TEDedges

PORTUGAL, Yet Another Silicon Valley Wannabe ?

António Murta

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Agenda

1. Portugal as an economic entity : where are we ?

2. Need to put Portugal on the Knowledge Map !

3. Necessary components in order to create “a” Silicon Valley

4. Where are we on the mix (vs. Israel) ?

5. Conclusions : where do we need to act ?

6. What is expected of us ?

7. Final words

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1. Portugal as an economic entity : where are we ?

We need to be aware of where we are (remember Stevenson)

We are not in good shape !

Absolute need to increase exports and decrease imports

Non controlled public debt (please read Prof. Vitor Bento book)

Weight of the public sector : 25% of the active population, 50% of

GDP !!!

Germany demonstrating less tolerance (I would do the same …)

EU will adopt sooner or later practices of tight financial control over

the South of Europe – as we do with Madeira (and we absolutely need

to do it !)

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2. Need to put Portugal on the Knowledge Map !

An Open World : threats and opportunities

Skype vs. Silicon Valley

Inditex vs. World Fashion

Remember David Byrne : “the world is clashing into my living-room”

How can we build our “Silicon Balley” ? (Braga centric version)

How far are we from doing it ?

What are the “ingredients” that we need to improve ?

Is it real to aim at this objective ?

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3. Necessary components

Skills related to the Knowledge / Hard Skills

Capacity to Attract International Talent

Favorable Context

Availability of Seed Capital / Ventures / Business Angels

Entrepreneurship Skills / Investment Attitudes

Commitment to Excellence

Global Networking

Passion about the Company Mission

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4. Where are we on the mix (vs. Israel) ?

1= WEAK 4 = STRONG

Portugal

Skills related to the Knowledge / Hard Skills 4

Great progress on the Quality of the Universities

Capacity to Attract International Talent 2

We simply do not do enough here

Retention of talent + attraction of talent

Favorable Context 3

Technology Plan, Sun, Security, Better Schools (+)

Justice (-)

Availability of Seed Capital / Ventures / Business Angels 3

Better in Seed + Ventures

Not enough BA´s (well prepared ones)

Entrepreneurship Skills / Investment Attitudes 3

Better but it can improve – not enough risk-taking

Too much consumption instead of investment

Commitment to Excellence 2

Complacency with non-excellence

Definition of SME – what is small ; what is big ?

Global Networking 2

Internacionalization – Portugal, Spain, Brasil, Palop´s ?

Open-up the capital of firms and share

What about the US, China, Germany ?

Passion about the Company Mission 4

We´re good in being passionate !

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4. Where are we on the mix (vs. Israel) ?

1= WEAK 4 = STRONG

Portugal vs. Israel

Skills related to the Knowledge / Hard Skills 4 vs. 4

Great progress on the Quality of the Universities

Capacity to Attract International Talent 2 vs. 2

We simply do not do enough here

Retention of talent + attraction of talent

Favorable Context 3 vs. 2

Technology Plan, Sun, Security, Better Schools (+)

Justice (-)

Availability of Seed Capital / Ventures / Business Angels 3 vs. 4

Better in Seed + Ventures

Not enough BA´s (well prepared ones)

Entrepreneurship Skills / Investment Attitudes 3 vs. 4

Better but it can improve – not enough risk-taking

Too much consumption instead of investment

Commitment to Excellence 2 vs. 4

Complacency with non-excellence

Definition of SME – what is small ; what is big ?

Global Networking 2 vs. 4

Internationalization – Portugal, Spain, Brazil, Palop´s ?

Open-up the capital of firms and share

What about the US, China, Germany ?

Passion about the Company Mission 4 vs. 4

We´re good in being passionate !

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5. Conclusions : where do we need to act ?

Investment Attitudes

We need to cut consumption and save to invest : that is simple !

Productivity of Portugal compared to the US :

Productivity / Hour

# Hours Worked (net of vacations, holidays and … “bridges”)

We need to choose and … “walk the talk”

Global Networking / Building Meta-Nationals (remember Joe Santos)

We need to connect ourselves to the markets that define THE brands : USA, China,

UK, Germany

We need to open-up to use “locals” to do that – short-story of Enabler UK

Commitment to Excellence

We cannot focus on the “low hanging fruit” anymore

We need to aim at the top of value-chain (that demands strong innovation and fast

time-to-market)

We cannot not act on mediocrity (need for rigour and performance)

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6. What is expected of us ?

Excellent examples outside IT : EDP Renewables, Sonae-Sierra, CIMPOR

Excellent examples in IT : Altitude, Alert, Enabler, Mobicomp, Critical, WeDo,

Magalhães, Technology Plan itself

Need to do much more – to have a major impact on the economy

What does that mean ?

More companies, highly focused, with sustained differentiation and high-

growth patterns (digitally we can do it !)

Higher added-value with a number of strong connections to N markets (to

apply portfolio balance)

It means being “on the road” and away from Portugal (the new frequent-

flyer emigrants)

It means to aim at being the top of the class – and sustaining it !

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7. Final words

Do I believe that we can build a 2-3 Billion euros market-cap IT

sector out of Portugal ? Yes

Do I believe in the portuguese market as a key target ? No

Do I believe that will be around the corner ? No, it will take 10 years

Am I prepared to invest on it ? Yes (with other focused “citizens of the

world” that happen to depart from Portugal)

NO EXCUSES !