Strategic Entrepreneurship: US Environment & Reality Demetri Kantarelis, Ph.D. Professor of Economics Department of Economics & Global Studies Assumption College 500 Salisbury Street Worcester, MA , USA Tel: , Fax:

HIGH-IMPACT ENTREPRENEURS V. ECOSYSTEMS NETWORK ECONOMIES II. ESTABLISHED LARGE FIRMS 1. BUYERS 2. INVESTORS 3. ACQUIRERS 4. SUPPLIERS OF HUMAN RESOURCES I. FUNDING 1. VENTURE FUNDS 2. CAPITAL DEMOCRATIZATION 3. PERSONAL SAVINGS III. GOVERNMENT 1. R&D GRANTS 2. BUYERS IV. UNIVERSITIES 1. TRANSFERERS OF TECHNOLOGY 2. SUPPLIERS OF HUMAN RESOURCES Tax revenue a. Endowments b. Government R&D Grants a. Equity b. Debt

Distribution of Firms in the USA SizeNumberSales ($1,000) Small (no employees)21,708,021991,791,563 Large6,049,65529,746,741,904 Data source:

Firms in Patent Database SizeNumber Patents Patents Percent Growth Citation Index (1=expected value) Small50412,30318, Large760208,250229, ,264 Data source:

Environment & Data Small  More Invention  More Opportunity Large  More Innovation  Competitive Advantage

Small Firms Large Firms Opportunity Competitive Advantage 0 Strategic Direction

Strategic Direction? Imitate Singapore, Hong Kong, Israel How about building a Charter City? Design incentives to promote “opportunity” (O) and “competitive advantage” (CA) e.g., Institute a new business subsidy (grant) as a positive function of O and CA