• “INNOVATION IS THE CALLING CARD OF THE FUTURE.” – ANNA ESCHOO

Universities have always played an important role in the economic vitality of their communities. However, as innovation has become the primary determinant of economic growth, the role and reach of universities has grown.  Universities aggregate a critical mass of minds and resources making them central to the success of regional economies.  National economic prosperity depends upon expanding our pockets of innovation excellence throughout the country.  Universities will lead in that effort.

  • “Innovation is the central issue in economic prosperity.” - Michael Porter


Startups are the engines that drive job creation and economic growth.

  • 1/3 of the increase in economic growth can be attributed to increases in startup rates. (McKinsey) 
  • Startups create an average of 3 million new jobs per year.  Companies in business 2 to 200 years destroy an average of 1 million jobs per year. (Kauffman Center)

Our global competitiveness hinges on making them produce more thrust.

  • 2008 was the first year that firms began dying at a faster rate than new ones were created. (The Brookings Institute)
  • In 2010, the U.S. could have created 2 million more jobs if new business creation remained at 2007 levels. (U.S. Department of Commerce)

  • “If you look at history, innovation doesn’t come just from giving people incentives; it comes from creating environments where their ideas can connect.” - Steven Johnson. 


Universities have a unique capacity to foster innovation.  A McKinsey & Company study identified “3 pillars” required for innovation and entrepreneurship to flourish in a region.

  1. Infrastructure and human capital
  2. Promotion of an entrepreneurial culture
  3. Access to capital

Universities are unmatched in their contributions to the first two:

1. Infrastructure and human capital

  • Universities lead the nation in research and infrastructure investment.  In the last 8 years, American universities have invested a half trillion dollars in R&D.1 
  • Universities are the largest forums for intellectually curious people to share diverse experiences and common pursuits.  There are 11 million graduate and undergraduate students at 4-year universities supported by and collaborating with 1.5 million professors and researchers.2  

2. Promotion of an entrepreneurial culture

  • The number of universities with Entrepreneurship Centers increased from 100 in 2000 to over 500 in 2013.3 
  • 45 of the 50 top universities in the U.S. News and World Report 2015 ranking sponsored Entrepreneurs in Residence
  • 1/3 of the 1,250 business incubators in the U.S. in 2012 were based in universities; a 65% increase over 2006.4 

The third pillar that McKinsey cites as essential for a vibrant entrepreneurial ecosystem is access to capital.  Universities have recently begun more actively investing in companies started by students and faculty.  Currently, more than 30 universities have funds dedicated to this purpose.

CoFunder’s Alumni Venture Funds can provide another source of critical capital to help your startups reach their next set of benchmarks, putting them in stronger positions to secure subsequent venture funding.  Increasing the survival rate of startups has a multiplier effect on the innovation ecosystem as successful startups beget new ones from both founders and employees.

1National Science Foundation
2National Center for Education, BLS
3Kauffman Center, Smithsonian
4New York Times

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