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innovation DAILY

Here we highlight selected innovation related articles from around the world on a daily basis.  These articles related to innovation and funding for innovative companies, and best practices for innovation based economic development.

SciStarter

When an earthquake shook the mid-Atlantic states this summer, the US Geological Survey got help gauging the accuracy of its seismographic equipment from ScienceforCitizens.net users who Tweeted details about their location and the impact they felt. University of Waterloo researchers have also relied on Science for Citizens for help calibrating weather-reading instruments by comparing satellite-based estimates to the site’s users’ measurements of actual snowfall where they live. And scientists at the Paleontological Research Institution who recovered a mastodon fossil from Hyde Park, NY, a decade ago are still learning about Pleistocene ecology from Science for Citizen volunteers who have been sifting through the 22 tons of matrix that was excavated there.

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NewMe

Wayne Sutton has been asking venture-capital investors and Silicon Valley executives a question that's not often broached here in the epicenter of the technology industry:

"Why aren't there more black people in tech?"

The vast majority of top executives at the leading Silicon Valley tech firms are white men. Women and Asians have made some inroads, but African-American and Latino tech leaders remain a rarity. About 1% of entrepreneurs who received venture capital in the first half of last year are black, according to a study by research firm CB Insights.

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Tim O'Loughlin, director, Eastward Capital

Entrepreneurs often get confused as to when to raise venture capital versus venture debt. Their confusion is understandable as the terms of venture debt and venture capital converge at the margin and misconceptions abound.

Equity is permanent and debt must be repaid, right?

The primary difference between venture debt and venture capital is that debt must be repaid. VCs are also very interested in getting their capital back plus a profit. There are some current market-dynamics which make the distinction between the repayment of venture debt and the liquidity needs of venture capital blur.

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Arches

I’ve written before on 10 reasons Parents Should Not Send Their Kids to College and here is also Eight Alternatives to College but it’s occurred to me that the place where college has really hurt me the most was when it came to the real world, real life, how to make money, how to build a business, and then even how to survive when trying to build my business, sell it, and be happy afterwards. Here are the ten things that if I had learned them in college I probably would’ve saved/made millions of extra dollars, not wasted years of my life, and maybe would’ve even saved lives because I would’ve been so smart I would’ve been like an X-Man.

1. How to Program - I spent $100,000 of my own money (via debt, which I paid back in full) majoring in Computer Science. I then went to graduate school in computer science. I then remained in an academic environment for several years doing various computer programming jobs. Finally I hit the real world. I got a job in corporate America. Everyone congratulated me where I worked, “you’re going to the real world,” they said. I was never so happy. I called my friends in NYC, “money is falling from trees here,” they said. I looked for apartments in Hoboken. I looked at my girlfriend with a new feeling of gratefulness—we were going to break up once I moved. I knew it.

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Desktop

I walked out of a meeting of executives Friday with five business cards — and each one of them was a different shape and size.

It raises the question: Does creativity matter when it comes to business cards? Is there a payback for the extra money (sometimes thousands of dollars) that is spent for design, printing and in some cases diecutting?

It was no surprise that the creative cards came from marketing and ad people. (Look to the right to see the cards I collected).

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Lights

Want a culture of innovation? Choose a few of the following guidelines and make them happen. If not YOU, who? If not NOW, when?

1. Remember that innovation requires no fixed rules or templates -- only guiding principles. Creating a more innovative culture is an organic and creative act.

2. Wherever you can, whenever you can, always drive fear out of the workplace. Fear is "Public Enemy #1" of an innovative culture.

3. Have more fun. If you're not having fun (or at least enjoying the process) something is off.

4. Always question authority, especially the authority of your own longstanding beliefs.

5. Make new mistakes.

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Immigrants

People with creative ideas, intellectual talents and personal ambition drive innovation. From advances in science, mathematics and health care to new technologies, products and companies, America has always relied on individual and collective breakthroughs in human knowledge and production to enhance our lives and our economy. As the nation continues to find ways to improve the educational and life opportunities of its own citizens to help spark innovation, we should not ignore an obvious source of human capital--those from other nations.

If America wants to solve its innovation problem, solving its immigration problem would be a good start.

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Growth

America's innovation ecosystem typically knows no kryptonite. With rare exception, even in times of economic peril, investment and innovation continue unabated, helping to power the nation forward. However, there are troubling signs of weakness that could signal real challenges to the nation's future fiscal stability.

Consider the following: Lost in the public reporting on record venture investing in the third quarter is less comforting and more significant data from the National Venture Capital Association that venture capital fundraising dropped to the lowest levels in eight years in the third quarter—firms raised $1.7 billion, which is less than half the $3.5 billion collected in the same period last year and the lowest amount since the third quarter of 2003. U.S. companies canceled or postponed $8.9 billion in IPOs in the third quarter as stocks plunged, hurting returns for venture capitalists and investors in leading funds.

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Jack Dorsey

SAN FRANCISCO—How will ubiquitous connectivity and social media change everything? That, in short, was what a number of luminaries in the tech world addressed yesterday at the GigaOM roadmap conference. Rather than bore you with an extended recap, I thought I’d share some of the most salient nuggets of wisdom. I’ve made every effort to capture direct quotes, but in some cases (fast speakers, lots of wisdom) I had to paraphrase.

On Social Media

Twitter makes the world feel very small. You can fit the world in your pocket.—Jack Dorsey, co-founder of Twitter and CEO of Square

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TechStars

NEW YORK (CNNMoney) -- In the tech world's startup scene, where investors gamble millions on promising ideas, accelerator programs operate as kingmakers. Get into a top one and you'll have access to seed funding, mentors and the industry's leading venture capitalists.

That's an edge that can reap rich rewards. It's also an edge that most often goes to those who fit Silicon Valley's typical demographic for entrepreneurs: Young white males. Few of the industry's incubators keep track of the racial and gender breakdown of the founders they choose to back.

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Leader

Washington, DC (Press Release – November 9, 2011) – The Startup Exemption and Small Business & Entrepreneurship Council (SBE Council) announced today they will hold an event to call attention to the need for the U.S. Senate and U.S. Securities and Exchange Commission (SEC) to act on a common sense proposal that would permit crowdfund investing. The rally coincides with Global Entrepreneurship Week and the SEC’s annual meeting on small business capital formation on November 17th. The event will be held on the Capitol grounds between Union Station and the Capitol building at 8:00 a.m.

True to the tenants of crowdfunding, the group is crowdfunding the costs of the event with a pitch on IndieGoGo.

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Cover

Co.Exsist:

It’s the second largest economy in the world. Within the decade, it may sustain two-thirds of the planet’s workers, according to the Organisation for Economic Co-operation and Development (OECD), and even rival the United States. But it’s not China: It’s the bazaars, vendors, and informal markets of the world.

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Working

Venture capital due diligence processes can be frustrating for both VCs and entrepreneurs alike, particularly with later-stage companies as there is more information to sift through.

IMAGE CREDIT: ANDY NEWSON / FREEDIGITALPHOTOS.NET I’ve found that — largely — this frustration results from poorly managed expectations. Investors often fail to manage entrepreneurs’ expectations with regard to timeline and scope of diligence. Investors find frustration in a management team’s failure to provide materials quickly, and a lack of preparedness for what we investors may think are obvious requests.

In an effort to provide greater clarity into an expansion stage venture capital investor’s due diligence, I’ve laid out a typical post-term sheet diligence process below.

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NewImage

There’s been a lot of talk lately: Racism in tech, lack of access to capital for minority and women startups, low numbers of black engineers in tech. Whew.

Drama, intrigue sexism… It’s a search engine optimization expert’s wet dream. However, to a guy like myself who has started a company — and to many black entrepreneurs — this is a reality here in Silicon Valley.

With all the hoopla going around, I think we are forgetting to ask ourselves the hardest question: Are the things we are creating truly fund-worthy? Innovation must be a focus.

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Gabriel Institute Logo

Philadelphia, PA - It took over 25 years for the founders of The Gabriel Institute (TGI) to create a completely new technology that predicts how a person will ‘team’ with others to solve problems or achieve common goals, and now the business benefits are gaining recognition. Preferred Sands, a fast-growing mining company that began using TGI’s technology two years ago, has been announced as the winner of the Constellation ‘Supernova Award’ in the ‘emerging technology category.’ Almost immediately after implementing TGI’s Role Based Assessment (RBA) for hiring and team diagnostics, Preferred Sands saw its turnover rate fall from 30% to zero – where it has remained for over a year.

Improvements in ‘quality of hire’ and employee retention were not the only gains. “The time and costs associated with the hiring process are also reduced. Now, before we invest in face-to-face meetings, we screen for the kind of team-players who are the right fit for the job, for a specific team’s mission, and for our culture,” said Mike O’Neill, Preferred’s CEO. Asked what he would recommend to other firms seeking similar results, he added: “Whether you have hiring quality problems, or team performance problems, or any other people-related issues or challenges, stop paying so much attention to ‘talent,’ and focus on finding the right team-players.”

The full commentary on Preferred’s use of TGI Role-Based Assessment can be viewed at

http://www.constellationrg.com/protostar-profile-mike-o’neill-–-preferred-unlimited/

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Jay Williams

ELYRIA, Ohio — The leader of the nation's outreach to cities hurt by auto industry cutbacks said an Ohio Business incubator could be a model for helping economically hard-hit communities.

"The answer is going to come with a little bit of help from Washington, but largely from partnerships," like those in Lorain County, Jay Williams said Wednesday at Lorain County Community College.

The college and local officials and Business leaders hosted Williams, former mayor of Youngstown and now executive director of the federal Office of Recovery for Auto Communities and Workers.

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Rebuilding America

"American ingenuity and innovation, the twin engine of the country's economy since World War II, is in danger of losing steam and job growth potential if federal legislators allow 'automatic' spending cuts to kick in next year rather than earmarking federal funds to advance education, research and manufacturing, according Massachusetts Institute of Technology President Susan Hockfield."

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Russia

Russia may be filled with talented IT people, but entrepreneurship is not their strongest side, a Microsoft Corp. executive said.

“There are often so many good ideas in Russia but many just don’t get implemented because of lack of entrepreneurship skills,” Nikolay Pryanishnikov, head of Microsoft Russia said Wednesday at an IT conference in Moscow.

Microsoft in Russia had launched technological entrepreneurship trainings for Russian students in hope that it will inspire them to aspire to create companies of their own.

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QS Header

Amid growing global competition, it is increasingly clear that innovation cannot happen in a vacuum. To maintain and increase their competitiveness, the most innovative companies are turning towards problem-solving methods involving open innovation. Is yours?

In light of the resounding success of the 2010 edition, Quebec International, in association with IDTEQ and ISPIM, invites to you come and experience open innovation in a brand new format for the second edition of Quebec Seeks Solutions!

The following is an overview of this one-of-a-kind open innovation event:

  • Two days of activities aimed at accelerating and speeding the problem-solving process (May 15-16, 2012)
  • Open to companies of all sizes
  • A vast community of experts from all disciplines will be participating and collaborating
  • Discussions will be “open source” in order to foster information sharing and problem solving
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