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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.

According to Neatorama, this is a one-of-a-kind penny, resulting from a production error at the U.S. mint in Denver. It was struck in bronze rather than the zinc-coated steel normally used during the WWII era. About 20 such errors are known from the Philadelphia and San Francisco mints, but this is the only one known from the Denver mint.

The anonymous collector who formerly owned the coin “donated it to a charitable organization so they could sell it with all of the proceeds going to the charity,” according to Andy Skrabalak of Angel Dee’s Coins and Collectibles in Woodbridge, Virginia who acted as agent on behalf of the former owner.

The new owner is an anonymous businessman who plans to exhibit the penny at various venues around the country.

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So I've realized recently that there is a big difference between the way that most engineers talk and the way that successful entrepreneurs talk. To summarize, most engineers are inherently somewhat conservative and pessimistic, while successful entrepreneurs are unrealistically optimistic. You have all heard something similar to the interaction that I'm about to summarize:

Entrepreneur: We need to finish this software by next Friday so that we can land that big new customer. You're going to deliver it by then, right?
Engineer: That's impossible. No chance. We still haven't started working on two major features.
Entrepreneur: Why? What tasks do we need to finish? I thought we outlined them all, and we only estimated one more week of development.
Engineer: We're running a bit behind schedule on development. We might be able to finish writing the code in two weeks, but we're going to have to cut some corners, and it probably won't be tested enough.
Entrepreneur: Ok. So you have a week to finish. I promised the customer that our software would be ready by then. We can launch those features in our first maintenance release.
Engineer: Grumble Grumble

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Recently the feds ripped apart the contents of the Bayh Dole Act to figure out whether the Act’s mandates permit universities to try new technology licensing strategies based on e-commerce or other creative approaches. Henry Wixen, Chief Counsel for the National Institute of Standards and Technology (NIST), wrote an open letter to Thomas Kalil, the Deputy Director for the Office of Science and Technology Policy (OSTP). In the letter, Wixen combs thru Bayh Dole’s legal underpinnings to conclude that “Neither Bayh Dole nor its implementing regulations imposes upon contractors [including universities] any particular approach to be used in licensing subject inventions…whether through e-commerce or other creative approaches.“

Here’s NIST’s definitive read of the Bayh Dole Act. My comments are in italics.

Universities that receive federal research funding must:

1. Require that university employees disclose in writing each invention they create while under contract

  • This is a big point of confusion on campus: it’s mandatory for the university to require *disclosure* of the invention, but it’s not mandatory that the university *own* the invention. Alternative license approaches are entirely possible if the university gives up the traditional ownership —> commercial license model for some technologies.
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Taking other people’s money to fund your startup changes your life in ways you cannot predict. And many of those ways are negative.

I meet with dozens of entrepreneurs a week. No matter how they couch it, they are asking for money. They come to me wanting to know first, will I invest myself? Doubtful, unless I already know them really well, know the company really well, and have some spare cash. Those often don’t occur simultaneously.

Okay, then will I connect them to someone who will invest? At the very least (or perhaps it’s the very best), they ask me how to get ready for funding. What do they need to do?

I always tell them to forget it.

To someone laboring in a cash-strapped startup, money often seems to be the endgame. “When I get funded,” the entrepreneur thinks, “I can build a prototype, hire a development team, go to market, scale more quickly, and beat my competition.” All problems will go away.

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Sunday marked a revolutionary step forward in the realm of online economic development. Economic Gateway, an industry-first Web system for Greater America, was unveiled at the 2010 MAEDC Competitiveness Conference and Site Selector Forum by Minnesota-based Web development firm Golden Shovel Agency and geographic information systems (GIS) company Applied Data Consultants, Inc. (ADC).

Key Economic Gateway features unveiled at MAEDC’s Competitiveness Conference and Site Selector Forum:

* Integrated EAGL-i GIS-Based Site Selector Tool
* Expandable and On-Demand Content Management System (CMS)
* Software as a Service (SaaS) Subscription Model

In a presentation entitled "Economic Gateway: Successful Regional Collaboration Online," Golden Shovel VP of Business Development, Aaron Brossoit, displayed how the growing need for smart, technology-based yet affordable economic development (ED) tools among regional ED groups has culminated in a Web solution that allows Greater America to compete in the global marketplace.

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Every January, world leaders, entrepreneurs, and journalists descend on Davos, Switzerland at the World Economic Forum to mingle and discuss the world’s problems. The guest list is usually limited to world leaders and CEOs (although a few bloggers somehow sneak in every year). But every year, the World Economic Forum partners with YouTube to host the Davos Debates, which broadens the debate by allowing anyone to upload a question for attendees. The YouTube channel is also used to select one lucky person to attend Davos and even be on a panel.

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On November 22, a storm was raging about the rescue of Ireland by the European Union (EU) and the International Monetary Fund (IMF), which could amount to 90 billion euros. Fears were growing that the economic contagion could spread to Portugal, Spain and other euro zone economies. On that day, the Circle of Entrepreneurs and the Wharton Business School presented in Madrid the 2010 Annual Report on the Internationalization of the Spanish Company.

The goal of that publication, now in its fourth edition, is to take the pulse of Spanish companies in a global context. As this year’s edition was being presented, Claudio Boada, president of the Circle, sounded an alarm about the erosion of Spain’s prestige in the international arena. “The country is losing its credibility in the marketplaces [of the world] at an accelerated rate, and the reforms performed by the government [such as those involving labor regulations], will not help to improve that situation, if they remain brief.”

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Just in case you had any doubts about the fact we live in the age of Facebook, just check out Vincenzo Cosenza’s latest edition of the World Map Of Social Networks.

Based on this month’s Alexa & Google Trends for Websites traffic data, Cosenza posits that Facebook has managed to overtake some local incumbent social networks in the past few months, particularly in Europe.

According to his analysis, the site is now market leader in 115 out of 132 countries.

Other social networks on the rise: LinkedIn and Twitter.

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The announcement by the European Commission of a new “Innovation Union” for Europe is hugely significant. It is also very timely, for as this magazine went to press nothing could be clearer than the fact that, for the energy sector, Europe needs a shove in the direction of greater energy security.

As winter looms, do we face another cold season of worry and energy shortages? Will major gas suppliers fall into dispute again about supply and availability? Many MEPs in the European Parliament have said that this situation is unacceptable. And while individual member states have been busy boosting their reserve and alternative supply capabilities, the Commission’s lead in pushing for greater innovation is particularly welcome.

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What Does Commercialization Mean?
The process by which a new product or service is introduced into the general market. Commercialization is broken into phases, from the initial introduction of the product through its mass production and adoption. It takes into account the production, distribution, marketing, sales and customer support required to achieve commercial success. As a strategy, commercialization requires that a business develop a marketing plan, determine how the product will be supplied to the market and anticipate barriers to success.

Investopedia explains Commercialization
The process of commercialization is likened to a funnel. At the widest part are the many ideas that a company might have for launching a product. As the funnel narrows, the company weeds out ideas based on logistics and costs, consumer and economic trends, and feasibility. Commercialization is part of a larger feedback loop for a product, as the ultimate introduction of the product into the market may require adjustments to the process.

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Streamline Inc., a startup that’s re-imagined the IV pole now commonly used in hospitals, has raised $525,000 in capital from angel investors in North Dakota as it prepares to ramp up manufacturing.

Sam and Peter Blankenship, brothers and co-founders of the company, turned to North Dakota for financing after struggling to gain investor attention in Minnesota. Streamline also has moved its fledgling manufacturing operation from St. Paul to Wahpeton, N.D., due to a mix of tax incentives available across the border.

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A few years ago the Council on Competitiveness identified the trend toward micro-multinationals — those startups and small businesses that have become multinational in their operations, marketing, sales and/or distribution without waiting to “grow up.” And as I pointed out a couple of weeks ago, you needn’t assume you have to be a large business in order to go global or cross a few borders. Today, inexpensive technology and services that are readily available make it possible to leapfrog over the regional and expansion, and jump immediately to global.

That said, here are the top 5 steps that a startup or small business like yours can become a micro-multinational in 5 steps:

(1) Invest in your online presence – the World Wide Web is the gateway to doing international business. It opens up international business channels. With a good website you can have can near boundary-less marketing. You have a place to connect with and communicate with customers.

Don’t overlook social media in the online mix. One of the distinguishing trends that we’ve identified at Small Business Trends as coming out of the explosive growth of Twitter is how much communication takes place in one spot online, emanating from different countries. It is evidenced by the different languages you see. For instance, some of my Twitter followers write in two languages, and mixed in amongst the English tweets I regularly see Twitter messages in Chinese, Japanese, Korean, Dutch, German, Spanish, French, Italian, Russian, Polish — you name it, I’ve seen it on Twitter — and I see it daily. What an amazing online venue making the world smaller

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It seems like only a few months ago when I wasn’t sure if Twitter was relevant to my business, or if it would be a waste of time. Now I have over 280,000 followers on Twitter as StartupPro, and the business is fun as well as profitable. I’m now convinced that any entrepreneur can use it to kick-start their business, and build their brand as well.

First, I’ll try to answer the most common question I still get from business people “What is Twitter, really?” For business people, it’s a way to put out “sound bites” or tiny ads on the Internet, much like you see them in the mainstream media on TV, but without the cost, to your prime audience.

Actually they are “txt bytes,” like cell phone text messages in length, and they are broadcast to all your followers, or directed at select recipients. People can respond in the same fashion with personal requests or general comments. The important responses are real “business leads.”

A lot of people are doing some very innovate things with Twitter. I won’t cover those here, but I’ll offer some practical tips to get you started:

1. Offer something of value. Make the relationship a win-win. That means give before you expect to get – free advice, special promotion, pointer to useful information, or sometimes just friendly conversation. Show that you are a real person, sincere and trustworthy.

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Recently I was part of a 3-person panel discussion at Georgia Tech at the “Patents & Trademark 101” seminar at which representatives from the USPTO were the featured speakers. The audience included innovators, product developers, entrepreneurs, and wanabee inventors from diverse backgrounds and disciplines. Each panel participant was given 7 minutes prior to the panel discussion to give their background and how they serve the innovation community. After briefly discussing our services at Patents & More, Inc., I turned my presentation to the discussion of whether a patent guarantees market success. To accomplish this I compared and contrasted the following types of inventions: (1) Patented, but not Marketable; (2) Marketable, but not Patented; and (3) Patented and Marketable.

For those wanting to jump to the conclusion, the moral of the story is a patent is not magic and does not ensure market success, market success can exist without a patent, and, finally, that a highly marketable product with strong patent claims is what you are really after.

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To raise capital, you need to get in front of the professionals with money.  There’s just one problem - it’s incredibly difficult to get an in-person meeting with a Venture Capitalist (VC).

As the founder of your startup, it’s your responsibility to raise the capital.  But where do you start?  How do you get in front of investors and get them interested enough to give you the time for a formal presentation?  This post will answer these questions.

Who should read this post: Founder or CEO of a startup that is looking to raise money.

What you will learn: How to create a perfect 90-second pitch and how to get quality referrals to VC’s

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It probably won't surprise you to learn 61 percent of Americans say they would prefer self-employment to working for someone else, a higher share than in 25 European countries, according to the most recent data available from the EU Flash Eurobarometer Entrepreneurship Survey. But it will likely surprise you to learn small business is a bigger part of the economy of most European nations than our own. Could American policymakers learn anything about improving small business support from Europe, which the media tell us is a place of high taxes, exorbitant public-sector spending, and, lately, poor economic management? Based on the data, I say yes.

Despite the rhetoric extolling small business in this country, the small-company share of the U.S. economy has been gradually shrinking. Big Business's share of employment now accounts for 50.4 percent of private-sector jobs, as compared with 45.5 percent in 1988. Similarly, Big Business's share of revenue was higher in 2007 than it was in 1997, according to the latest available data from the Small Business Administration.

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Creativity is very important to building a quality business and building wealth. Jules-Henri Poincare created a model for creativity. The nineteenth-century mathematician theorized four stages of creativity. The four stages are preparation, incubation, illumination and execution. Each stage is extremely important in the creative process.

#1 Preparation Stage

In the preparation stage you are gathering a great deal of information. You are looking at different sources and ideas. In the preparation stage one does not have any clarity. All one has is different options and possibilities. The preparation stage can be overwhelming because of all the information and no direction.

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Exclusive  to InnovationDAILY by Dr. Janice Presser, CEO, The Gabriel Institute

December isn't over yet, and already Forbes has named the top CEO screw-ups of 2010.

The undisputed champion is a man who, upon his appointment as CEO of British Petroleum, promised a "laser-like focus on safety and reliability" -- Tony Hayward. In addition to having an oral fixation on his own foot, his laser apparently missed safety entirely and instead scored a direct hit on the Deepwater Horizon during drilling operations.

Joining this ex-CEO in the 'bonehead hall of fame' are, in no particular order:

Michael Lyon
, ex-CEO of his family's huge real estate company, was arraigned on charges of secretly making home videos of his 'liaisons dangereuses' with paid escorts. The company's new CEO is now busy trying to recruit agents away from other companies. I wonder if they also videotape their interview process?

Jon Latorella, ex-CEO of Locateplus, was indicted on charges of securities fraud, filing false statements to the company's auditor and the SEC, aggravated theft, and a few, even juicier, charges. Adding just a touch of irony, Locateplus describes itself as the "industry leader in providing online investigative solutions to law enforcement."  Lesson learned: Don't cheat where you eat! 

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In the early days of Google’s mobile team, we needed to navigate a series of misunderstandings most people have about consumer mobile app development, and how to build a great consumer mobile team and product. Given the ridiculous growth of mobile today, many companies I know are trying to start their mobile divisions and they are making the same mistakes over and over. Similarly, many mobile consumer startups are making a series of common mistakes. This post draws on my experience building Google’s early mobile team to point out how to overcome the myths people still believe about making super successful mobile applications.

Myth 1: You need to hire mobile experts.
Reality: Hire great athletes; mobile “experts” will be useless in 6 months

The natural impulse of someone doing mobile development for the first time is to assume that mobile is somehow different from other software development. This leads to the hiring of mobile “experts”, many of whom lack solid consumer product experience. They may have worked on handset design, SMS based services, or for a large carrier. While mobile client development obviously differs from web development (since you can’t just push a bug fix to all devices), it is very similar to any other form of consumer client development.

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