Presentation at Conference on How and Why of Promoting Entrepreneurship Abroad

886 views

Published on

Presentation given at Stanford University conference on "The How and Why of Promoting Entrepreneurship Abroad"

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
886
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
1
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • The proposal at the heart of this presentation is to promote the best of American grassroots capitalism through our diplomatic missions abroad. With the sub-prime crisis, there is the real possibility that other countries will see American capitalism as bankrupt. We should explain, in deeds not words, the difference between the financial engineering that led to the subprime mess and the real engineering that creates thousands of high-growth companies annually. Entrepreneurs will create the jobs of tomorrow and will likely find the solutions to some of the world’s most pressing problems, such as renewable energy. Nearly 48 years ago a fresh, young president entered the White House and captured the world’s attention. He capitalized on this attention and launched the Peace Corps, which has given tens of millions of people in the developing world direct contact with these American volunteers.What I propose is a sort of Peace Corps for the 21st Century, targeting upper and upper middle income countries, not the world’s poorest. This program would give thousands access to American entrepreneurs and innovators and help plant the seeds for entrepreneurial economies across the globe<number>
  • The proposal at the heart of this presentation is to promote the best of American grassroots capitalism through our diplomatic missions abroad. With the sub-prime crisis, there is the real possibility that other countries will see American capitalism as bankrupt. We should explain, in deeds not words, the difference between the financial engineering that led to the subprime mess and the real engineering that creates thousands of high-growth companies annually. Entrepreneurs will create the jobs of tomorrow and will likely find the solutions to some of the world’s most pressing problems, such as renewable energy. Nearly 48 years ago a fresh, young president entered the White House and captured the world’s attention. He capitalized on this attention and launched the Peace Corps, which has given tens of millions of people in the developing world direct contact with these American volunteers.What I propose is a sort of Peace Corps for the 21st Century, targeting upper and upper middle income countries, not the world’s poorest. This program would give thousands access to American entrepreneurs and innovators and help plant the seeds for entrepreneurial economies across the globe<number><number>
  • Not all market economies are the same. Top down vs. bottom up.Since the 1980s, net job creation in the United States has occurred almost entirely in firms less than five years old.1/3 of GDP growth in U.S. comes from 1,000 high growth companies created annually.18 of the Dow 30 were founded in down markets.Sustainable growth and job creation coming out of the recession will depend on vibrant new venture creation during the recession.“the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment by 2010”<number>
  • Why? Italy great ally in the post war era, partners well with us on the challenges of the day (AIDS in Africa, Launched April 2006 – first time a foreign emissary addressed a gathering of the 300 top business leaders (Confindustria)Why I believe this will work – I’ve seen it first hand.Visionary leadership – Ambassador Ronald SpogliNo set budgetForm follows function – entrepreneurial approach to promoting economic dynamism in ItalyNot “preachy” Share U.S. failures and successes -Bayh Dole,-failure of government early stage funds in the United States<number>
  • NSF Fellow January-March 2007Hennessy – 1 hour nationally broadcast prime time talk show- Conference with leading educators on role of U in innovation- Lunch with leading innovators- Lunch with leading educators- Coffee with politicians- evening event at Rome’s leading business school<number>
  • <number>
  • <number>
  • <number>
  • Nine founding members grew to nearly 40 now.Part-time secretariatDeal flow growing: first 9 months of 2008, 194 deals submitted(pace doubled between first and third quarter) 8 presenting, 3 in due diligence, one investment.- One of the two candidates for Prime Minister requested a lengthy meeting with IAG. Points from the discussion were included in stump speechesCommitted capital increased private sector early stage investment in Italy by ten percent (from a small base).<number>
  • IBM’s 500 person research and development center in Rome created a process to identify and evaluate innovations for possible patent filing. InterviewBayh-Dole is not a money maker for University tech transfer offices. Tech transfer offices can be road blocks or slow technology release to negotiate best terms. (half licensing fees from 10 schools)<number>
  • “e-bay for tech transfer”SISSA in Trieste is the first university outside of North America considered for entry into ibridge.<number>
  • Important slideTo be an entrepreneur, you must believe you drive your fateCountries with most of the elements for entrepreneurial economy lack this view (right side of chart).This is a mixture of perception and fact. We can address the perception piece of the puzzle.Some surprises- Japan (choice of employer, but starting a scalable venture still difficult- India (for a large segment of the population, true. For the top 20 percent, no)<number>
  • <number>
  • <number>
  • 31 Universities<number>
  • <number>
  • Powerful signals from the top.President Bush met with a handful of first generation entrepreneurs and Fulbright BEST scholars in an open conversation about entrepreneurship in Italy. Audience included the Minister for Innovation and the President of Confindustria, Emma Marcegaglia Message was clear <number>
  • <number>
  • <number>
  • <number>
  • <number>
  • Presentation at Conference on How and Why of Promoting Entrepreneurship Abroad

    1. 1. The How and Why of Promoting Entrepreneurship Abroad Hoover Institution Stanford University May 21, 2009
    2. 2. Case Study: Partnership for Growth in Italy — Promoting Entrepreneurship as U.S. Foreign Policy Richard Boly National Security Affairs Fellow, Hoover Institution boly@hoover.stanford.edu
    3. 3. Entrepreneurial vs. Bureaucratic Capitalism Entrepreneurial Bureaucratic  Schumpeter’s “creative  National champions destruction”  Centralized, top down,  Messy, bottom-up, negotiated industrial unplanned policies  Private actors create  Job preservation, not job new venture ecosystem creation  Government creates  Sacrifice growth for positive policy framework stability  Example: Failure of EU’s Lisbon Agenda © 2009 Hoover Institution. All rights reserved. 3
    4. 4. Building the “New Venture Ecosystem”  Move research to market  Grow risk capital markets  Spur innovation by strengthening the Intellectual Property Rights (IPR) regime  Create and promote Italian entrepreneurial role models © 2009 Hoover Institution. All rights reserved. 4
    5. 5. Move Research to Market  Two-day visit by Stanford President Hennessy  Italian Academics for Entrepreneurship  National Science Foundation Fellow  Exchanges for university tech transfer officers  Biotech guru road show © 2009 Hoover Institution. All rights reserved. 5
    6. 6. © 2009 Hoover Institution. All rights reserved. 6
    7. 7. Italian Academics for Entrepreneurship Max Bergami Chiara Franzoni Paolo Milani ALMA Graduate School Turin Politecnico U. of Milan Guido Chiarotti Ruggero Frezza Alberto Di Minin SISSA U. of Padova Sant’Anna Paolo Cremonesi Rosa Grimaldi Raffaele Oriani Milan Politecnico U. of Bologna LUISS Stefano Fantoni Roberto Guerrieri Francesco Sacco Director, SISSA U. of Bologna Bocconi Manlio Del Giudice Leo Miglio Alessandro Sannino UNISOB, Naples Milan Bicocca U. of Lecce Ferruccio Fiordispin Stefano Zambon SIAF Volterra U. of Ferrara © 2009 Hoover Institution. All rights reserved. 7
    8. 8. Grow Risk Capital Markets  Established Italian Angels for Growth  U.S. entrepreneurs-in-residence  Keynote speech at biennial Italian Venture Capital Association global meeting  Pitching session for 20 Italian startups with Silicon Valley VCs  Conference on improving the regulatory framework for VC and angel investing © 2009 Hoover Institution. All rights reserved. 8
    9. 9. © 2009 Hoover Institution. All rights reserved. 9
    10. 10. Spur Innovation by Strengthening the Intellectual Property Rights (IPR) Regime  Demystifying the patent process (webinar)  Kauffman Foundation iBridge  Conference on the Bayh-Dole Act  IPR conference with Italian magistrates and U.S. Patent and Trademark Office, Department of Justice  Ministerial conference on IPR protection with the Foreign Minster and Minister of Economy © 2009 Hoover Institution. All rights reserved. 10
    11. 11. © 2009 Hoover Institution. All rights reserved. 11
    12. 12. Does Success Depend on Forces Outside Our Control? 80 Yes No 70 60 50 Percent 40 30 20 10 0 U S B J J C So P T L It S n r ze Ma Fr a Isr Me Ch Bra C ut h in ola urk eba aly out di In it wed ita apa ord la nc ae xi ile zi ed en in n an ch ys l co l h a nd ey no h a St R ep ia e A fr n K or at ub ic ea es a li c Source: Pew Global Attitudes Survey, Oct. 2007 © 2009 Hoover Institution. All rights reserved.
    13. 13. Create and Promote Italian Entrepreneurial Role Models  Face2Face: Capturing Creativity (40-episode webinar series)  First Generation Network  Mind the Bridge (business plan competition focusing on entrepreneurs already in the workforce)  Fulbright BEST Silicon Valley Immersion Program © 2009 Hoover Institution. All rights reserved. 13
    14. 14. © 2009 Hoover Institution. All rights reserved. 14
    15. 15. Face2Face: Capturing Creativity — Participating Universities Università di Brescia Università Università di Politecnico di Milano di Bolzano Trento Università Bocconi Università di Udine Università di Milano, Bicocca Università di Padova Università di Torino Università di Ferrara ALMA Graduate School Università di Pavia Politecnica delle Marche Università di Genova Università di Camerino Università Tor Vergata Università di Firenze Università Roma Tre Università di Pisa Scuola S. Anna Università La Sapienza Università Luiss Università dell’Aquila Università di Suor Orsola Bari Benincasa Università di Università Lecce del Sannio Università II di Napoli Università della Calabria Università di Catania Università di © 2009 Hoover Institution. All rights reserved. Palermo 15
    16. 16. Fulbright BEST Silicon Valley Immersion Program © 2009 Hoover Institution. All rights reserved. 16
    17. 17. President Bush Meets with First-Gen Entrepreneurs, Fulbright BEST Scholars © 2009 Hoover Institution. All rights reserved. 17
    18. 18. Institutionalizing and Spinning Out: A Sustainable Future for the P4G Partnership Summit, May 20, 2008, Venice 15 Partner Organizations 300 Policy Makers, Entrepreneurs, and Media Ambassador Ronald Spogli © 2009 Hoover Institution. All rights reserved. 18
    19. 19. Policy Relevance “In an era of integration and interdependence, it is also my responsibility to lead America into recognizing that its interests, its fate is tied up with the larger world... (if) not… we (are) depriving ourselves of potential opportunities for markets and economic growth, but ultimately that despair may turn to violence that turns on us; that unless we are concerned about the education of all children… not only may we be depriving ourselves of the next great scientist who's going to find the next new energy source that saves the planet, but we also may make people around the world much more vulnerable to anti-American propaganda.” (emphasis added) – President Obama, April 3, 2009 © 2009 Hoover Institution. All rights reserved. 19
    20. 20. A Simple Proposal President announces intent If yes, schedules initial to nominate a person for video conference between ambassadorship embassy team and Ambassador-designate organizations promoting confirmed and sworn in entrepreneurship Average Time Span: 10 weeks State Department country Ambassador arrives at desk officer offers nominee post, determines if a meeting with private entrepreneurship program organizations promoting is a good fit entrepreneurship © 2009 Hoover Institution. All rights reserved.
    21. 21. Window of Opportunity Argentina Transition E Georgia Jul 04 S Mexico Vacant E Australia Vacant T Greece Nov 07 Namibia Nov 07 Brazil Jul 06 E Iceland Oct 05 Netherlands Vacant S Bulgaria Jul 08 S India Vacant ETS New Zealand Vacant Chile Nov 07 E Ireland Nominated Norway Jan 06 T China Nominated S Japan Vacant T Pakistan May 07 T Colombia Sep 07 ES Jordan Jul 08 Poland Jun 04 S Croatia Jul 06 S Korea Jul 08 Romania Vacant S Denmark Vacant Latvia Vacant S South Africa Vacant E Egypt Mar 08 E Lebanon Jun 08 Spain Vacant Estonia Vacant S Lithuania Jul 06 S Sweden Vacant Finland Vacant Malaysia Sep 07 T Thailand Oct 07 France Vacant Malta Vacant Turkey Nov 08 E Mauritius Vacant T Vietnam Aug 07 S E Endeavor (9) Vacant/Named (20 of 40) T TiE (7) Non-career from previous S SEAF (13) administration (3 of 40) © 2009 Hoover Institution. All rights reserved. 21
    22. 22. Ideas… Information… Richard Boly National Security Affairs Fellow, Hoover Institution boly@hoover.stanford.edu © 2009 Hoover Institution. All rights reserved. 22

    ×