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April 16 - 22, 2007

Speeding from University Labs to the Marketplace 

The existing system of commercializing innovation is based on a “home run” mentality where universities only focus on patenting and licensing technologies that offer the promise of a bigger payback – and that mentality likely impedes the development of new technologies. In a report released last week at the Innovation Policy and the Economy Summit, Ewing Marion Kauffman Foundation researchers argue that university leadership must refocus from a patent/licensing model that seeks to maximize income to a volume model that emphasizes the number of university innovations and the speed at which they are commercialized. According to the report, multiple pathways exist that can provide broader access to innovation, allow greater volume of deal flow, support standardization, decrease redundancy of innovation, and shorten the cycle time for commercialization. These models include open source collaboration, copyright, non-exclusive licensing, and a focus on developing the social networks for graduate students and faculty to commercialize all types of innovations.

Access the National Bureau of Economic Research (NBER) working paper “Commercializing University Innovations: A Better Way” by Robert Litan, Lesa Mitchell, and E. J. Reedy of the Kauffman Foundation.

U.S. IT Lead Slipping?

A new report from the World Competitiveness Forum contains some sobering news for America’s information technology industry and its supporters. The Forum’s Global Information Technology Report 2006-2007 ranks 122 countries on their capacity to develop, support, and disseminate new information and communications technologies (ICT). The report includes a Network Readiness Index that assesses the preparedness of countries to use ICT across three broad issue areas: general business, broader ICT infrastructure, and the capabilities of individuals, businesses, and government to use and benefit from ICT advances. Denmark emerges as the front-runner on these measures, followed by (in rank order): Sweden, Singapore, Finland and Switzerland. The US position (No. 1 in last year’s rankings) dropped to seventh place. The declining performance was attributed to “the relative deterioration of the (US’s) political and regulatory environment.” The US still maintains a dominant position in various measures of innovation capacity.

Access the March 2007 World Competitiveness Forum report, Global Information Technology Report 2006-2007

Bohemians on the Farm?

George Mason University researcher Richard Florida has garnered a lot of press for developing the concept of the “creative class,” innovative, talented people who use creativity, new ideas, and technology in their daily work. When many people think of the creative class, they think of hip urban areas or high tech hot spots like Silicon Valley. But, the creative class is also a key component of rural America’s economy. A new study finds that metro areas have a higher proportion of individuals who work in “creative class” occupation, but high concentrations of the creative class can also be found in some rural areas -- especially those with scenic amenities. The research also shows that non-metro economies with more creative class occupations also perform better. These regions have faster growth rates, as well as higher rates of patent formation and adoption of new manufacturing technologies.

Access the U.S. Department of Agriculture Economic Research Service (ERS) study, “The Creative Class: A Key To Rural Growth,” by David A. McGranahan and Timothy R. Wojan

Hot New Franchise Opportunities

The April issue of Entrepreneur magazine includes a list of the top 50 new franchises of 2007. Franchising can be an important part of the entrepreneurial experience, and many new business owners opt for franchising as a strategy for business start-up. The list of America’s top franchises generally includes household names like Curves or Subway or McDonald’s. You probably haven’t heard of many of the companies on the list of top new franchises, but their businesses offer a unique look at what’s hot and trendy for American consumers. If this year’s list is any indication, eBay-related businesses and gourmet food are hot. The list of 2007’s top franchises are (in rank order): iSold It (eBay drop-off stores), United Shipping Solutions, Massage Envy, Super Suppers, and Dream Dinners.

“Rising Starts: Introducing the Top 50 New Franchises of 2007” appears in the April 2007 issue of Entrepreneur magazine and is available on-line at www.entrepreneur.com.

Regional Innovation Projects in Europe

A new European Union study offers a series of interesting case studies of various regional innovation projects now underway across Europe. The report includes case studies of programs in four broad areas: knowledge transfer and technological innovation, information society, and innovation for sustainable development. The study includes two-page summaries of several dozen programs; complete case studies are also available at a partner web site.

Access the March 2007 European Union report, Examples of Regional Innovation Projects: Programmes for Innovative Actions, 2000-2006

Supporting Innovation in Australia

A new Australian government-sponsored report examines the role and importance of public support for science and innovation. The Australian Productivity Commission undertook this research study to assess the societal dividends generated by public investments in science and technology. The report finds that these investments generate significant benefits for the Australian economy, but that Australia still lacks the ability to effectively track these impacts. It also found that Australia’s programs to support private-sector innovation require significant overhaul. For example, the R&D tax concession should be targeted to supporting smaller businesses. In addition, programs for commercialization from government agencies and universities need to be streamlined and strengthened.

Access the March 2007 Australian Government Productivity Commission report, Public Support for Science and Innovation

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 © 2007 The Public Forum Institute
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