04/10/2023 Center For Entrepreneurship 2

Reviewing Your Entrepreneurship and Innovation Ecosystem:

A Case Study for Portland, Oregon

Jon Down, Ph. D. & Peter RachorUniversity of Portland

(Oregon)

04/10/2023 Center For Entrepreneurship 3

Project Background• City Economic Development Agency

Commissioned Study of “State of Entrepreneurship” in Portland

• Univ of Portland was awarded project competing with 12 other proposers, included researchers from other organizations to form “dream team”

• Rob Wiltbank, Ph. D. – Willamette Univ.• Joe Cortright – Impresa Consulting• Project Start – May, 2010

04/10/2023 Center For Entrepreneurship 4

Project Scope and Methodology

• In Person Interviews and Follow Up Online Survey – 100 KOL• Online Surveys to Members of Relevant Industry Associations• Review of Literature and Prior Studies• Benchmark Cities – SFO/SEA/DEN/AUS/MSP/CVG• Determination of Appropriate Metrics

04/10/2023 Center For Entrepreneurship 5

04/10/2023 Center For Entrepreneurship 6

Entrepreneurship: What Is It?

• For the study “entrepreneurship” is broadly defined to include starting and growing high potential businesses that may be likely to take advantage of outside funding, as well as established small businesses that are innovative and growth-oriented.

• GEM, Kauffman, Lowe Foundation, SBA, Census of Business Owners

04/10/2023 Center For Entrepreneurship 7

What Matters to Policy Makers?

04/10/2023 Center For Entrepreneurship 8

04/10/2023 Center For Entrepreneurship 9

Employment & Wealth Creation

04/10/2023 Center For Entrepreneurship 10

A City is More Entrepreneurial If…

• more spin outs and patent activity, a large number of smaller firms, with many people starting new firms, more highly educated workers with positive migration, more spin outs and patent activity, more venture funding activity, and a large number of wealthy people.

04/10/2023 Center For Entrepreneurship 11

Key Areas of Assessment

• Talent/Workforce• Innovation• Capital Access• Ecosystem• Activity

04/10/2023 Center For Entrepreneurship 12

Log Firms/ Worker

(Glaeser) Self employed %Univers ity Spinouts

College Attainment

# $1M Net Worth

$1M Net Worth Per/K

Kauffman Index of Entrepreneurial

Activity

MSA MSA MSA MSA STATE STATE STATE

%

Austin -2.78 11.80% 10 38.20% 350,727 27.4 0.45Cincinnati -2.94 9.20% 0 28.10% 203,404 27.8 0.27Denver -2.69 11.90% 11 37.50% 89,896 31.8 0.38Minneapolis -2.89 10.50% 1 37.60% 99,246 31 0.22Portland -2.67 13.10% 4 33.30% 63,943 28.7 0.38San Francisco -2.76 13.50% 15 43.40% 663,394 35.7 0.41Seatt le -2.73 11.50% 9 36.40% 118,132 30.3 0.24

04/10/2023 Center For Entrepreneurship 13

Educational Attainment Bachelors

Patents Per Capita Per 100K/Pop

VC Activity Deals 2001-

2005

VC Activity $ 2001-

2005

CITY STATE STATE STATE

%

Austin 25.7 67.7 921 7141.5Cincinnati 18.8 62 172 727.8Denver 23.1 104.8 403 3417Minneapolis 28.1 122.4 100 522.1Portland 25.4 149.2 140 749.5San Francisco 30.5 161.5 5745 52129.4Seatt le 32.6 127 519 3,447.30

04/10/2023 Center For Entrepreneurship 14

PDX AUS CVG DEN MSP SEA SFO0

10

20

30

40

50

60

BachMast/Prof

04/10/2023 Center For Entrepreneurship 15

2008 Research Funding

($M)

2006 - 2008 Research

Funding ($M)

2008 Univers i ty Spinouts

2008 License Income

($M)

2008 Patents Issued

Geography MSA MSA MSA MSA MSA

MSA

Austin-Round Rock, TX (MSA) $527.14 $1,450.11 10 $11.60 25

Cincinnati-Middletown, OH-KY-IN (MSA) $211.39 $503.10 0 $1.60 8

Denver-Aurora-Broomfield, CO (MSA) $661.00 $1,931.37 11 $6.00 28

Minneapolis-St. Paul-Bloomington, MN-WI (MSA) $583.52 $1,726.37 1 $84.70 37

Portland-Vancouver-Beaverton, OR-WA (MSA) $320.00 $924.99 4 $4.70 15

San Francisco-Oakland-Fremont, CA (MSA) $4,761.88 $12,662.46 15 $197.70 350

Seatt le-Tacoma-Bellevue, WA (MSA) $1,026.79 $2,924.63 9 $80.30 56

Innovation Measurements Research Universities

04/10/2023 Center For Entrepreneurship 16

Angel, 8%

Friend or Neighbor, 29%

Close Family Member, 47%

Other Relative, 7%

Work Colleague, 9%

Sources of Start Up & Growth Capital

04/10/2023 Center For Entrepreneurship 17

Venture Capitalists,

6%

SBICs, 1%

EntrepreneurFamilys, 4%

Informal Investors,

53%

Entrepreneurs, 40%

04/10/2023 Center For Entrepreneurship 18

San Jose-Sunnyvale-Santa Clara, CA (MSA) 2,473

San Francisco-Oakland-Fremont, CA (MSA) 1,489

Boston-Cambridge-Quincy, MA-NH (MSA) 541

San Diego-Carlsbad-San Marcos, CA (MSA) 404

Seattle-Tacoma-Bel levue, WA (MSA) 252

Raleigh-Cary, NC (MSA) 243

Austin-Round Rock, TX (MSA) 213

Denver-Aurora-Broomfi eld, CO (MSA) 169

Salt Lake City, UT (MSA) 158

Minneapol is-St. Paul-Bloomington, MN-WI (MSA) 141

Los Angeles-Long Beach-Santa Ana, CA (MSA) 135

Washington-Arl ington-Alexandria, DC-VA-MD-WV (MSA) 131

New York-Northern New Jersey-Long Is land, NY-NJ-PA 94

Phi ladelphia-Camden-Wilmington, PA-NJ-DE-MD (MSA) 93

Dal las-Fort Worth-Arl ington, TX (MSA) 87

Atlanta-Sandy Springs-Marietta, GA (MSA) 77Baltimore-Towson, MD (MSA) 76Portland-Vancouver-Beaverton, OR-WA (MSA) 69

Pittsburgh, PA (MSA) 62

Cleveland-Elyria-Mentor, OH (MSA) 60

San Antonio, TX (MSA) 56

Houston-Sugar Land-Baytown, TX (MSA) 54

Phoenix-Mesa-Scottsdale, AZ (MSA) 49

Buffalo-Niagara Fal ls , NY (MSA) 46

Chicago-Napervi l le-Jol iet, IL-IN-WI (MSA) 44

Indianapol is-Carmel , IN (MSA) 44

Orlando-Kiss immee, FL (MSA) 41

Providence-New Bedford-Fal l River, RI-MA (MSA) 25

Nashvi l le-Davidson-Murfreesboro-Frankl in, TN (MSA) 24

St. Louis , MO-IL (MSA) 22

Kansas City, MO-KS (MSA) 20

Detroit-Warren-Livonia, MI (MSA) 19

Sacramento-Arden-Arcade-Rosevi l le, CA (MSA) 19

Birmingham-Hoover, AL (MSA) 17

Louisvi l le-Jefferson County, KY-IN (MSA) 17

Cincinnati-Middletown, OH-KY-IN (MSA) 16

Venture Capital $ per Capita (2008)

04/10/2023 Center For Entrepreneurship 19

Clusters and Venture Capital

Q3 Deals

Software 20.79% 190 Biotechnology 19.58% 108 Medical Devices and Equipment 11.88% 82 IT Services 9.40% 64 Industrial/Energy 9.14% 59

% age

04/10/2023 Center For Entrepreneurship 20

VC Will Become More Competitive and Fewer Companies Will Access It

04/10/2023 Center For Entrepreneurship 21

2005 2006 2007 2008 20090

2000

4000

6000

8000

10000

12000

Number of Business Tax Accounts Created by the City of Portland

04/10/2023 Center For Entrepreneurship 22

FIGURE 1: Number of Top 5 Percent Growing Firms, by Age

Top 1% Performing Firms by Size

FIGURE 1: Number of Top 5 Percent Growing Firms, by Age

04/10/2023 Center For Entrepreneurship 23

Economic Development DynamicsNumber of Top 5 Percent Growing Firms, by Age

04/10/2023 Center For Entrepreneurship 24

04/10/2023 Center For Entrepreneurship 25

04/10/2023 Center For Entrepreneurship 26

Take Aways

• Cities will High Levels of Entrepreneurial Activity Don’t Necessarily Produce The Highest Levels of Large Employer Firms or Wealth

• Time and Historical Horizon Matters A Lot in Evaluation of Results…But What About the Future?

• Attitude and Aspiration Are Very Significant Influencers of Firm Creation and Growth

• Are High Wages Jobs and Wealth the Best (or Only) Measures of Entrepreneurial Economic Development?