How green was my Valley!

As the president of TIE Carolinas, an entrepreneurial non-profit, I engage with business men and women from across the world. A trend is clear and omniscient - the world at large, specifically Asia and Africa, have a populace that is aspirationaly committed to improving their lot... from the mother living in the Mumbai ghetto whose girls are working as data entry clerks to the Asian billionaires building the 21st century multi-nationals. I do not find it true of business men and women in the USA, where I have found the entrepreneur unable to "dream" for the past three years... dreams, which are essential to risk taking. Are things improving... they will and can though in a new paradigm yet to emerge.

Thanks to Financial Times for an excellent analysis of the reality of technology driven leadership and entrepreneurism in the the USA... Mr. Richard Waters writes in "A dip in the valley" - "Early stage investors appear to be losing interest in the painstaking work needed to sustain America's lead in the advanced industries that can generate many future jobs."

An example showcasing a macro trend in full swing (though it impacts micro economics as well) is: "When Massachusetts came up with $58m of incentives in 2008 to encourage Evergreen Solar to build a plant, it looked like the US state had found a new lease of life for a disused military base. Until last week, that is. Evergreen is shutting the facility with the loss of 800 jobs. The future location of Evergreen’s wafer making: a plant in Wuhan, China."

[Click to enlarge the graphic in the right.]


Again I am reminded of Gordon Moore's (Intel co-founder) lament that chasing returns has left a gap in invention in the USA. More strongly worded though is: "The belief that American individuality and creativity somehow assure future leadership is “a clear exposition of the arrogance of empire”, warns Michael Moritz, one of the Valley’s leading start-up financiers. Freed of “the debilitating effects of affluence”, he adds, “the need to succeed is far greater in the emerging economies”."

The article discusses US's inability to turn out enough engineers, decreasing share of its world R&D spending, sense of decline in the US, some of the existing invention's business being lost to Asia (ex: LED), etc. The article documents Mr. Moritz statement,"A company that loses its ability to develop its own manufacturing is on the road to oblivion."

And of course, such a conversation cannot end without evaluating current and desired policy - One area being talent, growing it, acquiring it and maintaining it: "Sophie Vandebroek, a Belgian engineer who moved to the US in the mid-1980s to train, says that at the time it was “the place to be – this was where the hot research was happening”. Ms Vandebroek stayed and eventually became chief technology officer at Xerox – in spite of the low status accorded to engineers in the US: “It’s kind of at the bottom of the professions.” Now, she and others warn, US immigration rules that make it harder for foreign students to stay, along with the availability of good jobs at home, are causing the country to leach much-needed foreign workers."

The second, the conduction of business: "If it is not to become left behind in businesses such as [solar, energy storage, green tech], the industry’s leaders say, it is time for a policy rethink. “Simply put, the US needs to decide it is ‘open for business’ and willing to compete in the global marketplace for factories and jobs,” says Paul Otellini, chief executive of Intel. “Costs are higher here, not driven by labour rates but rather by lack of incentives or tax credits that are available to US corporations in most other countries.” Without education reform, there will be a “critical engineering skills gap [that] will ultimately translate into fewer jobs and inventions in this country”."

The article concludes with the Valley still has a spark, "But for the country at large, it would not pay to take that much for granted."

See the complete article here.

Innovation & Entrepreneurism in the West

I serve as the President of TIE Carolinas, see details on TIE here. Innovation and entrepreneurism, whether in-market, through corporations, within non-profits or government driven remains important to our membership.

Good entrepreneurs are known for one quality above all... they act on their belief. John Gapper's blog in the Financial Times "Educate or Import the New Entrepreneurs" here is a good read to highlight the current pitfalls that are only deepening for the aspirational mind who wants to create in the West.

Here is an interesting insight from the article:

"“The great American investment in the wellsprings of science and technology was justified to the public by the cold war,” says Bill Janeway, a managing director of Warburg Pincus, the private equity firm. Mr Janeway would like the US to try again on the basis that the private sector, left to itself, will not invest in such fundamental technologies."

Mr. Gordon Moore (Intel Co-Founder) was awarded the lifetime achievement award by The Marconi Society in 2006. He voiced his concern then that corporate R&D is moving away from the kind of fundamental research that wins Nobel Prizes and toward a narrow focus on business goals. "That's great for the company," he said, "but somebody has to fill the gap."

The article puts forth the key to success in the 21st century:

"The biggest innovation challenge for the US in relation to Asia is not financial but human. China enrols 15 per cent of the world’s university students and 40 per cent of new degrees there are in science and engineering, compared with only 15 per cent in the US. Meanwhile, 68 per cent of US engineering doctorates are now awarded to non-US citizens."

The reality is, it will not be like it was in the 20th century for us in the West. We have to invent a new now to turn it into a successful innovation for the future.

Biggest IPOs in History

CK Prahalad - RIP

CK Prahalad passed away in San Diego recently.  The top fundamental and foundational business trans-formative concepts he developed that any management executive knows are - analysis of how multinationals operate in "The Multinational Mission" - concept of "core competencies" in "Competing for the Future" - co-creation with customers and consumers in an interconnected world in "The Future of Competition" - challenge to businesses to serve billions of people earning a few dollars a day in "The Fortune at the Bottom of the Pyramid".

CK Prahalad was a Global Charter Member of The Indus Entrepreneurs - the world's largest non-profit organization promoting entrepreneurship through mentoring, networking and education.  I am a Charter Member of TIE and President elect (TIE-Carolinas) as well and find the group to be an exceptional wealth of superb minds.

CK Prahalad will be missed.

TiE - The Indus Entrepreneurs and TiECON 2009

The Economist recently cited in the article "Global Heroes" here, The Indus Entrepreneurs (TiE) as one of the premier entrepreneurial organizations in the world.

I am proud to say that I am a charter member of the organization. TiE (see global website here) is a non-profit organization with the mission to - "... to foster Conscious Entrepreneurship Globally by Educating, Mentoring and Networking."

The above article states:

"TiE was founded in Silicon Valley in 1992 by a group of Indian transplants who wanted to promote entrepreneurship through mentoring, networking and education. Today the network has 12,000 members and operates in 53 cities in 12 countries, but it continues to be anchored in the Valley."

TiE is hosting the world's leading entrepreneurial conference in Silicon Valley on May 15th and 16th, 2009. See details here.


I recommend the TiECON 2009 conference and the TiE organization to all entrepreneurs, successful and budding alike.