Entrepreneurship as a National Security Initiative

Entrepreneurship as a National Security Initiative April 24, 2009 Richard Boly, National Security Affairs Fellow, Hoover Institution [email_address]

- Entrepreneurship & terrorism: two sides of the same coin - Context matters - Fatalism vs. self-determination - Entrepreneurship IN Government (an aside) - A case study of a replicable model for nurturing elements of the entrepreneurial ecosystem - Lots crammed into a short talk What to expect:

[object Object],Sautet, Frédéric. "The Role of Institutions in Entrepreneurship: Implications for Development Policy." Mercatus Policy Series Policy Primer , February 2005. norms laws & regulations norms laws & regulations “ non-virtuous entrepreneurship” e.g. Mafia, Camorra, 'Ndrangheta, terrorism “ virtuous entrepreneurship” e.g. Silicon Valley, United Way, Craigs List

Terrorists’ University Degree Source: Gambetta, D. and Hertog, S., “Engineers of Jihad” Sociology Working Papers, University of Oxford 2007 (404 members, 30 nationalities, 9 large groups)

Does Success Depend on Forces Outside Our Control? Source: Pew Global Attitudes Survey, Oct. 2007

The Sea Star & the Spider The Apache & the Inca The Starfish and the Spider , Brafman, O. and Beckstrom, R. 2006 (Aside)

[object Object],[object Object],[object Object],[object Object],Assumptions/Empirical Questions:

Entrepreneurial vs. Bureaucratic Capitalism Entrepreneurial Capitalism - Schumpeter’s “creative destruction” - Messy, bottom-up, unplanned - Private actors create new venture ecosystem - Government creates positive policy framework Bureaucratic Capitalism - National champions - Centralized, top down, negotiated industrial policies - Job preservation, not job creation - Sacrifice growth for stability - E.g. Failure of EU’s Lisbon Agenda

Source: Carl Schramm, “Building Entrepreneurial Economies,” Foreign Affairs , July 2004

[object Object],[object Object],[object Object],[object Object],Case Study: U.S. Mission Italy’s Partnership for Growth Building the “New Venture Ecosystem”

Move Research to Market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Italian Academics for Entrepreneurship Raffaele Oriani LUISS Guido Chiarotti SISSA Stefano Fantoni Director, SISSA Alberto Di Minin Sant’Anna Francesco Sacco Bocconi Paolo Cremonesi Milan Politecnico Leo Miglio Milan Bicocca Stefano Zambon U. of Ferrara Max Bergami ALMA Graduate School Paolo Milani U. of Milan Ruggero Frezza U. of Padova Chiara Franzoni Turin Politecnico Rosa Grimaldi U. of Bologna Roberto Guerrieri U. of Bologna Manlio Del Giudice UNISOB, Naples Alessandro Sannino U. of Lecce Ferruccio Fiordispin SIAF Volterra

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Grow Risk Capital Markets

Spur Innovation by strengthening the Intellectual Property Rights (IPR) regime ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Does Success Depend on Forces Outside Our Control?

Create and Promote Italian Entrepreneurial Role Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Università di Torino Università di Genova Università di Bolzano Università di Padova Politecnico di Milano Università di Brescia Suor Orsola Benincasa Università del Sannio Università La Sapienza Università Tor Vergata Università Roma Tre Luiss Università Face2Face: Capturing Creativity Università II di Napoli Università di Camerino Università della Calabria Università di Lecce Università di Trento Università Bocconi Università di Firenze Università di Pisa Scuola S. Anna Participating Universities Università di Catania Università di Pavia Università di Ferrara ALMA Graduate School Politecnica delle Marche Università dell’Aquila Università di Bari Università di Palermo Università di Udine Università di Milano, Bicocca

President Bush Meets with First Generation Entrepreneurs, Fulbright BEST Scholars June 13, 2008, Rome, Italy

Institutionalizing and Spinning Out: A Sustainable Future for the P4G Partnership Summit, May 20, 2008, Venice Ambassador Ronald Spogli 15 Partner Organizations 300 Policy Makers, Entrepreneurs, and Media

Terrorist Kidnappings + Killings Per Capita (excluding Iraq, Afghanistan) Source: Geoff Lewis, Fortune, June 2007 Source: National Counter Terrorism Center, 2007 Report 15 29 51 (Entrepreneurial Rank out of 53 Countries) 46

[object Object],[object Object],[object Object],[object Object],Promoting Entrepreneurial Capitalism Some Possible Candidates Countries (not exhaustive):

Next Steps: ,[object Object],[object Object]

Richard Boly, National Security Affairs Fellow, Hoover Institution [email_address] Thank You Questions?

Entrepreneurship as a National Security Initiative

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