Beyond Silicon Valley, Developing Communities of Innovation
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Beyond Silicon Valley Developing communities of innovation Colin Graham, Causeway Innovation 23 June 2016 @CausewayInno
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Transcript of Beyond Silicon Valley, Developing Communities of Innovation
Beyond Silicon ValleyDeveloping communities of innovationColin Graham, Causeway Innovation23 June 2016
@CausewayInno
Innovation: lots of talk …
Silicon Valley, Bay Area London
New York Tel Aviv
Source: PwC, Expanding Australia’s economy through digital innovation, April 2014
Note: Currency USD, calculations reflect currency fluctuations
Australia vs. USA VC Spend: 2001 - 13
$4.5b
$18b
$285b
Actual AUS
spend
US VC spend
Equivalent US per capita spend
Australians bet more on Melbourne Cup in a day than entire VC investment in a year Startupsmart, 8 May 2015
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‘Hundreds of regions all over the world collectively spent tens of billions of dollars trying to build their versions of Silicon Valley. I don’t know of a single success.’
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Vivek WadhwaUS Tech Entrepreneur, Adjunct Professor, Duke University and Fellow at Stanford University
Context for Innovation
Density
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Thin economic base: low business &
population density
Difficult to attract talent: smaller
labour pool
Limited availability of finance
Distance to markets, professional service
firms, unis etc. Isolated from peers
ICT issues – mobile & broadband
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Example: Wide Bay Burnett ROC
Example business
Growing businesses & jobs
GrowStartups
Established businesses with
potential
Attract businesses
All three are important
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Startups
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Example: Startup support, create your own density Innovation Centre Sunshine Coast
• CREATE DENSITY• Flexible office space & fast fibre• 143 startups• 91% remain in business today• 720 FTE jobs• $103m annual output• $32m seed investment • 350+ student work places / projects• 6,000+ people attend events
Source: AEC Group 2016
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A quick reality checkIt’s all about twentysomethingsNO: Average age of successful founder is 40; Kauffman Foundation, 2014
All start ups think bigNO: Most are not innovative, create few jobs, necessity rather than opportunity; Scott Shane, Illusions of Entrepreneurship, 2008
It’s all about coding and technologyNO: High growth firms equally represented in high tech’ and ‘low tech’; NESTA, The Vital 6%, Oct 2009
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Scaleups
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The Vital
6%• Just 6% of high growth cos
generated half of the UK's employment growth between 2002 and 2008
• These businesses can be found across all sectors, and they span established firms and start-ups, small businesses and large organisations.
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Example region business base (S. Burnett)
1% Large
, over 2002%
Medium, 20 to 199 staff
10%Small, 5 -19 staff
27%Micro, 1 to 4 staff
61%Non employing
Estimate based on 3,207 businesses and national
patterns (ABS, 2014)
1,956
866
64
32
321
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The Vital 6%
= 200 businesses
Innovation ecosystem
Startups
ScaleupsLarge
established cos
Places & Spaces
Events
Education & Research
Funding
Service Providers
Mentors
Govern-ment
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Example: Savannah’s Startup Ecosystem, www.hiimcaleb.me/savannahs-startup-ecosystem
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Conclusions1. There’s only one Silicon Valley, what are you
going to be?2. Beyond simple ‘startups’ - question assumptions:
young, tech, types of innovation, VC backed?3. Scaleups and the Vital 6%4. Your region – identifying and supporting5. Help owner managers with growth ambitions,
education opportunities7. Build the ecosystem: link talent, mentors,
professional service firms, capital 8. Create your own density
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THANKSColin Grahamcausewayinnovation.com @CausewayInno
