Matthew Nemerson from the Connecticut Technology Council (CTC) will be on hand to discuss the CTC and stimulating the growth of the State's innovation economy.
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CT Technology Council - Matt Nemerson
1. Who are we? An alliance
of two venerable organizations
Combined audience of over 15,000
people and firms in the innovation
and tech-support community
Promotes growth & innovation Connects ideas and capital
17 year old State-wide trade association to 25 year old State-wide trade association to
support the technology community. support the venture and risk capital
Members include largest to small firms community to the creation of start-ups
Speak for 2,000 tech firms and the availability capital.
Global and national affiliations
Members include VCs, key service
Best practices in other states -TECNA providers, entrepreneurs
•2011 Connecticut Competitiveness Agenda
•Annual Legislative Agenda
•Women of Innovation
•Tech Top 40 Awards •Crossroads Venture Fairs
•100 Companies to Watch Awards •Entrepreneurial funding events
•Monthly PowerMatch •Regional Chapter meetings & events
•Various forums: CEO, CIO •Development of VC funds & community
•Peer to peer month roundtables •Connections to Angels and Private Equity
8. Innovation Asset Requirements
For an entrepreneurial ecosystem to flourish, the following
assets must exist within a region:
Tangible Assets Intangible Assets
• Entrepreneurial Capacity “A Buzz”
• Business Acumen Networking Opportunities
• Risk Capital Culture that is Supportive of
Innovation
• R&D Enterprise
Community Mindset
• Technology Commercialization
• Human Capital Business Climate Assets
• Physical Infrastructure Government Policies
• Industrial Base Quality of Life
• Global Linkages
9. A quick history of Connecticut
Innovation
• 17th century - Cheaper labor
– Religious intolerance and
dispensations
• 18th c – Distributed mercantilism
– Successful farms, capital, iron
deposits, access to market
• 19th c – Advanced Machinery to
compensate for lack of European
quality labor skills
– "A substitute for European skill must be
sought in such an application of
mechanism as to give all that
regularity, accuracy and finish to the work
which is there affected by a
skill...." Whitney
– Whitney > Colt > Smith & Wesson >
Winchester
– Parallel innovation of inventions &
implementations
10. The 19th Century Invention paradigm
• Cluster of inventors
• Support by expert mechanics
• Power: water & coal
• Transportation: water & rail
• Labor: immigrant and local
Samuel Colt
• Capital: New York, Boston and local
(using banks and “new” stock
corporation)
• Regulation – flirting with public
control of rail and utilities (business
inspired)
• Public investment in health, education
Elisha Root
11. Legislated innovation networks
in the 19th century
• The center was the Springfield
Armory, founded in 1794.
• It became an incubator of
technology to achieve
interchangability of parts.
• Why? Private contractors who
held government contracts had
to share their inventions
• When Sam Colt was first
studying to mass-produce
guns, the Armory was the first
place he visited.
12. 20th Century
• New York Ex-urbs
• No Income Taxes
• Connecticut Throughway (I-
95)
• Successful small towns &
schools
• Major industries with large
supply chains
– Aero-space
– Finance
– Insurance
13. Positive
attributes
Negative
results
Source: Kauffman Foundation and ITIF, 2010 State New Economy Index.
*Gazelle Jobs taken from Kauffman Foundation and ITIF, 2008 State New Economy Index.
The Connecticut
Why the disconnect? INNOVATION
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ECOSYSTEM
14. The share of CT’s jobs in high tech
sector is declining
State Share of Jobs in
High Tech sector,
U.S. Rank 2008
Massachusetts 1
Maryland 4
New Hampshire 6
Washington 7
Connecticut 18
Source: AeA, Cyberstates 2008 (Washington DC: 2008) and AeA, Cyberstates 2001 (Washington DC: 2001).
15. While young companies create most
jobs, older ones lose them
Connecticut, 2008 Employees % of Jobs CT Rank
Stage 1 (2-9) 30% 34
Stage 2 (10-99) 33% 44
Stage 3 (100-499) 14% 23
Stage 4 (500+) 15% 7
Source: YourEconomy.com. Edward Lowe Foundation.
16. Need to increase startups and stage 2 growth
-5,000 +55,000
-20,000
+250,000
(c) CTC 2010 16
17. The Connecticut Paradox
“Personally, I love it here, but it’s not a good place for my
business.” - Connecticut CEO of a fast growing firm
So firms stay until beyond their comfort point and then often
leave or find themselves underperforming. Intervention is
needed earlier and start-up roots need to be explored and
reconnected.
CEO feelings about Connecticut
It is very good for my company here 28%
It is not good for my company to stay here 14%
It’s great for me personally, and it’s OK for my business for now 59%
18. Why not Connecticut? CEOs said…
Mentioned in
Issue Interview
State (or Governor) doesn’t know my company and does not 72%
know how to help me. Others state’s seem more on top of my needs
University Research – Hard to connect with professors, grad students and 66%
labs; tech transfer complicated. I do better with other state’s universities.
Connections & Networks – Regional innovation networks are frail or non- 62%
existent, hard for young talent to find us, highway makes it hard to get to NYC or the
world quickly, squandering our great location.
Risk Capital – Seems harder to get here and investors are not as excited about
62%
my industry
Critical Mass – Not enough other entrepreneurial companies like mine. Top
55%
competitors are elsewhere. Need to be in the center of the action for future success.
Will be harder to recruit top people, customers and investors.
Is it Worth the Cost? – My objective is growth, not cost-minimization: high
45%
cost worth it if the environment is world class for growth and key employees. This
competitiveness is not something people think about a lot here.
19. What we need to grow jobs
• Strong networks – where people know each other
through out the region
• Contented CEOs - who recommend the state to
their best friends
• Venture investors - who move their best firms to
Connecticut and take higher risks on our start-ups
• Synergies - Agencies, organizations and
institutions that collaborate and create
partnerships
20. The Innovation Job Growth Eco-system
New jobs come from a
deliberate process that Venture
requires many parts of a
puzzle to contribute and Later state Jobs >
be better than other Early Stage
Growth
Technology
locations at each step… Seed
Angel
Transfer
Investors
Corporate
Spin Outs SBIR Incubators
Innovation
University
Validation Accelerators
R&D
Skilled Networks
Workers Associations
Mentors
Entrepreneurs Students
Grants
Government
Incentives
Infrastructure – Global connections
Image – Global perceptions 20
21.
22. So, Connecticut’s venture capital
community focuses elsewhere
The percent of venture capital managed in Connecticut that is invested in-state is
lower than in competitor states
Source: Sources and Targets of Venture Capital Investments 2009, National Venture Capital Association, PriceWaterhouse Coopers
23. An innovation virtuous cycle
1. Policy and
culture
8.
2.
Transportation Technology
& Broadband
& Ideas
7.
Global Jobs + 3. Risk
Connections and
Branding Growth Capital
6. Networks, 4.
Entrepreneurs Acceleration
& Human Cap. & Facilities
5. Gov’t
Incentives
24. Angels,
Launch
Reps Capital
from the Stamford
4 Hubs Innovation
Venture Center Yale &
Funds UConn
Advisory
Board CROG, IP
Sub- Factory, CT
Group of New Haven Innovations,
Planning Econ Dev Startup CDA, CEFIA
Group Entrepreneurs, Corp. & SBIR
Connecticut
Stage 2 CEOs
Planning
Board
Serial CERC,
A combination of Entrepreneurs Connstep
& Ent. &
Entrepreneurs, NGOs, G Foundation CCAT
overnment and business
leaders working together CURE,
BEACON & CTC &
CT Science CVG
Center
The Connecticut
A diverse planning group INNOVATION
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ECOSYSTEM
25.
26. Goal 1 – Fostering high potential Start-Ups Goal 2 – Assisting Stage 2 firms
1. Business plan competitions 1. New Technology, customer needs and marketing analysis
2. Accelerators (e.g., TechStars) 2. Connections with larger firms & new supply chains
3. Virtual Incubators 3. Proof of concept contracts with state agencies
4. Building Based Incubators 4. Grants and debt availability
5. Funding (Grants, stipends, Pre-Seed investments, Angel 5. Regulatory relief and help
connections, etc.) 6. Young talent, Job Training and matching
6. Retention Efforts for growing firms 7. Build a retention strategy and mechanism
7. Sponsored research programs for idea and product 8. Opening up universities to collaboration
development between companies and in-state schools 9. Sponsored research programs for idea and product
8. Proof of concept Center with labs--Gov’t as market development between companies and in-state schools
maker
9. IP Factory and corporate networks 10. Proof of concept Center with labs--Gov’t as market maker
10. Student Teams and Interns Programs 11. IP Factory and corporate networks
11. Mentors Network, recruitment, training and matching 12. Student Teams and Interns Programs
12. Entrepreneurs-In-Residence 13. Mentors Network, recruitment, training and matching
13. “Rent a CxO” and turn-key management capacity for 14. Entrepreneurs-In-Residence
qualifying early stage concepts and firms 15. “Rent a CxO” and turn-key management capacity for
14. Serial Entrepreneur Fellows – Global Attraction Program qualifying early stage concepts and firms
15. Professional Services matching and pro bono bank 16. Serial Entrepreneur Fellows – Global Attraction Program
16. Place-making and infrastructure such as i-TOD efforts to 17. Professional Services matching and pro bono bank
build a critical mass and a competitive set of locations 18. Place-making and infrastructure such as i-TOD efforts to
17. Branding and image coordination build a critical mass and a competitive set of locations
18. Key labor matching and procurement programs 19. Branding and image coordination
19. Technology training programs (i.e. CCSU, CC) 20. Key labor matching and procurement programs
20. State, regional and hub based networking programs 21. Technology training programs (i.e. CCSU, CC)
22. State, regional and hub based networking programs
Programs were selected and then prioritized by a process of expert surveys…
The Connecticut
Looked at all the programs in the state INNOVATION
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ECOSYSTEM 26
27. Group ranked the programs on key attributes
Managed at Hub Level
Place Networking
Making Programs
Rent-A-
CxO
Entrepreneurs
Young Talent,
in Residence
Private Funding
Training,
Sponsored Building
Public Funding
Serial Matching
Research Programs Incubators
Entrepreneur University/ Student Teams
Proof of
Fellows Industry & Interns
Concept Ctr.
Collaboration
Accelerators
Virtual
Retention Tech, Prof.
Incubators
Connect-ionsStrategy Customer, Services
Mentors Network IP Factory
to Large Firms
(Stage 2) Key Labor Mkt. Analysis Matching
B-Plan
Matching
Competitions
Grants & Debt
Retention Efforts
STEM Programs
(Startups)
Reg. Relief
& Help
Creating
Markets Branding
Funding
27
Managed at State Level
28. Fairfield
County
The Connecticut
Think about the geography of the system INNOVATION
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ECOSYSTEM 28
29. Tracking
<Data
Systems
Collection
For
Business Database with,
Startup
Portals, DB company info, NAICs and
Connecticut growth information by company
s and [SOTS]
Innovation
Knowledge
Ecosystem
base>
Track goals
Hubs &
programs: Comprehensive web Statewide knowledge-
portal and tracking system base (iHub) to make
objectively & for incoming business people, resources, special
subjectively requests and needs skills, etc. findable when
[DECD] needed [CI/Startup CT]
Cluster
Advisory
Groups
The Connecticut
Interconnected tracking systems INNOVATION
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ECOSYSTEM
31. Hub Model
The Connecticut
Model how the Hubs might work INNOVATION
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ECOSYSTEM31
32. 1. Success should be actual growth and jobs
- Goal 1 – 50 high potential startups each year
- Goal 2 – 75 “stage 2” firms assisted each year
2. Change culture of relationship between
business and government
- Agility, rapid cycles of program changes and
improvement
- Culture of experimentation and
collaboration
The Connecticut
Set goals to measure a performance INNOVATION
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ECOSYSTEM
34. Upbeat thoughts to close on…
• Environment favors Connecticut
– Water, warming, regulations
• Density can go up
– Our cities are small and have capacity
• Intra-Regional transportation
– Metro-North and Amtrak can expand
• Housing stock is strong and well built (if old)
• Near population centers of youth & talent (NYC, Boston
and Washington)
• But…Need to focus on growth and changing population
35. Stamford and New Haven do well
versus other hip small cities…
Percentage of Population 25-39
Source: American Community Survey
35
33
31
29
Stamford
27 Austin
New Haven
25
Minneapolis
23 Durham
Boulder
21
19
17
1990 2000 2005 2007 2008
37. Emerging Markets 2012
• Decision Engines – Discovery fueling invention and purchases
• Collaborative Commerce – Community sharing, bartering, lending, renting and
gifting
• Customization – Uber personalization
• True Mobility – Leaving the PC behind
• Creativity – Inspiration from the Everyman
• Urban Farming – Local, local, local
• Gamification – Revolutionizing customer engagement
• Design – Pretty goods for the masses
• Extreme Fitness – Boot camps and mud runs to beat workout boredom
• Jobs – Rescuing the unemployed
• The One to Watch: Unmarrieds – Catering to Singles
38. Where Do Good Ideas Come From: The Natural
History of Innovation, Steve Johnson 2010
Notes de l'éditeur
In The Roots of American Industrialization Meyer reexamines previous studies, provides new evidence, and presents a new explanation. He argues that agriculture and industry both grew and transformed, thus constituting mutually reinforcing processes. Eastern agriculture thrived from 1790 to 1860, and rising farm productivity permitted surplus labor to enter factories and provided swelling food supplies for growing rural and urban populations. Farms that were on poor soil and distant from markets declined, whereas other farms successfully adjusted production as rural and urban markets expanded and as Midwestern agricultural products flowed eastward after 1840. Rural and urban demand for manufactures in the East supported diverse industrial development, and prosperous rural areas and burgeoning cities supplied increasing amounts of capital for investment. Metropolitan regional hinterlands around Boston, New York, Philadelphia, and, to a lesser extent, Baltimore, experienced broadly similar transformations of agriculture and manufacturing, forming the eastern anchor of the American manufacturing belt.
As rich state Connecticut needs high salary & benefit jobsValue added Industrial traded jobs” decline in numbers due to productivity gainsNew “post-industrial” high tech jobs needed Potential exists, but job growth means income loss. Connecticut must compete in at top of knowledge sectors by promoting entrepreneurship.There is no central organizing force to create an culture of innovation – many groups organized for that purpose are political, parochial or operate in a spirit of scarcity.
Funding Retention EffortsAcceleratorsBusiness plan competitionsIncubatorsEntrepreneurs in ResidenceMentor networksOpening universities to collaborationSkilled workers, key talentGrants & debtRetentionRegulatory ReliefConnections to larger firmsMarket intelligence & assessments