International Tech Transfer

1. International Tech Transfer David Rosenburg Cloning Silicon Valley Reuters (Person Education), 2002

2. SV not 128 • Regional Advantage:Culture and Competition in Silicon Valley and Route 128, AnnaLee Saxenian, 1994, Harvard Press • 128 -“autarkies proprietary knowledge, self sufficiency • SV- “Webs between entreprenuers, universities, VCs • The SV model performs many functions outside of a formal group and draw on greater resources and enjoy greater flexability • IP is shared widely, from a lunch break to a strategic alliance • Employees move from company to company • New firms are spun out of old ones • SV based on two principles: proximity, and speed • SV subcontract everything you can

3. Clones • 105 areas • Wired magazine found 46 worthy of rating • Only 6 countries outside of US scored consistently in the top third • Britain • Finland • Israel • India • Singapore • Taiwan

4. Rosenburg Scale (Reuters)

5. Singapore • $24,000 per capital GDP • Economic growth 8% per year for 40 years • Heritage Foundation worlds second freest economy • IMD 2nd most competitive economy • Economists Intelligence Unit #6 global business environments

6. How did they do it? • One of the worlds most hospitable places for multinational companies • Future needs • older industries up the value chain • better educated workforce • better infrastructure • transform disciplined team-players into free thinking, risk taking entrepreneurs • tech-savvy financiers • create regulatory environment friendly to small growing businesses • reduce barriers to imported labor

7. Next move • Singapore is now too wealthy and educated for low value added industries • How does a tiny county (250 square miles) create a Knowledge Based Economy KBE? • Develop a virtual model of Silicon Valley • Singapore will be the nerve center • Network cluster that stretches from Korea to Australia

8. Shared Understanding • Singapore is one big technology cluster • Broadband is king • High speed Internet and Multi media to every home • Networking creates wealth not teamwork • See Japan as too insular and culturally unfit for a cluster approach

9. Shared purpose • Government and industry agree • Share labor resources of surrounding countries • Set up back offices in low cost Malaysia • Import management and technical talent from China and India • Venture capital encouraged to invest outside the country • Create 175 telecom service providers in 7 months • China is the market

10. Challenges • Workforce is not Singaporeans and they are too obedient • Only 2 % think of starting their own business • “The existing work force cannot conceive of what might be, only what is” Jeff Goh CEO Lightspeed Technologies • They have 90,000 IT professional and they will need 130,000 more over the next 5 years • Cisco’s Asian IT work force is in Singapore and it rotates on a monthly as needed basis. Targeting High Schools • Rote to Ruin

11. Taiwan • “Taiwanese companies don’t start as local players before expanding into global markets; they begin as cogs in a global high-tech machine whose motor is the US.” • A huge portion of the Taiwan entrepreneurial class did their graduate training and worked in the US before taking their skills and connections back home

12. Taiwan • Excellence in Education • Licensing from abroad • Grew a venture capital community • Highly integrated into Silicon Valley • Education • 15% of all Taiwanese university graduates have done advanced work in the US. • 3600 high tech SVrs have returned home • 169 active VCs control $3.73B • some funds invest up to 15% in the U.S. • Provides access to the Taiwan Stock Exchange

13. Challenges • 19th on IDC IT rating • Rote to Ruin