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Last week, I argued in favor more high-skilled immigration to bring additional entrepreneurial talent into the country for the near future. Today, I want to focus on an urgent policy issue that needs to be addressed to produce results over the long-run. Improvements in education are essential to equipping American citizens with entrepreneurial skills. Creative thinking and prudent risk-taking are no different than any other skills people are born with; they are likely to be useless unless the skill is developed through education and experience.
Every day—while building roads, giving inoculations, sitting at computer screens—individuals are quietly thinking: “I know a better way to do this.” Or: “I could create something new that would make this easier for everyone.”
And then they go back to work, never transforming their thoughts into action. Why does this happen, and how can we unleash these hidden ideas?
“Lizard King” John Bello describes his first entrepreneurial venture as a miserable failure. Bello launched South Beach Beverage Co. in 1995. Despite the popularity of other geo-based drink brands such as Nantucket Nectars and AriZona iced tea, South Beach didn’t resonate with consumers, not even in the upscale Florida community that shared its name. Within two months, Bello knew the $2 million startup investment was heading, well, south.
The Obama Administration is now coming up on the end of the first 100 days, so it is a good time to revisit its innovation agenda to determine which directions it has taken. Although it is too early to judge any outcomes, we see positive signs that the role of innovation and entrepreneurship is at the core of this Administration’s approach to the economy.
There has been a lot written in the past few days on how to revive the Venture Capital (VC) industry in the U.S. However, we need to keep the bigger picture in mind and avoid making the mistake of equating new firm creation, job creation and economic recovery to the health of the VC industry. VC investments are only one component of the capital market for new firms. Policymakers’ efforts should focus on the larger entrepreneurial ecosystem, rather than just on the VC industry.
Momentum for a comprehensive patent reform has been slowly building in Congress. Last week, the House Judiciary Committee began examining a patent bill introduced in March by Judiciary Chairman John Conyers (D-MI) and ranking member Lamar Smith (R-TX). In the Senate, Leahy (D-VT) recently cut a deal to soften damages language in last year’s failed Senate bill. Most are eager to see reform. The rules, protections, and the adjudication process surrounding IP requires constant adjustments to keep up with challenges of the digital revolution. However, as new policy is considered, I hope policy makers contemplate the effects of patent legislation on our future job creators.
Universities, particularly research universities, are an important component of an innovation economy. Universities around the world have long been instrumental in developing much of the innovation that benefits our lives. A key question, therefore, is how well universities are prepared to support the transition to a more entrepreneurial economy. The various successful experiences from around the world show that shaping entrepreneurial universities requires commitment to institutional innovation.
President Obama has been bringing together leaders with diverse views for discussions on how to achieve the goals of lowering health care costs, expanding coverage and improving quality. As health care reform moves forward, policymakers should also evaluate the effects of health care reform, particular the health insurance system, on entrepreneurship.
While programs and policies will tell, if his statements and actions so far are anything to go by, President Obama is shaping up to be the “entrepreneurship” President.
A new study has confirmed it. A close look at our entrepreneurial history reveals that entrepreneurship is an engine for job creation and economic growth even during difficult economic times. This new study by the Kauffman Foundation suggests that policies that support entrepreneurship also support recovery. It also reveals that job creation from startup companies tends to be less volatile and sensitive to downturns when compared to the overall economy.
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