Ecosystems and City Governments:Lessons from Boulder, CO

Dr. Jason KasselJuly 2016

The American Center, US EmbassyHanoi, Vietnam

Structure of Talk

1. Quick data on Boulder

2. Most common explanation for Boulder’s success

3. Rethinking the common explanation

4. Putting the Boulder story back together

5. Brad Feld’s Boulder Thesis

6. Government activity that ‘sets the table’

7. Five principles

8. Vietnam 2016 and the Year of the Startup

Why Boulder, CO?

1. Access to startup resources

2. VC investments are pouring into the city

3. Cost of living is comparatively low

4. The University of Colorado

5. A vibrant quality of life

Brad Feld and Boulder

Foundry Group

TechStars

“Startup Communities”

Brad Feld’s Boulder Thesis

1. Entrepreneurs must lead the startup community.2. The leaders must have a long-term commitment.3. The startup community must be inclusive of anyone

who wants to participate in it.4. The startup community must have continual activities that engage the entire

entrepreneurial stack.

Boulder is Not a New Tech Startup City

University, Government and Anchor Business

University of Colorado

National Center for Atmospheric Research

National Institute of Standards & Technology

Anchor Businesses

IBM

StorageTek

Oracle

Boulder City Financial Incentive Programs

Flexible Rebate Programbuilding permit taxes and feescity sales and use taxes paid on fixed asset purchases

Microloan ProgramPartnership between the City of Boulder, Boulder Small Business

Development Center, Boulder area financial institutions, and the Colorado Enterprise Fund

Loans up to $50,000 to businesses with annual gross revenues of less than $2 million.

State Business Incentive ProgramsColorado Office of Economic Development and International Trade.

Setting the Table

Setting the table (creating a favorable environment)

Several dimensions.

Easily move ideas to market

Tax policy

Transparent and enforceable contract law

Lerner’s Five Principles

Build an entrepreneurial environment where new ventures can thrive is a critical first step.

Let the market provide direction when distributing subsidiesRecognize the long lead times these initiatives require.Realize that programs to promote entrepreneurship need creativity and flexibilityRecognize that “agency problems” — when individuals and organizations act to

benefit themselves, rather than the broader social good — are universal, and take steps to minimize their danger.

Don’t Forget Quality of Life

Maybe the mountains did it?

Mobile society, highly motivated people move easily

Choose to live in different places for different reasons

There is no one-size-fits-all model

Maximize natural benefits

Vietnam

Can Vietnamese Government invest in technological research?

Does Vietnam have active Universities?

Are there Anchor Businesses in Vietnam?

Samsung

Intel

Vietnam National Government

HCMC City Government

Hanoi City Government

Danang City Government

Global Entrepreneurship Monitor 2015-2016 Report

Moving Forward

Focus on surrounding service providers

Lawyers

Accountants

Ensure momentum is provided by entrepreneurs and business commnity

Spend money on quality of life issues

Environmental protection

Food safety

Health care