Accelerating the growth of the GLOBAL entrepreneurial innovation economy
Founded by Rich Bendis
Here we highlight selected innovation related articles from around the world on a daily basis. These articles related to innovation and funding for innovative companies, and best practices for innovation based economic development.
When should companies try to come up with new ideas themselves—and when should they give the job to outside experts?
It's a question many companies are facing these days. As budgets tighten, businesses are outsourcing research and development and the creation of new products as a way to slash costs, speed development time and tap into top talent outside the company.
In the bicoastal battle for biotechnology executive talent, score three for the Bay State.
The region has picked up at least three new biotech CEOs from the San Francisco Bay Area in the past few months. All are the first full-time CEOs for their startups, and all said they were looking for companies with game-changing new technologies.
Lots of events for entrepreneurs and small business people are coming up. And we’ve got the good stuff for you, as usual. Check out the following list of seminars, conferences, webinars and summits for growing companies, brought to you every other Saturday as a community service by Small Business Trends and Smallbiztechnology.com.
I [Hutch Carpenter] recently wrote up a post, Most Dangerous Innovation Misperception – The Silver Bullet Approach. In it, I discussed the issue of organizations myopically focusing on only disruptive innovations to the exclusion of more incremental or sustaining innovations.
In doing more research on the subject, I began thinking about the dynamics that apply when a firm pursues different kinds of innovation. A post by Venkatesh Rao, Disruptive versus Radical Innovations, was very useful for distinguishing between disruptive and radical innovations.
Different perspectives on the definition of metrics for intelligent cities, reflecting the structure and measuring their performance, converge to a few building blocks of metrics (broadband connectivity and e-services, knowledge workforce and talent, innovation) outlining innovation and connectivity as core dimensions of intelligent cities.
The Intelligent Community Forum defines five factors that determine a community’s competitiveness in the Broadband Economy, which are success factors for Intelligent Communities in both industrialized and developing nations: (1) broadband connectivity, (2) knowledge workforce, (3) digital inclusion, (4) innovation, and (5) marketing and advocacy.
A lot has been written in the last week about the scandal at Canopy Financial, a venture-backed, high-flying start-up that attracted $75 million in capital at increasingly higher prices from top-tier firms, only to come crashing down in a dust of rubble and fraud. The VC community suffered a very similar scandal at Seattle-based Entellium last year, but few reporters seem to remember that one, perhaps because it wasn’t located in the heart of Silicon Valley as Canopy was.
Many of the VCs I’ve spoken to are frankly not surprised that these kinds of fraudulent schemes could have occurred. In truth, our industry is built on a trust model. We do our best to conduct due diligence on the team, market, strategy, technology, but at the end of the day many of these investment decisions get made in short periods of time (30-60 days) with incomplete information, particularly when a deal is competitive. Bandwidth-limited general partners and frenetic CEOs are under pressure to move fast and get things done, leading to rushed, sloppy work to secure the deals.
The White House didn’t invite the firms that will create new jobs to its “job summit” — dominated by the CEOs of big firms, Ivy League economists, and union officials — because they weren’t available. Many of them don’t even exist yet.
Our economic gospel says that small businesses create most jobs, although size doesn’t matter as much as age. In a new study on job creation, the Kauffman Foundation found that “from 1980–2005, nearly all net job creation in the United States occurred in firms less than five years old.”
Two of my favorite scholars, Carliss Baldwin and Eric von Hippel, have bridged the Charles to team up on a joint manifesto pushing their related views on innovation. The paper is subtitled (or is it supertitled?) “Modeling a Paradigm Shift.” Here is the abstract.
In this paper we assess the economic viability of innovation by producers relative to two increasingly important alternative models: Innovations by single user individuals or firms, and open collaborative innovation projects. We analyze the design costs and architectures and communication costs associated with each model. We conclude that innovation by individual users and also open collaborative innovation increasingly compete with — and may displace — producer innovation in many parts of the economy. We argue that a transition from producer innovation to open single user and open collaborative innovation is desirable in terms of social welfare, and so worthy of support by policymakers.