Iron Chef Michigan

Keynote for the 2022 MICHauto Summit, on startup innovation in Michigan

Transcript

1. © 2022 Song Foundation Iron Chef Michigan A Recipe for Economic Competition
2. © 2022 Song Foundation From industrial to digital revolution Rank Metropolitan Statistical Area State Avg Earnings Metropolitan Statistical Area State Avg Earnings 1 Bridgeport-Stamford-Norwalk CT $54,194 Bridgeport-Stamford-Norwalk CT $83,470 2 Flint MI $53,463 San Jose-Sunnyvale-Santa Clara CA $81,541 3 Detroit-Warren-Dearborn MI $53,290 San Francisco-Oakland-Hayward CA $76,697 4 Midland MI $51,043 Washington-Arlington-Alexandria DC-VA $69,890 5 Washington-Arlington-Alexandria DC-VA $50,093 Seattle-Tacoma-Bellevue WA $65,580 6 Saginaw MI $49,469 Boston-Cambridge-Newton MA $65,131 7 Midland TX $49,319 Trenton NJ $64,939 8 Casper WY $49,310 New York-Newark-Jersey City NY-NJ $64,055 9 Monroe MI $49,107 Boulder CO $61,161 10 Bremerton-Silverdale WA $48,987 Baltimore-Columbia-Towson MD $60,418 Source: Jonathan Gruber & Simon Johnson, Jump-Starting America 1980 2016
3. © 2022 Song Foundation The jobs we need to grow Small Main St Businesses Medium Main St Businesses Early Tech Startups Growth & Scale Startups Large Enterprises Typical Employees < 10 10 – 50 3 – 50 50 – 1000 1000 Typical Wages Annual: $10k – 30k $8 – $15 per hour, often only part-time Annual: $10k – $75k Annual: $40k – $250k+ + equity ownership Annual: $40k – $500k + equity ownership Annual: $25k – $1m Widely varied, based on sector Wage Mobility Extremely limited Limited Strong Generally yes Depends on type of company Often yes Depends on type of company Employee Benefits Rarely Sometimes Generally yes Generally yes Generally yes Source: Upsurge Baltimore 2022
4. © 2022 Song Foundation Startups create jobs at higher rates
5. © 2022 Song Foundation Top 20 global startup ecosystems: 2022 Source: Startup Genome Global Startup Ecosystem Report 2022
6. © 2022 Song Foundation Detroit #1 emerging startup ecosystem: 2022 Source: Startup Genome Advancing Greater Detroit’s Startup Ecosystem, 2022
7. © 2022 Song Foundation Ingredients to startup ecosystems Source: Jerome Engler, Global Clusters of Innovation
8. © 2022 Song Foundation Potential Tech Hubs Source: Jonathan Gruber & Simon Johnson
9. © 2022 Song Foundation
10. © 2022 Song Foundation Innovation Hub Strategy SSBCI 2.0: $10B via American Rescue Plan - Michigan allocated $236.9m, $75m going to Michigan Strategic Fund (toward VC, etc.) NSF Engines: $6.5B over 5 years: Up to $160m per hub to fund 10 years of R&D, translation, workforce development CHIPS and Science Act: $280B over 10 years: $11B in R&D, $39B in incentives, e.g. Intel $20-100b fab in OH, Micron $40-100b fab in Central NY Also authorized $10 billion for regional innovation and technology hubs Placemaking? Transit? Attracting / supporting / retaining high-growth founders? Build Back Better Regional Challenge: $1B via American Rescue Plan - Michigan awarded $52m for Global Epicenter of Mobility (GEM)
11. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
12. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
13. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
14. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
15. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
16. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
17. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
18. © 2022 Song Foundation Source: Vitaly Golomb, Ukraine Financial Forum 2018
19. © 2022 Song Foundation MICHIGAN (POP: 10M, GDP: $568B) CHALLENGES ENTREPRENEURS: 165 VC-BACKED STARTUPS, ONLY +17% OVER 5 YEARS VENTURE CAPITAL: $3.7B UNDER MANAGEMENT, -31% OVER 5 YEARS EDUCATION: 18.2% RESIDENTS WITH BA DEGREES, VS. 20.3% NATIONALLY BRAIN DRAIN: 30% OF 2010-2018 GRADS LEFT, 60% AT UM Source: MVCA 2021 Annual Report, US Census 2019 American Community Survey, Detroit News Sept 2022
20. © 2022 Song Foundation MICHIGAN (POP: 10M, GDP: $568B) PRIORITIES ENTREPRENEURS: FUND FOUNDER-LED PROGRAMS & ORGS, SMART ZONES VENTURE CAPITAL: REINVEST IN VC FUND-OF-FUNDS, SUPPORT ANGEL INVESTING EDUCATION: MAKE COLLEGE AFFORDABLE, FUND EDUCATION (+$1B, 2000-LEVEL) BRAIN DRAIN: INVEST IN CITIES, PUBLIC INFRASTRUCTURE, REGIONAL TRANSIT
21. © 2022 Song Foundation 2018
22. © 2022 Song Foundation Transit Walkable retail & entertainment Public safety Cultural amenities Housing options Public spaces & infrastructure Place Matters
23. © 2022 Song Foundation Silicon Valley works because there is such a high density of people working on startups and they are inclined to help each other… One of the biggest misconceptions about us is that you need to have pre-existing connections to get value from the network. Remarkably, you don’t. Silicon Valley is a community of outsiders that have come together. If you build something good, people will help you. – Sam Altman (YCombinator) Culture Matters