But capital funding is only part of the innovation equation. Like any ecosystem climate can be a game changer. No one would try and farm in a smog filled environment that never sees precipitation. In the same way innovation started in the wrong business culture and climate is destine to wither on the vine. To foster a community that's seeds startups that eventually germinate and take root you'll need a strong and vibrant entrepreneurial sector and for that you'll need a healthy business culture and climate.
Here are 7 characteristics of a healthy climate that will in-turn benefit your entrepreneurial density and your communities economic ecosystem:
Be inclusive - resist the temptation to get comfortable in familiar cliques, outsiders can bring perspective you have become blind to.
Give before you get - giving freely with no expectation of immediate returns will have unimaginable rewards.
Entrepreneurial leaders have to be in it for the long haul - changing climate is measured in years not months so be prepared to stay the course and persevere in your cultural transformation.
Accept Failures - Embrace your failures rather than ostracizing them from the community. In Maxwell's book "Failing Forward" he provides numerous examples of how our failures are what truly lead us to excellence.
Welcome and encourage new comers - A rising tide floats all boats. Embrace any and all additions to your economic Eco-system.
Foster Diversity - cast the broadest net to ensure no one that wants to contribute is left behind, regardless of gender, class, ethnicity, sexuality, and nationality. Embrace the weirdness of your community.
Have porous boundaries - it's acceptable for people to flow from one company to another. Leaders talk and share ideas and strategies.
If these aren't the characteristics of your business community then this is your call to action. If your economic strategy doesn't contain a pillar that includes transforming your culture you may want to consider adding one. Without it you might as well try starting a corn farm on the moon.
Here are some other opinions that may provide insight.