Economy Will Revive with Help from Entrepreneurs

Small Business Administration’s Office of Advocacy recently released its annual report The Small Business Economy. In an accompanying letter to the President, the report affirms that “the economy will revive, with help from America’s entrepreneurs.”

This new edition documents the effects of the 2008 recession on small businesses. Although average unincorporated self-employment fell from 10.4 million in 2007 to 10.1 million, incorporated self-employment remained steady at 5.8 million on average over the 2007-2008 period.

The Research & Experimentation Tax Credit

Last week, the House Committee on Small Business held a hearing on "Helping Small Business Innovators through the Research and Experimentation Tax Credit." Led by the Subcommittee on Contracting and Technology, members listened to the experience of technology entrepreneurs in utilizing this tool, commonly known as the R&D tax credit.

All witnesses stressed two problems: the uncertainty surrounding the permanence of the credit and the administrative burden that the credit’s complexity imposes. They expressed that these barriers prevent small business from using the credit. Witnesses also mentioned other barriers, such as the net operating loss limitation in the credit’s provisions (Scott Ferros, VP and CIO of BlackHawk) and the credit’s interactions with the Alternative Minimum Tax affecting business decisions (Bart Heenan, CEO of Morphix Technologies).

Wandering Into the Innovation Economy by Kathering Brooks, Ed. D.

"The news about the job market isn't getting any better as unemployment rates continue to rise. The latest catch-phrase is "jobless recovery" based on the notion that the economy will improve but many jobs will be lost forever."

Painful, but Positive, Changes for Venture Funding by Scott Kirsner

"The universe of venture capital firms - and the amount of money those firms control - is shrinking."

The Tata Nano: Disruptive Products & Social Innovation by Stephen Chen

"The idea came from  Ratan Tata, Chairman of the Tata Group,  when he wondered if there was a way to create a  safe, affordable, all-weather vehicle for Indian families who typically get around on two-wheels. He describes a scene where,  ”the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby.”

Innovative Finance Strategies for Startups by Lawrence Gennari

"With the stock market entering a modest equilibrium, many emerging growth companies, whether venture-backed or privately funded, are reconsidering financing strategies and looking at their next steps. Yet, bank financing remains elusive, and many venture capitalists, particularly those previously funding Series A and B rounds, seem to be focused on stabilizing their existing portfolio companies or investing in later stage enterprises. So what’s a technology company to do if it needs financing and hopes to be sold or go public within two years? ..."

The New Georgaphy of American Innovation by Richard FloridaFri Jul 17th 2009 at 9:45am EDT

"It’s well-known that high-tech industries are concentrated and clustered in areas like Silicon Valley, Greater Boston, Seattle, Austin, and North Carolina’s Research Triangle. Paul Krugman won a Nobel Prize for his pioneering work on the relationships between urbanization, trade, and economies of scale. And Michael Porter has shown how and why innovative firms cluster."

Innovation and Economic Crises by Richard Florida

"Like virtually every other facet of the economy, it has been - and continues to be - reshaped by globalization. As we saw on Wednesday, foreign non-resident inventors have become a key element growing U.S. patenting and a big piece of the American innovation system. Beginning around 1980, non-resident inventors essentially closed the gap with U.S. inventors. By the late 1990s, they had pulled even and were at times outpacing U.S. inventors. This is part and parcel of the globalization of the economy and the fact that the U.S. is the biggest market and most innovative nation on the planet."

Congressional Republicans released a 48-page manifesto last week called “A Pledge to America,” outlining a “new” governing agenda for job creation and economic growth. Unfortunately, nowhere amid the document’s 48 pages of inspirational quotes, photographs, and calls for tax cuts does the document address the most important drivers of long-term economic prosperity and national competitiveness—education, science, and innovation.

Indeed, totally absent from the document are the words “education,” “science,” “research,” or “technology” (“new technologies” is used once, but only to describe the use of computers and the Internet in the development of the Pledge itself). “Innovation” appears only once, in a section about government red tape, while “skill(s),” “training,” “export,” and “infrastructure” are all totally absent. Despite repeated calls for increased American “competitiveness,” nowhere in the Pledge is “sustainable” or “long-term” growth mentioned.

HOW CAN YOU HAVE " A PLEDGE TO AMERICA'" ABOUT JOB AND ECONOMIC GROWTH WITHOUT ADDRESSING THE NEED TO NURTURE INNOVATIVE ENTREPRENEURS, AND ADDRESS THE CHALLENGES THAT FACE THEM INCLUDING THE ACCESS TO EARLY STAGE FUNDING???? WE HAVE RECOMMENDED TO THE ADMINISTRATION FOR THE LAST 2 YEARS THAT THEY BECOME PROACTIVE IN DOING 4 BASIC THINGS THAT WILL HELP STIMULATE THE ECONOMY IMMEDIATELY AND CREATE REAL JOBS AN A MUCH MORE REASONABLE COST PER JOB THAN THE STIMULUS FUND (See chart below for what has actually occurred in the States):

1) CREATE A NATIONAL EARLY STAGE JOB CREATING FUND OF FUNDS MANAGED BY EXPERIENCED EARLY STAGE INVESTORS

2) CREATE A NATIONAL ANGEL CAPITAL FEDERAL TAX CREDIT PROGRAM TO FREE UP MORE PRIVATE SECTOR EARLY STAGE JOB CREATING INVESTMENT.

3) MAKE PERMANENT THE R&D TAX CREDIT PROGRAM AND ADD A TRANSFERABILITY PROVISION SO THAT EARLY STAGE GROWTH COMPANIES WITHOUT TAX LIABILITIES CAN BENEFIT FROM THEM.

4) REAUTHORIZE THE SBIR PROGRAM AND MAKE IT PERMANENT....IT IS ONLY THE BEST MODEL IN THE WORLD!

THIS WOULD BE A REAL PLEDGE TO THE AMERICAN ENTREPRENEUR AND INNOVATION ECOSYSTEM WHICH HAS FUELED AMERICA'S GROWTH FOR THE LAST 50 YEARS..................RICH BENDIS

February 21, 2013 ‐‐ The Angel Capital Association (ACA), the world’s leading professional and trade association for angel investors, today announced the expansion of its membership to individual accredited investors and accredited investor portals. Angel investors who belong to ACA member angel groups will continue to automatically receive membership in ACA’s North American wide association.

“ACA’s mission underpins three essential pillars of angel investing: professionalism in seed‐stage funding; deal flow and portfolio company services; and public policy advocacy,” said David Verrill, chairman of ACA’s board of directors. “Since ACA was founded, we’ve served angel groups and their members well, and have grown to be the world’s largest association representing accredited angel investing, with nearly 200 groups and 8,000 member angels. In the current exciting time in which the ecosystem of private accredited investing is rapidly evolving, we must broaden our base to better serve all angel investors – whether working in groups, through portals, or acting individually. We also plan to open membership for family offices in the near future.” 

The Baltic Dynamics conference is an initiative of the Baltic Association of Science/Technology Parks and Innovation Centres - BASTIC - and has been held annually since its inception in 1996. The conference venue is rotated between the Baltic States - Estonia, Latvia and Lithuania. In 2013, it is Latvia's turn again and the conference will be held in the country's capital Riga, the largest city in the Baltic States. The conference organisers invite all involved in the dynamic innovation and entrepreneurship development - leaders of innovative companies, managers of science/technology parks and business incubators, public authorities responsible for innovation in the region, venture capital organisations, etc. - to present and discuss initiatives to make efficient innovation strategies and policies happen.

This year Rich Bendis was invited to speak at the first plenary session on September 12, 2013 titled "The Role of Innovation Systems in Economic Development". He presented on the topic of Innovation Based Economic Development.

View Presentation: Innovation Based Economic Development "A Key to Smart Growth"

Plenary Session 1: The Role of Innovation System in Economic Development

Richard Bendis - Innovation Based Economic Development - A Key to Smart Growth

Denise Heligers - New Knowledge, New Jobs, New Solutions - Horizon 2020: Investing in Your Future

Stefan Lilischkis - Knowledge Transfer and Related Policies in Europe and in the Baltic States: Findings from the Knowledge Transfer Study 2010-2012

Takis Damaskopolous - Policy, Regulation and Governance Conditions for Open Innovation: Toward an “Enabling Framework”

Debra Amidon - Benchlearning National Innovation Systems: Dynamic Positioning for Industrialized, Developing and Emerging Economies

Piero Formica - Experimental Entrepreneurship. Sapling Says to his Dad: “When I Grow up I Want to be a Digital Book”. Learning How Events Supposed not Happening, Happen

Plenary Session 2: How to speed-up Knowledge Flow in Innovation System

Jose Puigpelat - The Future Prospects of the Enterprise Europe Network

Siemon Smid - Lessons Learnt from Commercialization of University IPR from Estonia and its Impact on Entrepreneurship and Industry?

Jonathan Loeffler - Science - Transfer - Business - The Steinbeis Model in the German State of Baden Wuerttemberg

Isak Bukhman - TRIZ Technology for Innovation

Ivars Kalvins - Country Report – Latvia: Does Innovation System in Latvia Encourage Competence Building and Science – Industry Cooperation? Current Situation and Future Prospectives

Jaak Raie - Country Report – Estonia: Estonia: On the Road to Sustainable, Not- Supported Business Development and Incubation Services

On an average day in 1998, statistician David Fairley was walking up a busy San Francisco street to pick up his son from preschool. Traffic was heavy, and halfway to the school, he started to feel weak and dazed.

“Actually, a homeless guy saw me and helped me to the school,” Fairley said. “(People at the school) had me lie down for a bit.”

This is part two of my two-part series on angel financings. In part one, I provided the following five tips for entrepreneurs: (i) push for the issuance of convertible notes; (ii) understand the key business terms; (iii) diligence the angel(s); (iv) never subject yourself to personal liability; and (v) comply with applicable securities laws. Below are five additional tips for entrepreneurs to help them through the angel financing process. Obviously, this is still a difficult environment to raise angel capital; however, I am confident that 2010 will bring greener pastures.

Providing access to startup capital, promoting biotechnology, and investing in the green economy to create and grow jobs are among the priorities of Gov. Pat Quinn's Illinois Economic Recovery Plan presented during a speech in December. The governor's plan would establish an Angel Investment Tax Credit program to allow investors making an early-stage investment in a technology startup to receive a capped credit against their Illinois tax bill. The governor also will propose the creation of a state fund to provide matching grants for technology research companies competing for federal funding and explore the idea of establishing a venture capital fund of funds. Additional strategies to incentivize green manufacturers to retool existing operations also are outlined in the governor's plan, which is available below:

Some of my favorite sewing projects are spontaneous. The idea pops in my mind and I get started as soon as possible (disregarding any other responsibilities on my to-do list).

Thursday afternoon we spent 4 hours at the library. I'm not even sure what we did that whole time. I know the kids read books, played in the library "clubhouse", had a puppet show, and made friends with other kids who stopped by. And I enjoyed the free time to let my mind wander and brainstorm about ideas. When we finally got home, I was itching to sew.

I grabbed some colorful corduroy from my stash and a striped Tee from Old Navy (it's been sitting in my Refashion pile for months). And I just sewed.......a rather mismatched outfit but I really like it.

Innovation is occurring at a rapid pace around the globe, pushing the world economy forward while working hand-in-hand with technology.

During the annual Techonomy conference from August 4-6 in Lake Tahoe, leading minds come together, focusing their energies on the problems in today’s world and how they can be solved through innovation. The conference’s organizers have highlighted 15 individuals who will carry the torch of innovation into the next decade, highlighting high-growth sectors with the potential to raise the global standard of living and use ‘creative capitalism’ to achieve these goals.

When people asked me why I was moving to Asia, my response was simple: I'm in the innovation field, so I'm following the action.

One Silicon Valley venture capitalist questioned my decision. "I'm willing to bet that 90 percent of the game-changing companies that emerge over the next decade will come from within a 10 mile radius of where I am sitting right now," he said.

Not an unreasonable perspective. Two-thirds of the 139 companies that made the most recent "Most Innovative" lists from Fast Company, BusinessWeek, Technology Review, and the World Economic Forum, hail from the United States. Further, many of the large companies in Asia owe their success not to innovation but to taking advantage of natural resources, or leveraging low input costs to offer cost-competitive "me too" solutions.

The following articles have been prepared after the second edition of Quebec Seeks Solutions that took place May 15^th &16^th in Quebec City.

SECOND EDITION OF QUEBEC SEEKS SOLUTIONS: SOLVING NINE BUSINESS PROBLEMS USING A UNIQUE OPEN INNOVATION PROCESS 

By Carl Viel, President and CEO, Quebec International

Entrepreneurs, researchers and innovation enthusiasts were invited to attend the second edition of Quebec Seeks Solutions organized by Quebec International in association with IDTEQ and ISPIM. 

As economic development agency, we are seeking to forge stronger ties between researchers and entrepreneurs with a view toward increasing our region’s overall competitiveness. With Quebec Seeks Solutions, we hope to make innovation accessible to a growing number of companies, particularly small and medium-sized businesses. 

The innovativeness and the spirit of collaboration that motivate our researchers and entrepreneurs are key assets that serve to fuel the local economy and contribute to Quebec City’s distinctive position. 

Thanks to its unique format, Quebec Seeks Solutions helps to develop and promote these hallmarks of our economic success.

By Oscar Smulder Innovation Manager Knowledge & Innovation Centre at Maintenance Valuepark Terneuzen

In an era where open innovation is mainly thought of as a fully web-enabled approach where crowds and clouds are used to generate new ideas, it is refreshing to see that ‘physical meetings’ still have an important role to play. Bringing people physically together and invite them to participate in a structured process may even offer very good, creative outcomes. The recent edition of ‘Quebec Seeks Solutions’ clearly demonstrates this. Innovative solutions were found for 9 complex problems that companies in the region of Quebec are facing.

In the Netherlands we have had similar experiences, when we used a variant of the solution approach in the context of the Maintenance Valuepark, a cluster of companies offering maintenance solutions for process industries. The Quest for Solutions events we organized last year were successful in creating a very positive dynamic, generating new ideas for old problems, making new combinations and were key in setting the collaborative innovation process in motion.

Bringing together a group of people and let them free in a well prepared structured process is a powerful mean to generate new ideas and offer solutions that had not been imagined before. I’d like to share some important factors that contribute to the success of these events.