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innovation DAILY

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.

MetricsDifferent 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.
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BusinessWeekA 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.

Jeff BussgangMany 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.
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NROThe 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.”
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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.
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pluggedinAt the World Newspaper Congress at Hyderabad this week Dow Jones CEO Les Hinton ?took on Google and used some strong language to stir things up. He called Google a digtial vampire and a parasite. He goes on to further bash the internet content Kleptomaniacs whose business model depends on purloining the expensive journalism of mainstream media (read more about what he said over here).

The issue that i want to highlight is what gives the Newspaper industry so much courage to take on Google (Rupert Murdoch: “I think we will remove our websites from Google’s search index”). Is it foolhardy or is it based on some statistics. So here is the rub. With the rise in social media the landscape has changed dramatically. In the same conference Associate editor of Daily Mirror, Matt Kelly shared why his company is relying less and less on Google SEO. According to Matt Kelly the traffic from Google Search is now much lower than what they are getting from referrals, bookmarks and Social Media platform like Twitter and Facebook.
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New RepublicAs America struggles to get its mojo back as a preeminent center of innovation and thereby prosperity, metropolitan and national economic leaders would do well to study the case of Israel. Israel? Yes, Israel. As Dan Senor and Saul Singer make clear in their bracing new book Start-Up Nation, Israel is a country of just 7.1 million people that may well be the world’s top techno-nation, yet in a way that has huge relevance for those thinking about America’s renewal.

In the face of war, internal strife, and rising animosity from other nations, this embattled sliver of sun-baked desert has flourished as a technology hub. The country boasts the highest density of start-up companies in the world, with a total of 3,850 now operating at a rate of one for every 1,844 Israelis. In 2008, the nation attracted more than $2 billion in venture capital in 2008, as much as flowed to the U.K.’s 61 million citizens or the 145 million people living in Germany and France combined. And for that matter, some 63 Israeli companies were listed on the Nasdaq in 2009, more than from any other foreign country, including Canada, Ireland, the U.K., Singapore, China, or India. Nor have the wars Israel has repeatedly fought slowed the country down. Since 1995, Israel’s broader economy has grown faster than the average for the world’s developed economies. During this decade, the Israel’s share of the global venture capital market did not decline--it doubled, from 15 to 30 percent.
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Economic TimesMUMBAI: Economic bubbles encourage innovation but they also induce people to live beyond their means, financial experts said at a seminar

"Bubbles encourage innovation but also induce people to live beyond their means," MindTree's Executive Chairman, Ashok Soota, said.

The bubbles are difficult to predict but they inevitably burst, he said.
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AMEinfoKhalifa Fund for Enterprise Development, an entity established to support and develop small, medium and developed enterprises and Abu Dhabi University (ADU), announced the initial key note line up for the Abu Dhabi Innovation Forum, scheduled to take place on January 11th and 12th, 2010 at the Shangri La Qaryat Al Beri Hotel in Abu Dhabi.

The first round of confirmed headline speakers for the two-day conference - which has been specifically designed for local businesses looking to harness the power of innovation - includes Microsoft's Regional General Manager, Charbel Fakhoury; Global Head of Mobile Marketing for Procter & Gamble, Khurram Hamid; and Head of Strategy and Partnerships at Philips Research, Dr. John Bell.
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EntovationBendis had an opportunity to convene with Global Innovation leaders yesterday in NYC, and is proud to have been added to the Entovation E-100.

The timing could NOT be more important. Worldwide, it is clear that INNOVATION is the pathway to progress – especially necessary in the current economic meltdown. People are no longer asking “If”; they are asking “How”. Fortunately we have some of the answers to those questions finally being asked.

Richard BendisNow Amidonwe – as members of a Knowledge Innovation community – have a responsibility to build some symbiosis among our own insights and make a contribution to the world dialogue. Few enterprises (or networks) have coalesced such global expertise of theorists and practitioners on innovation measurement on the micro-, meso- and macro-economics levels.

[E100 Alert] En Route to the New York – Agenda Shaping and Logistics

ForbesA new survey suggests executives are overwhelmingly looking to innovate their way to new success--and hints at how they can do it.

After the worst recession in decades, companies are not just relying on incremental change to jump-start their businesses and drive growth. Rather, they're working to develop breakthrough business models. According to a global survey the consulting firm PRTM recently conducted with 65 senior executives in diverse industries, real change to the business model is becoming popular.

In the past only a few companies experimented with new business models. IBM ( IBM - news - people ), for example, began bundling office products and services in the 1990s to provide customer solutions. And everyone knows how Apple ( AAPL - news - people ) developed iTunes to drive the sale of iPods. By and large, however, companies have followed tradition by focusing on trying to develop the next great product within their existing lines. All that is about to change.
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