I received a request to help write a summary of the panel discussion from the Illinois Technology Partnership Kick-Off Policy Luncheon on July 16, 2008 for inclusion in The May Report.  My takeaway notes are structured around the speakers.

Maura O’Hara, Executive Director of the Illinois Venture Capital Association (IVCA), spoke about successes in asking for a level playing field for investment in Illinois.

• educate legislators on the positive economic impact of venture capitalists (VCs)
  • 75% of dollars from a VC investment goes to payroll
• follow legislation and advocate/litigate pro-Illinois fund positions
  • lobby in Illinois at state level only, not federal level
  • seek to avoid excessive requirements on VC investments
  • previously defensive and reactive
  • currently proactive
    • getting to know legislators
    • participation during drafting of legislation
• never ask State of Illinois for money or favoritism for investment
  • premise is the Illinois technology industry can compete
  • state pension staff limited
    • prefer large single investment
    • encouragement needed to consider the many smaller funds in Illinois
• VCs tend to keep quiet when the VCs have identified a good sector
  • seek exponential returns such as from information technology
  • in energy area
    • concentrate on saving energy from existing sources
    • development of technology for generating energy from different sources requires a greater investment and possibly a different type of investor than VC
• Engineering schools can elevate local workforce by evaluating curricula to deliver skill sets greater aligned with desires of technology companies

Bret Swanson, Senior Fellow and Director of the Center for Global Innovation at the Progress and Freedom Foundation, spoke about movement to an entrepreneurial, knowledge-based economy.

• Pace of change measured by annual Internet growth computed at 58%
  • Technological enablers related to Moore’s law
  • YouTube is having 10 hours of video uploaded per minute
  • Bandwidth usage:  home video, online gaming & virtual worlds
  • Year 2015 is projected to have a zettabyte (ZB) of Internet traffic
• States with a public policy that is flexible and entrepreneurial will win and drive job growth
• Need incentives to build infrastructure for access by all citizens
  • Worldwide most people access Internet by mobile phone, which may be route for currently underserved communities
  • Avoid short-sighted regulation
• Midwest needs advantage of better policy to make up for history of technology business successes on the Coasts
• Entrepreneurs should think how to “waste” (exploit) the coming increases in bandwidth
  • 3G -> 4G, cloud computing over mobile devices

Text Copyright © 2008 Bob Brill

Illinois Technology Partnership, The May Report