entrepreneurship as a national security initiative
TRANSCRIPT
Entrepreneurship as a National Security Initiative
April 24, 2009April 24, 2009Richard Boly, Richard Boly,
National Security Affairs Fellow, Hoover Institution National Security Affairs Fellow, Hoover Institution [email protected]@hoover.stanford.edu
- Entrepreneurship & terrorism: two sides of the same coin
- Context matters
- Fatalism vs. self-determination
- Entrepreneurship IN Government (anaside)
- A case study of a replicable model fornurturing elements of theentrepreneurial ecosystem
- Lots crammed into a short talk
What to expect:
“Whether individuals follow the formal rules legislated by governments will depend to a large extent on the alignment between formal rules and informal norms of conduct.”
Sautet, Frédéric. "The Role of Institutions in Entrepreneurship: Implications for Development Policy." Mercatus Policy Series Policy Primer, February 2005.
normslaws &
regulations
normslaws & regulation
s
“non-virtuous entrepreneurship” e.g. Mafia, Camorra, 'Ndrangheta, terrorism
“virtuous entrepreneurship” e.g. Silicon Valley, United Way, Craigs List
0%
5%
10%
15%
20%
25%
30%
35%
40%
Engine
erin
g
Scienc
es
Islam
ic S
tudi
es
Med
icin
e
Busine
ss/ E
cono
mics
Educ
atio
n
Other
Unkn
own
Terrorists’ University DegreeTerrorists’ 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)
0
10
20
30
40
50
60
70
80
UnitedStates
Indonesia Russia Morocco Turkey Lebanon India
Perc
ent
Yes No
Does Success Depend on Does Success Depend on Forces Outside Our Control?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)
- Building the elements of an entrepreneurial ecosystem is possible.
- The United States leads in bottom-up, market-based creation of high growth, new companies.
- U.S. embassies are well suited as honest brokers to promote the growth of indigenous entrepreneurial ecosystems networked to U.S. counterparts.
- Promoting entrepreneurship abroad focuses on fulfillment of the American dream and is good public diplomacy.
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
Case Study: U.S. Mission Italy’s Partnership for Growth
Building the “New Venture Ecosystem”
- Move research to market
- Grow risk capital markets
- Spur innovation by strengthening the Intellectual Property Rights (IPR) regime
- Create and promote Italian entrepreneurial role models
Move Research to Market
- National Science Foundation Fellow
- Two-day visit by Stanford President Hennessy
- Italian Academics for Entrepreneurship
- Exchanges for university tech transfer officers
- Biotech guru road show
- Life sciences exchange project (NIH, Pittsburg Life Sciences Greenhouse)
Italian Academics for Entrepreneurship
Raffaele OrianiLUISS
Guido ChiarottiSISSA
Stefano FantoniDirector, SISSA
Alberto Di MininSant’Anna
Francesco SaccoBocconi
Paolo CremonesiMilan Politecnico
Leo MiglioMilanBicocca
Stefano ZambonU. of Ferrara
Max BergamiALMA Graduate School
Paolo MilaniU. of Milan
Ruggero FrezzaU. of Padova
Chiara FranzoniTurin Politecnico
Rosa GrimaldiU. of Bologna
Roberto GuerrieriU. of Bologna
Manlio Del GiudiceUNISOB, Naples
Alessandro SanninoU. of Lecce
Ferruccio FiordispinSIAF Volterra
- Angel investor exchange
- U.S. entrepreneurs-in-residence
- Keynote speech at biennial Italian Venture Capital Association global meeting
- Conference on venture capital with Columbia, Harvard, Stanford, and INSEAD alumni
- Pitching session for 20 Italian start ups with Silicon Valley VCs
- Established Italian Angels for Growth
- VentureCamp and TechGarage
- Conference on improving the regulatory framework for VC and angel investing
Grow Risk Capital Markets
Spur Innovation by strengthening the Intellectual Property Rights (IPR) regime
- Demystifying the patent process (webinar)
- Kauffman Foundation iBridge
- Conference on the Bayh-Dole Act
- IPR conference with Italian magistrates and U.S.Patent and Trademark Office, Department of
Justice
- Ministerial conference on IPR protection with theForeign Minster and Minister of Economy
- WIPO/CRUI conference
0
10
20
30
40
50
60
70
80
United States
Sweden
Britain
J apan
J ordan
Czech Republic
Malaysia
France
Israel
Mexico
ChileBrazil
South Africa
China
Poland
Turkey
Lebanon
ItalySouth Korea
India
Source: Pew Global Attitudes Survey, Oct. 2007
Per
cent
Yes No
Does Success Depend on Does Success Depend on Forces Outside Our Control?Forces Outside Our Control?
Create and Promote ItalianEntrepreneurial Role Models
- Face2Face: Capturing Creativity (40-episode webinar series)
- First Generation Network
- Mind the Bridge (business plan competition focusing on entrepreneurs already in the workforce)
- Fulbright BEST Silicon Valley Immersion Program
- Day-long Entrepreneurs’ Summit at the Ambassador’s Residence
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 FirenzeUniversità 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 ScholarsJune 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
0
0
0
0
0
0
0
0
Terrorist Kidnappings + Killings Per Terrorist Kidnappings + Killings Per Capita Capita (excluding Iraq, Afghanistan)(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
-Colombia, and Mexico
-Egypt, Lebanon, and Turkey
-India, Indonesia, Malaysia, Pakistan, Philippines, and Thailand
-Denmark, France, Greece, Netherlands, Spain, and Sweden
Promoting Entrepreneurial Capitalism
Some Possible Candidates Countries (not exhaustive):
Next Steps:
- Case Study of Italian Partnership for Growth
- High-Level Seminar on Promoting Entrepreneurial Economies as U.S. Foreign
Policy
Richard Boly, Richard Boly, National Security Affairs National Security Affairs Fellow, Hoover Institution Fellow, Hoover Institution [email protected]@hoover.stanford.edu
Thank You
Questions?