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Week of August 7 - 13, 2006

Welcome to the National Dialogue on Entrepreneurship, an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving the innovation economy. Subscribe now to receive your weekly copy. Archived issues are available online. Links to the day's entrepreneurship stories from across the nation and around the world are posted each weekday on the NDE main page - bookmark it and stay informed about the latest entrepreneurship news.

Lack of Exposure and Social Networks Hinder Patenting by Women

Male academic scientists in the life sciences secure patents at more than twice the rate of their female colleagues (13% to 5.65%), according to an analysis sponsored by the Ewing Marion Kauffman Foundation. An analysis of related data in Gender Differences in Patenting in the Academic Life Scientists, published in the August 4 issue of Science magazine, concluded that there is no evidence that women do less significant scientific research based on standards of scientific impact. Rather, the most significant contributors to the large gender gap was the lack of exposure and social networks by senior women scientists to the commercial sector, as compared to their male colleagues and, concern among women scientists that pursuing commercial opportunities might hinder their university careers. On a positive note, however, the report reveals that younger women scientists, similar to those of their male colleagues, view patents as accomplishments and as a legitimate means to disseminate research, which may result in a narrowing of the patenting gender gap over time.

Further information about the study can be downloaded at www.kauffman.org.

Federal Agencies Slammed on Set-Asides

A new report from Democratic members of the House Small Business Committee is highly critical of Federal small business set-aside contracting practices. According to the study, nearly $12 billion in contacts have been mislabeled as small business set-asides. In reality, these contracts were awarded to large corporations, universities and non-profits. With this new data, the report claims that federal agencies provided only 21.5% of their contracts to small businesses, missing President Bush’s target of 25%. Overall, the report notes that Washington’s small business support efforts warrant a “D” grade. Twelve federal agencies also received failing grades for their poor performance in small business contracting, with the Departments of Education, Energy, and the US Agency for International ranking as especially poor performers. Rep. Nydia Velazquez (D-NY) has formally asked the Government Accountability Office to investigate these practices and to suggest ideas for improving the small business contracting process.

To learn more about the July 2006 House of Representatives Small Business Committee Democratic report on small business set-asides, Scorecard VII, visit
http://www.house.gov/smbiz/democrats/PressReleases/2006/pr072606.htm.

The European “Enterprise Experience”

If you’ve ever been asked to think of a “typical entrepreneur,” it’s highly unlikely that a vision of a European Union (EU) bureaucrat popped into your head. Unfairly or not, EU ministers and staff are better known for writing regulations than for acting in an entrepreneurial manner. A new EU experiment—the Enterprise Experience—is seeking to change these expectations. Working with European business trade associations, the EU Enterprise Directorate plans to place 350 of its personnel in one-week work experiences with small businesses. While this short session is unlikely to spawn new entrepreneurs, it should help expose EU bureaucrats to the many challenges facing small business owners and hopefully encourage them to consider a more “entrepreneur-friendly” approach in future decisions and regulations. This interesting idea seems worthy of adoption elsewhere.

To learn more about the European Union’s proposed “Enterprise Experience” program, visit
http://www.euractiv.com/en/innovation/civil-servants-get-hands-sme-experience/article-156800.

The Power of Venturesome Consumption

President Bush often encourages Americans to go out and consume as a way to help stimulate the economy. This consumption may also be good for innovation, according to Columbia University professor Amar Bhide. In a new research paper, Bhide touts the power of “venturesome consumption,” an interesting form of downstream innovation. According to Bhide, most innovation does not occur through “upstream” investments in R&D and technology. Instead, these innovation inputs are combined with input, knowledge and ideas from venturesome consumers who help refine and improve new products and services. The traditional pipeline model (from R&D to prototype to new product) no longer applies. Innovation instead occurs via complex interactions of both upstream and downstream inputs. Bhide contends that America gains a great competitive advantage from the willingness of its consumers (firms and individuals) who are willing to take a chance on new products and services. Their openness to new things is a major drive force behind innovation in the American economy.

To access the July 2006 Working Paper, “Venturesome Consumption, Globalization, and Innovation,” by Amar Bhide, visit http://www.bhide.net/bhide_venturesome_consumption.pdf.

The Future IT Workforce

A new special report in ComputerWorld offers some interesting insights on what the future information technology (IT) workforce may look like. A hint—geeks with pocket protectors need not apply. In a survey of more than 1000 IT professionals, ComputerWorld found that outsourcing and keeping skills up to date are the biggest career challenges in the field. These pressures are unlikely to let up. This means that many key technical skills and jobs—such as nuts and bolts programming---may continue to move overseas. “Versatalists” will be in greater demand. These individuals may have a technical background, but will also understand how business operates and how to build networks inside and outside the company. Creativity, collaboration and entrepreneurial skills will become more important. If techies want to remain in the IT field, experts suggest that they stretch out of their “comfort zone,” and learn new skills and competencies.

Access ComputerWorld’s Special Report, “The IT Profession: 2010.”

The Continuing Self-Employment Boom

New Census Bureau figures confirm what many experts have long suspected. The US is in the midst of a major boom in self-employment. 2004 data show that 19.5 million Americans are self-employed, and their numbers are growing. Between 2003 and 2004, the number of self-employed grew by 1 million   (about 4.7%). Overall, these businesses without employees account for 70% of all US businesses and generate annual receipts exceeding $887 billion. E-Bay is clearly having an impact as electronic shopping and mail order houses are among the fastest growing sectors (up 12.7%) for new self-employment ventures. Even faster growth can be found among building finishing contractors (up 22.5%), Internet service providers (up 18.7%) and nail salons (up 14.7%).

The July 2006 U.S. Census Bureau report, Nonemployer Statistics 2004, can be accessed at: http://www.census.gov/prod/2006pubs/ns0400a01.pdf.

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All stories © 2006 The Public Forum Institute
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