What is the importance of governments in stimulating successful innovation?
[US: SILICON VALLEY🇺🇸]
Government's role: strategic investor💰
The gov has developed a decentralised network of public institutions: DARPA, NASA, the SBIR program*, and the National Science Foundation ⇨ provide more early stage high risk finance to companies than the entire venture capital sector
What is SBIR (Small Business Innovation Research)?
One of the innovation programs launched by the US gov.
Provides grants to small businesses --> increases private-sector commercialisation of innovations derived from federal research and development funding ⇨ enables small businesses to explore their technological potential + provides the incentive to profit from its commercialisation
In turn ensures high-tech innovation is stimulated and the US gains entrepreneurial spirit as it meets its specific research and development needs
How has public money provided early stage funding to successful tech companies in other countries?
The state-owned development bank offered billions of dollars in loans to some of the country’s most innovative companies, including Huawei and Yingli Solar
Government's role in developing the IT industry (similar to a part of the essay Q in 17DSE: Use the US as an example of how the government is expanding the IT industry)🇺🇸
Possible question that can be asked:
(Essay) Discuss the relative importance of institutional factors in contributing to the development/ expansion of IT industry