The era of industrialization brought personal transportation, comfortable housing, mass communication, advanced medical care, cheap energy and plentiful and exotic foods. These accomplishments for the human race are unparalleled and should not be taken lightly.
But our present means of production and business are simply not sustainable in the future. While Americans live in comfort and material wealth unavailable to the royalty of prior ages, the vast majority of humans do not experience such advantages. One estimate suggests it would require the resources of three Earths to allow our global population to achieve the Western world’s level of consumption without substantial changes to the means by which we supply such wealth.
Another estimate, this one by the European Union, argues that developed nations may need to eventually constrain carbon emissions by 70 percent if we are to ensure greater climate stability. While predictions of global oil and gas resources vary widely, rising consumption in developing nations, particularly China, combined with finite hydrocarbon resources ensures that energy prices will rise substantially in coming decades.
Many fear the threat of these changes, but others view them as opportunities for action. The good news is the nation’s entrepreneurial capacity can help to resolve these issues. But perhaps most important, new challenges present tremendous economic opportunities for innovative businesses that recognize fundamental trends in a global society.
Already, numerous corporations and entrepreneurial companies are developing strategies for the global future. Private equity investments in clean technology are estimated at $1.6 billion in 2004. Most recently, GE announced an aggressive, $1.5 billion program of research and development targeted at products and services for a future characterized by high energy prices and carbon emission constraints. Start-ups such as Renewable Choice Energy have figured out how to market renewable energy credits to consumers and businesses. Wind power ventures such as Clipper Wind experience rapid growth as the costs of wind power approach the costs of coal-fired generation, and many states, including Colorado, are committing to renewable energy and carbon emission goals.
The list of entrepreneurial corporations and new ventures recognizing the economic potential of global social and environmental trends is astounding. Those who act now will benefit financially and will be proud to say they contributed to a better way of doing things.
The implications of these trends for Colorado need to be given serious thought by our business community, educational institutions and governments. Organizations in California, San Francisco and the Silicon Valley are planning to build a business cluster in the growing field of renewable energy. My thought is, if there, why not here?
Colorado is in an unparalleled position to capture the economic returns of these emerging global trends. With the National Renewable Energy Laboratory, the National Center for Atmospheric Research and the National Oceanic and Atmospheric Administration, Colorado has a foundation of basic research in these areas. With the University of Colorado, University of Denver, Colorado State University and the Colorado School of Mines also focused on these issues, there is no question we have the knowledge and technological foundation for such an accomplishment.
Add a vibrant high-technology business community, a penchant for innovation characterized by the pioneering West, and environmental awareness fostered by our beautiful mountain surroundings and you have the potential for creating new technologies and business models to match the emerging financial incentives of natural resource trends.
Most important, Colorado’s entrepreneurial revolution is already underway. Our economy boasts innovative, nationally recognized businesses in renewable energy, fuel cells, green building materials and energy-efficient computing, transportation, recycling, organic foods and other fields. Colorado consulting firms are recognized as international leaders in environmental management, life-cycle analysis, climate change, energy efficiency and sustainable business strategy. Encouraged by Denver Mayor John Hickenlooper, innovative businesses have been meeting to form the Colorado Clean Tech Initiative to promote the development of a cluster of sustainable businesses. The Colorado business community is poised to capture these emerging trends.
At a conference of academics, public and other agencies next spring, emerging business opportunities and their importance for economic development and job creation in Colorado will be the focus. Our goal will be to spur the next entrepreneurial revolution in Colorado, not in California, and to capture the opportunities inherent in building a more sustainable future. If Colorado is successful, we can all benefit from our collective foresight, identifying and capitalizing on fundamental trends that other communities have ignored.
Thomas J. Dean is a professor of entrepreneurial development at the University of Colorado’s Leeds School of
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