Volume 9, Number 4 - December 2012 |
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Welcome to the latest edition of EntreWorks Insights, a quarterly newsletter that reports on business trends, policy developments, and other issues affecting the business of economic and workforce development. You’re receiving this note because you’ve asked to subscribe or because you have some previous interest in the work of EntreWorks Consulting. If you wish to subscribe or be removed from this list, please send an email to info (at) entreworks.net. If you’re interested in the newsletter, please read on. Please feel free to share with friends, family, colleagues, and other loved ones. Comments and constructive criticism (and praise) are also welcome. You are also encouraged to visit and comment on the EntreWorks blog at http://entreworks.net/blog. Thanks for your interest. |
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HIGHLIGHTS |
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What’s Next for CleantechAmerica’s cleantech industries—those that help improve performance while reducing environmental impacts or using natural resources more efficiently---have been on a bit of roller coaster ride in recent years. Five years ago, cleantech was the next big thing, touted by leading venture capitalists and industry experts. Today, the media is filled with stories of company bankruptcies and major facility closures. What happened and what’s the near future for cleantech? This issue of EntreWorks Insights takes a brief look at what might lie ahead. If we go back to 2008, barely five years ago, cleantech was hot. In that year, venture capitalists (VC) invested $4.1 billion in cleantech firms-up from a few hundred millions dollars in 2005. Investments via Federal programs were even larger, accounting for nearly $45 billion between 2009 and 2011. Unfortunately, the boom has been very short-lived. Bankruptcies of major industry players like Solyndra and A123 Systems along with major job cuts from established players like Siemens and Vestas are in the news every day. Investments are similarly down. 2012 VC funding for cleantech is also declining, and Federal dollars, many of which came from the 2009 Stimulus bill, are also drying up. For cleantech advocates, it feels a bit like something of a perfect storm. After slogging through the Great Recession, these companies face an environment where:
These short-sighted moves are dangerous, because cleantech is not dead. In fact, it’s probably more accurate to say that, as one blog post recently put it, “Cleantech is dead like the Internet was in 2000.” Today, the Internet and related industries are key drivers of our economy. In fact, a recent industry study found that direct employment in the Internet ecosystem has doubled over the past four years—at the height of the Great Recession. These jobs are not just in big players like Google and Facebook. The fastest job growth is actually occurring in less glamorous sectors like advertising and data analytics. A similar prospect is likely for many cleantech sectors. How can this more positive set of outcomes be supported? Here are a few guidelines:
Despite some recent hiccups, the prospects for cleantech are bright. A combination of smart policies, patience, and a continued commitment to cleantech innovation, can help ensure that the long-touted benefits of cleantech will come to pass.
A Note of ThanksAt the end of this year, EntreWorks Consulting will be celebrating ten years in business. Over the past decade, we’ve gotten older, grayer, wiser (maybe), but certainly more grateful than ever for the good friends, partners, and supporters we’ve found along the way. Thanks to all and we hope to see you soon as we move into our 2nd decade!!
What’s New at EntreWorks Consulting?
We’ve added some new materials to the EntreWorks Library. They include:
We continue to provide more regular news and updates at the EntreWorks blog at http://entreworks.net/blog. Recent postings have covered the rise of Silicon Prairie, the latest on community indicators, and new resources for veteran entrepreneurs. You can also access blog updates at our Facebook page.
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