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The Policy Dialogue on Entrepreneurship Informs and connects thought leaders looking to understand policies that help entrepreneurs start companies, create jobs and strengthen the economy. Sign up to receive our weekly update!
The White House is hoping to address the skyrocketing number of patent infringement lawsuits with a new series of executive actions and legislative priorities targeted at so-called ‘patent trolls.’ According to a new report by the President’s Council of Economic Advisors, National Economic Council and Office of Science & Technology Policy, the total number of patent cases has nearly doubled in the past seven years. More alarming is the fact that in that same amount of time, the number of suits filed by patent-trolls—companies that own patents for the sole purpose of litigating to receive license fees—has more than tripled to 62% of all cases.
In a relatively slow week for hearings, the House Committee on Financial Services explores ‘Reducing Barriers to Capital Formation’ and international regulatory burdens on U.S. competitiveness. Other hearings on the House side include: challenges and opportunities for small business contractors, review of the satellite television law and more.
Each day, Innovation Daily checks the pulse of global innovation--courtesy of Innovation America. Here, we take a look at a handful of relevant stories it compiled last week.
Crowdfunding and other ‘innovative ideas for raising capital’ take center stage when Indiegogo co-founder Danae Ringelmann and others testify before the House Committee on Small Business this week. Other topics covered during hearings this week include: STEM education, regulatory reform, improving efficiency at the SBA, wireless competition, disaster response and the fiscal & economic effects of austerity.
When it comes to supporting entrepreneurs and small business owners in the U.S., local government and ecosystem players get the nod over those at the state or national level. And while they are largely an optimistic bunch about their prospects for growth in the coming year, they worry about sustaining their success.
For each of the past 15 years, the Initiative for a Competitive Inner City comes out with a list of the fastest-growing urban startups across the U.S.—companies that create new jobs and wages for those in core urban areas with higher unemployment and poverty rates and lower median incomes. Happy Family, an organic baby food supplier based in New York City, tops the Inner City 100 for 2013 with a five year growth rate of 205%. Revolution Foods out of Oakland came in second place with a growth rate of 173% and Coyote Logistics from Chicago finished third with 126%.
Each year, 552,000 employer firms open in the U.S. and a fairly stable percentage grow rapidly to become companies that ‘matter.’ According to a new paper from Kauffman Foundation senior fellow Paul Kedrosky, anywhere from 125 to 250 U.S. companies per year reach $100 million in revenues—the first of three criteria that he uses to determine if they matter. In addition to being scalable, the firms must be able to generate jobs quickly and broadly and they must be disproportionate creators of wealth (through profits and salaries as well as through equity). So where do most of these firms emerge?
While all eyes in the Senate are on the ongoing immigration debate, the House has a handful of committee hearings of interest. The “changing landscape of patent law” brought on by the American Invents Act and its “effects on small firms” are the focus of a Small Business Committee hearing. Topics covered in other hearings include: small business and pass-through entity tax reform; data centers and the cloud; copyright principles; and Keystone XL and small business job growth.
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