MESBIC's have been singularly unsuccessful, and have been deemphasized in recent years.
Related to this are: State-sponsored venture capital investments. Countries and regions invest in venture capital funds as Limited Partners, meaning that they have the same or similar financial returns as all other investors in a Fund. In many cases, such state investments require some conditions on the privately-run venture fund. The most popular conditions include:
fixed percentage threshold of investment in the region or country, or certain number of jobs to be generated by their investments, or Attracting a certain multiple of investment from outside the state or region into the fund, or Limiting the venture investments to the types of technologies and industries which are of greatest interest to that state or region.
Examples of the above can include the Indiana Futures Fund, in which the State of Indiana invested $100 million in several venture funds. Among their conditions, 70% of the venture investment must be made in the State of Indiana. In addition, each of the venture funds must open an office in the State. Finally, the investments of interest to the IFF were biotech and high technology industries.
The neighboring state of Michigan created a $2 billion "fund of funds" in 2006 with similar conditions, including requiring the investee venture funds to open an office in the state (or be headquartered there) and to invest in "favored" industries, including pharmaceuticals, medical devices and automobile technology.
The general record of such state funds has been poor. The State of Ohio closed down its fund-of-funds investments after several scandals. The State of New Mexico, which had intended to invest over $200 million of state pension money, closed down its effort with an outside fund-of-funds manager due to differences between the managers (who wanted to focus on financial returns) and employees of the state (who wanted to direct money to political favorites).
Direct regional investment: Several states in Germany have created funds which are funded primarily by bonds or tax revenues in order to invest directly in small, innovative businesses. The primary argument used for the establishment of these funds is that the venture capital infrastructure in Germany is insufficient, and banks are too conservative to underwrite such financing. The states of Baden-Wuerttemburg and Bavaria have the most active programs, with Bavaria concentrating on biopharma investments, and the state of Baden-Wuerttemburg focusing more on high-tech, particularly related to machine tools and the auto industry. Since the primary goal is to support new companies, there is little or no reporting of the financial returns of these investments.
This model has been pursued in a number of other countries in Europe, particularly France, Spain and Italy. The UK, Netherlands and Scandinavian countries have been more laissez-faire about such companies, perhaps because each...
The key factors blamed for this dearth of start-up investors include:
High capital gains and income taxes, which make it difficult for venture capital partners to maximize their personal returns on investment.
Few exits, due to a relatively underdeveloped IPO, or public stock market, access. In Germany, for example, the Neuer Markt was an abject failure on the Frankfurt Stock Exchange, which pushed many young companies to the London AIM market (for early-stage companies) or the Swiss SWX exchange.
High barriers to company formation, hiring and other bureaucratic barriers. Those countries in "old Europe" suffer particularly from the difficulty of forming new corporations.
High cultural cost of bankruptcy. Since bankruptcy is an important part of new company formation experiences, the high cultural stigma
Definition of Successful Innovation
The primary creator of value is market valuation, whether through profit creation, stock market capitalization, or acquisition for a set value. The benchmark used for the success or failure of such systems in this paper, therefore, is the measure of the actual value created.
Most regional and national governments may add two additional conditions: employment growth and tax base. Such job creation is helpful on a political basis, but may ignore the other effects of wealth creation: entrepreneurs, banks, investors, venture capitalists and shareholders may all benefit from the increase in value created by innovators and innovative companies.
Whither Innovation and National or Regional Systems?
There is a lot of money and ink, in addition to time and treasure, on developing "innovation systems." This paper has attempted to illustrate that such efforts are doomed to failure. The difference in culture between governmental and academic groups, on the one hand, and entrepreneurial and innovative groups, on the other, is too great. The reward systems, organization, cultural status and attitudes towards risk are at polar opposites between the two groups.
Does the above mean that there is no role for regions and nations to encourage innovation? The best policy is to embrace creative destruction, a la Schumpeter, and trust in the market to create more jobs in the creation process than are destroyed in the destruction process.
Asen, R. "The Multiple Mr. Dewey: Multiple Publics and Permeable Borders in John Dewey's Theory of the Public Sphere." Argumentation and Advocacy, 2003: 174-182.
Balzac, M. "Recent Trends in the Research on National Innovation Systems." REPEC. November 26, 2007. http://ideas.repec.org/p/aug/augsbe/0254.html (Accessed November 28, 2007).
Birch, D.L. MIT Program on Neighborhood and Regional Change. Cambridge: MIT Press, 1987.
Christensen, C. The Innovator's Dilemma. Boston: Harvard Business School Press, 1995.
Colvin, G. "Long-term thinking." WALl Street Week with Fortune, April 22, 2004: n.p.
Kim, Y.S. "Why there is always hope for startups." YSK. June 13, 2006. http://images.google.com/imgres?imgurl=http://www.ysk.com/blog/images/InnovatorsDilemmaGraph.jpg&imgrefurl=http://www.ysk.com/blog/archives/000190.html&h=305&w=406&sz=35&hl=en&start=3&sig2=v34IyZu9gR-iCXDuv9YQBw&um=1&tbnid=CeeM6vNr4FSXMM:&tbnh=93&tbnw=124 (Accessed November 28, 2007).
Radosevic, S. NATIONAL SYSTEMS of INNOVATION and ENTREPRENEURSHIP: IN SEARCH of a MISSING LINK. Abstract, London: University College, 2007.
Schumpeter, J.A. Capitalism, Socialism and Democracy. New York: Harper, 1942. (Christensen 1995) (Kim 2006)
Business: National or Regional Innovation System
Baran and Sweezy agreed with Veblen's primary thesis about the "subdued conflict between workmanship and salesmanship," in which workmanship is being pursued in the interests of sales of often superfluous goods rather than those that are socially necessary. Baran and Sweezy went so far as to say that Veblen's view of the matter (published in 1923) "as a description of the situation in the 1950s and 1960s... is 100
Those did not have much power on the manufacturer, however, the consumer were rather sophisticated, so maintaining the high quality standards was crucial. Substitutes. After the trade liberalization, Phillips had an enormous pressure from Asian companies that managed to copycat its products and the price performance of the substitute products was net superior. Supplier power. The suppliers did not have high bargaining power. The high tech industry in Europe and U.S.
Business Transformation Strategy GE Capital Woodchester is a leading provider of motor car, equipment, and personal finance in the country of Ireland. They offer the most flexible packages for diverse financial needs and as such, have earned the position of leading the personal and capitol acquisition financial services. GE Capital Woodchester also provides specialized financing and services and they focus on niches including equipment and car leasing, hire purchase and loans
The existence and specialization of these three competitors materializes in the need for Creativity Sure to excel in the offering of the three types of products and services offered by challengers Karina Advertising, Falling Agency and Dorna PLC. 4.2 PEST Analysis Political forces: The development of a full legislation within the advertising field has yet to become a complete process. Recent efforts have however limited the operations of advertising campaigns in
Mounted on the side of the pole are 2 solar panels made by F3 Solar that are capable of generating up to 80 W. Of power. -No lamp changes -- sealed for life. -Fully controllable with excellent colour rendition -Multi combination outputs. -Remote electronics. -LED Life expectancy -- 25 years + Prices vary by distributor Green Column (http://www.wirefreedirect.com / green_column.asp) The wind and solar powered solution delivers free, renewable energy which is stored in a battery ready
According to the company, the concept of kyosei. extends to all of its business enterprises, including research and development, product manufacturing, marketing, sales, and product distribution. Specifically, Canon strives to conserve energy, resources, and the minimization of potentially dangerous chemicals and industrial by-products. In principle, Canon hopes to preserve the environment and the earth's physical resources through implementing industrial conservation efforts and practices, recycling programs and policies, educational programs, and