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
   

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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
   

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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
   

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4. © 2022 Song Foundation
   Startups create jobs at higher rates
   

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5. © 2022 Song Foundation
   Top 20 global startup ecosystems: 2022
   Source: Startup Genome Global Startup Ecosystem Report 2022
   

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6. © 2022 Song Foundation
   Detroit #1 emerging startup ecosystem: 2022
   Source: Startup Genome Advancing Greater Detroit’s Startup Ecosystem, 2022
   

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7. © 2022 Song Foundation
   Ingredients to startup ecosystems
   Source: Jerome Engler, Global Clusters of Innovation
   

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8. © 2022 Song Foundation
   Potential Tech Hubs
   Source: Jonathan Gruber & Simon Johnson
   

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9. © 2022 Song Foundation
   

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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)
    

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11. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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12. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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13. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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14. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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15. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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16. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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17. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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18. © 2022 Song Foundation
    Source: Vitaly Golomb, Ukraine Financial Forum 2018
    

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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
    

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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
    

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21. © 2022 Song Foundation
    2018
    

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22. © 2022 Song Foundation
    Transit
    Walkable retail & entertainment
    Public safety
    Cultural amenities
    Housing options
    Public spaces & infrastructure
    Place Matters
    

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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
    

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