| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Innovation Last Updated: Jan 22, 2014 - 7:51 AM

Davos 2014: Copying Silicon Valley no jobs engine solution for Europe
By Michael Hennigan, Finfacts founder and editor
Jan 21, 2014 - 9:24 AM

Email this article
 Printer friendly page
Angela Merkel, German chancellor, giving a history lesson at a Berlin school, Aug 13, 2013

Davos 2014: Berlin is vying to become Euro's tech startup hub and according to McKinsey, the consultancy firm, it could add 100,000 new jobs by 2020. However, in a blog post for the World Economic Forum, in advance of Wednesday's opening of the 44th annual meeting of the forum in the Alpine resort, a digital insider who lives in Berlin says: "Many are looking to the technology industry for solutions, hoping to replicate the success of Silicon Valley. However, while there is no doubt about the size and importance of technology as an industry, copying the US model will not solve Europe’s problem."

Igor Schwarzmann, a co-founder of Third Wave, a Berlin-based digital business consultancy, says that  "more and more young Europeans are hoping to make money by founding tech start-ups. Increasingly, they are relying on so-called incubators to guide them to success.

Despite talk of changing the world, incubators are not fundamentally different from military boot camps. Despite their promise to cherish individuality and creativity, they’re really only interested in conformity; they punish startups that stray from proposed business models and predefined processes (processes that, despite incubators’ claims, are built around financial risk assessment models and are not there to help founders. Investors want their money back.)"

Schwarzmann says that the Berlin unemployment rate is significantly higher than the rest of Germany, "yet of that group of job-seekers only a few have the potential to work in a technology startup."

He wants a European approach to the technology industry with a focus on sustainable businesses that pay tax to the community and  "instead of pilgrimages to San Francisco, startup founders should travel to southern Germany. This is the home of the Mittelstand, the small and medium-size enterprises that are the reason for Germany’s success as an export-driven nation."


We at Finfacts said last month that 2013 was the year when Ireland would be recognised as a "world-class knowledge economy," according to a 2006 official target.

The issue was buried by the establishment as patent applications fell to a 30-year low. Putting research at the heart of enterprise policy is delusional but providing no evidence of success, Richard Bruton's Department told Finfacts: "Minister Bruton and the Department of Jobs are unashamedly ambitious for the potential of scientific research in Ireland to support economic growth and job-creation in Ireland" -  - this comes down to faith and we expect that time will be called when the effort to conceal failure with public funds will be unsustainable. A recent €88m project, is a combination of SFI public funding (€58m) and 30 industry partners (€30m). "This does not include other state funding such as academic salaries, buildings, in universities etc which may be used at times by the research centre," the Department said meaning that for industry partners net of grants and tax credits, Joe Taxpayer is funding the lion's share.

There can be a very thin line between a minister being "unashamedly ambitious" and clueless.

Irish Innovation: Evidence of science policy failure mounts - - high growth firms are not typically in high tech and McKinsey Global Institute has said: "While many policy makers see innovative technologies as the answer to the challenge of job creation, our analysis indicates that governments are likely to be disappointed in such hopes.”

US company profits per Irish employee at $970,000; Tax paid in Ireland at $25,000

Irish Medium-Term Economic Strategy 2014-2020: Exports to plunge by €50bn - Parts 1-8

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Digital Taylorism: Amazon's chief rejects depiction of "soulless, dystopian workplace"
Most surviving startups do not grow; Tiny number powers jobs engine
Despite euro dip China & US remain most competitive manufacturing nations
Business startup rates up in most OECD countries led by Australia and UK
NASA's Kepler mission has confirmed the first near-Earth-size planet
Energy subsidies at 6.5% of global GDP; Commodity prices to remain weak
US startups rely on personal savings, debt; Venture capital funds less than 1%
Europe produces 13 $1bn+ "unicorn" startups in one year; London is Europe's digital capital
Irish-based firms raised €120m in VC funding in Q1 2015; Some top recipients Irish for tax purposes
Ireland: Fourth highest 25-34 year old ratio of third-level graduates in developed world: So what?
Business dynamism/ employer firm startups in US secular decline
Innovation Union Scoreboard 2015: Sweden, Denmark, Finland and Germany are on top
Education systems failing to provide students with skills for success in 21st century
US, Switzerland, Denmark, Sweden, Finland have best higher education systems
Handbook of Service Innovation: Ireland moving up the value chain?
Switzerland revives silk industry that thrived for two centuries
Sales of Irish tech firms create 300 millionaires in 15 years and no scaleups
Apple warns of 'material' tax payments from EU's Irish tax investigation
Apple earnings surge 33% on higher price and iPhone sales jump in China
Big Pharma's internationalisation of R&D to China
The dangers of romanticising entrepreneurs despite key role
UK and Irish business R&D heavily reliant on foreign-owned firms
Silicon Valley and the development of the silicon microchip - Part 2
Ireland: Innovation with or without R&D/ scientific breakthroughs
UK government most open/ transparent in world; Ireland & Greece lowest ranking in Europe
10 questions about Switzerland's Solar Impulse aircraft – answered
Silicon Valley loses its silicon; Typical household income stagnates - Part 1
21st century skills are 18 century skills + a computer
Growing ICT sector in Europe accounts for 5% of employment
Should Ireland copy Singapore's scientific research investment plan?
Startups vs Scaleups: 4% of UK startups have 10+ employees 10 years later
Irish patent filings at European Patent Office fell in 2014
Facebook's maze of privacy settings maybe in breach of European law
Apple to invest €1.7bn in Irish and Danish data centres
Silicon Valley insider warns of dodgy $1bn valuations of private companies
Israel's Startup Nation not a jobs engine; Nor is Irish high tech
Established industries often beat new technology investment returns
Ireland: Noonan said EU to drop Apple tax case; Now expects court case
Irish R&D Tax Credit: No evidence of rising business innovation; Facts don't matter
Apple reports biggest profit of a public company in history