization it's only a matter of time until it seeps down to the customer level. So the alternative is to merge with another company because growth is to slow, which often leads to borrowing more from the loan sharks.

Here’s the list of books I [Ben Turner] read during 2009.

I finished 49 books in 2009, ahead of my goal of 40. In 2010 I will attempt 40 books again.

This only captures a sliver of what my eyes have consumed in 2009, since there’s just so much content online these days. Hopefully at some point we’ll be able to measure every word consumed annually at some point, possibly with neural/optical implants.

Brand experience is rapidly becoming the new frontier for innovation.

Such brand experiences authentically embed the product into deep content or services, stretching the footprint of the brand far beyond where it is used. This type of innovation is becoming a mandate for growth across a number of consumer categories, particularly in package goods.

How confident are you that your company’s strategy is up to the task of delivering superior earnings over the next several years?

Does your company have a clear innovation strategy for introducing new products and services enough to ensure that revenue streams continue to flow and deliver consistent growth in corporate earnings and shareholder value?

During high tide, a rising sea will automatically lift all boats — including some that may not be seaworthy.

I [Anthony Tjan] recently sat down with Larry Cheng, a partner at Fidelity Ventures, as part of my ongoing interview series investigating what lies at the center of entrepreneurial success and failure. I asked him to share a few thoughts from his perspective as a venture capitalist.

As an entrepreneur, you often need to make do with less, go up against larger competitors, and take big risks. One of the most important tasks for you to complete is figuring out your raison d’être, or “reason to be”.

What I mean by “reason to be”, is you need to figure out why you are doing what you are doing in the first place, what your goals are, and why you are the right person at the right time to get it done.

In the late 1980’s Phil Stanton and 2 of his friends began giving free performances on the streets of New York City. “We had a character idea,” said Stanton of the group’s early days. “We added to each characters experience, and it –grew—it still continues to grow.” And indeed these three blue men did grow– into a wildly successful internationally recognized industry of their own. And did you hear they are even now opening The Blue School?!

The first of the six common myths about venture capitalists is that VC will take over the business, says Pankaj Sahai in ‘Smooth Ride to Venture Capital: How to get VC funding for your business’ (www.visionbooksindia.com).

Running your business is not the VC’s job, Sahai clarifies. “The VC’s business is money management. They are financial managers interested in making a good return on their investment. VCs invest in about 5 to 10 companies per VC fund and are interested in ensuring that the businesses in which they invest, mature over time and provide them with a substantial return.”

Even in tough economic times, small businesses need to find new ideas, develop original products, and engineer fresh market approaches. These are the pillars of good business, and each is made from a mixture of creativity and expertise. While it may seem counterintuitive, it's possible to implement strategies that drive not only employee engagement, but also innovation and, ultimately, sales without enormous investment in systems or people.

What can your company do to remain fresh, vibrant and alive without breaking the bank? Here are five ways:

Did you ever have that nightmare- You know, the one where you’re getting ready to take your final exam, and you suddenly realize you haven’t been to class all semester? I still have that same dream, 25 years after graduating from Boston College! For me, I’m getting ready to take my Psychology final, knowing I’ve blown off most of the classes for the entire term. I’m totally screwed. Fortunately, I wake up and remember that I passed Psych by the skin of my teeth!

That recurring dream is simply my way of saying I still don’t know squat about Psychology, but I have definitely figured out a few things in the last few years of being a solo entrepreneur. As my penance for missing so many Psych classes, I’m happy to share my recent realizations, Freudian or otherwise:

It is all about the money.

You may tell yourself and others that it is more than that. That it is about helping/saving/serving humanity, which it most certainly can be about. At the end of the day however, it is about the greenbacks.

Here is the surprising thing, that is a good thing!

Acumen Fund is a non-profit global venture fund that uses entrepreneurial approaches to solve the problems of global poverty. We seek to prove that small amounts of philanthropic capital, combined with large doses of business acumen, can build thriving enterprises that serve vast numbers of the poor. Our investments focus on delivering affordable, critical goods and services – like health, water, housing and energy – through innovative, market-oriented approaches.