According to the pioneering work of Nobel Prize winner Robert Solow, technolocial innovation is the ultimate source of productivity and growth. It is the only proven way for economies to consistently get ahead-especially innovation born by start-up companies.
Economist Carl Schramm, president of the Kauffmann Foundation, which analyzes entrepreneurial economics, told that ”for United States to survive and continue its economic leadership in the world, we must see entrepreneurship as our central comparative advantage. Nothing else can give the necessary leverage”.
Israel specializes in high-growth entrepreneurship, start-ups that wind up transforming entire global industries. High-growth entrepreneurship is district in that it uses specialized talent-from engineers and scientists to business managers and marketers-to commercialize a radically innovative idea.
The question BusinessWeek cover some time ago put it ”Can America invest Its Way Back?”, we should ask the same question now in Finland? Future coming year of 2015 is the year of parliament elections. Focus within the public debate has been in government spending and public sector reforms mainly in the healthcare. There is a continuous risk that orientation to innovation and growth is forgotten, because it has not leveraged or delivered success as perhaps planned. I believe that it is not the target it self, but the mechanisms and tactics selected in Finland.
There are more Israli companies listed in NASDAQ than all companies from entire European continent. VC investments in Israel are about 30 times greater than in Europe. In terms of driving forces and heritage there are elements in Finland as well, which could bring us the same potential. Finland should be the natural place when world is seeking for innovation. We have done it earlier and we can do that again.
Inspired by Dan Senor & Saul Singer publication: Stat-up Nation. The story of Israel´s economic miracle. Book has stories that are really worth of reading.