Recent Research: How do angel and venture capital financing compare for startups?
A team of researchers recently assessed the relationship between angel investing and venture capital (VC) for startups. Although they found some variation in the performance of companies based on their share of angel and VC financing, there was no clear indication that angel investing provides any unique value for a startup.
Recent Research: Lessons from the first cleantech bubble and the role of venture capital and governments in clean energy
From 2005 to 2008, the clean technology industry experienced a venture capital boom where the share of total VC investments in clean energy technologies tripled before falling dramatically. Many studies have concluded that the boom and bust in cleantech as an equity investment focus was because clean energy does not fit the venture capital “model.” A recent study from the National Bureau of Economic Research explores other possible reasons for the failure of venture capital to remain interested in clean energy.
Recent Research: Growing concentration of older & larger firms becoming more impactful on US employment & job creation
Adding to the debate about whether smaller or larger businesses play an outsized role in the nation’s economy, a new Census Bureau report finds that the concentration of both older and larger firms has continued to increase in the U.S.
Adding to the debate about whether smaller or larger businesses play an outsized role in the nation’s economy, a new Census Bureau report finds that the concentration of both older and larger firms has continued to increase in the U.S. economy over the last several decades, giving these firms an overall greater impact on employment and job growth than younger and smaller firms. Specifically, the report indicates that decreases in the national share of startup firms over the last several decades lead to an increased concentration of older firms, which in turn has had a greater impact on national employment and job creation than an increase in larger firms over the same period.
Recent Research: Beyond economic development, local life science R&D saves local lives
Faculty of the nation’s higher education institutions have long used research publications and citations as a measure of success. A new working paper posted by the National Bureau of Economic Researchers (NBER) suggests a select group of research publications may do more than gain the authors tenure and celebrity in their chosen field: these works are correlated with reductions in local disease-related mortality.
Recent Research: Website diversity shown to attract more prospective entrepreneurs
A recent research study suggests that diverse identity representation of website spokespeople increases the likelihood of attracting a higher proportion of prospective entrepreneurs.
Recent Research: Use of industrial robots yields greener economic growth
A recent study found that the use of industrial robots (UIR) can reduce a country’s overall ecological footprint while simultaneously promoting economic growth. This is through timesaving, green employment, and energy upgrading effects that increase as the level of economic development and human capital within the country increases.
Recent Research: Access to information is key to SBIR effectiveness
Accelerators, incubators and entrepreneurial assistance programs work to ensure their startups understand their product’s market competition, customers, and supply chain. As it turns out, that’s also good advice for small research-based firms trying to move from SBIR proof-of-concept funding to securing the larger Phase II awards.
Recent Research: Exploring nationwide distribution of AI-focused Phase II SBIR projects
States with top-ranking university AI research programs garner a greater number of Phase II AI-related SBIR awards, according to a working paper from the Department of Economics at the University of North Carolina at Greensboro. Researchers there investigated state variations in the distribution of Phase II SBIR research projects focused on artificial intelligence (AI). The authors of the paper hypothesized that the state-by-state variations are related to the presence of a research university with a “Top 10” AI program in each state.
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.
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.
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 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.
‘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.
Guide Examines How to Design an R&D Tax Incentive
As a part of its Compendium of Evidence on the Effectiveness of Innovation Policy intervention, the Manchester Institute of Innovation Research released a report entitled Fiscal Incentives for Business R&D. The authors advocate how a fiscal incentive for R&D, particularly a tax credit, can be a "flexible instrument that can foster the connectivity within a national innovation system."
Research Studies Find Skilled Immigrants Spur Innovation in Academia, Industry
Two recent academic research articles found that innovation at institutions of higher education and domestic firms are significantly impacted by an increase in the immigration of skilled and qualified immigrants. An article from Stuen et al. found the quality of immigrant students was the determining factor in their contribution to the production of knowledge at academic science and engineering laboratories. In an unpublished article from Kerr et al., the authors examined the impact of skilled immigrants on the employment structures and innovation rates of U.S. firms.
Recent Research: Gender Gap in Entrepreneurship Impedes Innovation
A recent paper from the Kauffman Foundation on women entrepreneurs finds that while women are making significant strides in advancing to high rank within corporations, several barriers are keeping them from breaking out to start their own high-growth firms.
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: New Study Examines the Returns from Cardiovascular and Stroke Research
Basic biomedical research has a greater academic impact and clinical research a greater societal impact over a 15 to 20 years timescale, according to the findings of Project Retrosight — a multinational, four-year study from RAND Europe and the Health Economics Research Group (HERG) at Brunel University. This study was based on data collected from 29 case studies on basic biomedical and clinical cardiovascular and stroke grant-funded, research projects in Australia, Canada and the United Kingdom.
Recent Research: "Competency-based Curriculums" Necessary to Build a 21st Century Manufacturing Workforce, According to New Report
Manufacturers face a growing talent deficit due to an outdated education system based on 19th and 20th century principles, according to the Roadmap to Education Reform for Manufacturing. The report, coauthored by the Manufacturing institute and the National Association of Manufacturers (NAM), is a compilation of books and research related to education reform and manufacturing topics available on NAM's website.
Recent Research: International Collaborations in S&T Research Are on the Rise, According to Report
International collaboration in science and technology (S&T) research has risen over the past 15 years from approximately 25 percent to over 35 percent, according to Knowledge, Networks and Nations: Global Scientific Collaboration in the 21st Century — a new report from the Royal Society Science Policy Center.