The document discusses strategies for boosting innovation and economies through case studies of different regions. It provides details on Israel's success in becoming a global innovation leader through large investments in research and development as well as venture capital funding and a skilled workforce. It also examines Seattle and Denver's strategies in attracting talent and growing startup communities. The document concludes with an analysis of opportunities and constraints for boosting innovation in Mongolia's economy.

1. BOOSTING INNOVATION TO
BOOST ECONOMY
MERGEN CHULUUN, YPO MONGOLIA

2. MERGEN CHULUUN
TOPICS
▸ Country/Community Case Studies
▸ Mongolia

3. CASE STUDY: ISRAELI, THE START-UP NATION
▸ ($312B in GDP w 8.6M population; GDP per capita: $36,000)
▸ Innovation & VC = main engines for national & individual wealth
▸ Infrastructure w VC, R&D funding, large # of scientists/engineers
▸ 1 startup per 1,844 citizens - most in the world!
▸ $2B VC investment in 2008 (per capita 2.5X USA and equal to UK, GR, & FR
combined)
▸ 45% of Israelis go to University - amongst highest in world
▸ M&A exits equaled $9B in 2015 (Israeli Research Center)
▸ Immigrants boost population & talent base (800K —> 8.6M in 70 years)
MERGEN CHULUUN

4. CASE STUDY: ISRAELI, THE START-UP NATION
▸ Binational Industrial Research and Development Foundation (BIRD)
▸ Approved 900 projects for total of $300M in grants; successful projects yielded $10B in sales
▸ 1977: Started w $60M endowment - $30M each from USA & Israeli
▸ 1974: USA & Israeli formed joint Committee for Investment & Trade
▸ Yozma, VC development agency
▸ Created 10 new VC funds 1992-97
▸ To qualify, new fund must have backing from foreign VC, Israeli VC, and Israeli bank or
investment firm
▸ 240 firms invested in Israeli startups 1992-2009
▸ Japan, Australia, & others use it as model
▸ Israeli has 27 colleges & 8 universities; 4 rank in top 150 in the world
MERGEN CHULUUN

5. CASE STUDY: SEATTLE - NEXT GREAT INNOVATION CENTER?
▸ ($213B in GDP w 3.7M population; GDP per capita: $57.5K)
▸ Aerospace industry employs 132,000 workers in 1,350 firms (Boeing 1916)
▸ ICT sector employs 200,000 people in 14,000 firms and generates $18.6B
in state income (Microsoft 1975, Amazon 1994 generates $400M in taxes,
employs 30,000)
▸ Life Sciences generates $11.1B in state income (UW Medical, Fred Hutch,
Allen Inst…)
▸ 8,600 tech companies w 90% employing 20 or less people
▸ 3,000 unfilled tech jobs every year; 80% filled by out of state
MERGEN CHULUUN

6. CASE STUDY: SEATTLE - NEXT GREAT INNOVATION CENTER?
▸ High growth companies account for 50% of new jobs
▸ Kauffman Foundation ranks greater Seattle startup activity 26/40
metro areas
▸ UW #5 most innovative university in USA (Reuters)
▸ UW #2 total federal funding w $1.3B which is invested mostly in life
sciences
▸ 15 VC firms
▸ Seattle #5 in USA for livability, which measures ability of city to attract
talent
MERGEN CHULUUN

7. CASE STUDY: SEATTLE FUTURE OUTLOOK
▸ Population expected to increase 38% through 2040
▸ Innovation District planned by UW near UW to house
startups, satellite offices of mainstream tech companies,
and UW students & faculty
▸ Innovation Corridor being evaluated by Washington State
between Vancouver, Portland, and Seattle
▸ Gates Foundation is attracting global philanthropic and
healthcare talent
MERGEN CHULUUN

8. CASE STUDY: DENVER - GROWTH BY ATTRACTING MILLENNIALS
▸ ($157B in GDP w 2.8M population; GDP per capita: $56K)
▸ $420M raised by 56 startups in 2015
▸ Downtown residential population 3X since 2000
▸ 68% of center city residents have Bachelor’s degree (2X national avg)
▸ 664 startups employ 4,508 employees (startup is <10 y.o. & has <100
emp)
▸ Real estate sales price +47% since 2007 peak ($235K—>$345K) and
2.3X since 2008 bottom (from $148K) accord. to trulia.com
MERGEN CHULUUN

9. CASE STUDY: DENVER - FUTURE OUTLOOK
▸ #1 “Best place for business & careers” by Forbes
▸ #1 “Best place to live” by US News and World Report
▸ Denver Startup Week grew from 3.5K —> 10.8K between
2012-15
▸ The Commons on Champa founded by Downtown Denver
Partnerships Inc. hosted 17,500 people in its 1st year
MERGEN CHULUUN

10. CASE STUDY: HONG KONG
▸ ($____B in GDP w ___M population; GDP per capita:
$_____)
MERGEN CHULUUN

11. CASE STUDY: KOREA
▸ ($____B in GDP w ___M population; GDP per capita:
$_____)
MERGEN CHULUUN

12. CASE STUDY: KOREA
▸ KR Gov’t offering $2.65B over 3 years to develop #fintech
MERGEN CHULUUN

13. CASE STUDY: CHINA
▸ ($____B in GDP w ___M population; GDP per capita:
$_____)
▸ Internet market largest in the world at $1.8T
MERGEN CHULUUN

14. QUESTIONS TO ASK
▸ R&D spend as % of GDP
▸ Skilled labor as % of total labor
▸ GDP growth, FDI as % of GDP, FDI impact on GDP
MERGEN CHULUUN

15. MONGOLIAN ECONOMY
▸ GDP growth - 11.7% to 0% (2011-2016)
▸ FDI - $4.7B to $130M (2011-2016)
▸ Unstable political environment
▸ Resource-dominated Boom-Bust business cycle
▸ Small but young population (3M w 75% under age 35)
▸ ZERO Venture Capital (VC) firms
▸ ZERO Innovation or Research & Development (R&D) funds
▸ ZERO University ranked in top 200 (or 3,000) in the world
MERGEN CHULUUN

16. MONGOLIAN ECONOMY - CONSTRAINTS/OPPORTUNITIES
▸ ICT Readiness Index 57/139 countries
▸ Key constraints (i.e. opportunities)
▸ Judicial independence
▸ Intellectual Property protection
▸ Venture Capital funds
▸ Quality of management schools
▸ Quality of education system
▸ Impact/spread of ICT on organizational models
MERGEN CHULUUN

17. MONGOLIA: WEF GLOBAL INFORMATION TECHNOLOGY REPORT 2016
MERGEN CHULUUN

19. BOOSTING INNOVATION IN MONGOLIA
▸ Three main pillars:
MERGEN CHULUUN

20. REFERENCES
▸ Israeli data figures are mostly from Start-Up Nation book,
published in 2009
MERGEN CHULUUN