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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.

Chinese Gov't pledges strong support for innovation-based SMEs during downturn

BEIJING, Aug. 31 (Xinhua) -- Science and Technology Minister Wan Gang said Monday China's government would provide strong support for small-and medium-sized enterprises (SMEs) to help them tide over the current economic downturn.

"The most effective way to withstand the impact of the global economic meltdown is to accelerate technological innovation, the new economic growth engine," Wan said in a signed article on the front page of Monday's Study Times, run by the Party School of the Central Committee of the Communist Party of China.

U.S. Continues to Tread Water in Global R&D Tax Incentives

Although once offering the most generous R&D tax credit in the world, the United States now ranks 17th out of the 30 OECD countries.  The United States’ R&D credit has fallen so far behind compared to other nations it would have to increase the Alternative Simplified Credit from its current value of 14 percent to 47 percent to once again be the world leader in R&D tax generosity.

Read the WebMemo.

Larta Institute Wins National Science Foundation (NSF) Contract

Los Angeles, CA (PRWEB) August 27, 2009 -- The National Science Foundation (NSF) has announced that Larta Institute (www.larta.org), one of the best-known and largest commercialization services companies in the U.S., has been tapped to design and manage a commercialization assistance program aimed at small-company grantees across the U.S. NSF joins other U.S. agencies, specifically the National Institutes of Health, the United States Department of Agriculture, and the Telemedicine Advanced Technology Research Center (TATRC), in recognizing the Institute's work on behalf of innovation and commercialization.

Venture Capitals Open Secret

BURLINGAME, Calif. -- Sell a company for $50 million and you'd think the company's founders would be some very rich people.

Not necessarily. That's because conditions in the term sheets many start-ups sign in order to raise funding can quickly leave a founder's equity "sliding towards zero," says Adeo Ressi, founder of TheFunded.com, an online community for entrepreneurs looking to raise venture funding. Here's how it works. Start with a common clause called a "liquidation preference." It gives an investor the right to, say, 30% of the proceeds of a sale if they own 30% of the company. Fair enough, right? Well, many start-ups agree to terms that give investors 1.5 or even two times that amount.

Analysis of "The Internet Freedom Preservation Act of 2009"

ITIF Research Fellow Richard Bennett analyzes the Internet Freedom Preservation Act of 2009 (H.R. 3458) in an article in Internet Evolution.  The Internet's fundamental vibrancy and astounding ability to adapt to innovative new applications would be compromised by the overly prescriptive management framework the legislation proposes.  Regulators need to focus on protecting the Internet's capacity for change rather than preserving a flawed picture of its past.

Read the Report.

Venture capital shortage may stunt innovation, [Bendis] says in Cedar Rapids

Young business enterprises need financial investors to help them grow.

But the recession has slashed early-stage angel and venture capital investment in the United States, threatening a generation of innovation and eliminating the chance of creating thousands of jobs.

Richard Bendis, president and chief executive officer of Innovation America in Philadelphia and keynote speaker for the Entrepreneurial Development Center Client Expo on Tuesday in Cedar Rapids, says the situation is dire and needs federal government action.

Talent, technology and tolerance key to attracting creative workers

A leading thinker on creativity believes attracting talented people is the driving force behind successful cities. In an interview with EurActiv, Richard Florida, author of 'The Rise of the Creative Class', said European countries are battling to attract and retain innovative people.

Bringing together a critical mass of creative workers, developing technology transfer infrastructure and fostering a bohemian, multicultural environment will be essential if European cities are to compete for mobile human capital, he said.