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	<title>Comments on: Can governments create entrepreneurial and innovation hubs?</title>
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	<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/</link>
	<description>Translating Business Strategies into Financial Models</description>
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		<title>By: Repost: Can Governments Create Entrepreneurial and Innovation Hubs : Sean Patrick Tario</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-2/#comment-1596</link>
		<dc:creator>Repost: Can Governments Create Entrepreneurial and Innovation Hubs : Sean Patrick Tario</dc:creator>
		<pubDate>Tue, 14 Apr 2009 21:59:52 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1596</guid>
		<description>[...] Can Governments Create Entrepreneurial and Innovation Hubs? [...]</description>
		<content:encoded><![CDATA[<p>[...] Can Governments Create Entrepreneurial and Innovation Hubs? [...]</p>
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		<title>By: How to help entrepreneurs: a plan for the Obama administration &#124; National Startup Blog</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1543</link>
		<dc:creator>How to help entrepreneurs: a plan for the Obama administration &#124; National Startup Blog</dc:creator>
		<pubDate>Wed, 25 Mar 2009 00:14:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1543</guid>
		<description>[...] just read here today (via StartupCFO , and courtesy of Taylor Davidson ) that the Quebec government is moving forward with plans to help entrepreneurs with $1.35B. Since [...]</description>
		<content:encoded><![CDATA[<p>[...] just read here today (via StartupCFO , and courtesy of Taylor Davidson ) that the Quebec government is moving forward with plans to help entrepreneurs with $1.35B. Since [...]</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1542</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Tue, 24 Mar 2009 17:49:40 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1542</guid>
		<description>Related: some details from Mark MacLeod on funding commitments from Ontario and Quebec for funding Canadian technology startups: &lt;a href=&quot;http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html&quot; rel=&quot;nofollow&quot;&gt;http://startupcfo.ca/2009/03/some-thoughts-on-n...&lt;/a&gt;</description>
		<content:encoded><![CDATA[<p>Related: some details from Mark MacLeod on funding commitments from Ontario and Quebec for funding Canadian technology startups: <a href="http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html" rel="nofollow"></a><a href="http://startupcfo.ca/2009/03/some-thoughts-on-n.." rel="nofollow">http://startupcfo.ca/2009/03/some-thoughts-on-n..</a>.</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1904</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Tue, 24 Mar 2009 17:49:40 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1904</guid>
		<description>Related: some details from &lt;a href=&quot;http://startupcfo.ca&quot; rel=&quot;nofollow&quot;&gt;Mark MacLeod&lt;/a&gt; on funding commitments from Ontario and Quebec for funding Canadian technology startups: &lt;a href=&quot;http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html&quot; rel=&quot;nofollow&quot;&gt;http://startupcfo.ca/2009/03/some-thoughts-on-n...&lt;/a&gt;</description>
		<content:encoded><![CDATA[<p>Related: some details from <a href="http://startupcfo.ca" rel="nofollow">Mark MacLeod</a> on funding commitments from Ontario and Quebec for funding Canadian technology startups: <a href="http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html" rel="nofollow"></a><a href="http://startupcfo.ca/2009/03/some-thoughts-on-n.." rel="nofollow">http://startupcfo.ca/2009/03/some-thoughts-on-n..</a>.</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1914</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Tue, 24 Mar 2009 17:49:40 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1914</guid>
		<description>Related: some details from &lt;a href=&quot;http://startupcfo.ca&quot; rel=&quot;nofollow&quot;&gt;Mark MacLeod&lt;/a&gt; on funding commitments from Ontario and Quebec for funding Canadian technology startups: &lt;a href=&quot;http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html&quot; rel=&quot;nofollow&quot;&gt;http://startupcfo.ca/2009/03/some-thoughts-on-n...&lt;/a&gt;</description>
		<content:encoded><![CDATA[<p>Related: some details from <a href="http://startupcfo.ca" rel="nofollow">Mark MacLeod</a> on funding commitments from Ontario and Quebec for funding Canadian technology startups: <a href="http://startupcfo.ca/2009/03/some-thoughts-on-new-funding-for.html" rel="nofollow"></a><a href="http://startupcfo.ca/2009/03/some-thoughts-on-n.." rel="nofollow">http://startupcfo.ca/2009/03/some-thoughts-on-n..</a>.</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1497</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Thu, 12 Mar 2009 17:44:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1497</guid>
		<description>Julien, really appreciated your comment and &lt;a href=&quot;http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html&quot; rel=&quot;nofollow&quot;&gt;further thoughts on your blog&lt;/a&gt;; it&#039;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#039;ve done a bit of research into the history of sector hubs a bit in the past, but I&#039;m looking forward to digging in further...</description>
		<content:encoded><![CDATA[<p>Julien, really appreciated your comment and <a href="http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html" rel="nofollow">further thoughts on your blog</a>; it&#39;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#39;ve done a bit of research into the history of sector hubs a bit in the past, but I&#39;m looking forward to digging in further&#8230;</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1506</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Thu, 12 Mar 2009 17:44:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1506</guid>
		<description>Julien, really appreciated your comment and &lt;a href=&quot;http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html&quot; rel=&quot;nofollow&quot;&gt;further thoughts on your blog&lt;/a&gt;; it&#039;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#039;ve done a bit of research into the history of sector hubs a bit in the past, but I&#039;m looking forward to digging in further...</description>
		<content:encoded><![CDATA[<p>Julien, really appreciated your comment and <a href="http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html" rel="nofollow">further thoughts on your blog</a>; it&#39;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#39;ve done a bit of research into the history of sector hubs a bit in the past, but I&#39;m looking forward to digging in further&#8230;</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1898</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Thu, 12 Mar 2009 17:44:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1898</guid>
		<description>Julien, really appreciated your comment and &lt;a href=&quot;http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html&quot; rel=&quot;nofollow&quot;&gt;further thoughts on your blog&lt;/a&gt;; it&#039;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#039;ve done a bit of research into the history of sector hubs a bit in the past, but I&#039;m looking forward to digging in further...</description>
		<content:encoded><![CDATA[<p>Julien, really appreciated your comment and <a href="http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html" rel="nofollow">further thoughts on your blog</a>; it&#39;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#39;ve done a bit of research into the history of sector hubs a bit in the past, but I&#39;m looking forward to digging in further&#8230;</p>
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		<title>By: Taylor Davidson</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1908</link>
		<dc:creator>Taylor Davidson</dc:creator>
		<pubDate>Thu, 12 Mar 2009 17:44:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1908</guid>
		<description>Julien, really appreciated your comment and &lt;a href=&quot;http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html&quot; rel=&quot;nofollow&quot;&gt;further thoughts on your blog&lt;/a&gt;; it&#039;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#039;ve done a bit of research into the history of sector hubs a bit in the past, but I&#039;m looking forward to digging in further...</description>
		<content:encoded><![CDATA[<p>Julien, really appreciated your comment and <a href="http://wallen.typepad.com/wallen/2009/03/can-governments-create-sector-hubs.html" rel="nofollow">further thoughts on your blog</a>; it&#39;s important for us to learn lessons from government intervention and support from around the world, not just the United States and their recent experiences with venture capital and entrepreneurship hubs.  I&#39;ve done a bit of research into the history of sector hubs a bit in the past, but I&#39;m looking forward to digging in further&#8230;</p>
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		<title>By: Wallen&#39;s</title>
		<link>http://www.unstructuredventures.com/uv/2009/03/09/government-entrepreneurial-hubs-innovation-hubs/comment-page-1/#comment-1475</link>
		<dc:creator>Wallen&#39;s</dc:creator>
		<pubDate>Thu, 12 Mar 2009 07:28:06 +0000</pubDate>
		<guid isPermaLink="false">http://www.unstructuredventures.com/uv/?p=1151#comment-1475</guid>
		<description>In France the government has recently put in place several measures to help &quot;innovation&quot;. First as mentioned by mdangear, there is a fiscal break for individuals investing in start-ups which has indeed boosted the business angel market. Second, there is a tax credit  of 30% on R&amp;D expenses applicable to all companies. Third, a start-up can ask for a special status that lowers the company social charges from 40% to roughly 15-20%. Fourth, there is a governement agency that gives zero interest rates loans for 30-50% of the initial investment required (up to a certain amount). In the latter however, the agency selects the projects in which it invests. But it basically means that theoritically 50-65% of your R&amp;D expenses can be covered... though you still need the cash upfront since the payments are usually made after the expenses occured. &lt;br&gt;&lt;br&gt;To broaden your question, a government action to put in place a given industry ecosystem (innovative or not) has been done numerous times in the past decades. Actually it was a standard policy in Europe after WWII (e.g., Airbus in France). It&#039;s also the strategy that successful developing countries have put in place (e.g., IT offshoring in India, manufacturing in China, but also smaller countries like Morocco). But there has been a lot of failures too (e.g., Latin America in the 60&#039;s and 70&#039;s). The sucess cases have in common to align (lots of) money, political will, education system, infrastructure investments, tax breaks, etc. In other words, there is no silver bullet. Moreover, the &quot;new ecosystem&quot; tends to build on an &quot;adjacent&quot; pre-existing ecosystem and culture. In any case, it&#039;s really a long term investment.&lt;br&gt;&lt;br&gt;For &quot;fixed cost&quot; industries, you also need a critical element: &quot;natural market&quot; with large scale. The latter explains why, for example, the US software industry was more successful than in any European country. Building on this software industry, the web sector came very naturally as an extension.&lt;br&gt;Based on this logic and considering that the web industry is slowly becoming a &quot;variable cost&quot; industry, I would argue that it is today less difficult to build web start-up ecosystems in new locations (though it will be difficult to reach Silicon Valley scale).</description>
		<content:encoded><![CDATA[<p>In France the government has recently put in place several measures to help &#8220;innovation&#8221;. First as mentioned by mdangear, there is a fiscal break for individuals investing in start-ups which has indeed boosted the business angel market. Second, there is a tax credit  of 30% on R&#038;D expenses applicable to all companies. Third, a start-up can ask for a special status that lowers the company social charges from 40% to roughly 15-20%. Fourth, there is a governement agency that gives zero interest rates loans for 30-50% of the initial investment required (up to a certain amount). In the latter however, the agency selects the projects in which it invests. But it basically means that theoritically 50-65% of your R&#038;D expenses can be covered&#8230; though you still need the cash upfront since the payments are usually made after the expenses occured. </p>
<p>To broaden your question, a government action to put in place a given industry ecosystem (innovative or not) has been done numerous times in the past decades. Actually it was a standard policy in Europe after WWII (e.g., Airbus in France). It&#39;s also the strategy that successful developing countries have put in place (e.g., IT offshoring in India, manufacturing in China, but also smaller countries like Morocco). But there has been a lot of failures too (e.g., Latin America in the 60&#39;s and 70&#39;s). The sucess cases have in common to align (lots of) money, political will, education system, infrastructure investments, tax breaks, etc. In other words, there is no silver bullet. Moreover, the &#8220;new ecosystem&#8221; tends to build on an &#8220;adjacent&#8221; pre-existing ecosystem and culture. In any case, it&#39;s really a long term investment.</p>
<p>For &#8220;fixed cost&#8221; industries, you also need a critical element: &#8220;natural market&#8221; with large scale. The latter explains why, for example, the US software industry was more successful than in any European country. Building on this software industry, the web sector came very naturally as an extension.<br />Based on this logic and considering that the web industry is slowly becoming a &#8220;variable cost&#8221; industry, I would argue that it is today less difficult to build web start-up ecosystems in new locations (though it will be difficult to reach Silicon Valley scale).</p>
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