16. How can politicians solve the Spanish tech start up challenge?
Whilst smart investment capital wakes up to the opportunities in countries like Spain, a big question is what local politicians can do to accelerate business growth. Current policies are misguided, as they are based on the belief that they need to create skills and entrepreneurship, providing endless coaching and tech transfer training and initiatives, backed up by insufficient capital. Once local politicians understand that the biggest challenge is access to seed and early round capital, this would change their strategy for fostering entrepreneurship. The assignment is to get traditionally earned capital to invest in new technology, which at present, with some exceptions, it is not doing. How do we get a property or textile tycoon to invest in speculative biotech? Simple. We get their tax advisor to tell them to. They may not understand technology, but they understand taxation. Change the taxation enough, and you will change the dynamics of tech investment in your country, at a stroke