Post on 25-May-2020
• PhD in Economics
• Recognized leader in cluster and competitiveness benchmark analysis
• Leads ROI’s consulting and data analytics practice
• 14 years experience in regional econ analysis
• Over 20 years of experience in ec dev
• 12 years as site-selection consultant
• Finalist: International E&Y Entrepreneur of the Year
• Led ROI as a Profit 50 company
• Founder of Gazelle.ai
Buffalo hunting
≠ economic
development
Still focused on
job numbers
and anchor
companies
Tight labor
markets =
reluctant local
stakeholders
Avg FDI Project
Size to the US
since 2013: 77
jobs!
WHO ARE YOUR TARGET GROUPS?
Current infrastructure, support and assets will make it more suited for some companies than others
Startups, spin-offs Small and mediumenterprises
Privately/publicly owned R&D centers
Business supportagencies
Research Question
• Rise of the Rest
• “Outsource” of innovation
• Cities investments in entrepreneurship and startup cultures
• 2017 Top 40 metro area for startup activity (Kauffman Foundation)
• 600% increase in VC Funding between 2008 and 2015
• Top 10 states for seed stage accelerators and incubators
2014-20182008-2013
$1,073.15
$3,761.55
St. Louis VC Funding
Gazelle.ai
• Companies that look to advance their products and services through technology transfer and collaboration
• Challenge of larger companies innovating, “outsourcing” innovation
• Startups as a way to support innovation of local companies and attract future investments
• Different models of collaboration• Joint ventures
• M&A
• Strategic Partnerships
• Investments
• …
• Case in point: Takeda Pharmaceuticals ( Japan) investing in Minneapolis facility, after investments and acquisitions in local startups
Turn your startups and local companies into local growth companies through partnerships
• Allows them a wider access to customers and market (and business) expertise
• Outside major VC hubs: • Lack of international exposure/networks
(Genome Startup Report 2018)
• Often investors are more conservative
• Fujitsu’s strategic partnership with Chicago startup Keyo for palm identification technology
• Cargill and Ecolab investing in Minneapolis accelerators to drive wider agrofood sector
• Kansas City fintech company C2FO receiving funds from global insurance giant Allianz
• Finding startups: on a per capita basis, VC also happens outside Silicon Valley and New York
• Midwest saw 1,300 companies seed funded in 6 years between 2010-2015 but 1,500 just in the past 3.5 years! (Gazelle.ai)
25 250 2,500 25,000
AK
HIMartinProsperityInstitute
• Mapping your assets to startups or growth companies!
• Finding collaborators/growth companies: established companies on featured lists, international!
• Tech transfer: university inventories of licensable technologies that your companies could access
• Newer/smaller startup hubs and VC ecosystems are different
• Focus on market feasibility and immediate profitability
• Often less consumer focused, different markets
• Even more need for international connections
• Don’t forget international startups!
• Key startup organizations in the ecosystem as they have the most visibility on companies in the target sectors: accelerators, investors, universities
• City and regional governmentorganizations and non-profits
• Local economic development groups focused on networking and business opportunities
• University incubators and technology parks: technological synergies?
• Researchers active in specific target technologies :
• Early signals on emerging hubs
• Technology transfer opportunities
• And of course events! Pitch competitions, tech conferences, etc.
Recent Growth Trends
Aggressive Pricing
Private equity injection /
DEBT
Higher productivity
New markets / customers
New products / services
Mergers & Acquisitions
• Change in C-level staffing
• Recruitment in non-traditional markets
• Employee benefits growth
• Expansion over the past 5-years
• Job posting intensity
• Web site translated
• Spike in social web activity
• Patent Applications
• New or changed addresses
• Acquisition / JV
• Cluster hot spots
• Later Stage VC funding
• Many startups lack international connections • Means that finding ways to provide global
market insights, networks, and even distribution assistance will be a welcome
• Use your international business and export divisions networks to connect
• Soft landing programs
Bottom Line: Need for different communication channels and industry intelligence