The document summarizes a presentation given by Bob Metcalfe on startup ecosystems. Some key points:
- Metcalfe discussed his role in inventing Ethernet and how innovations are commercialized.
- He outlined the "Doriot ecology" of factors that support startup innovation, including funding agencies, researchers, entrepreneurs, investors, and customers.
- The concept of "Inoversities" was introduced, where universities focus more on innovation and allow professors to start companies based on their research.
- Many opportunities for startup innovation were listed, such as artificial intelligence, robotics, healthcare technologies, and the internet of things.
How to Get Started in Social Media for Art League City
2017 UT Austin McCombs Business Forecast in Austin: Confidence in Uncertain Times
1.
2.
3. Jay C. Hartzell, Dean, McCombs School of Business
Jay. C. Hartzell, Dean, McCombs School of Business
4. University Initiatives
President Fenves – State of the University Address
• Faculty Investment
• Research and the Student Experience
• Cross Campus Collaboration
• Diversity and Inclusion
• Bridging Barriers – acknowledging world’s biggest problems (Healthcare, etc.)
5. • BBA - Ranked No. 6 for Best Undergraduate Business (Bloomberg Businessweek)
• BBA/BHP - # of applications - 7,759/1,688; Avg. SAT score – 1362/1494;
Avg. class rank – 4.7%/2.2%
• Starting salaries for top 3 Industry placements:
• Consulting $68,808
• CompTech/Eqpmt/Software $59,060
• Banking (Investment) $81,043
• MBA - Ranked No. 1 for Best Value Among Highly Ranked MBA Programs and 16th Best Graduate
Business Program (U.S. News & World Report)
• Class of 2017 and 2018 - # of applications - 2,266/2,533; Avg. GMAT score - 694/700; Avg.
Avg. # of years of Work Exp. – 5.6 yrs./5.5 yrs.
• Average starting salary - $113,296 + $27,981 bonus
• New MS Programs
• Rowling Hall
Recent Successes
6. McCombs: Strategic Plans and Initiatives• Faculty
• Increase faculty hiring and retention
• Research Center, expand cross-campus collaboration
• Communicating our knowledge: Students
• McCombs Scholars program
• Expand cross-campus opportunities
• BHP Program collaborations
• Certificates/Minors
• Entrepreneurship
• Healthcare
• Curricular and co-curricular activities
• Location and market-driven opportunities
McCombs Initiatives
12. Texas Economic Update
Mine Yücel
Senior Vice President and
Director of Research
Federal Reserve Bank of Dallas
January 11, 2017
Federal Reserve Bank of Dallas
13. Texas Economic Update
• Texas survived the recent energy bust with few deep scars.
• Texas employment growth was moderate but slightly higher than in
2015.
• 1.6% growth through November.
• 174, 241 jobs
• Growth accelerated in the second half
• Texas Business Outlook Surveys strengthening
• Texas Energy Survey increasingly optimistic
• Worst may be behind us, but risks remain
Federal Reserve Bank of Dallas
14. 2.0
1.51.3
1.6
-5
-4
-3
-2
-1
0
1
2
3
4
5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
U.S. Texas
Y/Y percent change, SA
Texas 2016 job growth above nation’s
NOTE: Shaded bars represents annualized November 2016/December 2015 growth.
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by Federal Reserve Bank of Dallas. Federal Reserve Bank of Dallas
15. Goods vs Service Sector Employment
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Goods-Producing
Service-Producing
Q/Q employment growth, SAAR
NOTES: Quarterly data through Q3 2016; partial fourth quarter based on Nov/Sept. 2016.
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by Federal Reserve Bank of Dallas.
Goods sector weak
Federal Reserve Bank of Dallas
16. Texas employment growth rates by sector
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by Federal Reserve Bank of Dallas.
(NAICS Super Sectors, SA by FRB Dallas)
2016
1.2 1.8 3.0 2.6 3.6
-2.5
2.2 2.4
-11.7
-1.4
-16
-12
-8
-4
0
4
8
Trade,
Transp.
& Util.
(20%)
Gov.
(16%)
Educ. &
Health
Serv.
(14%)
Prof. &
Bus.
Serv.
(14%)
Leisure
& Hosp.
(11%)
Mfg.
(7%)
Fin. Act.
(6%)
Constr.
(6%)
Oil & Gas
Extract.,
Mining
Supp.
(2%)
Info.
(2%)
Federal Reserve Bank of Dallas
Percent change (YTD)
17. Texas employment growth by sector
(NAICS Super Sectors, SA by FRB Dallas)
2016
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by Federal Reserve Bank of Dallas.
26.8
30.7
44.6
38.7 42.2
-19.3
14.3 15.0
-24.9
-2.7
-30
-20
-10
0
10
20
30
40
50
Trade,
Transp.
& Util.
(20%)
Gov.
(16%)
Educ. &
Health
Serv.
(14%)
Prof. &
Bus.
Serv.
(14%)
Leisure
& Hosp.
(11%)
Mfg.
(7%)
Fin. Act.
(6%)
Constr.
(6%)
Oil & Gas
Extract.,
Mining
Supp.
(2%)
Info.
(2%)
Federal Reserve Bank of Dallas
Thousands of jobs (YTD)
18. Metro Employment Growth
SOURCES: Bureau of Labor Statistics; Texas Workforce Commission; seasonal and other adjustments by Federal Reserve Bank of Dallas.
95
100
105
110
115
120
2013 2014 2015 2016
Federal Reserve Bank of Dallas
San Antonio
Midland &
Odessa
Houston
El Paso
Dallas
Austin
19. Noncurrent C&I loans fewer vs. 1980’s
NOTES: Includes commercial banks and thrifts beginning in 2005; excludes
Wells Fargo South Central in Houston; data through September 30th 2016.
SOURCE: Federal Reserve Bank of Dallas.
0
2
4
6
8
10
12
14
1984 1988 1992 1996 2000 2004 2008 2012 2016
C&I
Total
Real Estate
Consumer
Texas banks
Federal Reserve Bank of Dallas
Percent
20. Texas Home Prices and Inventories
SOURCES: Multiple Listing Service; seasonal and other adjustments by Federal Reserve Bank of Dallas.
2
3
4
5
6
7
8
9
80
90
100
110
120
130
140
150
2001 2004 2007 2010 2013 2016
Index, Jan.'00=100, SA Months in Inventory, SA
Texas Inventory of Unsold Homes
Texas Real Median Sale Price
Federal Reserve Bank of Dallas
21. NOTES: Dec. production estimate is the average of weekly OGJ data; monthly series is from the EIA.
SOURCES: Baker Hughes; Energy Information Administration (EIA); Oil and Gas Journal (OGJ).
Texas rig count and oil production rise
150
250
350
450
550
650
750
850
950
2013 2014 2015 2016 2017
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
Texas crude oil production
Million barrels per day
Texas rig count
Oct.
3.18
Dec. 30
324
Dec. estimate
3.51
Federal Reserve Bank of Dallas
22. Business activity up in Q4 Dallas Fed Energy Survey
NOTES: Percent reporting decrease is plotted as a negative value;
percent reporting no change is plotted symmetrically around zero.
SOURCE: Federal Reserve Bank of Dallas.
-80
-60
-40
-20
0
20
40
60
80
Q1 2016 Q2 2016 Q3 2016 Q4 2016
Decrease No change Increase
Index = -42.1
Index = 26.7Index = 13.8
13.9
30.1
56.0
31.6
50.7
17.8
44.2
38.3
17.5
Index = 40.1
51.0
38.1
10.9
Federal Reserve Bank of Dallas
23. NOTES: Line depicts the mean and bars depict the range of responses; 69 E&P firms answered this
question from March 16-24, 2016; other U.S. includes Bakken, Kansas, Gulf of Mexico and others.
SOURCE: Federal Reserve Bank of Dallas.
Eagle Ford
Permian Basin
Oklahoma Louisiana
Other Texas
Other U.S. Onshore
Gulf Coast
$29 $29 $29
$34 $37 $38
$43
0
10
20
30
40
50
60
70
Dollars per barrel
9 29 8 4 16 21 5
Number of responses
Most existing wells won’t be shut in at current prices
Federal Reserve Bank of Dallas
24. NOTES: Line depicts the mean and bars depict the range of responses; 63 E&P firms answered this
question from March 16-24, 2016; other U.S. includes Bakken, Kansas, Gulf of Mexico and others.
SOURCE: Federal Reserve Bank of Dallas.
Louisiana
Permian Basin
Eagle Ford
Other U.S. Other Texas Oklahoma
Onshore
Gulf Coast
$50 $51 $53 $55 $55 $56
$62
0
20
40
60
80
100
Louisiana Permian
Basin
Eagle Ford Other U.S. Other Texas Oklahoma Onshore Gulf
Coast
Dollars per barrel
3 28 8 18 11 8 5
Number of responses
…but prices still below breakeven for new wells
Federal Reserve Bank of Dallas
25. Texas exports move up
80
100
120
140
160
180
200
220
240
260
2000 2002 2004 2006 2008 2010 2012 2014 2016
U.S. minus Texas
Texas
Index, Jan.’00=100, real $, SA
41%
17%
14%
11% 9%
4%
4%
Mexico
Asia, excl. China
Latin America,
excl. Mexico
European Union
Canada
2016:Q3
SOURCES: U.S. Census Bureau; WISERTrade.
Federal Reserve Bank of Dallas
26. Summary
• Texas employment growth was modest in 2016.
• 1.6% growth through November
• 174,241 jobs
• Goods sector losses have tapered off
• Services sector healthy
• Oil and gas activity edging up
• Exports strengthened
• The worst may be behind us, but risks remain.
Federal Reserve Bank of Dallas
29. Data from the CRSP Survivor-Bias-Free US Mutual Fund Database, provided by the Center for Research in Security Prices, University of Chicago. Sample includes funds available at the beginning of the 15-year period ending
December 31, 2015. Industry funds exclude index funds, sector funds, and funds with a narrow investment focus, such as real estate and gold, money market funds, municipal bond funds, asset backed security funds, and non-US
bond funds. Success rates are determined by the percentage of funds that survived and outperformed a benchmark over the 15-year period, net of fees and expenses. Industry funds are compared to the diversified benchmark
index with which they were most highly correlated over the sample period. For further methodology details, see the Mutual Fund Landscape brochure.
17%Equity Mutual Funds that
outperformed a relevant benchmark
2000-2015
30.
31. Startup Ecosystems are Working and Evolving
Bob Metcalfe, UTAustin Professor of Innovation
Austin Business Forecast
Confidence in Uncertain Times
January 11, 2017
32. I invented Ethernet,
but only for some values of
{I, invented, Ethernet}.
---
May 22, 1973 at Xerox Parc
Invention (MIT, Harvard, Parc, Stanford)
Standardization (IEEE)
Commercialization (3Com)
33. Ethernet is Internet
plumbing, and we
plumbers work best
behind the scenes, but
sometimes they let us
out, like today, and like
the time Steve Jobs sent a
limo to bring me to Pixar’s
red-carpet debut of
TOY STORY…
38. Doriot Ecology
• Funding Agencies
• Research Professors
• Graduating Students
• Scaling Entrepreneurs
• Venture Capitalists
• Strategic Partners
• Early Adopters
39. Berkshire Hathaway 1839
Johnson and Johnson 1886
Exxon Mobil 1870
General Electric 1890
AT&T 1885
---
Intel 1968
Microsoft 1975
Apple 1976
Oracle 1977
3Com 1979 (HP 2010)
Cisco 1984
---
Amazon 1994
Akamai 1998
Alphabet/Google 1998
Facebook 2004
Uber 2009
Some Startups Old and New
41. Inoversities
Startups: Entrepreneurial, Technological Innovation at Scale
Research Universities –> Innovation Universities
Professors Now: Education, Research, Service, Outside
Professor startups are viewed too much as conflicts of interest.
Inoversity Professors: Education, Research, Innovation
Invention is a flower; innovation is a weed.
Startups operate the machinery of Free Enterprise
EG: Innovation Grants out of The Cockrell School of Engineering
42. Change is Seldom Improvement
Ideas are a dime a dozen.
Most ideas are bad.
Valleys of Death
Good funded startups %?
Good unfunded startups %?
Bad funded startups %?
Bad unfunded startups %?
44. Startups Innovation Opportunities
Artificial Intelligence
Robotics / Drones / Diverless Cars
Space
Precision, Personalized, Preventative Medicine
Cybersecurity
Augmented/Virtual Reality
Marijuana
Gigabit (Mobile, Video) Internet
The Internet of Things
Gene editing: CRISPR
…
45. 3Com Sales Tool Circa 1982
In FORBES 1995 this became Metcalfe’s Law (V~N^2).
46. V~N^2
The single most important new fact
about the human condition is that,
thanks to telegraph, telephone, radio, TV, Internet, and now
the mobile video gigabit Internet of things,
we are CONNECTED,
and ever more so every day.
Editor's Notes
Low oil prices and strong dollar main culprits
http://gov.texas.gov/files/ecodev/Fortune_500.pdf
The decline in oil and gas is half what it was in 2015 Lost 24% in 2015. Similar for manufacturing: down 4.6% in 2015.
Last year we lost 72,600 jobs in oil and gas. So, since Jan 2015 we’ve lost 97,500 jobs . A majority of these were in the oil field services sector. That sector lost 88,400, while the extraction side lost 9,000.
Say something about restaurants and health and educ.
Midland Odessa coming back with the activity in the Permian. Houston lost jobs until xx, but has started to add and is now up 5,000 for the year. Say something about San Antonio and Austin. Dallas.
Why did we not go into recession?
Good summary of the Texas market. Prices continue to go up and inventories have become stuck at very low levels. Give city examples. MF
Say something about construction and the LNG plants and petchem plants.
Use notes from Columbia preso
Shale vs non-shale: shorter response time, higher supply elasticity, shorter lead times,
Dollar, but also the oil price.
Hundreds of people have been inventing Ethernet over 41 years (as of 5/22). It annoys them that I get more credit than I deserve.
Inventing is a flower. Innovating is a weed. Thanks to y’all, I got the NMT for inventing, standardizing, and commercializing Ethernet.
What is Ethernet? I count WiFi, gets us over a billion new ports per year. CSMA/CD@2.4Mbps? LAB? Business model.
Ask me later why we used cables for 20 years before adding WiFi. After all, the Alohanet was packet radio in 1970.
When a new Internet packet plumbing technology comes along, if it wins, we call it Ethernet.
Perhaps THE Internet company, Cisco Systems was founded in 1984 by Sandy Lerner and Len Bosack, out of the Computer Science Department at Stanford University. John Morgridge, after a career at Honeywell Information Systems, Stratus Computer, and Grid Systems, became Cisco employee 34, taking the company as CEO from $5M to $1B. Venture Capitalist Don Valentine of Sequoia backed Cisco and later famously fired Lerner, after which Bosack quit.
Competing teams:
research professors
graduating students
scaling entrepreneurs (product engineers, manufacturing, SALES, marketing, finance, administration...)
and, yes, venture capitalists.
My favorite among many examples: (sorry these all look like white men)
Akamai, a Polaris-backed start-up out of MIT.
MIT Professor Tom Leighton
Students Danny Lewin (RIP since 9/11) and Jonathan Seelig
CEO George Conrades, former president of IBM USA, Polaris partner
Google
Matwani (RIP) a Stanford “data mining” professor.
Stanford Professor David Cheriton and Sun founder Andres Bechtolsheim.
Michael Mortiz (Sequoia) and John Doerr (KPCB) = VCs.
Larry Page, Eric Schmidt (scaling entrepreneur), Sergey Brin.