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Creating Regional Wealth in the Innovation Economy: Models, Perspectives, and Best Practices

Book Description

Drawing on extensive new research through dozens of interviews with entrepreneurial champions in diverse sectors, Creating Regional Wealth in the Global Innovation Economy pinpoints the key reasons why some locations succeed in the quest to become centers of technology and innovation - and sustain their competitive advantages over time - while others fail. It answers the central questions about the world's entrepreneurial hotspots: What makes these locations special? How can local business and government organizations most effectively promote local entrepreneurship? And what can budding centers of entrepreneurship do in order to enter the game?

Table of Contents

  1. Copyright
    1. Dedication
  2. Praise for Creating Regional Wealth
  3. Financial Times Prentice Hall Books
  4. FINANCIAL TIMES Prentice Hall
  5. List of Tables
  6. Foreword
  7. Preface
    1. Acknowledgments
  8. Introduction
  9. About The Authors
  10. 1. The Innovation Economy
    1. Knowledge Without Borders
    2. Deregulation and Greater Risk Are Requisites to Regional Participation
    3. Speed: A Most Valuable Currency
    4. Regionalization of the Innovation Economy
    5. Universal Adoption of English and Free Access to Information is Transforming the World
    6. Endnotes
  11. I. Silicon Valley: The Magnetic Force
    1. 2. Global Entrepreneurs and Marketing of Multinational Companies
      1. A Playground for Skilled Knowledge Workers
      2. Educational Institutions Are Partners in Creating Intellectual Capital for the Region
      3. Industry Evolution, Job Hopping, and Mobility
      4. Highly Skilled Immigrants
      5. Transnational and Multilocation Job Sharing Enables the Region to Extend its Power and Wealth
      6. What's Next for Silicon Valley?
      7. Global Entrepreneurs: Leaders in Creating IE Enterprises
      8. Israeli Military Brain Cultivation Becomes a Silicon Valley Harvest
      9. Silicon Valley: Branding Headquarters for the Innovation Economy
        1. What Is Positioning and Why Is It So Important in the Innovation Economy?
        2. The Difference Between Commercial Product Positioning and Technology/Regional Positioning
      10. Agilent Technologies as the Poster Child of the Innovation Economy
        1. Establishing a New Brand with a Separate, yet Familiar Identity
        2. Defining the Problem
      11. Endnotes
    2. 3. Linking Organizations: Non-Government Organizations, Strong Regional Business Associations, and Philanthropies
      1. Business Linking Organizations For Networking: Focus on TiE
      2. Business Associations Can Help Address Regional Issues
        1. Transportation, Housing, Education, and Energy — Focus on The Silicon Valley Manufacturers Group
        2. Business Associations in Partnership with Government Attempt to Address Regional Issues
      3. Giving For the Public Good, Silicon Valley Style: Focus on The Entrepreneurs Foundation
      4. Venture Philanthropy — What a Concept!
      5. The Young Venture Philanthropy Entrepreneurs
      6. Endnotes
    3. 4. Local Government Working in Partnership with Business
      1. Regional Cooperation to Streamline Government Using an Online Permitting System
        1. Jumping Through Hoops
        2. Government Collaborating with Business to Work in a Mutually Beneficial Partnership
        3. What Is Smart Permit?
      2. Summary
      3. Endnotes
  12. II. Irelandthe Enterprise Isle
    1. 5. Enterprise Spirit and Trade Union Social Contract
      1. Ireland: Europe's High-Tech Hub
      2. Economics: Common Sense and Cash from Europe
      3. Social Partnership, Irish Style
      4. The U.S. Connection
      5. The Irish Enlightenment: Dovetailing Technological Progress and Government Policy
      6. Education: The Key to Sustained Competitive Advantage
      7. Irish Trade Unions and the Social Contract
        1. Trade Unions
        2. Relations Between Labor and High-Tech Multinationals
      8. Labor Relations in the Innovation Economy
      9. The Future of Irish Social Partnership
      10. The Future and the Challenges Ahead
        1. About the Author
    2. 6. National Government Directing the Growth of Ireland
      1. Department of Enterprise, Trade, and Employment
      2. Office of Science and Technology
      3. The Investment and Development Agency of Ireland (IDA)
      4. Tax Incentives
      5. Transforming the Economy in Ireland
      6. Government Collaborations with Industry
      7. Endnotes
    3. 7. The Branding of Ireland: International Corporations Choosing Ireland for Multifunctional Operations
      1. The Branding of Ireland
      2. 1960s–1970s: Establishing Ireland as a Location for Investment
      3. 1980s: Combating Unemployment
      4. 1990s: High Technology
      5. The Advertising Challenge
      6. International Corporations Choosing Ireland for Multifunctional Operations
      7. Intel Ireland
      8. EMC Cork
      9. Summary
      10. Endnotes
  13. III. Stockholm, Sweden“The High-Speed Globile Innovations Community”
    1. 8. Industry Specialization and Leveraging Intellectual Capital
      1. ICT People Excelling in an ICT World — An Information Society For All!
      2. Developing Mobile Computing Solutions in a Key Global Test Market
      3. A Global Magnet for High-Tech R&D Facilities
      4. Linking Science Parks and University Education — A Governmental Prerequisite
      5. A Historic Imperative of Global Compatibility
        1. The English Language — A Basis of Global Interoperability
        2. An Economy Based on Large Multinational Companies
      6. Networking and Collaboration — Virtue, Not Necessity!
        1. Intel Sweden — Collaborating to Establish Tomorrow's Standards
      7. Leveraging Intellectual Capital — Building the “Club Med” of the Global Innovation Economy
      8. Summary
        1. About the Author
      9. Endnotes
    2. 9. Entrepreneurship Infusion: Political and Societal Change for the Innovation Economy
      1. Political Entrepreneurship
      2. An Alternative Information Infrastructure — Maximizing the Benefits of Deregulation
      3. Leadership at All Levels — How a Traditional Educational Institution Learned Technology Transfer
      4. Democracy and Municipal Life in the Information Age — Stockholm's E-Government
      5. The Entrepreneurship Revival: Reapplying Traditional Society and Cultural Paradigms to Create Change
      6. Transforming a Society from “Don't Stand Out” to “If She Can Do It, So Can I”
      7. Venture Funding, Ownership, and Innovation
      8. New Swedish Entrepreneurs' Approaches to European Expansion
      9. Summary
        1. About the Author
      10. Endnotes
  14. IV. Germany, the United Kingdom, and France: Europe's Industrial Giants Adapting to the Global Innovation Economy
    1. 10. Munich — The Hidden Champion: Creating an Entrepreneurial Culture with State Government in Partnership with Business
      1. Tradition and Diversity Are the Key — Germany's Undenied Technology Capital
      2. From New Media to Biotechnology — A Powerhouse at the Crossroads of Emerging Technologies
      3. Providing a Large Pool of Intellectual Capital — A Leading University and Research Town
      4. Linking Higher Education via the Internet — Cooperation with Regional Education Systems
      5. Munich's Unleveraged Potential — Symptoms of a Young High-Tech Region
      6. State Government Initiative — The BayernOnline Infrastructure Initiative and Bavaria's Virtual Marketplace
      7. Creating an Entrepreneurship Culture
        1. Business Plan Contests — An Initial Spark Ignited from a McKinsey Study
      8. Large Companies Replicating Silicon Valley's Cross-Fertilization
      9. “Entrepreneurship Killers” — Are German Traditions Blocking the Rise of a New Culture?
      10. State Government in Partnership with Business
        1. Consistent State Government Commitment to Developing High Tech — “Laptops and Lederhosen”
        2. Pampering the “Lighthouse Companies”
      11. Building the Munich “Cluster Satellite” Model — Proximity Matters
      12. Munich's Smaller “Technology Platforms”
      13. Building International Liaisons Between Regions
      14. Summary
        1. About the Author
      15. Endnotes
    2. 11. Cambridge — Incubator for Innovation, “Small is Beautiful”
      1. Welcome to Silicon Fen, the U.K.'s Version of Silicon Valley
      2. The Initial Spark — Cambridge's Risk-Taking Local Heroes
      3. The Change Succeeding the Initial Spark — Entrepreneurship Over and Over
      4. Cambridge University — A Long Tradition of Knowledge and Innovation
      5. The Cambridge Consultancies — Creators of High-Tech Spin-Offs
      6. The Cambridge Network — Herding Cats? Forget it!
        1. The Government — Keeping Well Out of It
      7. Creating an Entrepreneurship Culture
        1. Building an Entrepreneurial Environment Around a Traditional Breeding Ground for Innovation
      8. Contributions of the University of Cambridge Administration
      9. Is Cambridge a Leader? Yes! But Far Behind Stanford
      10. The University of Cambridge Entrepreneurship Centre: Knowledge-Based Entrepreneurship
      11. A Gentle Persuasion to Collaborate — Organizing and Building the Cambridge Network
      12. Government in Partnership with Business — The Anti Model
      13. Cambridge in the 21st Century
        1. About the Author
      14. Endnotes
    3. 12. Sophia Antipolis — Technology Park the “French Way”
      1. France — A Competitive High-Tech Environment
      2. Sophia Antipolis — A French High-Tech Vision Come True
      3. Realizing the Vision of Sophia Antipolis
      4. Creating an Entrepreneurship Culture: High-tech Start-Up and Spin-Off Creation in Sophia Antipolis
      5. Higher Education Hand-in-Hand with Industry in Sophia Antipolis
      6. The People Factor — How Sophia Antipolis Ensures a Supply of Highly Skilled Employees
      7. Entrepreneurship for the Nation!
      8. The Future of Europe's Industrial Giants
        1. About the Author
      9. Endnotes
  15. V. High-Tech Islands of Taiwan and Israel
    1. 13. Taiwan Technology Parks and NGOs
      1. Hsinchu Science-based Industrial Park (HSIP)
        1. Universities are Integrated into the Park
        2. Research and Development Is a High Priority
      2. Focus on Business Association SEMI Taiwan
      3. Endnotes
    2. 14. Taiwan's Financial Capitalization: The Chinese Networking Culture Extends to China and Beyond
      1. Taiwan's Miracle
      2. The Entrepreneurial Chinese
      3. The Paranoid Taiwanese
      4. Cluster of Talents for Highly skilled Engineering and Research Fuels Investment
      5. Discipline Kills Creativity, But . . .
      6. Reward And Incentive — The Taiwanese Way
      7. Financing Capital — Both For Funding And Exit
        1. Capitalization of Start-Ups
      8. Government's Role in Developing the Private Sector
        1. The Evolving Role of Government Investment
      9. Professional Money vs. Social-Network Money
      10. The Taiwan/China Relationship
      11. Economic Benefit Matters More Than Politics
      12. Taiwanese Brands Could Stand Tall In China
        1. About the Author
      13. Endnotes
    3. 15. Israel's Military Technology: The Transfer to Civilian Applications and Universities as Incubators
      1. A Ground for Technology Creation
      2. R&D and High Tech: Fundamental Components of the Israeli System
      3. Israel.com: Key Characteristics of Israel's High-Tech Industry
      4. A Culture of Entrepreneurship
      5. High Emphasis on Education and Science
        1. Israeli Universities Support Industry
      6. Technology and Research are key assets of the Israeli model
      7. The Fostering and Facilitating Role of the Israeli Government
      8. Technology Incubators: An Asset for New Israeli Companies
      9. The Dynamic Tsahal culture
      10. Transferring Technology from the Military Market to the Civil Market
      11. Summary
      12. Endnotes
    4. 16. Immigration to Israel, Venture Funding, and Entrepreneurship
      1. Ex-Soviet Union Russian Immigration in the Scientific Development of the Country
      2. The American Connection
      3. Non-U.S. Foreign Investment in Israel
      4. Development of the Venture Capital Sector
      5. The Networking Culture
      6. Acceptance of Technology in the Home
      7. Consequences of the High-Tech Evolution on the Israeli Society and Economy
      8. Some Important Weaknesses Are Still Threatening the Israeli Model
      9. The Israel Model Is Still Strong
      10. Israeli Entrepreneurs and Venture Capitalists
      11. Entrepreneurial Perspective: Visionix
      12. Summary
      13. Endnotes
  16. VI. India: The Best Hope for Bridging the Digital Divide
    1. 17. India's IT Sector and Government Initiatives in Education
      1. Developing Nation Status
      2. 1991 Indian Economic Liberalization
      3. India — Destination for Global IT Software Operations
      4. Competitive Challenge for India's Software Industry: Moving Up the IT Value Chain
      5. IT in Bangalore: The Indus Valley, India's Silicon State
        1. International Tech Park, Bangalore: The One-Stop IT Solution
      6. The Quality Movement: India's Competitive Advantage
      7. Government Initiatives in Education
        1. Indian Educational Systems
      8. IIT Brand Equity and etworks of Excellence
      9. A Coming Shortage of Tech Workers?
      10. Summary
        1. About the Author
      11. Endnotes
    2. 18. Transnational Links in Venture Capital for the Public Good — An Advantage in Networking
      1. The Problem of Infrastructure: Software Technology Parks Provide Islands of Reliability
      2. Addressing Corruption: Things Are Beginning to Change
      3. IT Development Through Political Entrepreneurship
      4. The Threat of a Digital Divide in a Portable Culture
      5. Social Entrepreneurship: Innovative Applications of Technology
      6. The Digital Equalizer (DE) Centers: Direct Creation of Regional Wealth
      7. Simple, Inexpensive, Multilingual Computer: The “Simputer”
      8. Venture Capital and Transnational Links
        1. Historical Perspective of the Indian VC Industry
        2. Chronology of the Growth of the Indian VC Industry
      9. Indian Success Factors for a Vibrant Indian VC Industry
      10. The Microland Group
      11. Barriers in the Current VC Industry
      12. The Transnational Aspect of the VC Industry: NRI Investments
        1. Indian Networking Practices
      13. Summary
        1. About the Author
      14. Endnotes
    3. 19. Endnote
      1. In Conclusion
    4. Special Perspectives: Dialogue Across the Atlantic: Lester Thurow and Jacques Attali
      1. The Third Industrial Revolution and the New Middle Ages
      2. Limits of France and Europe in the Third Industrial Revolution
      3. Rapid Growth of Large Companies
      4. Individual Change Agents Are Responsible for Innovation, Not Institutions
      5. Globalization: What Does It Mean, and Is It a Blessing for the World?
      6. The Role of Technology in Revolutionizing Education
      7. The Promise of Technology to Serve the Greater Public Good and Change Needed in Light of the September 11 Terrorist Attack
    5. Special Perspectives: Governments Can Help Make Regional Wealth in the Innovation Economy: A Dialogue Between Kailash Joshi and Davidi Gilo
      1. Government Policy Must Be a Part of Creating Regional Competitiveness
      2. How TIE Can Work Best to Be a Change Agent for Indian Covernment Policies
      3. In Israel, the Day's Calendar Is Changed by Somebody Else
      4. On the Issues of Opening Up Telecommunications
      5. Do Not Try to Replicate Silicon Valley — Silicon Valley as We Knew It Does Not Exist Anymore
      6. Is There a Net Gain or Brain Drain?
      7. The Responsibilities of the High-Tech Industries and the Regions That Are Making Wealth to the Rest of the World
    6. Special Perspectives: Human Resources Management in the Innovation Economy: Self-Managed Living Systems
      1. The Human Context of IE Companies
      2. An Emphasis on Knowledge Workers and Knowledge-Based Companies
        1. The Nature of the Task
        2. The Nature of the Asset
        3. The Nature of the Work force
        4. The Nature of the Value Creation Process
      3. A Model for HRM in the IE
        1. Developing Individual Talents for Knowledge-Intensive Organizations
        2. Inventing New Recruitment Processes
        3. Finding the Right Retention Package
        4. Evolving from Training to Learning Processes
        5. Fostering Solidarity, Cooperation, and Cross-Fertilization Among Individuals: Social Capital
        6. Developing Agility: In Search of “Fast HR”
        7. Developing New Leadership Skills: A New Management Model for the IE
        8. Managing Is Like Gardening
      4. Summary
        1. About the Author
      5. Endnotes