New Venture Development: How to be a Hometown Hero Randy Goldsmith, PhD

Importance of Innovation “The interaction of technological innovation with the competitive marketplace is the fundamental driving force in capitalist industrial progress.” Joseph Schumpeter, 1942

U.S. Comparative Advantage Innovation Productivity Quality of Life

Economic Progress Mercantile Factory Corporate Knowledge Productivity New Economy Old Economy Steam Steel Electronics CIT Real PPCI Education Life Span Health Gov Serv QOL New Economy Innovation Transformation

Economic Progress Biology Chemistry Physics Engineering Energy Transportation Communications Materials Bioscience Innovations Companies & Jobs Economy Education Government Recreation QOL Discovery Transfer Development Transform New Entrepreneurs The Agents of Change

Economic Research “Small firm establishment births have a larger impact than any other factor examined on gross state product, state per capita income, and total state employment. Donald Bruce, SBA “A distinction between technology- and knowledge-intensive industries and the remaining industries demonstrates that the positive (economic) impact is based upon an enhancement of new innovative ventures.” P. Mueller, Small Business Economics

High-performance, Innovation Intensive Enterprises (HPPIEs) High performance: 2X jobs, 2X revenues Age range: years Total # companies: 375,000 (2.3%) Size: All (<20 employees = 94%) Location: 77% urban, 23% rural Industry sector: All HPIIEs account for virtually ALL new growth in US economy Source: SBA: Gazelles Revisited

Average HPIIE Entrepreneur 40 years old 70% married 60% have 1+ children 72% middle class 95% bachelors degree

Hometown Hero

INVICTUS MEDICAL, Inc Daniel Mendez Founder

Hero’s Corporate legal - free Intellectual property filing - free Marketing plan - free FDA clinical plan – deferred payment Mentors – free Office space – free Public relations - free

X Pluripotent Cord Blood Stem Cells

Hero’s

Science, Nature and TIME magazine each proclaimed it one of the most significant and exciting scientific breakthroughs of Rapamycin Holdings, Inc. George Fillis, CEO 2012

Hero’s

Critical Community Factors for Entrepreneurs Availability quality work force. Availability quality management. Access to expansion capital. Overall regional economic health. Overall standard of living. Entrepreneur support organizations. Access to alternative financing. Quality K-12 schools. Availability of qualified service providers. Access to seed capital. Council for Entrepreneurial Development

A Model for Change An Innovation Ecosystem Service Providers Capital Entrepreneurial Network EntrepreneursTechnologyNetworks Collaborate Communicate Participate

Emerging & Converging Biotechnology Nanotechnology Energy Photonics The Era of Innovation

Shifts in Small Company R&D R&D Share5.9%20.7% Spending$4.4 Billion$40.1 Billion Increasing Role Small Ventures

Large Hadron Collider

First High-Energy, Man-Made- Particle Collision

Brain-machine Interface Source: Scientific American Duke University Center for Neuroengineering

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