Startups Look Beyond Money When Selecting VC-Backing
As competition increases within the venture capital industry to fund the next Google or Uber, the most highly desirable startups often have multiple investment offers and must decide upon the best. There are several factors that can affect evaluation of potential equity investors. For many startups, the decision may focus solely on the terms of the deal.
R&D Tax Credits Increase Resiliency of R&D-Intensive Firms
As the federal and state governments look for methods to support the creation and retention of well-paying science and tech (S&T) and manufacturing jobs, two recent reports have found that R&D tax credits play a vital role in helping keep domestic R&D-intensive firms resilient from economic downtowns and competition from emerging economics.
Recent Research: What Makes Economies Resilient? Economic Diversity, Experienced Workforce
What leading indicators allow a national, state, regional, or local economy to rebound from an exogenous shock (e.g., economic downturn or natural disaster)?
What risk factors are common among economies that were not resilient to an exogenous shock?
Recent Research: Improving Recruitment/Retention Success with Elite Academic Life Scientists
The National Science Foundation tells of a record number of doctorates awarded at the same time the American Association of University Professors (AAUP) reports opportunities to secure tenure-track positions continue to shrink, the State Higher Education Executive Officers Association points out state support for higher education remain
Recent Research: Best Practices in Rural Economic Development
Across the globe, the proliferation of innovation-led economic development is typically viewed in an urban context. Despite cities receiving the bulk of the attention, researchers have begun to focus on how to leverage best practices in rural economic development. Just as is the case in nearly all economic development scenarios, practitioners and policymakers working in rural areas benefit from a better understanding of local strengths and opportunities, according to new research from the United States, Canada, and the European Union.
Academics Weigh the Benefits of Bank, VC Financing for Startups
Bank or venture capital (VC) financing? This is one of the toughest questions that aspiring entrepreneurs and small firms must answer. A recent academic study contends that VC financing may be the superior financing structure for early stage capital. However, several other studies contend that both bank and VC financing can help create and grow successful startups. For potential entrepreneurs, each provides strengths and weaknesses that are highlighted in the studies.
Recent Research: Learning Entrepreneurship from Other Entrepreneurs?
Around the world, entrepreneurship education continues to permeate schools, nonprofits, economic development organizations, and college campuses. At the root of this momentum is a belief that entrepreneurship can be taught to anybody, regardless of their innate skills. This Recent Research article presents new conclusions that suggest individuals can learn entrepreneurship by being exposed to other entrepreneurs. In other words, both nature and nurture contribute to the likelihood one becomes an entrepreneur.
Prize Competitions: Effective Strategy to Spur Innovation?
In September 2010, the Obama administration launched Challenge.gov– an online portal for federal agencies to engage the public to offer solutions that address issues of national priority in return for monetary and non-monetary prizes. Since its launch in 2010, more than 80 federal agencies have run nearly 500 competitions and awarded upwards of $150 million in prizes. Challenge.gov is one of the most well-known examples of this growing trend in government and foundation funding.
Recent Research: Do Jobs Follow People, or People Follow Jobs?
When General Electric (GE) announced earlier this month that it was moving to downtown Boston’s Seaport District, significant attention was paid to the generous incentive package handed to the company by Massachusetts.
Mid-Career Executives, Personal Business Experience Drive Startup Success
In two recent academic journal articles from the United Kingdom (UK), the authors look at the characteristics that lead to successful entrepreneurs and startup firms. In both articles, the founders’ business experience – both corporate and entrepreneurial – was a strong indicator of startup success, sustainability, and job creation.
Recent Research: Can Women Entrepreneurs Help Overcome Decline in U.S. Business Creation?
The U.S.s entrepreneurial culture, long celebrated as a key element in the country’s economic success, is being threatened by several long-term trends, according to a paper from the Brookings Institution’s Robert Litan and Ian Hathaway. Over the past 30 years, U.S. business starts have slid downward, with many experts and policymakers offering their own explanations for the trend. Litan and Hathaway examine the data and note two possible causes: regional population decline and business consolidation.
Do TBED Policies Help or Hinder Knowledge Sharing?
A central tenet in the understanding of regional economic clusters is the idea that the closer two actors are to one another, the more likely they are to collaborate. This belief is based on decades of research done to examine knowledge spillovers and the effect of spatial proximity on tacit knowledge sharing. In a recent article, however, Jasjit Singh of INSEAD and Matt Marx of MIT differentiate the varying effects of crude distance on knowledge sharing compared to the effects of geopolitical borders.
Brookings: The Geography of U.S. Patenting Activity, Economic Growth
Invention is a driver of economic growth. That is the assertion of Brookings latest report on U.S. patenting and its effect on the country's economic prosperity entitled Patenting Prosperity: Invention and Economic Performance in the United States and its Metropolitan Areas. The U.S.'s innovative capacity and activity has increased steadily, but other nations are catching up and the U.S. must identify the implications of this fact to remain competitive.
Recent Research: Is Bigger Better in Economic Development?
Over the past decade, two ideas have become more and more popular among innovation and economic development leaders. First, that maximizing collaboration between institutions, interest groups, stakeholders and communities is pivotal in building an innovation ecosystem that can succeed and grow over time. Second, that proximity matters, and by focusing on innovation networks at the regional or metro scale, rather than at the national or state level, initiatives can have a real, measurable economic impact. Though they seem complementary, these ideas are frequently in tension.
Recent Research: What Kinds of Publicly Funded R&D Projects Fail?
SBIR projects are less likely to fail if research teams are smaller, have more experience and include women investigators, according to a new working paper by Albert N. Link and Mike Wright. The authors also found that larger SBIR awards lower the chances that a project will be discontinued before completion. While the study focuses on projects supported through federal SBIR programs, the findings could have implications for other kinds of public R&D support.
Recent Research: Hands-On STEM Research Experiences Game Changers for Freshmen
In 2012, the President’s Council of Advisors on Science and Technology (PCAST) released Engage to Excel – a five point strategy to increase the STEM pipeline by an additional one million workers. To achieve this goal of one million additional STEM workers, PCAST highlighted the importance of freshman research experiences for STEM students.
Recent Research: What Happens to High-Growth Firms?
Because they focus on attracting mature firms through relocation incentives, job creation strategies at the state level are often misguided, according to the Center on Budget and Policy Priorities. Despite this, many metropolitan regions are increasingly focusing their efforts on attracting and retaining the high-growth firms responsible for an oversized share of job growth and economic output. While considerable research has focused on the important role that startups and high-growth firms play in the national economy, relatively little has been done to apply a regional lens to this phenomenon. New research, tracks high-growth firms over a multiple-year period to assess how their changing operations can inform regional economic development.
Recent Research: The Role of Gender in Higher Ed STEM Retention, Ideas to Address Gap
Sixty percent of students drop out or transfer from science, technology, engineering and math (STEM) fields, and more than 50 percent of students pursuing STEM in community colleges never graduate, according to new research from researchers at the University of Missouri (UM) and other partner institutions.
Recent Research: The Effectiveness of R&D Tax Credits
When the U.S. government made their R&D tax credit permanent in December 2015, it made a long-term commitment to using incentives to entice private firms to invest in research and development, joining many countries around the world. Although most studies find that R&D tax incentives promote R&D, there is little consensus on the extent of this effect. A recent firm-level analysis from the United Kingdom finds some of the strongest evidence to date on the effectiveness of R&D tax credits in incentivizing innovation. At the same time, however, other studies suggest other elements of a national economy such as education and infrastructure may be more important.
Cluster Allow for "Job Creation on a Budget," Finds Report
With the fears of rising state deficits and high unemployment, states must make tough decisions regarding their economic development efforts in the coming years. Researchers at the Brookings Institute contend that states should focus on regional economic clusters because it provides a "low-cost means" to reignite innovation, entrepreneurship and job creation. "Organic" job growth should be the focus of state economic development, according to the report — Job Creation on a Budget.
Recent Research: Which Cities Are Poised to Generate New Discoveries?
Metropolitan areas with population densities of about 4,000 people per square mile tend to produce the highest rate of patenting, according to a recent article in the American Journal of Economics and Sociology. In a study of U.S. metro areas over a ten-year period, the authors found that metro population density has a significant positive correlation with patenting rates.
Recent Research: Multinationals, deindustrialization, and regional economic development
Much has been written – both here and elsewhere – about the role of trade and automation in declining U.S. manufacturing employment. Recently released preliminary research published by the U.S. Census Bureau’s Center for Economic Studies finds U.S. multinationals were responsible for a disproportionate share of manufacturing employment declines from 1993 to 2011. These results underscore the challenges facing economic development in deindustrializing regions, particularly those reliant on the branch plant economy.
‘Joiners’ Share Similar Traits With Startup Founders, Increase Likelihood of Success
In recent years, academic researchers have focused on trying to identify the characteristics that could make someone a potentially successful founder of a startup. However, there has been limited research on the characteristic of the individuals who join these founders as early employees to help them develop and commercialize innovative new products and services.
Recent Research: Special Journal of Labor Economics Volume Emphasizes High-Skilled Immigrants
Although immigrants account for approximately one-fourth of U.S. science and engineering (S&E) employment, there have been relatively few academic studies published that discuss the link between these immigrants, who represent an increasing share of the U.S. workforce, and innovation in the United States. Through a broad investment from the Alfred P.
Recent Research: University Culture, IP Policy, TTOs Play Vital Role Increasing Patenting Activity by Female Academics
Over the past 40 years, the number of women across the globe filing patents has risen fastest within academia compared to all other sectors of the innovation economy, according to a new study from researchers at Indiana University (IU). The researchers found that the overall percentage of patents with women's names attached rose from an average of 2 percent to 3 percent across all areas in 1976 to 18 percent in 2013 for female academics.