Chapter 19. Endnote...

We began this inquiry with the idea that if we spoke with renowned theorists and successful entrepreneurial champions in the Innovation Economy across diverse geographic regions in the sectors of government, education, venture capital, non-government organizations, multinational corporations, and start-ups, we could learn from their collective insight and practical wisdom how to be successful in a new era.

At the conclusion of our efforts, we have been both humbled and gratified to have had the opportunity to speak to and learn from so many people who freely shared their experience and advice so others could benefit. We have tried to present their experience, insights, and recommendations as faithfully as we could.

From their collective conversations and our research into the regions they work from, here are several broad themes that we have gleaned:

* Attitude drives accomplishment - Reverence for knowledge, openness to new ideas, flexibility to adapt, and capacity to work with people from other cultures are all assets for regional wealth creation. In countries such as Ireland this attitude is deeply rooted in the culture and it is rewarding them. In countries such as Germany, where the cultures have not been as open and entrepreneurial, there is a growing recognition that a societal attitudinal change is necessary.

* Education and investment in people is a clear priority for governments - Education, tied to skills demanded of knowledge workers, is now an economic engine for regional development. Major universities and regional technical colleges connected with research institutes and technology parks have worked in countries as varied as India, Sweden, Ireland, and Taiwan. Government efforts to expand research budgets for basic science in small countries such as Ireland and Israel demonstrate the recognition that to develop intellectual capital government must provide the research infrastructure, just as they do the transportation infrastructure, to keep competitive.

* A convergence of societal institutions must work together for a region to succeed - The delineations between government, NGOs, educational institutions, and industry are now permeable. As initiatives develop, each sector collaborates so the region can succeed. Efforts such as those we highlighted in the Smart Permit system in Silicon Valley and the initiatives in e-government and shared telecom infrastructure in Stockholm are examples of these kinds of collaborations.

* Entrepreneurial risk must be rewarded and encouraged for individuals - Entrepreneurs drive innovation. Regions that have encouraged this risk-taking, such as Taiwan, have an advantage. In regions such as Cambridge, England there is a growing recognition that incentives must be initiated to encourage risk-taking. In countries such as France it is beginning to take hold against long held biases against business and risk.

* There is an evolution to regional success and working up the value chain - Economically disadvantaged regions enter the Innovation Economy as low-cost manufacturing and service centers. With consistent and comprehensive focus by all societal institutions, these regions work their way up the value chain for higher level skills and integration into the multinational companies that are driving the Innovation Economy. Ireland, India, and Taiwan have each demonstrated this move up the value chain. In the case of Taiwan, its ability to integrate mainland China into its industrial complex could be a great model for regional integration.

* Successful regions have staked out important distinctive competencies that they can excel in, rather than try and replicate those of Silicon Valley - Regional emphasis seems to have evolved with intentional leveraging of societal advantages. Ireland as a multinational corporate service center for software for Europe; Sweden as a world center for mobile telecommunications; Israel for military applications and transfer of technology for civilian purposes; India as the source for engineers and programmers for software and international job sharing; and Taiwan as the center for semiconductor foundry manufacturing, are all examples of this phenomenon. These regions are not totally defined by these competencies, but certainly have excelled in these areas for competitive advantage.

* Technological innovation is viewed as a liberating and emancipating factor for regions and people who have a self-image as oppressed or disadvantaged - Perhaps most surprising is the sentiment expressed by Irish, Israeli, Taiwanese, and Indian entrepreneurial champions across all professional disciplines about how proud they are of their societies for creating regional wealth and providing their people with economic opportunities. These changes have meant that permanent emmigration is no longer the only option for their brightest and most ambitious people.

In this Innovation Economy, transnational Diasporas are not a "brain drain," but a "brain gain" as knowledge, wealth, and business opportunities are created in multiple regions. Venture capitalists and private equity investors have an important role in these regions' development.

In Conclusion

For much of the world, poverty, ignorance, and societal dysfunction has led many to despair, anger and fanaticism as the only way to attain human dignity. Perhaps the promise of Creating Regional Wealth in the Innovation Economy will provide another way for the benefit of all.