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Infographic: Startups in the High-Tech Supply Chain

With Apple, Samsung, and other electronics OEMs stealing the headlines, the little guys may get lost in the shuffle. In the high-tech supply chain, though, small organizations hold a position as important as the industry biggies, since they often lead innovation and may be the best source for certain products and services.

Unfortunately, many of these small firms are struggling. According to some reports, fewer startups are being born. “Because young high-tech firms are so disproportionately important for innovation and job creation, a slowdown in this sector calls for a new approach to fostering a stronger entrepreneurial economy,” said Dane Stangler, vice president of research and policy at the Kauffman Foundation, said in a press release. A white paper from the group, Declining Business Dynamism in the U.S. High-Technology Sector, links this entrepreneurial spark to economic growth in the US.

A new infographic from eyefortransport (shown below) explores the role of startups in the electronics supply chain. The statistics are eye opening. For example, four out of 10 high-tech organizations are fewer than five years old. By using only sources with a long history, OEMs are cutting out a big chunk of potential partners.

Let us know how your organization works with high-tech startups. What do you see as the biggest boon and the biggest challenge?

— Hailey Lynne McKeefry, Editor in Chief, EBN Circle me on Google+ Follow me on Twitter Visit my LinkedIn page Friend me on Facebook

7 comments on “Infographic: Startups in the High-Tech Supply Chain

  1. SunitaT
    October 10, 2014

    I never thought startups have such an importance in stabilizing the market until I saw the infographic. Indeed startups are important. I was hoping that they would stop acting as the middlemen (couriers to customers) if they would be welcomed to develop under the canopy of a bigger company who would let them flourish until these young startups can fly for themselves. Such startups after a specific profit/partner target set by the parent company would return some of it to the parent company which helped them gain momentum. I think this mutual co-exist relationships would help both old and newer companies to flourish.

  2. Hailey Lynne McKeefry
    October 10, 2014

    Interesting idea, Tiarapur. I throw it out to the community: Has  anyone seen a big company mentoring and helping a high tech startup? I see a lot of acquistion…but haven't seen this.

  3. Ariella
    October 13, 2014

    @Hailey There are incubators for startups. Inc. listed 10 of them, though I  In a URL that has the www. before inc.com/ss/10-start-up-incubators-to-watch

  4. Haley Garner
    October 15, 2014

    We're actually going to be working with AT+T at the upcoming Hi-tech Summit as mentionned in the graphic – San Francisco, October 28, and while it's not exactly mentoring start-ups, they'll be looking at how they're trying to approach innovation in their organizations in a start-up like manner. Effectively, both sides might have something to learn – Established companies from start-ups and vice versa. 

  5. Hailey Lynne McKeefry
    October 15, 2014

    @Ariella, very nice working around there…thanks for sharing hte URL. 🙂

  6. Hailey Lynne McKeefry
    October 15, 2014

    @Haley, thanks for chiming in. I think the bi-directional learning is critical for real movement forward. I bet there are lessons to be learned on both sides, but it's a lot easier to think of what the startups can learn.  What do you think are the biggest lessons that established companies can learn from startups?

  7. ahdand
    October 15, 2014

    @Hailey: Well there are some but I think its not been highlighted as such. I have seen many Asian giants especially in India doing this. 

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