Dane Stangler | Upstate Unleashed Presentation

www.kauffman.org© 2016 Ewing Marion Kauffman Foundation

The Future of the “First Silicon Valley”

September 16, 2016Upstate Unleashed Conference

Dane Stangler@danestangler

@KauffmanFDN

© 2016 Ewing Marion Kauffman Foundation

Where Jobs Come From

Young companies

High-growth companies

Larger, older companies


Business Creation Trends Nationally

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

100000

200000

300000

400000

500000

600000

Firm Deaths

Firm Births

Source: US Census Bureau, Business Dynamics Statistics


Growth Entrepreneurship Rebounding


Entrepreneurial Ecosystems


Focus on Upstate


Startup Density

1992 1995 1998 2001 2004 2007 2010 2013Year

50

60

70

80

90

100

110

120

130

140

Startup Density

MSANationalAlbanyBuffaloIthaca

1992 1995 1998 2001 2004 2007 2010 2013Year

50

60

70

80

90

100

110

120

130

140

Startup Density

MSANationalRochesterSyracuseUtica


Job Creation by Firm Age

19992001 2003 2005 2007 2009 2011 2013Year

-10K

-5K

0K

5K

10K

15K

Net Job Creation

Firm Age0-1 Years2-3 Years4-5 Years6 to 10 Years11+ Years

Buffalo

1999 2001 2003 2005 2007 2009 2011 2013Year

-15K

-10K

-5K

0K

5K

10K

Net Job Creation


Rochester

1999 2001 2003 2005 2007 2009 2011 2013Year

-10K

-8K

-6K

-4K

-2K

0K

2K

4K

6K

8K

10K Firm Age0-1 Years2-3 Years4-5 Years6 to 10 Years11+ Years

Syracuse

1999 2001 2003 2005 2007 2009 2011 2013Year

-4K

-2K

0K

2K

4K

6K

8K

10KNet Job Creation


Albany


Startup Density in NY: Metro v. Rural

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

0

20

40

60

80

100

120

140

Startup_Density_Total Startup_Density_Metro

Startup_Density_Rural_Non_Metro


Learning from:Silicon Valley

BoulderSt. Louis


Silicon Valley

Military R&D Shockley and Terman Spinoffs Non-compete agreements


Boulder

Federal research facilities IBM StorageTek Mountains


St. Louis

• Washington University

• Beer!


What Universities Do Best

Experience

Exposure

Peer learning

Teach something about something


Connectivity


Immigrants More Entrepreneurship

Immigrants


Immigrants Upstate

MSA % Foreign-Born U.S. EquivalentAlbany 6.7 1985

Rochester 6.7 1985

Utica-Rome 6.5 1984

Buffalo 6 1980

Ithaca 12.6 2015

Binghamton 5.35 1975

Elmira 2.8 n/a

Glens Falls 2.8 n/a

United States = 13% foreign-born


Don’t Forget the “Scruffy” and “Grungy” Entrepreneurs

But not …• “Junk” entrepreneurs

“I strongly believe that the successes and failures of the smaller company universe create a dynamism which differentiates the American model from everyone else. Small HVAC repair shops or sheet metal fabrication shops don’t appear to be very sexy, but they represent a meaningful slice of the opportunities provided … The ‘innovations’ which are created in this smaller environment are almost certainly less earth-shattering than ones coming out of larger organizations, but the sum of all the small ideas and the constant testing and adjusting that takes place is certainly very valuable. ”

—Read Boles


Blueprint v. Recipe


Thank You

Kauffman Policy Digests:• http://www.kauffman.org/what-we-

do/resources/entrepreneurship-policy-digest

[email protected]

@danestangler

@KauffmanFDN

http://www.kauffman.org/what-we-do/resources/entrepreneurship-policy-digest





Measure Your Ecosystem, not a Monoculture

Density

Fluidity

Connectivity

Diversity

Velocity

Survival

Funding

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Dane Stangler | Upstate Unleashed Presentation

Small Business & Entrepreneurship

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