Jesus Encinar started his blog the 26th of June saying “Now that Spain goes through a crisis of its economic model, many eyes are turning to entrepreneurs and Internet start-ups looking for innovation and growth. Many politicians would love that Spain would turn itself into a highly socially protected country model based in a more productive economy with an advanced technological sector. Something like a Nordic country grounded at the Mediterranean shores
In summary his 3 very well explained ideas were:
1. A fiscal scheme that allows for option plans as retribution and incentive
2. Work / Labour contracts that can be undone without problems once the business case has proved it is no longer valid
3. Return the VAT tax to the companies during their very first’s years of life
I tried at the beginning of July posting my contribution as a comment in his blog, but it did not go through, I suppose it was because it was too long or? … Fortunately I had saved it in Word just in case and I am able to recuperate and use it today. What I tried to convey then I will repeat here today:
Jesus lets add to your initiative, I was about to do the same as you and write on my own my ideas when that day I encountered and read yours on twitter… so I thought is best to collaborate and build on Jesus initiative we should all cooperate and do it, continue building on his … among all we should write a Manifesto about these very important area of concern and build on your ideas, this suggestion is my contribution.
While at a dinner in Malaga with Sebastian Muriel of red.es and other authorities of Andalusia, Directors of Technological Parks, Pro Malaga, Ayuntamiento (Town House), with Miguel Angel Lopera CEO gs1, with guru and MIT Professor de Sanjay Sarma, Brian Subirana MIT and IESE, Bocherini from San Telmo Business University, Benigno Lacort CEO of Sandetel Consejería for Innovation Andalusia Seville etc… We had an interesting discussion that surfaced similar preoccupation and concerns in front of the Mediterranean Sea and my recently operated and splinted left arm. So Jesus I add 3 of my then suggested and exposed ideas to your 3 published ones.
1. Change the contracting with and bidding to the Administration bodies and enterprises that now requires you are an established company for 3 years in the market in order to start qualifying for the Administrations and Governments to buy from you products and services. Let’s stop it right away, end that law/requirement for SMEs and start-ups, so that they can then sell and compete without demonstrating any antiquity. This would give them some breathing economic air from day one and increase their possibilities to have income at a very early stage in the game.
2. Greater interaction among the Markets needs and Professors/Universities/Enterprises in the implementation and transfer of projects into SMEs start-ups, spin-offs via promoting strongly new and disruptive technological projects for example give more and larger prizes/salaries/bonuses to the University entrepreneurs Researches, Professors Students and associated University sponsors.
3. Implant the option/choice that allows the taxpayer citizen to elect/choose which new activity/industry he wants his taxes help develop, like in France with a limit for France I think of 50.000€ for those that earn more and pay more taxes. Such a program has been implemented in France initiated by the Minister Legarde and according to her last year in Paris at le Web 2008 it has reported in the last 2 years close to 2 billion euros for stat-ups and SMEs creation. In this program the taxpayer can chose where his tax paying moneys go in this case to funding/investing specific new technological start-ups, SMEs or spin-offs. How much money of the ones now going to churches could go to this end initiatives if the citizens new how much they contribute in the activation of the economy, the employment generation, and productivity improvement of the country.
Sanjay Sarma the father of new radiofrequency technologies at MIT said that night we have to install Meritocracy in Europe and Spain in particular (this phenomenon is not only ours he had found it in the UK and India and other countries as well an much less so in the USA). We have to end with Cronysm. Google’s definition of Cronyism “favouritism to long-standing friends, especially by appointing them to public office without regard for their qualifications”
I invite all of you to add ideas/suggested measures in this same direction to promote the development of technological new companies.