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Week of January 15 - 21, 2007

The 2007 Global Economy: The World Bank’s View

Experts at the World Bank are fairly bullish on the prospects for the global economy in 2007. The Bank’s Global Economic Prospects 2007 report projects that growth in developing economies will continue to surge in 2007 and 2008, at annual rates of 7% and 6%, respectively. Meanwhile, growth in the developed world will increase at a slower average pace of 2.6%. Overall, the authors expect globalization to have a tremendous effect on economic growth. They predict that the size of the global economy could reach $72 trillion by 2030, more than double the current size of $32 trillion. In addition, these trends should make a major dent in global poverty rates, halving (from 1 billion to 550 million) the number of people living on less than $1 a day.

Access the World Bank report, Global Economic Prospects 2007

More on Immigrant Entrepreneurs

New research from Duke University’s Pratt School of Engineering and the University of California-Berkeley offers another take on the positive impact of new immigrants on America’s technology economy. Previous research has shown the importance of immigrants to Silicon Valley’s tech economy. America’s New Immigrant Entrepreneurs finds that this impact is not limited to California; immigrant entrepreneurs are key players in the tech economy across the US. Nationwide, 25.4% of engineering and technology companies include at least one founder who was born outside of the US. In 2005, these firms employed 450,000 workers and generated roughly $52 billion in sales. Almost 80% of these firms were located in two sectors: software and innovation/manufacturing-related services. While Chinese and Indian founders are the key players in California, the backgrounds of immigrant entrepreneurs differ by region. Not surprisingly, Hispanics are the largest portion of founders in Florida. In Massachusetts, Israelis form the largest group (17%) of immigrant company founders, and Indians form the largest group (47%) in New Jersey.

Download the January 2006 report, America’s New Immigrant Entrepreneurs, by Vivek Wadhwa, AnnaLee Saxenian, Ben Rissing, and Gary Gereffi

Massachusetts Technology Index

Massachusetts’ innovation economy is going strong, but that doesn’t mean the state’s economic challenges are all getting better. That is one main message from the tenth edition of the Index of the Massachusetts Innovation Economy. The 2006 edition finds that Massachusetts continues to lead the nation in educational attainment, and also ranks near the top in terms of attracting venture capital investments and federal R&D dollars. However, these achievements aren’t always being translated into the bottom line. The report contends that Massachusetts is not doing a good job of capturing the downstream benefits of these investments. Job growth is lagging, new company formation is slowing, and the number of local expansion state companies is also slowing. Meanwhile, high costs, especially for housing, are making it difficult for workers to live in the Commonwealth and are contributing to a population exodus. The study recommends that state policymakers focus on improving the climate for entrepreneurial businesses, increase entry-level housing stock, invest in K-12 education, and support firms trying to compete in global markets.

Access the Massachusetts Technology Collaborative’s 2006 Index of the Massachusetts Innovation Economy.

The Rise of Knowledge Regions in Europe

A new study from the European University Association takes a look at the linkages between universities and technology-intensive regions across Europe. The study compares four knowledge intensive regions: Oresund (Denmark and Southern Sweden), Manchester (UK), Brno (Czech Republic) and Catalonia (Spain). The study finds that the presence of local universities has played a critical role in the region’s economic development. Their primary impact comes from serving as the region’s leading research base, by educating students and generating research ideas. However, universities could improve on their capacities by moving beyond these core activities to transfer this knowledge and technology into the surrounding region. Generating interest in technology transfer within the university has been more difficult than expected, and universities are still struggling with how best to manage their technology transfer operations. But, observers remain optimistic that trends are moving in the right direction as ties between universities and surrounding regions become stronger and more focused on promoting regional prosperity.

Download the 2006 European University Association report, The Rise of Knowledge Regions: Emerging Opportunities and Challenges for Universities, by Sybille Reichert

More Than 200 Universities Preparing for EntrepreneurshipWeek USA

More than 200 universities will engage students to think entrepreneurially and inspire them to take on their big ideas. During EntrepreneurshipWeek USA, from Feb. 24 to March 3, 2007, entrepreneurs, educators, community leaders and students across the United States will celebrate the power of entrepreneurship with a range of activities in their campuses and classrooms. These activities include “Venture Capital Speed Dating” at Stanford University, “Philadelphia’s Entrepreneur Idol” at Temple University, and “IdeaXchange” at the University of Arizona. EntrepreneurshipWeek USA events will reach out to thousands of students, no matter what their field of study. Young people will have opportunities to interpret what entrepreneurship means to them and follow their passions outside the academic world.

EntrepreneurshipWeek USA is sponsored by the Ewing Marion Kauffman Foundation with national sponsors including The New York Times and INC. magazine. More than 700 partners are participating in events across the country. To learn more, visit www.entrepreneurshipweekusa.com.

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.

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All stories © 2006 The Public Forum Institute
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