Comments on: Escaping the Risk Aversion Vacuum http://greenlight.greentechmedia.com/2008/06/19/escaping-the-risk-aversion-vacuum-323/ Green Light is the traffic cop at the intersection of green technology, business and policy. We cover the highs and lows of the greentech market, providing news, commentary and analysis on the companies and personalities–-winners and losers alike-–driving its growth and evolution. Fri, 21 Nov 2008 12:15:04 +0000 http://wordpress.org/?v=2.5.1 By: Scott Clavenna http://greenlight.greentechmedia.com/2008/06/19/escaping-the-risk-aversion-vacuum-323/#comment-523 Scott Clavenna Thu, 19 Jun 2008 17:14:09 +0000 http://greenlight.greentechmedia.com/?p=323#comment-523 Few things: EnerNOC did actually locate here and create jobs, so where they got the money probably isn't as big a deal as where they pay their taxes, so they should be in the New England success column in this debate. Second, I have the sense VCs get beat up here about being risk averse too much, especially in greentech. In this market, it is very very wise to be cautious, so risk aversion may end up being a positive in the long run if we manage to create some real world-class green companies instead of lots of me-too startups. But the point about our state not doing enough to create a market is a good one. The state giving money for R&D or entrepreneurship or whatever really misses the lessons of California and Germany. The best way to create a local market is not to focus on investing in people or technology but to invest in demand. Germany did, and they have over 250,000 solar jobs now in a country that has little sun to speak of. California has long subsidized all manner of alternative energy and conservation, and therefore leads the nation in green jobs and greentech wealth. If Massachusetts and other New England states continue to talk more about investing in innovation instead of investing in demand, my guess is that we will create a great class of engineers and entrepreneurs that will take their ideas and bring them to a place where the demand is hottest. Yours truly, and your greenTREKmedia team captain, Scott Few things: EnerNOC did actually locate here and create jobs, so where they got the money probably isn’t as big a deal as where they pay their taxes, so they should be in the New England success column in this debate. Second, I have the sense VCs get beat up here about being risk averse too much, especially in greentech. In this market, it is very very wise to be cautious, so risk aversion may end up being a positive in the long run if we manage to create some real world-class green companies instead of lots of me-too startups.

But the point about our state not doing enough to create a market is a good one. The state giving money for R&D or entrepreneurship or whatever really misses the lessons of California and Germany. The best way to create a local market is not to focus on investing in people or technology but to invest in demand. Germany did, and they have over 250,000 solar jobs now in a country that has little sun to speak of. California has long subsidized all manner of alternative energy and conservation, and therefore leads the nation in green jobs and greentech wealth. If Massachusetts and other New England states continue to talk more about investing in innovation instead of investing in demand, my guess is that we will create a great class of engineers and entrepreneurs that will take their ideas and bring them to a place where the demand is hottest.

Yours truly, and your greenTREKmedia team captain,

Scott

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