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Innovation Renaissance <ul><li>Hjalmar Gislason </li></ul><ul><li>CEO, DataMarket </li></ul>
About Hjalmar <ul><li>Started 4 companies in 11 years </li></ul><ul><ul><li>Some have succeeded, others not </li></ul></ul...
Agenda <ul><li>Bubbles and Iceland </li></ul><ul><li>Why innovation? </li></ul><ul><li>Innovation Culture </li></ul>
1100 years of bubbles
Arctic trade bubble <ul><li>First 300 years - incredible wealth </li></ul><ul><ul><li>Sagas, ships, trade and treasures </...
Arctic trade bubble
Arctic trade bubble
Arctic trade bubble <ul><li>Debt of Venice to the Pope paid with unicorn horn! </li></ul><ul><li>Burst in the 1200s </li><...
Herring bubble <ul><li>1967-1969 herring disappears </li></ul><ul><ul><li>Result: A few years of recession </li></ul></ul>
Fur and fish farming bubble <ul><li>In the 1980s </li></ul><ul><ul><li>Result: Over investment in many rural areas </li></...
Dotcom bubble <ul><li>You know this one (actually financial) </li></ul><ul><ul><li>Result: 3-4 years downturn </li></ul></ul>
Banking bubble <ul><li>October 2008 </li></ul><ul><ul><li>Result: ??? </li></ul></ul>
Non-bubbles <ul><li>1965 </li></ul><ul><ul><li>Exports: Fish </li></ul></ul>
Non-bubbles <ul><li>1980 </li></ul><ul><ul><li>Currency from: Fish, Aluminum </li></ul></ul>
Non-bubbles <ul><li>2000 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism </li></ul></ul>not “export”
Non-bubbles <ul><li>2007 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism, banking </li></ul></ul>not “export”...
Non-bubbles <ul><li>September 2008 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism, banking </li></ul></ul>no...
Non-bubbles <ul><li>November 2008: </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism </li></ul></ul>not “export”
Import-Export in short <ul><li>Export: Fish, aluminum and happy tourists </li></ul><ul><li>Import: Everything else! </li><...
Iceland’s risk <ul><li>When one pillar of the economy is hurt, our standard of living hurts equally </li></ul><ul><li>What...
No more bubbles! <ul><li>We cannot afford another crash </li></ul><ul><ul><li>(we don’t even know yet if we can afford thi...
Analysis <ul><li>Resources </li></ul><ul><ul><li>Fish </li></ul></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Land </...
People <ul><li>A major resource: </li></ul><ul><ul><li>Educated </li></ul></ul><ul><ul><li>Hard-working </li></ul></ul><ul...
Why innovation?
Yet Another Bubble? <ul><li>No! </li></ul>
Why Not? <ul><li>Innovation is not an industry </li></ul><ul><li>Innovation is a mentality </li></ul><ul><ul><li>A mentali...
It’s Bubble-wrap
Diverse Economy <ul><li>10-20 pillars instead of 2-4 </li></ul><ul><li>Realistic? </li></ul><ul><ul><li>CCP equals Iceland...
What is Innovation? <ul><li>It’s not ideas </li></ul><ul><ul><li>That’s invention </li></ul></ul>
What is Innovation? <ul><li>Innovation is execution </li></ul><ul><ul><li>Turning ideas into value </li></ul></ul>
“ Genius is 1% inspiration, 99% perspiration”
Put another way... <ul><li>Innovation is a stroke of genius, then a lot of hard work </li></ul><ul><ul><li>Not necessarily...
The Innovation Pyramid <ul><li>1000 people get an idea </li></ul><ul><li>100 companies are started </li></ul><ul><li>10 su...
100 x 4 = 1 x 400 <ul><li>100 x 4 becomes... </li></ul><ul><li>10 x 50 and maybe... </li></ul><ul><li>1 x 1000 </li></ul><...
Healthy Economy
Steps towards: Innovation Culture Innovation Culture
Nurturing Innovation <ul><li>Get out of the way </li></ul><ul><li>Encourage </li></ul><ul><li>Help a little </li></ul>
But first... <ul><li>There are not a lot of start-ups around: </li></ul>
A Narrow Path... <ul><li>...between success and bankruptcy </li></ul>
The Wrong Reasons <ul><li>This path is probably very narrow now </li></ul><ul><ul><li>In some cases for all the wrong reas...
Get out of the way <ul><li>There is still some capital around </li></ul><ul><ul><li>In ISK </li></ul></ul><ul><li>What bet...
Get out of the way <ul><li>Reward investments in startups, e.g. with tax breaks on returns </li></ul>
Encourage Innovation <ul><li>Innovation culture: </li></ul><ul><ul><li>Social networking, studies, info exchange </li></ul...
Be a little helpful <ul><li>Make sure that current funds continue </li></ul><ul><ul><li>Frumtak, Rannís, development funds...
Recap
Recap <ul><li>Bubbles and Iceland </li></ul><ul><ul><li>Long history </li></ul></ul><ul><ul><li>Three pillars of economy <...
Recap <ul><li>Bubbles and Iceland </li></ul><ul><li>Why Innovation? </li></ul><ul><ul><li>Harvest the manpower </li></ul><...
Recap <ul><li>Bubbles and Iceland </li></ul><ul><li>Why Innovation? </li></ul><ul><li>Innovation Culture </li></ul><ul><ul...
Finally
Nyskopun.org <ul><li>Wiki site (Icelandic) </li></ul><ul><li>Single purpose: </li></ul><ul><ul><li>Help making Iceland the...
 
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Innovation Renaissance

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How Innovation is the way to rebuild Iceland's economy. Presented at the Iceweb conference on November 14, 2008.

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Innovation Renaissance

  1. 1. Innovation Renaissance <ul><li>Hjalmar Gislason </li></ul><ul><li>CEO, DataMarket </li></ul>
  2. 2. About Hjalmar <ul><li>Started 4 companies in 11 years </li></ul><ul><ul><li>Some have succeeded, others not </li></ul></ul><ul><ul><li>Currently: DataMarket (datamarket.net) </li></ul></ul><ul><li>Never bankrupt, a few happy investors </li></ul><ul><li>Almost 100 man-years </li></ul><ul><li>A few million dollars in foreign currency </li></ul>
  3. 3. Agenda <ul><li>Bubbles and Iceland </li></ul><ul><li>Why innovation? </li></ul><ul><li>Innovation Culture </li></ul>
  4. 4. 1100 years of bubbles
  5. 5. Arctic trade bubble <ul><li>First 300 years - incredible wealth </li></ul><ul><ul><li>Sagas, ships, trade and treasures </li></ul></ul><ul><li>Where did the money come from? </li></ul>
  6. 6. Arctic trade bubble
  7. 7. Arctic trade bubble
  8. 8. Arctic trade bubble <ul><li>Debt of Venice to the Pope paid with unicorn horn! </li></ul><ul><li>Burst in the 1200s </li></ul><ul><ul><li>Result: 700 years of misery </li></ul></ul>
  9. 9. Herring bubble <ul><li>1967-1969 herring disappears </li></ul><ul><ul><li>Result: A few years of recession </li></ul></ul>
  10. 10. Fur and fish farming bubble <ul><li>In the 1980s </li></ul><ul><ul><li>Result: Over investment in many rural areas </li></ul></ul>
  11. 11. Dotcom bubble <ul><li>You know this one (actually financial) </li></ul><ul><ul><li>Result: 3-4 years downturn </li></ul></ul>
  12. 12. Banking bubble <ul><li>October 2008 </li></ul><ul><ul><li>Result: ??? </li></ul></ul>
  13. 13. Non-bubbles <ul><li>1965 </li></ul><ul><ul><li>Exports: Fish </li></ul></ul>
  14. 14. Non-bubbles <ul><li>1980 </li></ul><ul><ul><li>Currency from: Fish, Aluminum </li></ul></ul>
  15. 15. Non-bubbles <ul><li>2000 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism </li></ul></ul>not “export”
  16. 16. Non-bubbles <ul><li>2007 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism, banking </li></ul></ul>not “export” Banking ?
  17. 17. Non-bubbles <ul><li>September 2008 </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism, banking </li></ul></ul>not “export” Banking ?
  18. 18. Non-bubbles <ul><li>November 2008: </li></ul><ul><ul><li>Currency from: Fish, aluminum, tourism </li></ul></ul>not “export”
  19. 19. Import-Export in short <ul><li>Export: Fish, aluminum and happy tourists </li></ul><ul><li>Import: Everything else! </li></ul>
  20. 20. Iceland’s risk <ul><li>When one pillar of the economy is hurt, our standard of living hurts equally </li></ul><ul><li>What if: </li></ul><ul><ul><li>Fishing stocks dwindle? </li></ul></ul><ul><ul><li>Aluminum prices collapse? </li></ul></ul><ul><ul><li>Travel becomes too expensive? </li></ul></ul>
  21. 21. No more bubbles! <ul><li>We cannot afford another crash </li></ul><ul><ul><li>(we don’t even know yet if we can afford this one) </li></ul></ul><ul><li>Icelandic economy must diversify </li></ul>
  22. 22. Analysis <ul><li>Resources </li></ul><ul><ul><li>Fish </li></ul></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Land </li></ul></ul><ul><ul><li>Nature </li></ul></ul><ul><ul><li>Oil? </li></ul></ul><ul><ul><li>What else? </li></ul></ul>
  23. 23. People <ul><li>A major resource: </li></ul><ul><ul><li>Educated </li></ul></ul><ul><ul><li>Hard-working </li></ul></ul><ul><ul><li>Resourceful </li></ul></ul><ul><li>Natural selection... </li></ul>
  24. 24. Why innovation?
  25. 25. Yet Another Bubble? <ul><li>No! </li></ul>
  26. 26. Why Not? <ul><li>Innovation is not an industry </li></ul><ul><li>Innovation is a mentality </li></ul><ul><ul><li>A mentality that needs nurturing </li></ul></ul><ul><li>Innovation is the way to harvest the people resource </li></ul>
  27. 27. It’s Bubble-wrap
  28. 28. Diverse Economy <ul><li>10-20 pillars instead of 2-4 </li></ul><ul><li>Realistic? </li></ul><ul><ul><li>CCP equals Iceland’s capelin fishing </li></ul></ul><ul><ul><li>Marel is bigger than ferro silicon </li></ul></ul><ul><ul><li>Össur is bigger than Icelandair </li></ul></ul><ul><li>They were all typical start-ups </li></ul>
  29. 29. What is Innovation? <ul><li>It’s not ideas </li></ul><ul><ul><li>That’s invention </li></ul></ul>
  30. 30. What is Innovation? <ul><li>Innovation is execution </li></ul><ul><ul><li>Turning ideas into value </li></ul></ul>
  31. 31. “ Genius is 1% inspiration, 99% perspiration”
  32. 32. Put another way... <ul><li>Innovation is a stroke of genius, then a lot of hard work </li></ul><ul><ul><li>Not necessarily by the same people </li></ul></ul><ul><ul><li>You can be a part of innovation, without being an idea-person </li></ul></ul>
  33. 33. The Innovation Pyramid <ul><li>1000 people get an idea </li></ul><ul><li>100 companies are started </li></ul><ul><li>10 succeed </li></ul><ul><li>1 may become a superstar </li></ul>
  34. 34. 100 x 4 = 1 x 400 <ul><li>100 x 4 becomes... </li></ul><ul><li>10 x 50 and maybe... </li></ul><ul><li>1 x 1000 </li></ul><ul><li>Value is created on all levels </li></ul>
  35. 35. Healthy Economy
  36. 36. Steps towards: Innovation Culture Innovation Culture
  37. 37. Nurturing Innovation <ul><li>Get out of the way </li></ul><ul><li>Encourage </li></ul><ul><li>Help a little </li></ul>
  38. 38. But first... <ul><li>There are not a lot of start-ups around: </li></ul>
  39. 39. A Narrow Path... <ul><li>...between success and bankruptcy </li></ul>
  40. 40. The Wrong Reasons <ul><li>This path is probably very narrow now </li></ul><ul><ul><li>In some cases for all the wrong reasons </li></ul></ul><ul><li>Immediate action: Make sure we keep the best going! </li></ul>
  41. 41. Get out of the way <ul><li>There is still some capital around </li></ul><ul><ul><li>In ISK </li></ul></ul><ul><li>What better use than fund companies that will make money in foreign currency? </li></ul>
  42. 42. Get out of the way <ul><li>Reward investments in startups, e.g. with tax breaks on returns </li></ul>
  43. 43. Encourage Innovation <ul><li>Innovation culture: </li></ul><ul><ul><li>Social networking, studies, info exchange </li></ul></ul><ul><li>Make innovators role models </li></ul><ul><li>Imprint that “Failure is also success” </li></ul>
  44. 44. Be a little helpful <ul><li>Make sure that current funds continue </li></ul><ul><ul><li>Frumtak, Rannís, development funds </li></ul></ul><ul><li>Innovation on the curriculum </li></ul><ul><li>Tax incentives for knowledge driven industries? </li></ul>
  45. 45. Recap
  46. 46. Recap <ul><li>Bubbles and Iceland </li></ul><ul><ul><li>Long history </li></ul></ul><ul><ul><li>Three pillars of economy </li></ul></ul><ul><ul><li>Fragile </li></ul></ul>
  47. 47. Recap <ul><li>Bubbles and Iceland </li></ul><ul><li>Why Innovation? </li></ul><ul><ul><li>Harvest the manpower </li></ul></ul><ul><ul><li>Diversify economy </li></ul></ul><ul><ul><li>Sustainable resource </li></ul></ul>
  48. 48. Recap <ul><li>Bubbles and Iceland </li></ul><ul><li>Why Innovation? </li></ul><ul><li>Innovation Culture </li></ul><ul><ul><li>Immediate action </li></ul></ul><ul><ul><li>Get out of the way </li></ul></ul><ul><ul><li>Encourage innovation </li></ul></ul><ul><ul><li>Be a little helpful </li></ul></ul>
  49. 49. Finally
  50. 50. Nyskopun.org <ul><li>Wiki site (Icelandic) </li></ul><ul><li>Single purpose: </li></ul><ul><ul><li>Help making Iceland the best possible environment for innovation </li></ul></ul>
  51. 52. BETA

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