Tag: Innovation

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McNair Center Women

Women in Top Tech Companies

In 2014, many of the top tech companies released information on their employee diversity demographics for the first time, bringing attention to the low representation of women in top tech companies. This post looks beyond these numbers. How are tech companies responding to this gender imbalance?

The top five tech companies by market cap are, in order: Apple, Alphabet (Google), Microsoft, Amazon, and Facebook. The gender balance of each company’s workforce is in the table below:

women-workforce-table
Sources are linked for Apple, Alphabet, Microsoft, Amazon, and  Facebook. Data on national averages can be found here and here.

All of these companies are seeking to improve their gender balance and support current women employees. Resource groups, family benefits and smart hiring practices are some of the most common solutions. Even when these efforts are made, the male-dominated work environments can be far from ideal for women at these companies.

Women Employee Experiences

Resource Groups

Resource groups can serve as valuable support networks for women employees. Each of the top tech five has at least one employee resource group for women (Apple: Women@Apple; Google: Women@Google, Google Women in Engineering; Microsoft: Women@Microsoft; Facebook: Women@Facebook, Amazon: Women@Amazon, Amazon Women in Engineering, Women in Finance Initiative). All of these groups share similar goals: empowering women in their workforce and providing networking opportunities.

Many of these resource groups also participate in community outreach, engaging young girls and women and creating programs to foster their interests in technology. (See Women in STEM: Closing the Gap for more information on how community outreach can help change the culture around women in STEM in the United States.)  After recognizing that underrepresentation of women in tech is related to the lack of educational STEM exposure and encouragement for women, Facebook created Computer Science and Engineering Lean-In Circles to support women in college who are interested in CS.

Conferences

Sponsoring women’s tech conferences, like the Grace Hopper Celebration of Women in Computing or the Women in Real Life (WiRL) Conference, is also common among these resource groups. Amazon even holds its own conference: Every year, the women’s resource groups at Amazon also team up to host AmazeCon, a diversity conference that focuses on the achievements due to diverse teams at Amazon. The conference draws thousands of experts and leaders to discuss the importance of diversity in creativity and accomplishments.

Microsoft has taken an extra step by creating an innovative program for women, Women Think Next. WTN is a “worldwide community for professional women,” bringing together women from varying fields and backgrounds to network and support one another.

The program is not limited to Microsoft employees. WTN encouraged any and all professional women around the world to join. Women Think Next holds an annual networking conference and provides resources for women throughout the year. The conference also serves as a recruitment event for Microsoft to hire women with strong skills.

Employee Complaints

Everything isn’t always as it seems on paper, though. The male-dominated work environments at these companies can be isolating for female workers. In 2015, Microsoft faced a lawsuit accusing the company of gender-discriminatory policies in employee reviews. In May 2016, a former Facebook contractor published a piece on the sexism she experienced while working on a project team. During September 2016, Apple received criticism in the media for a series of leaked emails that revealed the company’s unresponsiveness to concerns of women employees. Through these emails, women employees described the company’s atmosphere as “toxic,” including workplace harassment and gender discrimination.

It is important to note that these are all anecdotal experiences. Each company responded by emphasizing that they take complaints like these seriously. The sensitive nature of the companies’ investigations of these claims prevents more information from being public.

Work-Life Balance

In American society, women often face conflict between the gender norms surrounding women’s family responsibilities and a desire to pursue a career. Maternity and family leave benefits can be an important factor in a woman’s decision to stay with a company in the long run, especially after she has started a family.

Of all of the Organization of Economic Cooperation and Development member countries, the United States is the only one that does not mandate paid maternity leave. According to the most recent statistics, only 12% of Americans receive this benefit.

However, within the tech top five, they seem to go far and beyond this requirement. Below is a summary of the family leave benefits for the tech top five.

maternity-leave-chart
Sources are linked for Apple here and here, Alphabet, Microsoft here, here and here, Amazon, Facebook, and National Standard

It is not surprising that these companies give generous benefits. Named the best place to work in the U.S. in 2015 by both Forbes and Glassdoor, Google is known for its employee perks. One of Google’s greatest strengths lies in its emphasis on self-study to determine workforce problems and find solutions. In 2007, Google’s People Operations (AKA Human Resources) department noticed that new mothers left Google at twice the average departure rate. In response, the company decided to lengthen paid maternity leave from 12 to 18 weeks. After this change, Google’s departure rate for new mothers dropped by 50 percent.

Controversial Benefits

In 2014, both Apple and Facebook received media attention for their announcements that they would pay to freeze U.S.-based employees’ eggs. Apple announced it as a new dimension to their support for infertility treatments. The move was met with mixed reviews by the media. NBC News praised it as a “game-changing perk,” but The Guardian denounced it as “unreasonable and illogical.” Supporters of the policy argue that it gives female employees more flexibility in their decision to have children. Critics claim that the policy sends the wrong message, implying that if female employees want to succeed at work, they need to delay motherhood.

Parental Equality

It is important to look not only at a company’s maternity leave policies, but at their parental and family leave policies as well. Studies of maternity and motherhood-related policies in other countries, like a mandated child care law in Chile and a reduced hours law in Spain, have shown that offering parental benefits only to women can lead to a decrease in salary and promotion rates of all women at a company, even those who don’t take advantage of them. One approach to combating these negative effects could be making these policies gender-neutral. This would allow for men to take advantage of these policies and reduce gender-discriminatory practices.

Hiring, Promotions and Pay

Facebook has received attention for its hiring point system. Facebook’s recruiters receive points for new hires, but based on the new recruits’ diversity, it can earn recruiters more points. White or Asian males only count for one point, whereas black, Hispanic, or female new hires count for two points. Higher point totals can lead to good performance reviews and bonuses for recruiters. This system incentivizes the creation of a more diverse workforce.

At Google, employee studies showed that women were less likely than men to submit their names for promotions. After Google brought this information to the attention of women employees, this discrepancy disappeared. Google now prides itself in the fact that they promote women and men at the same rates.

In August 2016, Apple announced plans to increase hiring of women and minorities. During the same announcement, they celebrated their official elimination of all gender pay gaps within the company. To maintain this, they have pledged to analyze and correct any gaps as they may arise in the future.

Amazon has also addressed its pay gap. Amazon boasts that women earn 99.9 percent of men’s salaries, explaining that the percentage fluctuates annually, so that it may not always reach a perfect 100 percent. However, Amazon has received criticism on its diversity reports for not including statistics on the percentage of women who make up their tech workforce. This discrepancy has led media to question whether Amazon has something to hide. Until Amazon releases more information, there is no way to know the state of female representation in their tech workforce.

What Does This Mean?

When compared to national averages, women are not as well-represented in the top tech companies. However, these companies provide benefits and services to their women and employees that are above and beyond the norm. Nonetheless, as the anecdotal experiences of the women at Apple, Facebook, and Microsoft have shown, a company can offer great benefits while still tolerating a discriminatory workplace environment.

Regardless, these companies need to develop new strategies  to address low women’s representation. Only time will tell how future policy, research, and incentives will impact women’s employment in the tech workforce.

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McNair Center Small Business Women

Startups of the Season

While the holiday season approaches, educational toys are in high demand. Some of the most innovative new toys are produced by startups. For many of these toys, they began with an entrepreneur who saw a need to integrate play and learning.

According to the most recent statistics, the United States toy market is worth $21.18 billion. In 2015, the industry surpassed growth expectations, which is especially impressive when compared to the overall retail industry, which grew 0.7 percent less than expected. The toy industry’s prosperity is drawing in entrepreneurs who are enticed by potential for high earnings. Although there are many start-up-developed toys on the market, here are some that have received waves of public support.

Robot Turtles

In 2013, father Dan Shapiro decided to teach his four-year-old twins how to program. Improvising, he created a game using printed pictures from his computer, which led to the creation of Robot Turtles, a board game designed to teach preschoolers how to program. After noticing how much his children enjoyed the game, Shapiro took time away from his job at Google to develop the game full-time.

Robot Turtles utilizes kid-friendly challenges and elements that teach the fundamentals of computer programming while kids play. Children do not even need to be able to read.

After the idea was ready, Shapiro took the idea to Kickstarter, an online community that funds creative ideas. The site connects creators to backers who can provide funds to get a project off the ground. With Robot Turtles, Shapiro set a funding goal of $25,000 so that he could produce his first set of games. Support was incredibly strong, meeting this goal 5 hours after being released. In the funding period of 24 days in September 2013, Robot Turtles managed to draw in 13,765 backers. The most-backed board game in Kickstarter history, Robot Turtles raised a whopping $631,260 in that short period.

By August 2014, Robot Turtles was in every Target store in America. Now, Robot Turtles continues to thrive. An interactive eBook, coloring sheets, and other add-ons were developed to supplement the game.

Roominate

When Alice Brooks and Bettina Chen began their master’s program in engineering at Stanford University, they were two of the few women within their program.

In response to this gender gap, Chen and Brooks partnered up to create Roominate, a building toy designed for girls. Roominate sets include many modular and mechanical pieces that allow girls to explore their interests in design and engineering through play.

Roominate began on Kickstarter in 2012, raising $85,964. The project page highlighted their goal with bold lettering, “We believe that early exposure to STEM through toys will inspire change.”

Later, the product was also featured on Shark Tank, an ABC show where inventors pitch their ideas to successful investors in order to get funding, in September 2014. In the episode, investors Mark Cuban and Lori Greiner decided to partner with the organization.

After a few years with successful growth, Chen and Brooks took back to KickStarter in 2015 to fund development of a new product line for Roominate, “rPower,” featuring new modular wire pieces. This addition makes building and using the circuits easier for children. The Kickstarter campaign was extremely successful, raising over $50,000.

Roominate has grown quickly and is now found in over 5,000 retail locations around the world.

PopUp Play

Argash, https://commons.wikimedia.org/wiki/File:Austin_Evening.jpg
Home to PopUp Play, Austin is growing as a startup hub in the United States.

Home to PopUp Play, Austin is growing as a start-up hub in the United States.Not surprisingly, innovative Educational Toy start-ups can also be found in Texas. In Austin, married couple Bryan Thomas and Amelia Cosgrove have found a niche in harnessing children’s creativity.

PopUp play utilizes an iPad app to let children design the play fort of their dreams. The company then produces an assemblable fort out of corrugated fiberboard and delivers it in as little as a week. There are also plans to expand the iPad app so it can be used to supplement the play experience once the fort has been assembled. For example, the company is looking to develop a Submarine fort template along with a virtual periscope on the app to search the imaginary seas.

Like Robot Turtles and Roominate, PopUp Play found its start on Kickstarter. During a 32-day period beginning in May 2015, 135 backers provided $25,676 to help make PopUp Play a reality.

But that was just getting started. The team then began working with Capital Factory, a collaborative workspace and Accelerator Austin, Texas. They later also found allies in Techstars, an Austin Accelerator where they participated in a three-month mentorship program.

Since then, they have received waves of recognition, including being named one of the top 50 Best New Apps for Kids by Apple in 2015 and an American Airlines Innovator in June 2016. The company also won the top prize in its category in the South by Southwest Accelerator Competition in March 2016. This demonstrates that there is large potential for success. PopUp Play is also supported by high-profile investors, including Capital Factory, Silverton Partners, Floodgate, and Techstars.

Supporting Startups for the Holidays

Entrepreneurs tend to be passionate about their products and creative in how they make them a reality. Parents who are hoping to find fun, educational toys for their children can look to startups to find some of the most creative, innovative products on the market.

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McNair Center Weekly Roundup

Innovation Weekly Roundup: 12/02/16

Weekly Roundup is a McNair Center series compiling and summarizing the week’s most important Entrepreneurship and Innovation news.

Here is what you need to know about innovation this week:

Closing the Gender Patenting Gap Could Unlock Innovation

Barbara Gault, Executive Director, Institute for Women’s Policy Research

A study by the Institute for Women’s Policy research has quantified the gender difference in patenting. The IWPR claims women’s underrepresentation in STEM fields is a major in the patent disparity and notes that patents granted to coed teams are cited more often than patents granted to single gender teams.

The divide is significant; under 20 percent of US patents cite a woman inventor and under 8 percent list a woman as the primary inventor. The IWPR suggests employers help women pay for filing patent applications and expand women’s professional network to close the gap. The McNair Center’s Tay Jacobe has written about has written about the gender gap in STEM.

Is Engine of Innovation in Danger of Stalling?

Christopher Mims, Technology Columnist, Wall Street Journal

The basic discoveries at the heart of the biggest tech companies are growing old fast. Inventions like the transistor and internet, while not relics, were invented between 1940 and 1980 when federal funding allowed for long-term research without immediate commercial use. At that time, the federal government spent 2 percent of GDP on research and development. That figure is now 0.6 percent.

The landscape of R&D has shifted. Now, corporate R&D spending is at 2 percent of GDP, from under 0.6% in the 1960’s. While this appears beneficial at face value, since the corporations who profit off inventions are funding them, it hides the fact that basic discoveries and incremental advancement is overlooked in favor of easily marketable technologies. Arati Prabhakar, Director of Defense Advanced Research Projects Agency (DARPA) explains, “we need public investment in R&D because companies only worry about the next quarter.”

Venture capitalists now fund by backing startups that are then acquired for their innovations. This still places an onus on inventors to work on marketable technologies rather than truly speculative research that used to be the foray of Bell Labs and still is in the domain of IBM Research.

How China’s Government Helps and Hinders Innovation

Anil Gupta, Professor, University of Maryland Smith School of Business; Cofounder of China India Institute
Haiyan Wang, Managing Partner, China India Institute

Although India spends a tenth of what China spends on R&D, Indian research leads to significantly more international patents than Chinese R&D.  The top-10 US tech companies’ Indian based labs were granted 50% more patents than their Chinese counterparts.

China’s shift from low-cost manufacturing to innovation is a case-study in how government policies, particularly insufficient patent protection, can inhibit innovation. Gupta and Wang claim that China’s heavy R&D investment have led to unimpressive results since foreign companies are wary about intellectual property protection in China.

While China accounts for 20 percent of global R&D expenditure, second to the US at 26 percent, they are granted relatively few international patents. Only 2.2% of USPTO patents were of Chinese origin. More patents originated in nations like Japan (18.8%) and Germany (5.5%).

China Logged a Record-Breaking 1 Million Patent Applications in 2015

Ananya Bhattarchya, Editorial Fellow, Quartz

According to a World Intellectual Property Organization report, global patent applications were up 7.8 percent in 2015 to 2.9 million filings. China emphasizes patent quantity over quality and that much of local research is not original research but rather adapting existing inventions for Chinese markets. In line with this theory, the Chinese patent office received 1,010,406 of the 2.9 million global patent applications. In second was the USPTO with 526,000 applications and the top 5 patent offices handled 82.5 percent of applications.

Government subsidies and foreign companies applying for Chinese patents for greater IP protection in the country drives the patent increase.

While China’s office has seen the greatest growth, the USPTO remains the leader in foreign patent applications with nearly 238,000 foreign patent applications.

Happy Holidays from the McNair Center for Entrepreneurship and Innovation. The Innovation Weekly Roundup will return in 2017.

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McNair Center Startup Ecosystems

Keep Austin Entrepreneurial

Austin, Texas

Ranked number one for startup activity in the last two years by the Kauffman Foundation, Austin, Texas is one of the strongest emerging entrepreneurship ecosystems in the United States. Austin’s history of entrepreneurship and supportive government has facilitated Austin’s emergence as an entrepreneurial ecosystem.

Austin’s History of Entrepreneurship

During the 1970s and 1980s, Austin’s entrepreneurial ecosystem focused on computer and semiconductor manufacturing. Efforts by the Austin Chamber of Commerce, such as low mortgage rates for relocating staff and tax incentives, fueled the move of several major companies to Austin: IBM in 1967, Texas Instruments in 1969 and Motorola in 1974. A doubling in student attendance at the University of Texas in the early 1970s increased the educated workforce in the region.

The selection of Austin as the home of the Microelectronic Computer Corporation (MCC) in 1982 accelerated this concentration of high-tech companies. Facing fierce competition from Japan’s Fifth Generation Project, major U.S. companies banded together and created MCC, one of the largest computer research companies at the time. MCC chose Austin instead of Silicon Valley and Route 128 because the University of Texas offered MCC a subsidized lease and the Chamber of Commerce facilitated low-cost loans and reduced mortgage rates for staff moving to Austin.

Austin, Texas
Austin, Texas

Initially, the Austin ecosystem was primarily large businesses, such as IBM and Texas Instruments. This focus changed after the oil slump and savings and loan crises of the late 1980s and early 1990s crippled the Texas economy. Austin was not spared. It had one of the highest commercial real estate vacancy rates in the country and companies laid off large numbers of employees.

In response, the University of Texas formed the Austin Technology Incubator (ATI) in 1989 to jumpstart the local economy through high-tech startups with high-growth potential. In 1989, Greg Kozmetsky, the brain behind ATI, founded Austin’s first angel network, the Capital Network. These initiatives provided a foundation for growth during the 1990s dot-com boom. Austin companies such as Garden.com, an online gardening shop that raised $50 million in venture capital, and DrKoop.com, an “Internet-based consumer health-care network,” that was worth more than $1 billion, found success in Austin.

In 2000, thirty Austin venture capitalists invested over $2 billion in entrepreneurship ventures. The subsequent burst of the dot-com bubble in the early 2000s hurt Austin. After the 2001-2003 economic downturn, the region experienced major industrial restructuring and a renewal of entrepreneurship.

In 2003, the business community raised $11 million for Opportunity Austin, an economic development program. Opportunity Austin focused on recruiting new businesses, marketing Austin effectively and stimulating entrepreneurship and emerging technology sectors.

Less than five years after the last economic downturn, the Great Recession of 2008 set back many new Austin businesses. While venture capital and small business creation are not at the level they were during the dot-com boom, the rate of startup growth is currently 81.23 percent.

Entrepreneurship in Austin Now

Austin is experiencing yet another entrepreneurship boom. Austin now has the supportive policy structure, mentors and sector diversification required to finally establish a lasting ecosystem.

Austin’s cultural support of local businesses and responsive state and local government policies are fueling its start-up growth. The absence of state income tax incentivizes young professionals to work and settle in Texas. The local Austin government provides services for people considering starting a business such as BizAid Business Orientation and Small Business Program. The Entrepreneur Center of Austin and the Indus Entrepreneurs of Austin specifically provide support for start-ups. The University of Texas’ Herb Kelleher Center for Entrepreneurship, Growth and Renewal connects Austin entrepreneurs with resources.

As a result of Austin’s strong history of entrepreneurship, mentorship opportunities for nascent entrepreneurs are readily available. Austin companies, such as Dell, offer mentorship and accelerator programs. Entrepreneurial hubs, such as Tech Ranch Austin and Capital Factory, serve as an intersection between Austin incubators, accelerators, coworking spaces and also offer mentorship programs for entrepreneurs.

While known as “Silicon Hills,” Austin’s entrepreneurship economy is much more diversified than the computer chip and semiconductor industry that first enabled its growth. According to a 2015 Austin Technology Council report, approximately 14 percent of the $22.3 billion value of Austin’s tech companies came from semiconductors. Computer and peripheral equipment contributed 31 percent. Both Austin-born and transplanted companies focus on the bioscience, energy, clean-technology, water and IT/wireless industries. Austin has an extremely strong tech-focused entrepreneurship industry, but it also has successful media, education and social and craft/lifestyle ventures.

Venture Capital in Texas and Austin

Texas’ venture capital investment has decreased by 19 percent over the past ten years. To maintain a healthy entrepreneurship ecosystem, it is imperative that venture capital investment increases in the coming years.

Austin’s ecosystem lacks capital. In 2014, Austin saw 99 venture capital deals worth $739 million. In contrast, Silicon Valley saw 1,333 deals worth more than $27 billion. While there is no shortage of capital in Texas, there is a lack of capital access, information and government support. The majority of Texas capital is invested in oil, gas and real estate. These are considered by many to be less risky than entrepreneurship ventures. However, as oil prices fall, Texans should consider trying to raise growth and investing in entrepreneurial ventures.

Austin’s most prominent venture capital fund, Austin Ventures, closed in 2015. Phil Siegel and David Lack left to form Tritium Partners to provide capital for startups in Austin. Its first fund of $309 million is a fraction of the $900 million Austin Ventures raised at its peak. Silverton Partners and S3 Ventures have tried to fill the void left by Austin Ventures. However, none of these Austin venture capital funds have the capital or assets that Austin Ventures had.

Entrepreneurial Resources in Austin

Austin has a plethora of resources for entrepreneurs. The annual South by Southwest Festival provides networking opportunities. Companies are taking advantage of the 100,000 college students that graduate each year in the greater Austin area. The University of Texas at Austin boasts the Austin Technology Incubator under the IC² Institute, which has raised almost $700 million in investor capital to achieve this goal. Additionally, the Central Texas Angel Network provides capital and mentorship support for entrepreneurs in the Central Texas region.

What Starts in Austin, Changes the World

Austin’s entrepreneurial ecosystem is moving towards national recognition. Favor, a food delivery app, is an alumni of ATI and backed by Austin’s S3 Ventures and Silverton Partners. HomeAway, an Austin based online rental marketplace, was established in 2005 and acquired by Expedia for $3.9 billion in 2015. In the upcoming years, it is critical that capital investment continues to support new ventures such as Favor and HomeAway. Austin’s ecosystem has the policy, talent and mentorship to be successful, but private and public efforts must continue to ensure its success.

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McNair Center Weekly Roundup

Innovation Weekly Roundup: 11/18/2016

Weekly Roundup is a McNair Center series compiling and summarizing the week’s most important Entrepreneurship and Innovation news.

Here is what you need to know about innovation this week:

On the Trail of Grassroots Innovation Across America

Eillie Anzilotti, CityLab Fellow

While technological innovation and commercial developments garner the most press, social innovation impacts daily life in tangible ways. The Cooper Hewitt Museum’s exhibit on grassroots innovation demonstrates the necessity of innovation for all socioeconomic levels. Examples include emergency water stations on migration routes from Mexico to the U.S., mobile produce markets, and wireless mesh networks.

Instead of high-cost research, low-cost innovation can solve immediate community issues. At the community level it can be easier to address problems with a bottom-up approach. Cynthia E. Smith, the Manhattan museum’s curator of socially responsible design, travelled over 50,000 miles to find social innovations. One goal in these innovations is to promote economic inclusion by addressing barriers to success.

Remarks by Director Michelle K. Lee at the IAM Patent Law and Policy Conference

Michelle K. Lee, USPTO Director & Undersecretary of Commerce for Intellectual Property

Director Lee has discussed what intellectual property policy will look like in the next administration. Intellectual property and innovation have historically enjoyed bipartisan support. Lee believes IP is essential to President-Elect Trump’s promises for job creation and on the economy, noting that IP-intensive industries support over 45 million U.S. jobs and drive economic growth.

Lee listed the USPTO’s achievements in the past eight years. The backlog of patent applications has been reduced by 30 percent despite an increase in filings. Overall pendency times have decreased by up to 25 percent. She argues that PTAB proceedings have increased patent quality by invalidating (some) bad patents early in their lifecycle. Much of the improvements in patent quality come from the Clarity of the Record Pilot (mentioned in last week’s roundup).

She also ran through many of the programs in the past 8 years. These include the Enhanced Patent Quality Initiative, Interpartes Review, the America Invents Act and President Obama’s dedication to the patent system.

Creating diversity in the innovation economy

Jeffrey J. Bussgang, Harvard Business School, Flybridge Capital
Jody Rose, Executive Director New England Venture Capital Association

The New England Venture Capital Association is launching a program, Hack.Diversity, to incorporate underrepresented talent into the innovation economy. Engineers of color will be provided with training, coaching and mentoring from the fastest growing startups funded by the venture capital group.

The Association claims that the program addresses employers’ desires for diverse talent and provides tangible pathways for community colleges and urban schools to funnel talent into high-growth industries. These groups have faced obstacles in reaping the advantages of the innovation economy. As the authors said “like the rest of the country — we face a looming schism and we are leaving behind whole populations that are not fully reaping the benefits of our entrepreneurial growth engine.” Hack.Diversity attempts to make headway in closing the gap.

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McNair Center Rice Entrepreneurs

Spotlight on Rice Entrepreneurs: An Outlet for Owlets

Owlet

An Outlet for Owlets: New Opportunities for Entrepreneurship and Innovation at Rice

On November 15, the Princeton Review ranked Rice University’s Jones Graduate School of Business third in the top graduate programs for entrepreneurship. For the past eight years, the Jones School’s entrepreneurship program has ranked in the top 10 in the nation. In addition to the Jones School’s ongoing success, several programs focus on undergraduate entrepreneurship and innovation. Recently launched programs promote entrepreneurship through student-led efforts and university-sponsored initiatives.

Consolidating student-led efforts

At the end of Spring 2016, two undergraduate entrepreneurship clubs, Rice Launch (led by Ben Herndon-Miller and Jake Nyquist) and Rice Conversations (led by Iris Huang and Doria Du), merged to form the Rice Entrepreneurship Club. The new club organizes a variety of events, including casual lunch conversations with entrepreneurs, pitch practices and mentor workshops.

Working closely with the Rice Alliance for Technology and Entrepreneurship and the Rice Entrepreneurship Initiative, the club shares opportunities and resources to encourage greater student collaboration. “I think the merge empowered the student leaders from both clubs to better serve student entrepreneurs at Rice,” said Iris Huang ’17, President of the Entrepreneurship Club. “With the substantial pool of combined resources, we are now able to put on more diverse programs and make a larger impact on the student population.”

Developing university-wide programs

In March 2016, Rice alumnus Frank Liu and his family gave $16.5 million to establish the Liu Idea Lab for Innovation and Entrepreneurship (Lilie). Headed by Dr. Yael Hochberg and Dr. Abby Larson, Lilie gives students access to the expertise and experiences that will help them launch their own enterprises.  Beginning next spring, courses offered through Lilie will encourage students to solve real-world problems while working with faculty and entrepreneurs. The Lilie New Entrepreneurs Grant will help incoming freshmen, starting with the Class of 2020, to fund their business ventures. Before matriculating, freshmen can apply for the $10,000 grant that funds the most creative and compelling business ideas.

Learning from entrepreneurs

Students listen to Scott Novich and Evan Dougal from Neosensory.
Students listen to Rice alumni Scott Novich and Evan Dougal from Neosensory.

Through casual conversations and more formal lectures, the Entrepreneurship Club and Lilie have emphasized directly connecting students with entrepreneurs.

On September 15, the club hosted NeoSensory, a startup co-founded by Scott Novich (Rice PhD ‘16). NeoSensory mathematically maps data streams with temporal characteristics to develop a vest that helps the deaf experience sound through touch. More than 70 attendees learned about the product development timeline, the investment process and university intellectual property licensing through the perspective of a startup.

More recently, on October 19, the Rice Entrepreneurship Club hosted a conversation with Shaan Puri from Monkey Inferno, a San Francisco incubator that turns Internet project ideas into successful businesses. Monkey Inferno sold Bebo to AOL for $850 million in 2008 and currently uses that money to fund new projects. Puri shared his perspectives on forming teams and overcoming conflict and disappointment. Additionally, he advised students to become “learning machines,” always looking to learn more and improve. To achieve momentum, Puri encouraged aspiring entrepreneurs to dedicate time each day to their business idea.

Shaan Puri from Monkey Inferno Skypes in from the Silicon Valley to speak with Rice undergraduates.
Shaan Puri from Monkey Inferno Skypes in from the Silicon Valley to speak with Rice undergraduates.

As part of the Lilie Lecture Series, Dr. Larson hosted an event with Samantha Snabes on October 26. Snabes served as the Entrepreneur-in-Residence and Strategist at NASA and founded re:3D, which makes 3D printing more accessible and scalable. During the lecture, Snabes spoke about taking big risks and establishing strong relationships with peers and mentors. When asked about the differences between the startup cultures of the Silicon Valley and cities in Texas, Snabes noted the benefits of being located in Texas while Austin, Dallas and Houston are growing as centers of startup activity.

Dr. Larson explains, “The Lectures bring together expertise and energies from across Rice and Houston. Each Lecture features the insights of an established entrepreneur or innovator on a question of interest to people working across a range of fields. The Lectures provide an opportunity for the exchange of questions and ideas between people who are innovating in many different contexts, and as such, often lead to new and shared insights.”

Engaging undergraduates in entrepreneurial activity

November 4-6, Rice and University of Houston students used this advice to develop technology ventures at 3 Day Startup. During the event, 45 students worked together in 9 teams at TMCx. Prototypes included an Airbnb-style app that connects travelers with locals for authentic meal experiences, a frictionless rental service for household tools and a marketplace where artists can cater to consumers’ requests for original artwork.

Maintaining momentum

The increased focus on entrepreneurship and innovation on campus is promising. This spark will attract more entrepreneurial talent and advance Rice University’s reputation as a hub for innovation.

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Government and Policy McNair Center

Obama in the White House

Generating an Innovation Nation

The Obama administration’s policies toward small business and entrepreneurship have received mixed reactions. While Obama elevated the administrator of the Small Business Administration to a cabinet position and the SBA increased its lending to small businesses, some small business owners felt that the government bailed out big businesses at their expense after the 2008 financial crisis. Many small business owners are concerned about the effects of the Affordable Care Act.

Over the course of his presidency, Obama has played a part in connecting innovation with government. During his first term, he created the positions of Chief Technology Officer, Chief Data Scientist and Chief Performance Officer. In 2012, he began selecting entrepreneurs to work as Presidential Innovation Fellows within the federal government to make government more efficient, impactful and user-friendly.

Inspired by startups and music

Austin’s South by Southwest music and media festival inspired President Obama’s latest innovation project South by South Lawn (SXSL). Last month, the Obama administration invited community change-makers nominated by the public to attend SXSL. Innovators gathered at the White House to discuss how they use technology to advance areas like technology, food, art and collaboration.

On the technology panel “Fixing Real Problems,” innovators like Chris Redlitz (founding partner of Transmedia Capital and founder of The Last Mile), Jukay Hsu (founder of Coalition for Queens) and Nina Tandon (founder of EpiBone) addressed societal issues, including criminal justice reform, health care costs, access to higher education and job opportunities. Panelists emphasized the importance of understanding the impact of company growth on surrounding communities when planning for future endeavors. They emphasized the importance of creating inclusive access to the new opportunities brought about by societal transformation and technological change.

Focus on social entrepreneurship

With the Access Code program at Coalition for Queens, Jukay Hsu aims to increase economic opportunities in Queens. The program allows populations usually underrepresented in the technology field, like women and minorities, to gain the skills needed to enter the field. There are no upfront costs, but graduates of the program are expected to “pay it forward” by committing a percentage of their first two year’s salary toward funding future Access Code cohorts.

Chris Redlitz created The Last Mile in 2008 in an effort to reduce recidivism rates. For successful criminal justice reform, inmates need the skills to readjust to the outside world. To meet this need, the Last Mile started a six-month program for inmates to develop companies and pitch their ideas to the business community. In 2014, Redlitz created the first computer coding program in a United States prison, teaching HTML, JavaScript, CSS and Python.

Nod to for-profit entrepreneurship

At EpiBone, Nina Tandon provides patient-specific, customized bone grafts created from the patient’s own stem cells. Through this personalization of treatment, she aims to simplify procedures, provide more exact care and reduce the costs of post-surgery treatments. Each year, over 100,000 patients have bone-related surgeries in the United States alone. EpiBone could potentially increase access to these necessary operations through reducing costs and rehabilitation times.

Bringing innovation within government

Obama invited technology executives to join him in Washington to spearhead innovation in government. Former Google executive Megan Smith now serves as the United States Chief Technology Officer. Microsoft executive Kurt DelBene took a leave of absence in 2013 to help fix the problems with HealthCare.gov.

At SXSL, Presidential Innovation Fellows shared their projects to improve government efficiency at the “Startup in the White House” exhibit. Jacqueline Kazil’s GeoQ crowdsources geo-tagged photos to quicken disaster response. With the Green Button Initiative, John Teeter aims to help Americans understand and improve their energy use. The innovation company 18F has been developing NotAlone.Gov to provide students and schools with access to resources against sexual assault. Visitors saw how design and technology could potentially modernize the immigration system, improve veterans’ access to benefits and increase cancer patients’ access to clinical trials.

The first SXSL – and the last?

Although technology will not cure all of society’s ills, it has the potential to improve lives more quickly than any government institution could. Continuing initiatives that focus on creative solutions leads to a more widespread awareness of this potential. The federal government should focus on technology and innovation as integral contributors of growth.

Obama used SXSL to show innovation’s potential in policy solutions. Unfortunately, he made no mention of policy toward small businesses, particularly for-profit enterprises. Events like SXSL must also focus on policy that accelerates for-profit entrepreneurship that aid U.S. economy growth. There was no mention of how the federal government would incentivize entrepreneurship to strengthen the U.S. economy and maintain competitiveness in the global marketplace.

Whether through another South by South Lawn or the inclusion of innovators in policy solutions, the Trump administration should seek to make government more inclusive, transparent and effective. However, simply embracing startup culture and bringing entrepreneurs into government is far from enough. For entrepreneurship to play its full role, the U.S. needs policies that will actually help small businesses, not hinder. Only then will small enterprises and startups be able to take their place as drivers of economic growth.

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McNair Center Weekly Roundup

Innovation Weekly Roundup: 11/11/16

Weekly Roundup is a McNair Center series compiling and summarizing the week’s most important Entrepreneurship and Innovation news.

Here is what you need to know about innovation this week:

Silicon Valley Reels in Wake of Trump’s Presidential Victory

Joshua Brustein and Eric Newcomer, Bloomberg

Silicon Valley tech giants became unlikely political players in this election cycle. The results of the election leave the Valley in an uncertain position. Clinton received 114 times the amount of campaign contributions than Trump from the tech industry, so it should come as no surprise that a Trump presidency was not the industry’s favored outcome. The immediate threat to tech companies with the election of Donald Trump is the possibility of stringent immigration restrictions. Restrictions on immigration make it difficult for high skilled employees to work in the US. Furthermore, Trump’s lack of a clear plan for technology and the tech sector has left the industry in a state of limbo.

Election Day’s Tech-Related Triumphs — and Failures

Jamie Condliffe, MIT Tech Review

Many ballot initiatives on Tuesday were tech-related. Florida voted against an initiative that would have forced those with solar installations to give up payments for energy they feed back into the grid. The outcome will promote the expansion of home solar. Nevada voted to deregulate its electrical market. In transportation innovation, Seattle approved a $54 billion project to develop 62 miles of light rail and 37 new rail stations. Washington state rejected the first carbon tax in the US, partly over concerns that it failed to raise enough revenue for clean energy projects. Montana voted against a proposal to establish and allocate $20 million to the Montana Biomedical Research Authority.

How the tech industry is reacting to Donald Trump’s improbable victory

Paul Sawers, Contributor, VentureBeat

While Trump has been outspoken on economic reform, he largely did not address the the technology industry. While Paypal Founder Peter Thiel supported Trump throughout his candidacy, the majority of tech entrepreneurs expressed dismay over the possibility of Trump presidency. VentureBeat’s Sawers includes several Tuesday night tweets from tech industry leaders on the outcome of the election.

Results of the Clarity of the Record Pilot

Michelle K. Lee, USPTO Director & Under Secretary of Commerce for Intellectual Property

USPTO completed its Clarity of the Record Pilot, a program within the Enhanced Patent Quality Initiative. The Clarity of the Record Pilot enhances patent quality by identifying best practices for clarifying aspects of the prosecution record.

68 unique data points were measured, and each point represents a best practice. Examples of best practices include separately addressing independent claims or providing specific limitations in claims that are anticipated by prior reference when used to reject multiple claims. During the pilot, examiners used 14 percent more best practices in pilot cases as opposed to a control group.

The USPTO will be holding a Patent Quality Conference on December 13 to share more information on the Enhancing Patent Quality Initiative.

Women in STEM: Closing the Gap

Taylor Jacobe, Research Assistant, McNair Center for Entrepreneurship and Innovation

McNair’s Taylor Jacobe focuses on the slow growth in women’s presence in STEM and innovation. Jacobe provides robust, global evidence of the economic benefits of integrating women into the workforce and encouraging girls to pursue careers in these fields.

The Obama administration has made efforts to introduce such initiatives, including work-life balance programs and speaking tours with successful women. However, much work remains in combating gender inequality in the workplace, especially within the STEM fields.

The solution to this inequity is neither simple nor obvious. Jacobe recommends a combination of policy changes aimed at eliminating cultural barriers for women and increasing education opportunities for girls.

Women represent 19.6% of the staff at the top 25 tech companies

Dean Takahashi, Contributor, VentureBeat

A recent study by hiring firm HiringSolved reveals that women constitute only 19.6 percent of staff at the top 25-tech companies. The study indicates a critical need for  integration of women into technology and innovation.

Many Silicon Valley tech giants have introduced measures to address the gender imbalance in their workforce. HiringSolved’s study relies on machine learning and artificial intelligence to sift through its databases of information on gender, ethnicity, and age. Although the firm’s methods are by no means foolproof, the results are telling.

Thank you to Meghana Gaur for contributing to this week’s innovation roundup.

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McNair Center Women

Women in STEM: Closing the Gap

Economists around the world emphasize the benefits of integrating more women into the workforce. While we are seeing slow growth in women’s presence in many sectors, the Science, Technology, Engineering, and Math (STEM) fields at the core of innovation seem to be especially lacking in girl power.

In 2014, women comprised approximately 47 percent of the U.S. workforce. Within the innovation-focused STEM fields, women only account for about 19.5 percent. This underrepresentation of women is not only holding women back from success and achieving their full potential, but also preventing the U.S. economy from realizing the wide array of benefits which come from increasing women’s labor force participation.

Why We Need More Women in STEM

When women get involved in STEM fields, they are rewarded. Compared to similar women who are working in non-STEM fields, the salaries of women  in STEM are 33 percent higher. For men, the difference is only 25 percent. Not only are salaries higher, but the gender pay gap is also smaller. A 2011 U.S. Department of Commerce study found that the average gap is 21 percent in non-STEM jobs. For STEM jobs, this gap is only 14 percent.

Women aren’t the only ones who benefit. Companies that place an emphasis on gender equality and hiring women tend to see positive impacts on their productivity and success. For companies marketing to women, the Harvard Business Review has shown that having input from women improves their “likelihood of success” by 144 percent. Innovative firms, along with many traditional businesses, can benefit from having female perspectives to help reach female customers.

Gender diversity in the workplace also enhances creativity among workers. When researchers at the University of Maryland and Columbia University teamed up to study top leadership in Standard and Poor’s Composite 1500 list, they found that female representation in leadership positions is associated with a $42 million increase in average firm value. They also saw that companies which emphasized innovation received higher financial gains when women were in top management.

U.S. Initiatives to Empower STEM Women

The Obama Administration has made efforts to increase women’s involvement in STEM. In 2009, President Barack Obama created the White House Council on Women and Girls, a team that coordinates U.S. policy, legislation, and programs to address the needs of women and girls.  The Council has made women’s involvement in STEM a particular priority. They have announced multiple initiatives, like Title IX protections for equal education, work-life balance programs, and speaking tours for successful women innovators. The administration also made efforts to eliminate the gender pay gap through the creation of an Equal Pay Task Force in 2010 and an executive order affecting federal contractors in 2014.

Obama Signs the Executive Order creating the White House Council on Women and Girls

These actions alone cannot address the full extent of gender inequality. However, they may improve the situation. Policies that encourage girls to explore their interest in STEM give girls the opportunity to develop passions in these fields. Once these passions become careers, flexible and non-discriminatory policies in the workplace can incentivize women to stay involved in STEM throughout their careers.

Women in STEM around the World

In North America and Western Europe, on average, only 32 percent of researchers, defined as “professionals engaged in the conception or creation of new knowledge, products, processes, methods and systems and also in the management of the projects concerned,”  are women. Japan, one of the leading tech development nations, has a mere 15 percent. Surprisingly, Central Asia has the highest average proportion of women researchers, with 47 percent.

The United Kingdom ranks second in world scientific achie1512b16-women-in-science-interactive-map-researchers-un1-1vement, behind the United States. 35.7 percent of researchers in the UK are women. Within solely STEM fields, though, the proportion of women is even lower: only 14.4 percent. This trend is apparent across many of the nations with the highest investments and achievements in STEM.

Differences in gender norms affect incentives for women to enter these fields. In some regions, like India, women are expected to be caretakers and homemakers. Their participation in STEM, and the workforce in general, is therefore often very low. On the other end of the spectrum, there are certain areas in Asia where gender stereotypes regarding math and science are less prevalent. In these areas, STEM interest is greater among women than men.

Culture clearly has an effect on the proportion of women who get involved in STEM professions. A prevailing stereotype exists in American society that women are inferior to men in math and science. Although this stereotype has been proven untrue, societal beliefs and expectations can have an effect on women’s empowerment. Research by Claude M. Steele shows the effects of stereotypes on performance and self-perception. If we want to see a change in the proportion of women in STEM, we need to change our culture.

What is the Future for Women in STEM?

Remedying the gender gap in innovation fields is not a simple or quick process. It requires a combination of education for girls, policy changes that eliminate barriers for women workers, cultural changes, shifts in societal prioritization of gender equality, and much else besides. At the current progress rate, we are a long way from eliminating the gender gap. However, with concerted effort from policymakers, educators, and employers, there is hope for a fairer and more productive future.

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McNair Center Weekly Roundup

Innovation Weekly Roundup: 11/04/2016

Weekly Roundup is a McNair Center series compiling and summarizing the week’s most important Entrepreneurship and Innovation news.

Here is what you need to know about innovation this week:

Microsoft Puts Slack in Cross Hairs with New Office Chat App

Nick Wingfield, NY Times
Tech companies are moving in on Slack’s popular team-messaging market as Microsoft joins Facebook in taking on smaller players in this space. Microsoft’s size and distribution power is not enough to enter a new market. Their product must be innovative, not just another app in the Microsoft Office suite. Slack, in response, took out a full-page ad in the New York Times. They sarcastically congratulated Microsoft while also highlighting the innovations Slack has brought to numerous workplaces.

Microsoft’s current Office suite is just not keeping pace with the changing dynamics of the workplace, which require collaborative software. Slack, and other team messengers, enables multi-channel communication to organize discussion without relying on email. It is additionally fully searchable and allows a variety of app integrations. Team-messaging applications increase transparency and decentralize discussion. They are used at a variety of workplaces emphasizing collaboration (including here at the McNair Center).

AIA Patents – Approaching 50% of newly issued patents.

Dennis Crouch, Professor – University of Missouri School of Law

Crouch has created a chart showing the percentage of patents granted under the first-to-file provisions in the 2011 America Invents Act (AIA). The AIA changed the patent application rules from first-to-invent to first-to-file. By the end of 2016, half of all new patents issued would have been filed under first-to-file rules.

Patents filed under the AIA are subject to post grant review (PGR). A third party successfully petitioning that at least one claim is unpatentable can initiate the PGR process. The purpose of PGR is to dispose of bad patents early in their life through the USPTO rather than the legal system. Petitions must be entered within 9 months of a patent being issued and a final decision of validity is made in less than a year.

Innovation Labs: 10 Defining Features

 Dr. Lidia Gryszkiewicz, World Economic Forum
 Dr. Tuukka Toivonen, University College London
 Dr. Ioanna Lykourentzou, Luxembourg Institute of Science and Technology

Innovation Labs are essential workspaces for collaborative innovation. However, innovation labs’ missions and features are often ill-defined. A simple “I know it when I see it” style definition is not sufficient. Three experts in social innovation have reviewed innovation labs around the world to determine what features are essential. A few key findings include innovation labs needing heterogeneous participants, focus on experimentation and an expectation of breakthrough solutions. Such distinctions can help guide new labs and promote innovation across a variety of industries and social areas.

Additionally, creating a definition for these labs helps distinguish them from other similar models like living lab and coworking spaces. In summary, the writers of this piece define an innovation lab as “a semi-autonomous organization that engages diverse participants—on a long-term basis—in open collaboration for the purpose of creating, elaborating and prototyping radical solutions to pre-identified systemic challenges.”