Book Report - The Entrepreneurial Society

 

If you share my interest in how Vermont can thrive in a global economy, you will enjoy a new book that charts a course I believe we Vermonters should follow.   I wish I could shorten this posting for you but I already am leaving out many choice nuggets from the book, so please bear with me and read on.  Author David Audretsch, an economist and one-time faculty member at Middlebury College, spoke at the Vermont Tiger Symposium in Burlington in November.  His 2007 book The Entrepreneurial Society, based on his economic theories with primary reference to his home state of Indiana, convinced me that Vermont is an ideal place to develop a knowledge based growth economy in one or more particular fields in which we can maintain a critical mass of leading innovators.   Mr. Audretsch sees entreprenurialism as the "common denominator for success in rising to the challenges afforded by globalization."  In a global economy in which many businesses can locate anywhere, where do businesses choose to locate?  Audretsch explains that knowledge centers such as the Silicon Valley and many others, including Hollywood for the film industry, develop naturally because innovation is sparked and fueled when collaborators and competitors are physically located in the same area where they can interact closely, frequently and in person.  Other examples cited are Boston's Route 128 corridor, the Raleigh/Durham Research Triangle, and similar industry pockets in Austin, San Diego and Madison.  Vermont already has the beginnings of knowledge-based economies in consumer products, specialty foods and environmental products, all industries in which the "Vermont" natural/green cache adds value.  Gov. Douglas has been promoting Vermont as "The Green Valley" since at least early 2006.

Audretsch explains that "knowledge filters" are a natural feature of the large corporate economy, making it impossible or at best difficult to develop innovative ideas into commercial enterprises in large corporations, which aren't nimble enough to efficiently identify, develop and commercialize the most innovative ideas.  Leading innovators often grow frustrated and reject the traditional corporate world for this reason, or are rejected by the traditional corporate world because they don't fit the model of an "organization man" or woman.  Audretsch points to examples such as Bill Gates, Steve Jobs, Ben and Jerry, who succeeded as entrepreneurs developing creative new businesses that were not embraced by the traditional business giants in their industries.   Audretsch says entrepreneurship "sets people free, generating jobs and economic growth that would have otherwise been lost" when ideas are too forward-thinking for the corporate economy.  Vermont is chock full of entrepreneurial folks who have rejected the corporate world or vice versa.   We have been attracting them for years, and many more of them want to come here. 

Audretsch describes the model of small European countries that have embraced their role in the world as such and have thrived.  Their citizens speak numerous languages and travel frequently, developing contacts around the world.  They accept and respect other cultures and maintain their own unique culture.  They are versatile, flexible, responsive to changes in the global economy.   This sounds a lot like Vermont and Vermonters.  

Leading Vermont companies like Seventh Generation and NRG already are spinning off new companies in their industries, either by the departure of entrepreneurial employees who set out on their own and choose to remain in Vermont to do so or by the creation of sister companies under the auspices of the parent.  We already may be developing an entrepreneurial knowledge-based economy in specialty foods (maple syrup, cheese, salsa), consumer products (soap, teddy bears) and green energy technologies and we simply haven't noticed yet.

For more information on the book, see www.davidaudretsch.com.