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Week of October 1 - 7, 2007 |
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Young Innovators Dazzle at DEMO |
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Angel Investing Numbers Take Slight Drop
Last week, we reported that
members of the Angel Capital Association were experiencing an increase
in the quantity and quality of investment proposals. Another review of
angel investing, this one from the Center for Venture Research at the
University of New Hampshire, finds that overall spending by organized
angels dropped slightly in the first half of 2007. The report shows
total financings for 2007’s first two quarters reached $11.9 billion, a
six percent drop from the same period in 2006. Both deal size (down 4%)
and the number of investors (down 10%) also dropped. Finally, the number
of deals (24,000) is also a slight dip (down 2%) from 2006. Angel
investors are still America’s largest source of seed and start-up
capital, but even angels are beginning to look at later stage deals with
more dollars going to post-seed stages. Finally, the study contains some
interesting demographic data. Women now account for 13% of angel
investors, while minority angels make up five percent of the total. |
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Regional Development: Where Do Universities Fit?
A new Organization for
Economic Cooperation and Development (OECD)-sponsored research paper
provides an excellent literature review of the many ways that
universities affect a region’s economic development prospects. The study
delineates four key roles for higher educational institutions: as
anchors of regional innovation systems; as providers of lifelong
learning opportunities; as partners in regional governance; and, as
promoters of sustainable development strategies. The research reviews
both the theory and practice in each of these areas. It concludes by
noting that universities can no longer sit apart from other local actors
as an “ivory tower.” As knowledge and innovation become more important
components of regional development, the role of universities, and access
to their resources, will become critical social issues. |
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New Federal Financing Programs Move Forward
Last month, the House of
Representatives Committee on Small Business approved passage of H.R.
3567, the Small Business Investment Expansion Act of 2007. This
legislation, introduced by Congressman Jason Altmire (D-PA) revises a
number of federally-backed small business investment programs. First, it
revives the New Markets Venture Capital program, an effort designed to
create new investment vehicles in distressed areas. This program began
under the Clinton Administration, but was not continued under the
current Administration. The bill also revamps the Small Business
Investment Company (SBIC) program to make more dollars available for
small businesses, and creates a new Office of Angel Investment at the US
Small Business Administration (SBA). While the bill has strong
Congressional support, it faces opposition within SBA and from the Bush
Administration. Thus, its chances of enactment this year are relatively
slim. However, the bill’s progress is further indication that
Congressional Democrats plan to push SBA and the Bush Administration to
consider more aggressive efforts to support America’s small business
owners. |
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Where Do U.S. Inventors Come From?
New immigrants and
foreign-born researchers are becoming a critical part of America’s base
of new inventors, according to a new paper by Harvard Business School
professor William Kerr. Kerr’s research is based on name-matching
techniques that seek to assess the ethnic heritage of inventors based on
their names (e.g. Smith is deemed an English name; Chang is deemed a
Chinese name). Using this technique, Kerr finds that the number of
“English-named” inventors has steadily declined since 1975 from 83% to
72% of total patents. Meanwhile, the Chinese and Indian share of
inventions (2% in 1974) has risen, respectively, to 8% and 4% of total
inventions. When one looks at inventions by a researcher’s institutional
background, an interesting trend emerges. In the 1970s and 1980s, most
non-English-named researchers were based in universities or government
labs. Today, these researchers are just as likely to be found in private
firms, providing another indicator of the rise in ethnic
entrepreneurship. |
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Government contracting
continues to be a lucrative business, at least for Washington
Technology’s Fast 50, the fifty fastest growing government
technology contractors. This year’s winner, Oberon Associates (of
Manassas, VA), is owned by two veterans, Jodi Johnson and Daniel Young,
who started the firm in 2002. Oberon has since grown to 400 employees
with $48.4 million in government revenue. Not surprisingly, most of the
Fast 50 are located in the Washington, DC metro area. Washington
Technology also profiles the largest 8(a) minority contractors. As in
the past few years, companies owned by American Indian tribes and Alaska
Native Corporations dominate this list. Indeed, the top five firms on
the Washington Technology 2007 Top 25 8(a) companies are owned by Alaska
Native Corporations. |
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The National Dialogue on Entrepreneurship is 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 entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online. |
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National Dialogue on Entrepreneurship
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stories © 2007 The Public Forum Institute
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