Intro & Overview

13 September 2002

Professor Sandy Pentlandsandy@media.mit.edu

Joost Bonsenjpbonsen@media.mit.edu

http://courses.media.mit.edu/2002fall/de/

Developmental Entrepreneurship MAS.965

Doing Our Part in a Global Development Movement

• Global challenge never been clearer or more broadly known

• Development disparities within and between nations and peoples

• Understanding about what works growing

• Politically ripe – consider Mexico’s Fox, Ghana’s Kufuor, Russia’s Putin

Executive Summaries 20011. Mercados Infinitos -- distribution & delivery services in Mexico2. SEID -- global talent & development challenge matchmaker3. Remittance International – community-building fin’l services Lat. America4. CureAll -- mobile health care of syphilis in southern africa5. Dlo Prop -- clean water via chlorination in Haiti6. Safe Storage -- non-electric cold storage of vaccines in India7. Ca:sh -- PDA system for health and info services in India8. Grow Networks -- e-mailman wireless network for India and Costa Rica9. Diabetic Pulse -- non-invasive diagnostic & self-manag’nt system for India10. Asian Credit Organization -- credit rating & financial info for China11. Eco-Meter -- ecological electricity distribution system for Asia12. DissemiNation -- FM radio-delivered digital info in Latin America & Russia13. InformUs -- info & financial services for farmers in India14. Cresimento e Valor -- philanthropic investor services in Brazil15. Mexico Board of Trade -- efficient market for agriproducts in Mexico16. MobilBanco -- electronic pre-payment for cellphones in Latin America17. Green Cycle – eco-composting for waste management and sanitation

Continuing Ventures1. Mercados Infinitos -- distribution & delivery services in Mexico2. SEID -- global talent & development challenge matchmaker3. Remittance International – community-building fin’l services Lat. America4. CureAll -- mobile health care of syphilis in southern africa5. Dlo Prop -- clean water via chlorination in Haiti6. Safe Storage -- non-electric cold storage of vaccines in India7. Ca:sh -- PDA system for health and info services in India8. Grow Networks -- e-mailman wireless network for India and Costa Rica9. Diabetic Pulse -- non-invasive diagnostic & self-manag’nt system for India10. Asian Credit Organization -- credit rating & financial info for China11. Eco-Meter -- ecological electricity distribution system for Asia12. DissemiNation -- FM radio-delivered digital info in Latin America & Russia13. InformUs -- info & financial services for farmers in India14. Cresimento e Valor -- philanthropic investor services in Brazil15. Mexico Board of Trade -- efficient market for agriproducts in Mexico16. MobilBanco -- electronic pre-payment for cellphones in Latin America17. Green Cycle – eco-composting for waste management and sanitation

Development Challenge & Opportunity

• Population Growth• Youthful Unemployed• Basic Needs: Water, Power, Housing• Economic Desires (political, etc)

• Developmental Technologies• Developmental Entrepreneurship• Developmental Innovations Generally

Growth of Humanity

• Note slowing of growth rates

• Growth proportionate to wealth & income

Megacities

Youthful Populations

Undervalued Human Capital

• Creative Talent is only unbounded resource!

• Consider the US Case

• Build educational institutions

• Be clever with incentive structures to motivate self-improvement

Source: Knowledge Universe

Clean Water

Water Availability

Macro CategoriesThe 1G Challenge

• Basic Needs• Health• Catastrophe

Mitigation• Shelter• Farming• Culture

• Transportation• Distributed Power• Information &

Communication• Education• Business Models• Finance

…

Possible Solutions: Appropriate Technologies

• Low power refrigeration• Solar stoves• Water filtration• Locomotion• Medical incubator• Low Cost Eyeglasses• Local & Distributed power• Clean combustion• Clean Water

…

Ravi Kuchimanchi, AID-India

http://www.thinkcycle.org

Murcott Group, Civil Engineering http://www.thinkcycle.org

Médecins Sans Frontières

Ashok Gadgil UV Treatment

Enfield Bullet, Sristi

Possible Solutions: Leapfrog

Technologies

e.g. Portable Computers for the people

e.g. Cellphones per village

e.g. Intellectual capital development via school or innovator network system

Jacobson Group, Media Lab

Nishi Group, Media Lab

To Help with Deployment: Developmental Entrepreneurship

• MicroEntrepreneurship • MicroFinance• MicroSavings• MicroCredit• MicroVC• MicroFranchising

• Entrepreneurial NGOs• Social Ventures

and more…

Dream Scenario: Global Health, Wealth, & Happiness

• Ailments diagnosed & cured

• Infrastructure built & clean

• Industry with minimized externalities

• Peace, Security, & Freedom

• Competent & Non-Corrupt Civil Service

• Choice maximized

GDP/Capita Connection to Innovations

Still Tough Questions: Are There Limits to Growth?

The Sustainability Debate

Historically Broad Efforts at MIT in…

• International Development

• Entrepreneurshipvia

• Educational

• Research

• Extracurricularactivity

MIT Development Education Efforts

• Founding & Building Technical Institutes– Stanford, Caltech– IITs, Birla Institute– Alliances : China, Latin America, Singapore, UK– Open CourseWare

• K12 Endeavors– Media Lab– System Dynamics

• Classes & Degree Programs– Developmental Health, Design, Housing, Planning,

Economics, Policy

Example MIT Classes on Development

(Current & Historical)

• MAS.963 Development Technologies http://edev.media.mit.edu/class963.html

• IAP Grassroots Development Seminar http://www.media.mit.edu/~nitin/aid/iap/

• SP746 ATF Writing Seminar http://web.mit.edu/sp.746/www/home.html

• SP753 Designs for Developing Countries http://web.mit.edu/sp753/www/home.html

• 21A.336 Globalization: Mercantilism to Microchips C. Walley • 15.040 Development Macroeconomics R Rigobon

http://web.mit.edu/rigobon/www/Cursos/DM_Syllabus01.html • 17.196 Globalization S. Berger

http://web.media.mit.edu/~jpbonsen/MIT-Devel-Classes.htm

MIT Development Research Activities

Sustainable Housing

Environmental

Globalization Study

Economics

Digital Nations

ThinkCycle

e.g. Banerjee & Duflo

MIT Development Through Student Extra-Curriculars

• AID-India, Habitat for Humanity, Amnesty International, …

• SANGAM, Paksmit, Sri Lankans, Club Latino, Bangladeshis, Africans, …

• Development by Design

MIT in Entrepreneurship

• Rich Alumni Legacy

• Research since 1890’s – Walker

• Alumni MIT Enterprise Forum

• MIT Entrepreneurship Center & MTIE

• Student Extracurricular activity

MIT Alumni Legacy

http://web.mit.edu/newsoffice/founders

4,000 companies> 1M employees

~$250 Billion sales

MIT Research on Innovation & Entrepreneurship

• Rogers

• Walker

• Alfred P. Sloan’s influence

• Chandler, Roberts, Morse Sr.

• Major initiatives now with Schoar, Burton, Johnson, Locke, etc

MIT Entrepreneurship Organizations

• E-Center

• E-Forum

• TLO

• MIT $50K E-Competition

• Sloan Entrepreneurs

• VC Club

Connecting Development & Entrepreneurship

• MIT $50K Entrepreneurship Competition: $1K Warmup & Alum e.g’s

• DyD Workshop

• Other E-Center classes: GLab

• SEID

• Alumni Company Role Models…

• Our DE Seminar

Alumni Company Role Models

Africa Online

http://www.africaonline.com/

Evergreen Solar

http://www.evergreensolar.com/

Water Pumping in TanzaniaThis water pumping system provided the first water supply for

the main slaughterhouse in Dar es Salaam, Tanzania. WorldWater Corporation (www.worldwater.com) designed and installed this AquaSafe™ system, as well as others in Africa

and Southeast Asia

Example Cases We’ll Feature

• Low Cost Eyecare

• Appropriate Medical Therapies

• Distributed Power Generation

• Printed PCs

• Telecom Networks

• Innovator Networks

Interwoven DE Themes

• Entrepreneurial Models for Development

• MicroEntrepreneurship – franchising, financing, VCs, credit…

• Rule of Law & Socio-Political Hurdles

Selecting DE Opportunities to work on from MIT & Beyond… • Meeting peers in class

• Surfing web, paying attention

• Handouts

• Look about MIT & Labs

• Talk to us!

MIT Technology Biz MatrixInfo Bio Tiny Compl’x Develop-

mental

MIT Research

LCS/AI, Media, 6

HST, BEH, 7

MTL, 3, 5, 6, 8, 16

SDM, Aero, 6, 15, 14, 13

Digital Nations, 1, 4, 5, 6, 7, 11

Sloan Research

eBiz, Mkting

POPI, ? ? System Dynamics, Tech Strat

Econ, Global Entrepreneurship

Sloan

Courses

ITBT, eBiz

Bio-venture

TES SysDyn, Strat, OR,

Global E-lab, DE

Sloan

Extracur

Media-Tech

Health-Tech

TinyTech OR, SDK12, etc

SEID

MIT Alum Startups

Akamai, DirectHit

Amgen,

Biogen

Gen’tec

Surface, eink, Angstr’m

HP, Raytheon, Teradyne

AfricaOnline, Evergreen Solar

http://web.media.mit.edu/~jpbonsen/MIT-Emerging-Technology-Matrix.htm

MIT Alumni Geo DistributionUnited States and Possessions 76,137   New England 21,251   Mid-Atlantic 20,894   West 12,861   Great Lakes 5,715   Southwest and South Central 5,970   Southeast 5,259   Northwest and Great Plains 3,662   Alaska and Hawaii 333

   Puerto Rico, Virgin Islands,U.S. territories 192

Asia 3,872Europe 3,746North America (other than U.S.) 1,636South America 1,060Pacific Ocean Islands and Australia 428Africa 355Central America 79

http://web.mit.edu/alum

Example Online Idea Sources

• ThinkCycle http://www.thinkcycle.orghttp://www.thinkcycle.org/start/

• Sristi http://www.sristi.org

• DE Course Webpagehttp://courses.media.mit.edu/2002fall/de/

DE Expected Deliverables

• Business Plan Executive Summary complying with the MIT $50K Entrepreneurship Competition $1K Warmup guidelines (early November)

OR

• A paper or article about some DE topic – key caveat – you must try to publish it in The Tech etc.

DE Participation Includes…

• Showing up

• Independent Research

• Contributing weekly original & interesting weblink to ThinkCycle’s Developmental Entrepreneurship Topic http://www.thinkcycle.org

Personal Elevator Pitch

• I’m FirstName LastName

• Student in School/Department

• Studying in Program/Field

• Most recently a LastRole at Previous Organization

• Now very interested in ShortSummary

Short Summary of Interests

One sentence or phrase with keywordsFor Example…

• “…implications of wireless and mobile devices on remote medical services”

• “…ultra-low cost ‘penny diagnostics’ of ailments, infestation, cleanliness”

• “…building and deploying distributed electric power systems”

Next Week 9/20

Fin