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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.

When it comes to innovation-based growth, not all states are equal. Certain states are on the front lines, and are accordingly most likely to lead the way to economic recovery. According to a new report from the Information Technology and Innovation Foundation, the most leading New Economy states all excel at supporting a knowledge infrastructure, spurring innovation, and encouraging entrepreneurship.

The new report, The 2010 State New Economy Index, uses 26 indicators to assess states’ fundamental capacity to successfully navigate economic change. It measures the extent to which state economies are knowledge-based, globalized, entrepreneurial, IT-driven and innovation-based – in other words, the degree to which state economies’ structures and operations match the ideal structure of the New Economy.  Indicators include percent of the population online, fastest growing firms, exports, industry and state R&D among others.

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A trend that is deeply concerning to me is the lack of new high tech business creation in the US during the past ten years.

I have written several times on this blog that the ultra low interest rates between 2002 and 2005 should have created huge amounts of new small businesses. Instead there was a housing boom, unprecedented growth in complex financial instruments, outsourcing, and in general a great deal of new debt. The eventual consequences in terms of the 2008 financial crisis were catastrophic.

I think America in some ways is still experiencing the effects of the .com bust. Further, the lack of capital for risky new ventures is alarming. The following link discusses this important issue:


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Not long ago, I got to thinking about how much technology has changed in my lifetime. No, I’m not old enough to have used a slide rule—but I do remember seeing one in my father’s desk when I was a kid, and I distinctly remember him getting his first calculator.

Of course, things kept changing as I got older. There was the Commodore PET in our 6th-grade classroom, then the Commodore 64 in our home and the Apple IIe’s in our high school. In college, it was the Macintosh Plus, and the PC’s in the lab; if you wanted to run WordPerfect on one of the machines, you had to check out the floppy disk from the consultant at the desk and load it into memory first. Cumbersome though that may sound, moving from the typewriter to the computer in college really changed how I worked; it certainly made keeping track of my writing a lot simpler.

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Talking to people about their business goals, financial goals and career goals will always land you a mixed bag of responses and viewpoints. The way people discuss their career and outlook of career and financial state often can be enough to put them into one of three categories: job guy, career guy or entrepreneur.

Job Guy

Job guy works a job. There’s little else to say. He’s probably barely making ends meet or isn’t. These guys typically have lots of debt, specifically consumer debt, because frankly, they don’t make enough money. They don’t really have plans for bigger things and if they do, there is little strategy or planning that is being done, so the chance of bigger things is essentially nil.

Now, don’t get me wrong, people who work temporary jobs are not always “job guys”. I know plenty of people that got laid off and are in a transition phase that are working at retail stores or something. These are not job guys. They fully plan to get back at it in their career or by starting a business, and you can tell by their drive that they will indeed get back to it soon.

Job guy usually doesn’t have a degree. Now, I’m not one of those guys that thinks people with degrees are smarter than others, but in the world we live in, being degree-less slams far too many doors in your face to not get one.

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He is a new kind of whistle-blower: one made for the digital age. Those before him (like Daniel Ellsberg) were limited in the ways they could go public with their information. But in founding WikiLeaks.org, Julian Assange gave himself the freedom to publish virtually anything he wants, whether it's the true nature of Iraqi prisoner abuse, the double role Pakistan plays in Afghanistan or the personal e-mails of Sarah Palin. Assange's site, which he started four years ago, has made public a trove of secret and classified documents — close to 500,000 pages on the Iraq and Afghanistan wars alone. But in the process, governments he has targeted (like the U.S.'s) claim he has put the lives of informants and soldiers in jeopardy. Warranted or not, Assange is convinced that the governments and intelligence agencies he is unmasking are watching his every move, and as a result, he finds himself in virtual exile in Europe.

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Venture capital investment in Silicon Valley continues to decrease overall even as angel investors rush into high-value investments in tech stars like Twitter and Facebook, according to a study released today of capital raised in the third quarter.

The Fenwick & West Venture Capital Barometer analyzed the valuations and terms of venture financings for 107 Silicon Valley-based technology and life science companies that reported raising capital during the third quarter.

It found that while liquidity, usually in the form of mergers and acquisitions and initial public offerings, has been improving, the overall amount of venture investing is continuing its recent decline as potential investors wait for a more sustainable VC model to appear.

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Ah, November. Leaves are turning, nights get longer and the dreaded performance reviews loom. No manager enjoys doing them– not only is it tough giving people formal feedback at the best of times, but there’s all that HR paperwork and process to go along with it. It’s bad enough when you can call someone into your office to have this chat. How much more uncomfortable and weird is it when the person is on the other side of the country.

Daniel Debow knows both sides of this challenge. Currently,he’s co-CEO of Rypple. They make software that makes tracking feedback and employee discussions less onerous. He’s not a fan of performance reviews, but has some interesting thoughts on how to make them less painful for all concerned.

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NEW YORK -- New York state is beginning to take the threat of sea level rise attributed to climate change seriously as a new government prepares to settle in next year.

Starting Monday, state officials in Albany will gather with members of the public to discuss a recently released 93-page report that recommends major changes to development planning and conservation along coastlines from the tip of Long Island all way up the Hudson River Valley.

Any reforms to come from the process, starting next week, would affect about 62 percent of New York state's population, the proportion estimated to reside now in areas that could be hard hit as rising land and ocean temperatures raise average sea levels around the globe.

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The year 2005 was devastating for coral, with unusually warm waters in the tropical Atlantic Ocean and Caribbean Sea causing one of the worst bleaching events on record. Researchers who monitored the event have now catalogued the full extent of the disaster — and they warn that 2010 is shaping up to be even worse.

Mark Eakin, coordinator of the US National Oceanic and Atmospheric Administration's Coral Reef Watch programme based in Silver Springs, Maryland, and his colleagues performed an extensive coral survey to record the effects of unseasonally high temperatures on reefs in 2005. The project involved more than 250 collaborators from 22 countries, and compared satellite data with field surveys to determine how heat stress affected the coral in different places.

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Which angel investors in Boston have the biggest wings? Check out this blog post by ChubbyBrain, a New York-based provider of Web-based information tools for entrepreneurs, which rounds up some of the individuals who have done the most deal-making in the Boston area.

The post lists 10 individual Boston-area investors who tech entrepreneurs looking for funding might want to keep their eyes on. It directly links to their Twitter handles, as well as detailed biographies and lists of investments the angels have made. After Chubby already rounded up some of the most stalk-worthy investors in San Francisco and Silicon Valley, this post helps dispel the perception that Boston doesn’t have the vibrant community of individual investors that its West Coast counterpart does.

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The culture of innovation can mean many things. Most obviously it can refer to how a company creates an innovative culture, which is different from being in an innovation culture. I want to look at how innovative cultures intersect, and how important this is for what companies can achieve. The two concepts I want to introduce are: positive and negative equity in innovation cultures. How do you create the former and shed the latter?

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I heard a brilliant thing recently concerning making mistakes in a relationship. The person I heard it from described it as “the 5 to 1 rule.”

“When you screw up, recognize that you need to do five good things for every one bad thing. So, when I do something that makes my wife mad at me - or which she considers “wrong”, I consciously focus on making sure that I do the next five things right.”

I think this simple rule can be applied to all relationships, not just the one with your spouse or significant other. As humans, we make plenty of mistakes and have plenty of failures. We also do plenty of things that annoy, distress, and anger people around us. Sometimes we realize it; sometimes we don’t.

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In a downtown office loft, the staff of Caoz is immersed in the making of ‘Thor: The Edda Chronicles – Iceland’s first full-length 3D animation film, adopted from old tales of the Nordic God of Thunder. Caoz is perhaps not what you would expect of a movie studio. In fact, it is not so much a studio, as it is a computer cluster. One of the largest one in Iceland at that.

“We are a high-tech company, really. Every frame in the movie contains 10mb of data,” explains Managing Director Hilmar Sigurðsson. “There are 250.000 frames in the 3-D version of the movie, and behind every frame, there is probably twenty times that amount of data. So we need considerable processing power.”

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If, at some point between 2000 and this year, you had a bright idea and needed some venture capital to turn it into money, you'd have stood the best chance if you were into biotechnology, lived in Cape Town, regularly played golf with business types, and didn't need too large a sum of money.

From next year much of that will probably remain true, except that you should have better luck in the energy sector – and your idea had better be very good indeed, or you had better be looking for an even smaller amount of money.

Complaints about the lack of available venture capital in South Africa and the rapacious deals demanded by those with the funds are perennial, and not unfounded. But a detailed survey of the industry over the last decade, under the auspices of the SA Venture Capital Association, has brought some hard numbers to the debate that show a situation both better and worse than common wisdom would have it.

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With venture capital waning as a source of start-up funds for small business, a new type of financier has stepped into the gap – the “super angel.”


These investors have deep pockets and a willingness to provide material support and professional knowledge to start-ups or new companies with good business ideas. They operate on a smaller scale than traditional venture capitalists, but on a larger scale than the more traditional “angels,” who usually invest in a handful of companies.

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As millions of U.S. travelers get ready for the busiest flying day of the year, scientists still can't agree over whether the dose of radiation delivered by so-called backscatter machines is significantly higher than the government says. This is despite months of public debate between the White House, the U.S. Food and Drug Administration, and independent scientists.

Full-body scanners have been installed at many U.S. airports. The machines use either low-energy, millimeter wavelength radiation, which is harmless, or X-rays, which can potentially be hazardous. X-rays can ionize atoms or molecules, which can lead to cancerous changes in cells. Even if the government has significantly underestimated the dose of radiation delivered by an X-ray scanner, it is likely to be relatively small.

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Search the Internet, and you'll find hundreds of applications designed to help you collaborate with other people more effectively. But examine your own habits, and you'll most likely find that you use just one piece of software for that purpose: an e-mail client.

You're not alone. A recent Forrester Research study found that 83 percent of business users typically send e-mail attachments to colleagues rather than using collaboration software. According to a recent survey by technology consulting company People-OnTheGo, the average information worker spends 3.3 hours a day dealing with e-mail, and 65 percent of such workers have their e-mail client open all the time.

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Mai Perkins remembers attending a concert at Central Park SummerStage with Cassanda Wilson, partly because of an observation the jazz singer made about Perkins’ new city. “She made a comment that I thought was so applicable to the city’s diversity. She said, ‘California has landscape, New York has people-scape!’” It was a sentiment that the native Angeleno could relate to.

Perkins is no different from the millions who migrate across the country for school or for a new job. She moved to Washington DC over ten years ago to attend Howard University and ended up in New York City to pursue her career as a writer.

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There used to be considerable interest in what employees thought. But as the economy tightened up, downsizing and rightsizing occurred.

Employers became less focused on individual needs and wants, and more focused on producing products and services. Above all, they were concerned with making money and increasing the return on their investments just to survive.

Indeed, the increasingly competitive nature of the business environment and the reduction in product demand meant cutting expenses, salaries, and even jobs.

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