Where innovation comes from…

A recent Kauffman report offers new and valuable insights into where venture-driven growth comes from. Literally. Not from what attributes of social media founders or which San Francisco coffee shops, but rather which sectors of the economy and which regions of the country. The findings are surprising and important for entrepreneurs thinking of starting a business, and policymakers thinking of helping them.

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Nothing like a good fight over ideas

I’m not a big fan of ideas. Sure, ideas are great — some of my best friends are ideas. But managers tend to let our national obsession about having new ideas distract them from the hard work of building good products and successful ventures around what are almost always old ideas. So it was fun to see the great design OXO have at a competitor who claimed to “own” an idea that both had built products around.

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Sleeping your way to the middle

I wrote yesterday on the race to the bottom — how corporations play states, and even cities, off one another in pursuit of the most lucrative benefits. At the same time, they complain about the burdensome taxes and regulations of California. But, as my colleague Martin Kenney so nicely notes in a recent column,[1] California seems to be holding its own in spite of playing hard to get. 

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‘Tis the Season

Black Friday and cyber Monday have kicked off a manic month of holiday shopping, with its seasonal flood of commercials, catalogs, pop-ups and newspaper inserts. But there’s a particular desperation this year. With the economy, the future of retail, and possibly our own happiness at stake, I offer some humble suggestions on how to vote with your dollars… Continue reading

Racing to the bottom

The New York Times has written several great pieces on incentives state and local governments use to attract companies. Their goal: to bring new jobs. The outcome: as game theory would predict, a classic race to the bottom where everyone who plays loses. Except, of course, the corporations. The reason: you don’t want the kind of corporate love money can buy.

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Careful what you wish for: Entrepreneurial policies and startups

WSJ had a nice section recently on understanding entrepreneurs, Why Washington Has It Wrong on Small Business. In it, Professor Aaron Chatterji from Duke talks about how job growth comes from high-growth, not low-growth startups (companies younger than 5 years old). This insight mistakes hindsight for foresight but, more importantly, it puts the entrepreneurial cart before the horse.

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