The Index of Small Business Optimism lost 1.3 points, falling to 86.5 (1986=100) still 5.5 points higher than the survey’s second lowest reading reached in March. Four of the ten Index components posted gains, 6 declined. The loss, small in magnitude, was primarily a result of weaker expectations for improved business conditions. The NFIB data indicated an unemployment rate of 9.3 percent for the second quarter, pretty close to the mark of 9.2 percent. The July labor market data indicate an unemployment rate of 9.1 percent for the third quarter, an improvement consistent with the start of economic recovery. The data indicate that the recession is ending, but the economy is only now making the turn and substantial progress yet to be made. But the direction is clear.

For the full report, click here.

Fortune: How to save the world at work By Ann Fisher

NEW YORK (Fortune) -- Dear Annie: Call me an old hippie (I served in the Peace Corps in the late '60s), but I've always wished I could find a job that would let me make a decent living while also doing some real good for someone.

Cooperative Research Centres (CRC) Program | $243M boost to Australia's innovation agenda by Anthill Magazine

The Minister for Innovation, Industry, Science and Research, Senator the Hon Kim Carr, late last week announced funding of $243 million for “world-class collaborative research and innovation” under the Australian Government’s Cooperative Research Centres (CRC) Program.

Innovation more than just a word by John Riddell Jr.

Have you noticed how common it is these days for any article focusing on improvement in today's challenging business environment to include the need, even the requirement for, that magic word "innovation?"

From presidents of companies to the president of the United States, innovation is positioned as the key for economic survival and prosperity. It appears that if we, collectively, can just get enough of this innovation thing, then all our problems will disappear.

Future pro∙manchester Entrepreneurship Challenge 2009 by Crain's Manchester Business

Have you got what it takes?

Future pro∙manchester represents tomorrow's leaders in the financial and professional sector. We're launching the Entrepreneurship Challenge to celebrate the region's talent and our ability to turn challenges into opportunities.

VCs hammer entrepreneurs: dreaded “down rounds” surge by Matt Marshall

Venture capitalists have tightened the screws on entrepreneurs, scooping up much larger chunks of ownership of companies in return for investments.

During the second quarter of the year, VCs pushed company values down 46 percent of the time when they invested, when those values are compared to the value of the company’s previous round. That valuation is used to determine how many shares VCs get from the company in return for their money. The lower the value, the more ownership VCs get, and the less is left for entrepreneurs. The “value” is negotiated between the VCs and entrepreneurs at the time of the deal.

UAE amends company formation law in bid to boost competitiveness, entrepreneurship by Business Intelligence Middle East

UAE. The UAE has amended a law that required limited liability companies to invest at least AED150,000 (US$40,800) as start-up capital in a bid to boost growth and 'leverage the UAE's standing as a highly competitive economy,'WAM news agency reported.

Partners in limited liability companies “will determine sufficient capital requirements” for setting up their companies, WAM said, citing a decree issued by President Sheikh Khalifa bin Zayed Al Nahyan.

Have Innovation and Entrepreneurship Found Solutions for Affordable Housing? by Joe Qian

The recently elected government has recently announced an ambitious goal of eliminating slums in India in its most recent five year plan. Will this be a possibility? If you ask the construction companies, the answer is yes. A number of entrepreneurs and enterprises have embarked on new initiatives to provide affordable housing called such as Tata and its construction of Shubh Griha north of Mumbai.

Innovation and Creativity by Steven Strauss

What does it take to create an innovative breakthrough product? It is not an insignificant question because business innovators typically invest a lot of time and money getting their big idea to market. For those who make it, the rewards— financial and otherwise—can be incredible. The so-called “first mover’s advantage” is real and means the successful innovator just may dictate the terms in a whole-new field.

Creativity - The Discipline of Innovation By Peter Drucker

How much of innovation is inspiration, and how much is hard work? If it's mainly the form, then management's roles is limited: Hire the right people, and get out of their way. If it's largely the latter, management must play a more vigorous roles: Establish the right roles and processes, set clear goals and relevant measure, and review progress every step.

Buzz Article: Venture Capital Survey - Silicon Valley Second Quarter 2009 by Barry J. Kramer, Partner, and Michael J. Patrick, Partner, Fenwick & West LLP

Fenwick & West LLP., a national law firm that provides comprehensive legal services to technology and life sciences clients of national and international prominence, has analyzed the terms of the venture financings in the Bay Area for the second quarter of 2009. In this week's Buzz article you will be able to take a closer look at the results of the Fenwick & West survey by Barry J. Kramer and Michael J. Patrick which found down rounds exceeded up rounds 46% to 32%, with 22% flat. This was slightly better than 1Q09 when down rounds outpaced up rounds 46% to 25%, with 29% flat.

To view the entire Fenwick & West survey, or to sign up to receive the survey on a quarterly basis when published, please go to www.fenwick.com/vctrends.htm.

White House tells agencies, think 'open innovation' by Patrick Thibodeau

The White House is telling its agencies to pursue an "open innovation"-approach to government, be visionary in their spending requests, and focus on "transformative" projects that help the climate, energy, life expectancy and the economy.

President Barack Obama's administration wants federal agencies, as they prepare the 2011 fiscal year budget, to shift spending away from "lower-priority areas" to forward-looking projects. The 2010 fiscal year begins Oct. 1. A budget for 2011 will likely be submitted in early spring.

Innovation: Why don't users mind when Twitter breaks? by Tom Simonite

Millions of conversations around the world were rudely interrupted last Thursday when a massive cyber-attack shut down the microblogging service Twitter. Normal service wasn't resumed until the weekend. Google, Facebook and blogging service LiveJournal also came under attack during the same period.

The incident, believed to have been the result of efforts to silence a single Georgian blogger, has demonstrated the vulnerability of social networks and the power of politically-motivated hackers. But it's also provided a real-world experiment in users' reactions when a supposedly critical service is abruptly yanked away. Surprisingly, the outages provoked relatively little outrage – but why?

Ireland’s flagging innovation strategy needs a radical overhaul by Richard Tol

The government must subsidise innovation, but at the moment it is spending money in the wrong fields and in the wrong way. Economic development comes in stages. Underdeveloped economies lack basic things such as security and tools. Middling economies suffer from small markets and bad education.

What it takes for a small manufacturer to make it by the Manufacturing Institute, National Association of Manufacturers

Small and medium-size manufacturers (SMMs) must commit to innovation and new ways of doing business -- in products, processes, technologies and strategies -- that free up assets and open up selling opportunities. A focus on innovation will keep you from becoming a stagnant operator (incapable of improvement) or a commodity player (always under price pressures).

A Short History of Innovation in the United States by Rolloverusa.com

The U.S. has been the most innovative country in the history of world. “Virtually every major development in technology in the twentieth century – which was far and away the most important century in the history of technology – originated in the United States or was principally industrialized and turned into consumer products here.”[1] The economic success of the U.S. is due to its technological innovation. The first colony was only possible because of two new technologies – the full-rigged sailing ship and the joint-stock company. This inventive spirit has continued to the present with the Information Age, which was founded in the U.S. and based on the internet (ARPANET) invented in 1969.

Eyes on the Future 2009 Economic Summit to feature Richard Bendis by Lee Drake

Last December, Richard Bendis lead discussions with the Obama transition team on government funding for entrepreneurism and job growth. This fall, Bendis will headline Eyes on the Future 2009, a Greater Rochester Region Economic Summit, to help guide a conversation on the area’s economic outlook.

The third annual conference will take place on Friday morning, October 16 at St. John Fisher College. The summit’s lead organizations, Greater Rochester Enterprise (GRE) and the Small Business Council of Rochester, (SBC) an affiliate of the Rochester Business Alliance, will also host the first ‘Eyes Expo,’ a business and career event focused on economic development and workforce alignment.

No Such Thing as Riskless Venture Capital by L. GORDON CROVITZ

Just when the economy needs risk-taking the most, risk-takers are under the most threat. The Treasury now wants venture-capital firms declared as systemic risks and put under tight restrictions as part of the broader re-regulation of financial firms. Venture capitalists argue that since they don’t use debt and their firms are comparatively small, they shouldn’t come under rules designed for highly leveraged, too-big-to-fail banks.

List of business and entrepreneurship blogs by Victorino Q. Abrugar

It’s always been my habit to wander the blogosphere in search for great business weblogs which I can read and get some important pieces of information. These blogs also serve as my chosen places to participate in significant discussions, make relevant comments and share some link juices. This becomes my regular activity to get some fresh business wisdom. As a continuing vision to share all the things that came into my business life, I have presented the following list of business and entrepreneurship blogs. There are tons of business blogs on the net, but I only included those that have Google pagerank of at least three (PR3).

The Economist announces innovation competitions for energy and media

Finalists to present to an audience of top executives at Economist Event

New York -- CALLING ALL ENTREPRENEURS, INNOVATORS, CREATIVE THINKERS, INVENTORS, IDEAS PEOPLE

The Economist is holding two innovation competitions to find the most exciting, game-changing innovations that will have a marked impact in two key areas: new media and energy. Twelve finalists will be invited to present their innovations at Economist Events to an audience of top executives in the field, and will receive complimentary conference registrations (value at up to $2495). The winning presenter will receive exclusive bragging rights and a free subscription to The Economist in the format of his or her choosing.