UNIVERSITY OF LJUBLJANA

FACULTY OF ECONOMICS

MASTERS THESIS

THE ROLE OF THE NEW ARGONAUTS IN THE SLOVENIAN

ENTREPRENEURIAL ECOSYSTEM

Ljubljana, September 2014

NEJC SLOVNIK

TABLE OF CONTENTS
INTRODUCTION .................................................................................................................... 1
1 NEW ARGONAUTS ............................................................................................................. 3
1.1 Definition of new Argonauts ................................................................................................ 3
1.2 Emergence of new Argonauts .............................................................................................. 4
1.3 The role of new Argonauts in the development of Silicon Valley and U.S.
economy ............................................................................................................................... 5
1.4 Related concepts of the new Argonauts phenomenon ......................................................... 6
1.5 The impact to the global economy ....................................................................................... 8
1.5.1 Benefits to the local economy ....................................................................................... 8
1.5.2 Benefits to the home-country counterparts ................................................................... 9
1.6 New Argonauts common characteristics .......................................................................... 10
1.7 New Argonauts and Slovenia ............................................................................................. 11
2 BRAIN CIRCULATION .................................................................................................... 13
2.1 Evolution of brain circulation ............................................................................................ 13
2.2 Social networks and cross-regional collaborations ............................................................ 16
2.3 Best practices of brain circulation in the case of new Argonauts ...................................... 17
3 ENTREPRENEURIAL ECOSYSTEM............................................................................. 19
3.1 Definition of the ecosystem................................................................................................ 19
3.2 Silicon Valleys entrepreneurial ecosystem ....................................................................... 21
3.2.1 The supportive environment........................................................................................ 22
3.2.2 The institutional environment ..................................................................................... 23
3.3 Slovene entrepreneurial ecosystem .................................................................................... 24
3.3.1 The supportive environment........................................................................................ 25
3.3.2 The institutional environment ..................................................................................... 27
4 AN EXPLORATORY RESEARCH ON THE ROLE OF THE NEW
ARGONAUTS IN THE SLOVENIAN ENTREPRENEURIAL
ECOSYSTEM ...................................................................................................................... 28
4.1 Research questions and hypotheses.................................................................................... 28
4.2 Methodology ...................................................................................................................... 29
4.2.1 Model design and the questionnaire ............................................................................ 29
4.2.2 Data collections ........................................................................................................... 30
4.2.3 Data analysis ............................................................................................................... 30
4.2.4 Limitations .................................................................................................................. 31
4.3 Results and findings ........................................................................................................... 31
4.3.1 Slovene entrepreneurial ecosystem and the factors influencing the role of the new
Argonauts .................................................................................................................... 31
i

4.3.2 Motivational factors of the new Argonauts to move abroad ....................................... 35

4.3.3 The present role of the new Argonauts ....................................................................... 36
4.3.4 Collaboration with the home-country counterparts ..................................................... 38
4.3.4.1 The new Argonauts integration into the ecosystem networks .............................. 40
4.3.4.2 Motivational factors for collaboration.................................................................. 41
4.3.6 Brain circulation processes.......................................................................................... 43
4.3.6.1 Immigration of foreign new Argonauts ................................................................ 46
4.3.7 Initiatives to enhance transmission of knowledge, business experience, skills and
connections .................................................................................................................. 47
4.3.7.1 Governmental policies.......................................................................................... 49
4.3.8 The future role of the new Argonauts ......................................................................... 51
5 DISCUSSION AND IMPLICATIONS.............................................................................. 53
CONCLUSION ....................................................................................................................... 58
REFERENCE LIST ............................................................................................................... 61

TABLE OF FIGURES
Figure 1: Immigrant economic adaptation and social embeddedness ........................................ 7
Figure 2: The model of factors which stimulate brain circulation ........................................... 15
Figure 3: Entrepreneurial Ecosystem Framework .................................................................... 20
Figure 4: The key elements missing in the Slovene entrepreneurial ecosystem ...................... 32
Figure 5: Motivational factors of the new Argonauts to move abroad .................................... 36
Figure 6: Collaboration with the home-country counterparts .................................................. 39
Figure 7: Motivational factors for collaboration ...................................................................... 43
Figure 8: Comprehensive model of brain circulation of the Slovene new Argonauts ............. 54
TABLE OF TABLES
Table 1: The exploratory research interviewees ...................................................................... 30

ii

INTRODUCTION
It is well known that Silicon Valley is the most famous high-tech industrial cluster (Mann &
Luo, 2010) and that it has one of the most ethnically diverse workforce in the world
(Saxenian, 2002a). More than a quarter of Silicon Valleys skilled workers are immigrants
from China, Taiwan, India, the United Kingdom, Iran, Vietnam, the Philippines, Canada and
Israel (Saxenian, 2002a). Based on its diverse ethnical population, Silicon Valley has built a
strong two-way bridge with the home countries of immigrant professionals and developed an
environment for entrepreneurial development. The foundations lie in collaboration of
immigrant professionals and entrepreneurs with their home-country counterparts. We refer to
the members of these networks as the new Argonauts; an allusion to the ancient Greek myth
Jason and the Argonauts, who searched for the Golden Fleece (Saxenian & Sabel, 2008). The
new Argonauts are foreign-born, technically skilled entrepreneurs who travel back and forth
between Silicon Valley and their home countries (Saxenian, 2006). Furthermore, new
professional and social networks that link new immigrant entrepreneurs were created and
have become global institutions that connect new immigrants with their counterparts at home.
These new transnational communities have mobilized the shared information, know-how,
contacts, skills and capital to start technology firms (Saxenian, 2002a).
From this perspective, we are no longer talking about brain drain, but rather about brain
circulation. Majority of people assume that the movement of skilled and talented
professionals benefits one country at the cost of another. But oppositely, the brain circulation
of high-skilled professionals increasingly benefits both sides and their economies (Saxenian,
2002a). Brain circulation has become a powerful economic force for development of formerly
peripheral regions like China, India and Taiwan. It is important that a country identifies the
value of brain circulation and creates a stimulative environment for their skilled and talented
professionals, and entrepreneurs to mobilize all of its benefits.
Silicon Valleys openness and diversity has strengthened its economy and entrepreneurial
ecosystem and the new Argonauts have made the U.S. richer and not poorer (Saxenian, 2006).
An author believes that Slovenia should learn from this practice and try to develop an
entrepreneurial ecosystem, which would enable brain circulation of Slovene new Argonauts,
who begun emerging in recent years. Currently, many Slovenes are leaving the country,
seeking better job opportunities and working environment. According to Statistical Office of
the Republic of Slovenia (n.d.), in 2012 and 2013 15,980 Slovenes moved abroad.
Unfortunately, the country still does not recognise the opportunity of migration; rather sees it
as brain drain (Zupanic, 2012). Therefore, the goal of masters thesis is to discover potential
methods and processes for transmission of business experience, know-how, skills, and
connections back to Slovenia, whereas focusing on the Slovene new Argonauts.
The purpose of master thesis is to contribute to understanding of the role of new Argonauts
in todays economy and to identify the role of new Argonauts in the Slovene entrepreneurial
1

ecosystem. Furthermore, the author tries to identify the potential for future development of
entrepreneurial networks and how Slovene new Argonauts could make a contribution to the
ecosystem.
The goal is to identify Slovene new Argonauts and to search for established entrepreneurial
networks and cooperation with home-country counterparts. Current Slovene initiatives, which
encourage collaboration between environments, are analysed. Furthermore, the author tries to
identify motivational factors of immigrant entrepreneurs and professionals working in Silicon
Valley for building a strong two-way bridge. Moreover, the goal of the empirical study is to
discover potential methods and processes for transmission of business experience, know-how,
skills, and connections back to Slovenia in order to boost development of Slovene
entrepreneurial ecosystem. In addition, the author searches for possibility of even stronger
brain circulation of highly skilled and talented Slovene professionals and entrepreneurs.
Methodology. In order to achieve the objectives of the master thesis three different research
approaches are used. Firstly, with the descriptive approach author made a literature review
on the paradigm of new Argonauts and related concepts. Furthermore, the analysis of Slovene
and Silicon Valley's ecosystems, with an emphasis on entrepreneurial environment, has been
made using secondary sources. Secondly, the exploratory research approach is used to help
the author identify the present and the future role of new Argonauts in the Slovene
entrepreneurial ecosystem. This is achieved through five (5) in-depth interviews with new
Argonaut representatives working in both environments - Slovenia and Silicon Valley (the
U.S.). The unique geographic area was selected in order to be interconnected with the roots of
new Argonauts phenomenon and since many Slovene entrepreneurs choose Silicon Valley,
or the U.S., as a first choice of their movement. Furthermore, for the purpose of
comprehensive research three (3) in-depth interviews with representatives of entrepreneurial
environment have been performed to discover potential relationships and similar views on the
role of new Argonauts in the Slovene entrepreneurial ecosystem. The interviews were
conducted in August 2014 and the average duration was 30 minutes. To analyse the obtained
primary data, author used software package NVivo to code, classify, sort and arrange
information, and additionally to examine relationships in the obtained data.
It needs to be emphasised that the number of representatives working in both environments is
very limited and small. Therefore, the study covers almost entire population and the author
has achieved as close as 100% response rate. It is worth mentioning that the topic of this
research study is fairly new and unexplored, and has never been studied in the case of
Slovenia.
Structure of the thesis. The master thesis is divided in three main parts.
The first and second parts focus on the review of the existing secondary literature on the
paradigm of new Argonauts and related concepts. Furthermore, Silicon Valley's and Slovene
2

ecosystems were analysed and compared in order to find applicability of Silicon Valley's
practices for the development of entrepreneurial networks and cooperation between Slovene
new Argonauts and home-country counterparts. An emphasis of the analysis and comparison
is held on supportive and institutional environments of the both ecosystems.
In the second part, methodology and results of empirical research are presented. The
methodology was prepared, and is based, on extensive secondary literature review, and serves
as a basis for exploratory research. Based on the analysis and findings, the results chapter is
divided in eight interconnected topics.
The third part consists of presentation, analysis and discussion of results, followed by final
conclusions of the master thesis, which could lead to important contribution to understanding
knowledge and best practices transfers through new Argonauts and accompanying
entrepreneurial practices.
Limitations. The first limitation of this master thesis is that the author was not able to
investigate both environments with the same depth and from the same research perspective.
As a Slovene resident the author was able to develop a deeper understanding of Slovene
entrepreneurial ecosystem and was able to search for countrys specifics and insights. On the
other hand, this was not possible in the case of Silicon Valley, as author has not yet visited the
Bay Area and was not able to observe environments characteristics in person. Furthermore, it
would be beneficial to make a research and to conduct in-depth interviews with
representatives of Silicon Valleys entrepreneurial environment and its immigrants. These two
additional analyses would help to deepen and reach a comprehensive understanding of new
Argonauts phenomenon and entrepreneurial networks of immigrants in Silicon Valley and
beyond.

1 NEW ARGONAUTS
1.1 Definition of new Argonauts
In the post-World War II period rapid growth of the foreign-born workforce to the U.S.
emerged (Saxenian, 2002a; Saxenian, 2007), specifically to Silicon Valley (Saxenian, 2007).
Skilled and talented students left to take advantage of educational opportunities abroad
(Saxenian, 2006). Most people believed that movement of skill and talent must benefit one
country at the expense of another (Saxenian, 2002a). The countries thought they suffered from
a brain drain, but at the time, nobody foresaw that these emigrants might become an
important asset in the next century global economy (Saxenian, 2006).
These same individuals or their second-generation of immigrant families, who once left their
homes for a better life abroad have started returning home and transforming brain drain into
brain circulation (Saxenian, 2007). At home they established new business relationships or
3

started new companies, while retaining their professional and social ties with the United
States. The pioneers of these transformations and business ties are professionals and
entrepreneurs who travel back and forth between Silicon Valley and their home countries
(Saxenian, 2006). We refer to these members as the new Argonauts, an allusion to the
ancient Greek myth Jason and the Argonauts, who searched for the Golden Fleece (Saxenian
& Sabel, 2008).
The new Argonauts have built a strong two-way bridge between Silicon Valley and home
countries to develop the environment for entrepreneurial development (Saxenian & Sabel,
2008). Those who remain in America often become part of transnational communities that
link the U.S. to their home-country counterparts. These new transnational communities have
mobilized the shared information, know-how, contacts, skills and capital to start new
technology firms (Saxenian, 2002a). Furthermore, they have influenced policies of their home
countries, using best practices and models from Silicon Valley to work with public officials to
adapt and redesign relevant institutions and firms in their native countries (Saxenian & Sabel,
2008). The new Argonauts are ideally positioned to search beyond prevailing routines to
identify opportunities for cross-national participation and can quickly identify promising
market opportunities, raise capital, build management teams, and establish partnerships
(Saxenian, 2006).

1.2 Emergence of new Argonauts

As claimed in the first chapter, the new Argonauts emerged soon after the Second World War,
when foreign-born immigrants started coming to the U.S, many of them as students (Wadhwa,
Rissing, Saxenian, & Gereffi, 2007). It was not until early 1980s, when new Argonauts
phenomenon started to flourish. At that time it was observed that many Taiwanese, Israeli,
Indian and Chinese professionals and entrepreneurs began returning from Silicon Valley to
their home countries after studying and working abroad. These native-born brought cultural
and linguistic know-how, technical and operating experience, knowledge of new business
models, and networks of contacts from the U.S. Furthermore, as U.S.-educated immigrants
returned home, either temporarily or permanently, they transferred the institutions of
entrepreneurship to their home countries. It should be stressed that this was not a one-way
process, but a far more complex and decentralised two-way process of business skills, capital,
connections and technology (Saxenian, 2006).
Many of the ones who stayed were important players and contributed to the U.S. economy,
generated jobs, exports, and became leaders in innovation (Saxenian, 2002a; Wadhwa,
Saxenian, Rissing, & Gereffi, 2007; Wadhwa et al., 2007). They stayed after graduation and
many of them founded companies an average of thirteen years after their arrival (Wadhwa et
al., 2007). These individuals, at some point started to collaborate with their home-country
counterparts and started transforming developmental opportunities for formerly peripheral
regions (Saxenian, 2007).
4

Immigrant founders initially came to the U.S. primarily for a higher education, as high as 52.3
percent of immigrants and 39.8 percent entered the country because of a job opportunity
(Wadhwa et al., 2007). Later, many of them accepted jobs in Silicon Valley rather than
returning to their home countries where job opportunities were far more limited (Saxenian,
n.d.; Saxenian, 2007). Today 38.8 percent of companies have an immigrant as a key founder
in Silicon Valleys companies (Wadhwa et al., 2007). Between 1995 and 2005 almost 80
percent of companies founded by immigrants in the U.S. were within just two industry fields:
software and innovation related services. It becomes clear that immigrant professionals have
become a powerful driving force in the creation of new businesses and intellectual property in
the U.S. (Wadhwa et al., 2007).

1.3 The role of new Argonauts in the development of Silicon Valley and U.S.
economy
Today Silicon Valley is one of the most diverse high-tech industrial clusters (Saxenian, 2002a;
Mann & Luo, 2010) with one-third of foreign-born scientists and engineers working in the
regions high-tech industries by 1990 (Saxenian, 2006).
Wadhwa et al. (2007) analysed immigrant populations in engineering and technology startups
founded from 1995 to 2005 and discovered that major tech centres usually have a higher
concentration of immigrant-founded startups than their state average. On the top of the chart
are: Silicon Valley with 52.4 percent of its technology and engineering firms having
immigrant key founders, followed by New York City at 43.8 percent and Chicago at 35.8
percent (Wadhwa et al., 2007). The immigrant founders come from all over the world, lead by
Indian founders at almost 26 percent. They combine more than immigrants from U.K., China,
Taiwan and Japan put together (Wadhwa et al., 2007). In general, it was found there was at
least one immigrant key founder in 25.3 percent of high-tech companies established across the
U.S. It was estimated that observed pool of immigrant-founded companies generated more
than $52 billion in sales and created just under 450,000 jobs in 2005 (Wadhwa et al., 2007).
Presented data and diverse workforce collaborating with home-country counterparts have
measurable economic benefits. Saxenian (2002a, p. 30) claims: For every 1 percent increase
in the number of first-generation immigrants from a given country, for example, California's
exports to that country go up nearly 0.5 percent. U.S. economy has historically been
flourished from its openness and diversity. Based on todays global economy we could expect
that highly skilled and motivated immigrants and transnational entrepreneurs could even
substantially contribute to the U.S. economy in upcoming decades (Saxenian, 2002a; Kenney,
Breznitz, & Murphree, 2013).

1.4 Related concepts of the new Argonauts phenomenon

In scientific literature we can find a couple of similar expressions and concepts, which relate
to the phrase of the new Argonauts. These are returnee entrepreneur and transnational
entrepreneur.
Returnee entrepreneurs (in short returnee) are defined as skilled individuals who finished
their studies and/or work abroad, and returned to their native countries to re-settle or to set up
domestically owned, or self-started, venture (Kenney et al., 2013; Pruthi, 2014). Dai and Liu
(2009) added that returnees are scientists, engineers or students who were trained in OECD
countries before returning home to one of developing countries. Furthermore, returnees are
mainly oriented towards home-country markets, even though they have created good
foundations to act internationally, since established connections with host countries are strong
(Lin & Tao, 2012). Based on Dai and Liu (2009) returnee entrepreneurs differentiate from
local entrepreneurs in several important expects. Firstly, they possess certain skills, education
and knowledge (human capital), which were acquired when living abroad. And secondly,
during their stay they were able to develop international business ties and social relationships
through working, commercial environment, and by living in another country (social capital).
Nevertheless, these characteristics should be seen as important capital in favour of returnees.
Solimano (2007) sees returnees as ideal participants to collaborate with domestic
policymakers and businesses to recognize appropriate market niches, mobilize domestic skill
and knowledge, connect to international markets, and to co-create strategies to overcome
obstacles for countrys further development and growth.
In comparison to returnees, transnational (diaspora) entrepreneurs are immigrant business
owners who are engaged in border crossing business activities between home and host
country counterparts. They are more likely to cooperate with both home and host countries
depending on characteristics of their business and networks (Riddle, Hrivnak, & Nielsen,
2010; Lin & Tao, 2012). It is believed that transnational entrepreneurs are a distinct type of
international entrepreneurs as their entrepreneurial activities span national business
environments. It is common they are circularly migrating between two nations, which foster
to create very specific opportunities for diaspora entrepreneurs as they run their business. By
exploiting resources from various locations, they serve as agents of international business in
order to promote and facilitate bilateral trade and investment (Riddle et al., 2010).
Next to transnational entrepreneur the term diaspora entrepreneur is many times jointly used
in scientific literature, and therefore an important one to understand. A diaspora is often
described as a network of people and refers to any ethnic population forced or motivated to
leave their ethnic homelands. By being dispersed throughout other parts of the world diaspora
people are motivated to help its homeland, especially when the country is less developed
(Mahroum, Eldridge, & Daar, 2006; Kotabe, Riddle, Sonderegger, & Tube, 2013).
6

In order to understand immigrant economic adaptation and transnational linkages in better

way, Lin (2010) conceptualised a framework which distinguishes four contemporary modes
(Lin & Tao, 2012):

Ethnic economy;
Wage employment;
Returnee businesses;
Transnational entrepreneurship.
Figure 1: Immigrant economic adaptation and social embeddedness

Source: X. Lin & S. Tao, Transnational entrepreneurs: Characteristics, drivers, and success
factors, 2012, p. 52.

As we can observe and as it was already described above, transnational entrepreneurs are
internationally oriented and active between home and host country, while returnee
entrepreneurs are largely focused only on countries of their origin. In addition, ethnic
economy is described as a business that is either owned or controlled by co-ethnic owners
who are privileged to access a low-cost immigrant labour on a domestic consumer market. It
is common that immigrants maintain limited interactions with both host society and homecountry counterparts. In comparison to ethnic economy, wage employment refers to an
immigrants employment in a predominant business. By this mode, immigrants are oriented to
the host countries only and are completely assimilated. The practice is common in the
Western world, when countries who witness little population growth are consequently
oriented to attract high-skill immigrants to fill in various jobs (Lin & Tao, 2012).
7

To sum up, this chapter has offered a comprehensive review of immigrant modes and related
concepts to a phenomenon of new Argonauts. The author believes that the concept of
transnational (diaspora) entrepreneurs uniforms new Argonauts and represents a core concept
of this master thesis. As authors master thesis focuses to analyse linkages between Silicon
Valleys and Slovene entrepreneurial ecosystems, the scope of this research will refer solely
to new Argonauts, since the term originates from Silicon Valley and it was created by
professor AnnaLee Saxenian from University of California, Berkley.

1.5 The impact to the global economy

The important aspects which contributed to the evolution of new Argonauts are globalisation
and technological advancements, which have diminished geographical boundaries resulting in
increased immigrant entrepreneurship. Migrants in today's globalized world benefit from
developments in transportation and communication technologies in order to collaborate with
their home-country counterparts, which was not possible in the past. These advancements
have enabled the emergence of diaspora or ethnic population communities that directly link
their host country with their country of origin (Saxenian, Motoyama, & Quan, 2002;
Vertovec, 2002; Teferra, 2005; Riddle et al., 2010; Kotabe et al., 2013; Pruthi, 2014).
Nowadays, one of the most diversifying networks and communities is Silicon Valley, since it
is the largest and most sophisticated market, and a leading source of new technologies
(Saxenian, n.d.). Nevertheless, emerging technology regions like Hsinchu, Bangalore, and
Shanghai are quickly developing and represent extensions of Silicon Valley, as they are coevolving with the Silicon Valley economy (Saxenian, 2007). Couyoumdjian (2012) proposed
that in todays globalized world entrepreneurship should be seen as a mobile resource since
entrepreneurs have endless possibilities to consider where and how to run their
entrepreneurial activities, and which institutional environment is more favourable.
1.5.1 Benefits to the local economy
As mentioned, the beginnings of new Argonauts phenomenon go back to the period after
World War II, when the U.S. became extremely attractive to foreign students. When
Immigration Act, which removed national quotas came into practice in 1965, immigration of
skilled professionals became even more attractive and was further reinforced (Kenney et al.,
2013). As a consequence, there was a fast increase in the immigration of scientific and
engineering personnel from less-developed countries seeking a better and more stable future
(Azmat, 2010; Kenney et al., 2013). Furthermore, based on increased immigration an increase
in the number of immigrant entrepreneurs has been detected as well (Azmat, 2010). Although
the primary objectives of immigration were limited to labour supply and wage effects, the
implementation of Immigration Act had far more broader effects on global trade and economy
(Saxenian, 2000).
8

In recent years several researchers discovered that these immigrants have heavily contributed
to the development of new technologies in the U.S. economy and have had positive effect to
the local economy (Chellaraj, Maskus, & Mattoo, 2005). Some of the positive economic
benefits on the development of Silicon Valley and the U.S. were already presented in chapter
1.3. Anyway, the positive economic benefits were not just locally based, rather have crossed
national boundaries. For example, the U.S. businesses invested in Taiwan primarily to benefit
on its low-costs manufacturing labour and, furthermore, like Indian immigrants became key
contributors in linking the U.S. businesses to low-cost software expertise in India (Saxenian
2000; Saxenian, 2002b). These newly established transnational collaborations have had
positive effects on local economy as well as to the home-country counterparts of immigrants.
1.5.2 Benefits to the home-country counterparts
In the early 1980s, returning immigrants from Silicon Valley started to transfer information,
know-how, contacts, skills and capital back home. They were establishing new ventures or
helping national economies in building entrepreneurial ecosystem (Saxenian, 2007).
Dai and Liu (2009) consider international orientation of entrepreneurs as significant, and
positively related with companies performance. Education, working experience, international
networks, technological, and commercial knowledge from abroad are characteristics, which
enable new Argonauts to form new ventures on different managerial mindset in comparison to
local entrepreneurs. Broader and internationally gained experience contributes to international
vision and international orientation from the start. International orientation of new Argonauts
is based on their companys overall innovativeness and pro-activeness in the search for
domestic and international markets. In addition, new approaches from abroad bring fresh
breeze to domestic economy and entrepreneurs play an important role in transferring business
practices to the local economy (Dai & Liu, 2009).
Another benefit, claimed by researches, is that new Argonauts have a significant advisory
influence on the political system. They may help with transmission of well-established and
foreign policy practices in building new entrepreneurial ecosystem back home. For example
the new Argonauts played a crucial role in strengthening Israeli and Taiwanese economy after
local industries experienced initial success. They were part of the initiative, which improved
the local environment and offered resources and opportunities to attract broader number of
returnees back home. It is important to emphasise that majority of professionals returned
home only after the economy had already achieved international success and did not take a
part of its initial development. Anyway, people who returned home played a significant role
on domestic and international success of their countries and have changed national economies
to the great extent (Kenney et al., 2013). The result is seen in generation of new jobs,
increased income, internationalisation of domestic companies, and increase in foreign
investments (Kotabe et al., 2013).
9

One of the most notable benefits for home-country counterparts was also a formation of
venture capital investments enhanced by stronger cross-national social ties. In addition to
operational experience, knowledge of new business models and new businesses creation, new
Argonauts have also transferred the Silicon Valley model of venture capital industry to their
domestic countries. Today Israel and Taiwan represent the largest venture capital industries
outside North America (Saxenian, 2007). New Argonauts are often motivated to invest into
home-grown companies to contribute to the economic development and to provide domestic
communities opportunity for a new venture creation (Riddle et al., 2010). They invest through
direct and portfolio investments or by establishing new ventures (Kotabe et al., 2013).
Moreover, older generation of new Argonauts play an active role in financing and mentoring
younger generations of domestic entrepreneurs. They act as angel investors, invest
individually or jointly and are more accessible to co-ethnic entrepreneurs than foreign venture
capital (Saxenian, 2002b).

1.6 New Argonauts common characteristics

Up to this point the author has done a broad review of relevant literature to cover the
phenomenon of new Argonauts. Nevertheless, it would be beneficial to form a comprehensive
illustration of new Argonauts common characteristics in order to make a good foundation for
further elaboration of this paper.
Based on Chinese immigrants in Canada Lin and Tao (2012, p. 65) found a typical new
Argonaut is a men who is at least 45 years old and is married with one child, has completed a
Masters or higher education programme, and does not have a full-time job. However, if we
incorporate findings up to this point we could specify the following characteristics of new
Argonauts:

they participate and work in cross-national environment (Riddle et al., 2010; Lin & Tao,
2012);
are members of transnational communities and agents of international business (Saxenian,
2002a ; Riddle et al., 2010);
transfer information, know-how, contacts, skills and capital between two economic
environments (Saxenian, 2002a; Saxenian, 2006);
are professionals and entrepreneurs who are involved in collaboration with foreign and
home-country counterparts (Saxenian, 2006; Riddle et al., 2010; Lin & Tao, 2012);
are motivated to build a two-way bridge in order to boost further entrepreneurial
development of their country of origin (Saxenian, 2006; Saxenian & Sabel, 2008);
are foreign-born immigrants who return home or at some point start to collaborate with
their home-country counterparts (Dai & Liu, 2009; Kenney et al., 2013);
are able to identify promising market opportunities (Saxenian, 2006);

10

are well educated individuals who have completed one of the higher education
programmes (Lin & Tao, 2012).

In todays global economy new Argonauts also serve as role models to younger generation of
entrepreneurs and heavily contribute to the creation of the new era ventures (Saxenian, 2007).
It is important to understand that improvements of informational systems, advances in
transportation and communication technologies enabled collaboration and efficient transfer of
technical and institutional knowledge between foreign and home-country counterparts
(Saxenian, 2002b; Saxenian et al., 2002; Riddle et al., 2010; Kotabe et al., 2013; Pruthi, 2014).
And based on past technological improvements prerequisite for new Argonauts creation was
established and slowly started to show an impact to the global economy.

1.7 New Argonauts and Slovenia

Taking into consideration our findings we can quickly observe that New Argonauts can be
found in almost every economy around the world. If a breakthrough of phenomenon was
made in early 1980s, the author believes that Slovene new Argonauts have had a broader
impact on Slovene entrepreneurial ecosystem for the past 10 years. For the purpose of this
research the author will focus solely on Slovene new Argonauts connected to Silicon Valley
or the U.S. entrepreneurial ecosystems.
The author recognised 3 distinctive groups of Slovene new Argonauts based on working
environment and strength of collaboration:

Immigrated new Argonauts;

Foreign-based new Argonauts;
Home-based new Argonauts.

Immigrated new Argonauts are Slovene professionals or entrepreneurs who live and work in
Silicon Valley, or the U.S., but their connections with the country of origin are diminished.
They have established strong connection with the host country and their work is mainly
focused on their local environment. Based on its characteristics they are the closest to the
mode of wage employment mentioned before, whereas immigrants are oriented to the host
countries. They have founded or co-founded startups, work for one of the local enterprises,
usually multinational one, or are researchers and teachers at universities. Representatives of
this group are e.g. Layer, Inc., Azumio, Inc. founded by Bojan Bostjancic and Peter Kuhar, dr.
Jernej Barbic (University of Southern California), and others. Their interactions with homecountry counterparts are for now, only occasional.
Similar to Immigrated new Argonauts Foreign-based new Argonauts also live and work in
Silicon Valley, or the U.S., but in comparison to the first group they are actively dispersed
between two environments foreign country and country of origin. They travel back and
11

forth between two environments and closely collaborate with home-country counterparts;
therefore, we could relate them to the mode of transnational entrepreneurs. They are
transmitting business experience, know-how, skills and connections back to Slovenia.
Representatives of this group are e.g. Celtra Inc., Iddiction Inc., Zepppelin Inc. with branches
in the U.S. and Slovenia, dr. Jure Leskovec (Stanford University), Niko Klanjsek (Fly Kly,
Inc.), Jugoslav Petkovic (entrepreneur and angel investor), and others.
Like Foreign-based new Argonauts Home-based new Argonauts are also actively dispersed
between two environments - country of origin and foreign country and mainly possess
characteristics of transnational entrepreneurs. However, Home-based new Argonauts are
Slovene entrepreneurs and professionals who worked or studied abroad for a certain period of
time, but have returned home. By that they have brought business experience, know-how,
skills and connections back to Slovenia. However, they still work in close collaboration with
foreign environment or have branches in Slovenia and in the U.S. Representatives of this
group are e.g. Zemanta Inc., Toshl Inc., Hekovnik Startup School, Marko Jaklic (University
of Ljubljana) and others.
Slovene entrepreneurs and supportive environment believe there should be a strong two-way
bridge between Slovene ecosystem and Silicon Valley, which would enable Slovene
entrepreneurs a strong connection with the most advanced and technological environment,
and would open new opportunities for Slovene startups and professionals. In 2012 five
startups have partnered up to establish a Slovene house in San Francisco for a testing period
of 6 months. It was opened between September 2012 and March 2013 (Ivanc, 2012; Kordis,
2012; Borstnik, 2013). The initiative served as a meeting point for entrepreneurs, startups,
Slovene companies with partners based in Silicon Valley, researchers, professors and
students, who had an opportunity to live, meet, socialize and work in the house
(BoundBreaker, n.d.). As planned by the initiators, the project offered many new
opportunities to participants and was well accepted by the community. Based on the project
learnings, partners are already thinking to establish a permanent system for future
collaboration with the environment (Interviewee 3).
Since 2014 Slovene new Argonauts have been part of another initiative, which is very
important for development of Slovene entrepreneurial ecosystem. They are part of a group of
Slovene and the U.S. entrepreneurs, who launched Silicon Gardens Fund, which is one of its
kind collaboration between Slovene and the U.S. investors. The goal of this micro fund is to
invest in early stage technology startups coming from Slovenia and broader region, which
have a high growth potential and need to explore international markets to validate their ideas
and to prepare them for further rounds of funding. The fund focuses on providing experience,
coaching (a mentor is assigned to every startup) and to offer business connections to
entrepreneurs. In the first year the fund is prepared to invest 20,000 to 40,000 in 5 to 10
startups for 5 - 15% of equity share (Silicon Gardens - Silicon Gardens Fund, 2014).
12

Additionally, in 2014 the Slovene new Argonauts established the American Slovenian
Education Foundation ASEF to enable continued exchange between the U.S and Slovenia.
The foundation aims to enhance research, innovation and entrepreneurship in both countries,
and to provide the U.S. businesses opportunities, to invest and expand their presence in
Slovenia and other CEE countries. It offers grants and endowment programs to support highly
talented and prospective students, in order to form a community of educators and leaders
(ASEF - About, 2014; ASEF - Goals, 2014). In 2014, the foundation has already awarded 3
scholarship winners and research fellows (ASEF - Board, 2014).
There are some other initiatives, which connect Slovene entrepreneurial environment with
Silicon Valley like BoundBreaker Business Club, Coinvest, and an established collaboration
between Slovene entrepreneurial representatives and Skydeck the Berkeley University
startup accelerator. Both, BoundBreaker, which operates in Silicon Valley, and Skydeck aim
to help entrepreneurs from Slovenia to bridge the gap and to start operating in Silicon Valley
(BoundBreaker - BoundBreaker Business Club, 2014; Startaj.si, 2014). The first two
generations of BoundBreaker secured an investment up to $3.8 million, on average $425,000
per startup. Every startup enrolled in BoundBreaker programme becomes a member of alumni
club and is encouraged to share their business experience and know-how with younger startup
teams (BoundBreaker - BoundBreaker Business Club, 2014). Furthermore, Coinvest is a hightech investment conference bringing investors from Europe and the U.S. together in order to
offer SEE startups an opportunity to explore ways to foster growth and development (Cobik Coinvest, 2014).

2 BRAIN CIRCULATION
2.1 Evolution of brain circulation
The AnnaLee Saxenian theory of new Argonauts is closely related to the theory of brain
circulation, which has developed from increased migration flows of skilled labour in the last
20 years (World Bank and IZA, 2005; Schmitt & Soubeyran, 2006), and is a modern
phenomenon of a former more renewed theories such as brain drain, brain gain and brain
strain.
Authors described brain drain as a negative impact on the source countrys prosperity and
when skilled, qualified and competence people leave their countries and emigrate (Baruch,
Budhwar, & Khatri, 2007; Pieretti & Zou, 2009; Zhatkanbaevaa, Zhatkanbaevab, &
Zhatkanbaev, 2012). However, the impact of migration is not always negative for the country
of origin, if seen from another perspective. Since the 1990s a new way of thinking suggested
that for developing countries brain drain was actually a positive phenomenon. The new
perspective called brain gain raised attention and argued that when former emigrants
returned home they transferred knowledge, practices and their international network back to
their home countries (Kenney et al., 2013). Dunnewijk (2008) proposed that migration can be
13

either positive or negative for the countries of origin and saw a concept of brain strain as a
road in the middle, as both, destination or country of origin, may profit from migration of
highly skilled people. Furthermore, Dunnewijk (2008) sees brain circulation as a synthesis
of highly skilled people migrating in circular process, in which everyone might be better off.
As migration and mobility of highly skilled people across countries boundaries have grown,
the concept of brain circulation was a result of its development and consequently surpassed
concepts of brain drain and brain gain (Tung, 2008; Zweig, Fung, & Han, 2008; Daugeliene
& Marcinkeviciene, 2009). However, the concept of brain circulation stands only if seen as
circular process and if host and home countries both benefit from the mobility in equitable
and comparable mode (Teferra, 2005). Therefore, brain circulation is a two-way process, in
contrast to one-way brain drain or brain gain, of skilled workers between home and host
countries (Daugeliene & Marcinkeviciene, 2009). Daugeliene and Marcinkeviciene (2009, p.
52) describe brain circulation as: The movement of highly skilled persons between different
countries, institutions, with the main purpose to create, share, spread the knowledge and thus
stimulate nations knowledge-based economies development.
Nowadays, brain circulation is an emerging global phenomenon, which arose from the global
mobility, ethnic diaspora and international competitiveness, and affects the socio-economic
and socio-cultural progress of a society and the global economy (Teferra, 2005; Tung, 2008).
Today immigrants, especially entrepreneurial driven ones, are transferring technical and
institutional know-how between countries economies faster and more flexible than most
multinational corporations (Solimano, 2007). By that they foster creation of new knowledge
and countries competitiveness, and stimulate worlds economy development and growth
(Daugeliene & Marcinkeviciene, 2009).
At this point it is important to stress that brain circulation has developed and become possible,
because of several fundamental advancements (Tung, 2008). Firstly, globalization has
lowered immigration and emigration barriers for the movement of people (Tung, 2008), and
secondly a major and fast developments in information and communication technologies
(Teferra, 2005).
Additionally, Daugeliene and Marcinkeviciene (2009) identified four factors that stimulate
brain circulation in todays globalised world:

globalization;
boundaryless career;
no movement barriers;
dual citizenship.

14

Figure 2: The model of factors which stimulate brain circulation

Source: R. Daugeliene & R. Marcinkeviciene, Brain Circulation: Theoretical Considerations, 2009, p.

51.

Although brain circulation is more or less a novel phenomenon, a new phenomenon, based on
the latest technological advancements, already started to evolve. Teferra (2005) argued that
mobilization of talent and skills across borders and time zones without physical movement
started to show some traction. He named a phenomenon Virtual Intellectual Diaspora
meaning that people migrate at a speed of light intersecting multiple boundaries in a virtual
space. Interestingly, it has been developing beyond influence of national governments and
institutional managers (Teferra, 2005). Anyway, the rise of phenomenon should be seen as a
sub-concept of brain circulation evolution.
The author believes that countries should recognise an importance of brain circulation as it
will soon become, if not already is, one of the key factors for countries development and
competitiveness in the global economy. By pursuing brain circulation initiatives countries
could benefit from technology transfer, cross-cultural learning, entrepreneurship, financial
aids for startups, etc. (Daugeliene & Marcinkeviciene, 2009).

15

2.2 Social networks and cross-regional collaborations

In scientific literature related to brain circulation we could notice that researches put a strong
emphasis to social networks and ties (Saxenian, 2002c; Vertovec, 2002; Dai & Liu, 2009;
Pruthi, 2014).
Boyd (1989) argued that social networks connect migrants across time and space. Once
networks between migrants in host country and friends or relatives in domestic country are
established, networks of information become self-sustaining and ensure that movements are
constantly emerging (Vertovec, 2002). In todays globalized world, volatile and fast-changing
economies social networks based on personal connections are far more flexible and
responsive than multinational corporations, and impact at least two economies at a time
(Saxenian, 2002c). Local markets can become linked through specific social networks of
personal and business ties surrounding migrants (Vertovec, 2002), and on the other hand
social networks provide a developing country with connections to the worlds leading
technology corporations (Saxenian, 2002c). Additionally, Zweig et al. (2005) perceive
entrepreneurs who return home as a capital of transnational network resulted from overseas
links, foreign education or work and as a resource which can enhance firms business
performance (Dai & Liu, 2009). Vehovec (2002) believed high skilled groups of immigrants
rely more on networks of colleagues or organizations and less on kin-based networks than
unskilled workers. Furthermore, Dai and Liu (2009) also discovered that complementary
effect between knowledge and social networks exist.
Development of social networks and ties should be seen as a form of brain circulation, where
talent goes abroad, but information circulates back to domestic country. It is important to note
that cross-regional networks develop only when skilled immigrants are both willing and able
to return to their home countries or are motivated to participate in the economic and scientific
development at home (Saxenian, n.d.; Solimano, 2007; Daugeliene & Marcinkeviciene,
2009). Political stability, economic openness, a certain level of economic development and as
well as high level of technical education are prerequisites, which need to be fulfilled for crossregional networks development (Saxenian, n.d.; Solimano, 2007). A critical variable are
political leaders, who need to be prepared to collaborate with new Argonauts to develop a
shared vision and remove institutional and political obstacles for entrepreneurship-led growth
(Solimano, 2007).
Up to date, brain circulation initiatives were beneficiary for countries that have tremendously
invested in higher education, most commonly in technical education, and were politically and
economically stable enough that immigrants considered to start cooperating or returning
home. Again, it is crucial to emphasise that immigrants from Silicon Valley diaspora have not
built business and professional ties for political reasons only. For instance, most of Silicon
Valley's Iranian and Vietnamese immigrants are political refugees and are not motivated to
return or to cooperate with native countries as long as countries lack the economic stability
16

needed for technology investment or entrepreneurship (Solimano, 2007). Similarly, Russia,

some parts of Eastern Europe and Latin America also suffer from lack of political or
economic stability (Saxenian, n.d.). Countries should consider that brain circulation is
possible only, if capabilities of immigrants are valued in their home native environment as
well. Only like that, countries could benefit from brain circulation and new Argonauts
advantage (Sternberg & Mller, 2007).

2.3 Best practices of brain circulation in the case of new Argonauts

Countries like China, India and Taiwan represent good examples of brain circulation in the
case of new Argonauts. These countries have created and implemented successful policies,
and initiatives, which helped to pull their scientists, researchers, workers and entrepreneurs
back to their motherlands (Daugeliene & Marcinkeviciene, 2009).
In the case of Taiwan Silicon Valley's diaspora engineers have built a vibrant two-way bridge
connecting the U.S. businesses with Taiwanese technology community (Teferra, 2005).
Additionally, the U.S. businesses played significant role as well, as they invested in Taiwan to
take advantage of its low-wage manufacturing labour (Saxenian, 2002c; Saxenian, 2006).
One of the best practices emerged when in the early 1980s domestic policymakers organized
collaborations with large financial institutions from the U.S. to facilitate the transfer of
relevant financial and managerial expertise, and start a venture capital industry. Furthermore,
Taiwan also sent business professionals to the U.S. to be qualified in managing a venture
capital business and put into practice a series of initiatives to encourage domestic firms to
enter the industry (Solimano, 2007).
In the case of India, Indian diaspora has contributed to the emergence of a globally
competitive software industry and has become key middlemen linking U.S. businesses to its
low-cost software expertise in India (Saxenian, 2002c; Teferra, 2005). Among the first to
outsource software services to India were senior Indian engineers in the large U.S.
corporations who consequently contributed to Bangalores reputation as the Silicon Valley
of India (Saxenian, 2002c; Tung, 2008). Besides Bangalore, city of Hyderabad developed to
great extent. Both cities have made significant investments in improving their digital
infrastructure, developing technology parks and business districts on the city outskirts, to
follow the demand of developing transnational industries and its workforce (Daugeliene &
Marcinkeviciene, 2009). In comparison to Taiwanese, fewer of highly skilled Indians have
returned home. As mentioned, today most of them play a role of middleman linking the U.S.
firms with India's software industry (Saxenian, 2002c).
In the case of China, Chinas government worried about the brain drain for many years.
Starting with year 1992, China began to encourage students who studied abroad to return for
short visits and engage them in various programmes at home. Furthermore, in 2001 was time
17

for a new approach. The government adopted a new policy and started to motivate emigrants
to contribute to Chinas modernisation, even if they stayed abroad. Chinese government
realized that brain circulation strategies and policies could benefit the country in order to
overcome the loss of talented people (Zweig et al., 2008; Daugeliene & Marcinkeviciene,
2009).
Daugeliene and Marcinkeviciene (2009) summarised the major policies of Chinas
government in order to attract highly skilled immigrant workers. Their paper was based on
Zweigs, Fungs and Hans (2008) work Redefining the Brain Drain: Chinas Diaspora
Option, which highlighted Chinas policy actions between 1988 and 2007. The presented
actions should be seen as a case of practices, which should be considered when preparing a
national brain circulation plan. The main actions of Chinas government policy, while trying
to attract highly skilled immigrant workers, were (Daugeliene & Marcinkeviciene, 2009, p.
53):

creation of postdoctoral centres in order to attract overseas PhDs to return for

postdoctoral positions on the mainland;
implementation of new regulations on incubators in hi-tech zones for overseas
returnees;
formation of research funds funding returnees;
establishment of world-class universities;
formation of job introduction centres; preferential policies giving for returnees
especially better living and working conditions;
application of beneficial legislation system for a researcher;
creation of good domestic conditions for returnees;
implementation of programme Serve the nation without returning to the nation a
policy to encourage Chinese who remain abroad to engage in seven types of activities
that can help China;
establishment of regulations that simplify entry and exit for highly talented mainlanders
and investors holding overseas citizenship;
creation of technology parks for overseas returnees.

Chinass, Indias and Taiwans best practice examples in brain circulation policies were
presented in this chapter. Analysed countries applied number of actions to stimulate brain
circulation, beginning with cross-regional collaborations to start a venture capital industry,
establishment of technology parks and improvements in digital infrastructure, and ending with
the creation of beneficial legislation to attract highly skilled immigrants to return to their
home native environment. It could be observed that two components are critical in brain
circulation development: existence of motivated immigrant diaspora, and a mixture of
positive economic development and political system oriented towards brain circulation.

18

3 ENTREPRENEURIAL ECOSYSTEM
In this chapter the author presents a concept of entrepreneurial ecosystem, understanding of
which will contribute to the elaboration of empirical research and the key findings in
subsequent chapters.

3.1 Definition of the ecosystem

The term ecosystem originates from ecology, where the term is most commonly applied to
the natural habitats of animals. It refers to a complex community of organisms and their
environment interacting as a unit (Valdez, n.d.; Vogel, 2013). In entrepreneurship
environmental factors gained attention in the later part of the last century (Suresh & Ramraj,
2012). Prahalad (2005) defined entrepreneurial ecosystem as an environment which enables
individuals, companies and society to interact in order to generate economic wealth and
prosperity (Suresh & Ramraj, 2012). Maybe the most up to date description of entrepreneurial
ecosystem was provided by Vogel (2013, p. 6), who defined the entrepreneurial ecosystem
as an interactive community within a geographic region, composed of varied and interdependent actors (e.g. entrepreneurs, institutions and organizations) and factors (e.g.
markets, regulatory framework, support setting, entrepreneurial culture), which evolves over
time and whose actors and factors coexist and interact to promote new venture creation.
In scientific literature many different factors, which comprise entrepreneurial ecosystem are
presented. Anyway, while some factors emerge frequently, others are rarely mentioned by
researchers. The factors, which are observed on most occasions and the author would like to
point out, are (Cohen, 2005; Isenberg, 2010; Suresh & Ramraj, 2012; GEM, 2013):

financial support;
general government support and regulations;
infrastructure and technology support;
entrepreneurship education;
entrepreneurial culture;
informal networks;
formal networks;
talent pool.

In his research Vogel (2013) presented a comprehensive model of an entrepreneurial

ecosystem, which is divided in three overarching categories (non-entrepreneurial factors,
entrepreneurial factors, entrepreneurs) and composed of multitude components, which are
believed to strongly influence entrepreneurial activities in a specific ecosystem (Figure 3).

19

Figure 3: Entrepreneurial Ecosystem Framework

Source: P. Vogel, The Employment Outlook for Youth: Building Entrepreneurial Ecosystems as a Way
Forward, 2013, p. 7.

If competition and cooperation between these entrepreneurial ecosystem factors exist, these
factors will have a strong and positive effect on venture creation. The cooperation results in
higher productivity of companies based on their increased access to inputs, information,
technology and institutions. Additionally, the factors stimulate the entry of new companies or
startups (Suresh & Ramraj, 2012). An entrepreneurial ecosystem should also contain
supportive resources in order to establish continues entrepreneurial development (Zacharakis,
Shepherd, & Coombs, 2003). Many researches argue that entrepreneurship is the driving force
for economic progress in stable economies, but Suresh and Ramraj (2012) emphasise that
entrepreneurial ecosystems can even act as the prime mover when it comes to rescuing
economies that have faced a sharp decline.

20

We cannot pass the importance of entrepreneurial ecosystem measurement and assessment. It

is crucial to measure the effectiveness of the ecosystem as a whole and its components in
order to improve existing policies and programs, and put in place new and complementary
ones (Vogel, 2013). Each entrepreneurial ecosystem should be considered as unique unit since
the components combining an ecosystem are quite diverse around the world and cannot be
controlled spontaneously. It is important to understand regional strengths and weaknesses for
the purpose of effective entrepreneurial ecosystem creation (Vogel, 2013).
Based on extended literature review the author believes that institutional and supportive
environments, which could be assigned to non-entrepreneurial and entrepreneurial factors
(Figure 3), respectively, are the key ingredients for successful establishment of new
Argonauts phenomenon and brain circulation practices. Therefore, the author in continuation
focuses its investigation to institutional and supportive environments of the Silicon Valleys
and Slovene entrepreneurial ecosystems.

3.2 Silicon Valleys entrepreneurial ecosystem

Silicon Valley is located on the San Francisco peninsula and is a part of the San Francisco
Bay Area (Wonglimpiyarat, 2006). The name itself got recognition in the early 1970s (Zhang,
2003), and since then Silicon Valley has become the worlds leading incubator for high-tech
firms (Adams, 2011) and a role model of successful entrepreneurial habitat for many
economies (Suzuki, Kim, & Bae, 2002). The crucial development of Silicon Valley started
after World War II (Felsenstein, 2003; Wonglimpiyarat, 2006), when military funding
represented one of the key elements for its high-tech transformation (English-Lueck, 2000;
Ibrahim, 2008). It is highly questionable if Silicon Valley would exist in its present form,
without extensive defence support and spending (Ibrahim, 2008). Furthermore, many authors
argue that an establishment of Stanford University has played a major role in the development
of this area (Dobkins, 1997; Moore & Davis, 2001; Wonglimpiyarat, 2006; Adams, 2011), as
the university combined their supporting resources with key high-tech industries such as
electronics, semiconductors, computers, and aerospace (Moore & Davis, 2001; Adams, 2011).
The transformation of Silicon Valley's economy throughout the history is at result of effective
use of university resources, especially strong university research base, dense industrial
networks, knowledge intensity, entrepreneurial-driven corporate culture, high-quality labour,
venture capital markets and supportive government (Felsenstein, 2003; Wonglimpiyarat,
2006). Network of institutions, entrepreneurial spirit and constant supply of venture capital
encouraged experimentation and a new firm formation (Feldman, 2001; Wonglimpiyarat,
2006), which have resulted in creation of some largest technology companies in the world
(Zhang, 2003).

21

3.2.1 The supportive environment

It is somehow obvious that the basis of strong supportive environment should be established
at the very beginning. In the case of Silicon Valley Stanford University and University of
California, Berkeley have a powerful effect on production of highly-skilled entrepreneurs,
who stay in close touch with the universities and share their business experience onward with
future generations of entrepreneurs. Intimate collaboration between academic institutions and
industry matters; therefore, Stanford Research Park, where many of the startups are housed, is
an integral part of such collaboration and results in knowledge spillover running in both
directions (Ibrahim, 2008).
Since the 1980s, a new form of support has emerged in terms of business incubators.
Primarily, free office space and business support was offered to high-tech companies with the
potential of rapid growth. Through evolution many of them have transformed into business
accelerators, still providing free office spaces, but are now accompanied with capital
investments up to $100,000 in order to boost initial phase of startup development. Today the
most renewed ones consist of Y Combinatory, 500 Startups and Plug and Play business
accelerator (Fidelman, 2014).
Quick and easy access to the venture capital and strong financial support is one of the critical
pieces in the Silicon Valleys ecosystem (Zhang, 2003; Ibrahim, 2008; Hwang & Horowitt,
2012). The venture capital industry has grown in close association with the high-tech
industries. Angel investors, and since the late 1960s also venture capitalists, have been
involved in every major successful company (Zhang, 2003; Ibrahim, 2008). On average, it
takes 11.6 months for Silicon Valleys startups to finalise their first round of venture finance,
which is five months faster than the national average (Zhang, 2003). The environment is
favourable as venture capitalists are heavily concentrated in high-tech regions like Silicon
Valley. Data for the ten-year period (1997-2006) show that as high as 42.6 percent of all
venture capital was located in California (Ibrahim, 2008). Strong financial support played a
vital role in creation phenomenal economic growth in this part of the world (Wonglimpiyarat,
2006). Close look into data reveals that other regions are home to talented entrepreneurs who
often move to Silicon Valley to be close to financing sources. The reason lies in poor
financing of local environment; therefore, these regions must establish mechanisms and
funds, which would prevent entrepreneurial relocation (Ibrahim, 2008).
Furthermore, the cultural impact of the entrepreneurial ecosystem cannot be ignored (Suresh
& Ramraj, 2012). For Silicon Valley an open and sharing entrepreneurial culture, even among
high-tech competitors, is a typical virtue (Ibrahim, 2008). In such manner entrepreneurship
developed from bottom up, and in addition cultural characteristics influenced a rise of
entrepreneurial potential (Lee & Peterson, 2000). Lee and Peterson (2000) believe that a
national culture, which supports and encourages entrepreneurial activity, is needed, and that
development of an entrepreneurial culture should be among the primary objectives for the
22

emergence and success of entrepreneurial ventures like it is in the case of Silicon Valley
(Samli, 2009).
Silicon Valleys entrepreneurial culture, access to capital and supporting institutions are a
magnet for other engineers and aspiring entrepreneurs (Zacharakis et al., 2003). As indicated
in the previous chapters, as high as 35 percent of the Silicon Valley labour force was foreignborn in 2000, and aspiring immigrant entrepreneurs move to Silicon Valley from all over the
world (Felsenstein, 2003). Consequently, this combines into creation of a dynamic ecosystem
that continues to support innovation (Zacharakis et al., 2003). Based on established trust and
performance Silicon Valley enables newcomers to enter the ecosystem easily, as long as they
deliver on their promises (Inkpen, 2002). Therefore, the degree of labour mobility is high and
allows experiencing repeated bursts of innovation over time (Ibrahim, 2008).
3.2.2 The institutional environment
In the early years of Silicon Valley state and local governments played only a minor role and
were not actively involved in the region. In contrast, Silicon Valleys development was driven
by industry and university networks (Zhang, 2003). Anyhow, at the later stage US federal and
state governments have formulated policies to fund the university research and support private
sector investment continuously by building incubators and technology parks in order to create
knowledge, intellectual and technology connections (Wonglimpiyarat, 2006).
In the early years governments largest effect on Silicon Valleys ecosystem was probably the
purchase of defence products during the Cold War era (Zhang, 2003). Between 1958 and
1974 the defence contracts for semiconductors were worth a total of $40 billion; therefore, an
influence of government in seeding the region should not be denied. Furthermore, the internet
fundamentally started as a government and defence project (Felsenstein, 2003). In order to
facilitate the commercialisation of early-stage technology the government presented the BayhDole Act of 1980 and the Federal Technology Transfer Act of 1986, as well as policy
initiatives to fill the gaps in venture capital financing. Additionally, the government
established the mechanisms to promote the venture capital industry and entrepreneurial
innovation through tax policy, for example by lowering tax rates on capital gains
(Wonglimpiyarat, 2006).
A lesson, which could be learnt at this point, is that the government did not play an investor
role; rather its role was a complementary to the private sector funds by establishing the right
programmes and providing the right incentives presented earlier. Anyway, the availability of
financial resources is crucial in order to boost entrepreneurial growth and establishment of
new businesses (Wonglimpiyarat, 2006).
Another strong advantage of Silicon Valley lies in a unique support institutions, including law
firms, investment banks, marketing consultants, executive search firms, and intellectual
23

property liquidators (Inkpen, 2002; Ibrahim, 2008). Although these institutions can be found
elsewhere, their operation in Silicon Valley is unique as they are part of the entrepreneurial
ecosystem and have specialised for the development of high-tech firms (Ibrahim, 2008). For
example, law firms and lawyers have had a significant impact on the entrepreneurial
ecosystem, as their role is multifaceted and much deeper than simply providing legal advice
(Inkpen, 2002). However, when institutions are involved in supportive environment they
promote decentralized process of mutual learning and trust, and foster the innovation and
economic growth (Saxenian, 1994).
State government and federal authorities also played an important role in attracting talented
and skilled individuals to the region. In 1965 the Immigration Act that removed national
quotas came into practice and enabled an inflow of human capital (Kenney et al., 2013). Local
universities and high-tech industries kept their doors opened and, as it has proven throughout
the Silicon Valleys history, these talented and highly-skilled immigrants embody the major
source of regions innovation (Zhang, 2003).
In the case of Silicon Valley the state government has encouraged creation of firms and their
funding by enabling labour mobility, offering favourable tax breaks, opening industrial parks,
building high-tech incubators, and providing seed capital for commercialization of research
(Zhang, 2003). While the government has helped to foster a favourable business environment,
the companies and industries have mainly performed business functions, boosted innovation
and economic growth (Wonglimpiyarat, 2006). The result is clear; Silicon Valley has become
the worlds most famous high-tech industrial cluster (Mann & Luo, 2010).

3.3 Slovene entrepreneurial ecosystem

Before 1980, entrepreneurship in Slovenia was not considered as an important factor for
economic and social development (Dimovski & Znidarsic, 2004). It was not before early
1990s, when some policy measures and changes in Slovene legislation opened doors to
entrepreneurship and free market economy (Bernard, 2006; Voert, 2010). Slovenia has a
diverse history and before its independence in 1991, Slovenia was a part Austro-Hungarian
Empire (1867-1918) and Yugoslavia (1918-1991). These transition and changes in the
governmental and economic systems also influenced its economy and entrepreneurship in
particular. At that time, entrepreneurship was mainly based on craftsmanship and handcraft,
and before the Second World War almost two thirds of Slovene population was still employed
in agriculture (Bernard, 2006). In addition, in 1945 a centrally planned economy was
established, and fifty years of socialism and collectivism have not created a typical
entrepreneurial environment and culture (Dimovski & Znidarsic, 2004; Bernard, 2006). If we
compare it to the United States, where entrepreneurial liberal culture was introduced after the
American Civil War (1861-1865), Slovene entrepreneurial ecosystem lost almost a century of
its development (Bernard, 2006).
24

In general, entrepreneurship has a negative connotation in Slovenia, as the mindset is still

strongly connected with the previous system, collectivistic culture and economic transition.
Majority of Slovene population still does not see a real value in entrepreneurial activities and
initiatives, which are often put aside on the governments agendas (Erbeznik, 2010). Arising
from the previous system, the psychological profile of Slovenian entrepreneurs is closer to the
profile of employees than to dynamic entrepreneurs, which are more common in western
cultures (Dimovski & Znidarsic, 2004).
According to the Global Entrepreneurship Monitor (GEM) research, only 6.5% of Slovene
adult population was included in early-stage entrepreneurial activities, which rank us below
the average among other developed and innovation-driven economies (Rebernik & Jaklic,
2014). Dimovski and Znidarsic (2004) argue that high-tech development and fast growing
economy can be achieved by educating potential young entrepreneurs, where we still lag
behind. However, the last data showed some traction of the Slovene entrepreneurial
ecosystem, as it was found that in 2013 there were 147 startups, which employed 1,400
people and growing, and that since 2007 Slovene startups have gathered at least $53 million
of capital investments (Silicon Gardens - Ecosystem 2013, 2014; Rebernik & Jaklic, 2014).
3.3.1 The supportive environment
In the last 5 years the Slovene supportive environment has seen a strong development. Basic
infrastructure, namely university and regional incubators, and technology parks were
established, as well as mentorship programmes and support services. These entities present an
excellent foundation for promotion of entrepreneurship and will enable future growth of
Slovene entrepreneurial ecosystem (Start: up Slovenia, n.d; Institut za raziskovanje
podjetnistva, 2011).
In 2012 the main actors of Slovene supportive environment (technology parks, incubators,
region development centres, etc.) have connected into initiative called Start:up Slovenia, with
Technology park Ljubljana and Tovarna podjemov as leaders of this initiative. In the last two
years the initiative has organised more than 400 events, with more than 13,000 entrepreneurs,
and helped around 800 startups develop their business idea or helped them with their further
global expansion (Start:up Slovenija, 2014). The initiative most renewed projects are PODIM,
a two-day entrepreneurial conference, Start:up of the year, national competition for the best
startup in Slovenia, and SGH and Go:Global accelerators (Start:up Slovenija, n.d.).
The SGH and Go:Global started as programmes, which just recently transformed to business
accelerators, and, in cooperation with the Slovene Enterprise Fund, are offering 50,000 and
200,000 of investment capital, respectively (Pavlin, 2014; Racunalniske novice - 2,4 mio
za financiranje slovenskih start-upov, 2014). SGH accelerator focuses on startups, which are
in search of a product-market fit, and offers working space accompanied with entrepreneurial
mentors and consultants (Geek House - 50.000 EUR convertible funds, 2014). Similarly,
25

Go:Global accelerator offers the same services, however, it focuses on startups with
opportunities for global expansion and growth (Go:Global - Vsebina pospesevalnika, 2014).
Until now the main weakness of Slovene entrepreneurial ecosystem was seen in poor
investments in innovation and startup companies (GEM Slovenija 2012, 2013; Rebernik &
Jaklic, 2014), but in 2014 we came to a turnaround. The Slovene Enterprise Fund is
establishing new initiatives and is allocating more and more funds to Slovene startup
companies (Pavlin, 2014; Racunalniske novice - 2,4 mio za financiranje slovenskih startupov, 2014). In addition, Silicon Gardens Fund was established in 2014, and its goal is to
invest between 20,000 and 40,000 in 5 to 10 early-stage technology startups from Slovenia
and broader region (Silicon Gardens - Silicon Gardens Fund, 2014). Several other initiatives
have been active for a number of years, namely P2 subsidy funds for innovative companies
(in domain of Slovene Enterprise Fund), 4 venture capital funds and three business angels
(Initiative Start:up Slovenia - Kapital, 2014)
Based on the map of Slovene startup ecosystem, more than 100 other programmes, incentives,
institutions, associations, incubators, media, events and competitions, which are part of the
supportive environment or are involved in the development of the Slovene entrepreneurial
ecosystem, can be found (Internet Week - Startup ekosistem v Sloveniji, 2014). Consequently,
in the last 5 years, 15 Slovene startups have joined the worlds most renewed business
accelerators like 500 Startups, Y Combinator, Techstars, Wayra and others (Silicon Gardens Ecosystem 2013, 2014). Nevertheless, the further advancements of the supportive
environment have to be made. To further develop of entrepreneurship, Slovenia needs higher
quality support services and stronger integration with supportive institutions around the
world. Slovene supportive environment is highly fragmented and should focus on integration
of services based on the models from abroad, where services are joined into business
accelerators, representing a combination of funding, mentoring, consultancy and
infrastructure products in one place (Start:up Slovenija, n.d.; Rebernik & Jaklic, 2014).
As already mentioned, and based on historical backgrounds, entrepreneurial culture is not
well developed in Slovenia (Bernard, 2006). According to the GEM Slovenia 2012 (2013) the
majority of national experts see cultural and social norms as the main drawback for the
development of entrepreneurship in Slovenia. Entrepreneurship suffers from a negative
national perception and intolerance towards outstanding and successful individuals.
Entrepreneurship is often underestimated and Slovene society still does not connect
entrepreneurial activity with development and economic progress. Other cultural and social
factors, which are seen as the main weaknesses and hinder entrepreneurial activity, are
unwilling to take risks, fear of failure and increase of corruption in business (GEM Slovenia
2012, 2013). A strong entrepreneurial culture has a crucial role in developing a successful
entrepreneurial ecosystem and only when it is well developed, young graduates will have
courage to become job creators instead of job seekers (Vogel, 2013). Therefore, it is
26

important that Slovenia creates quick success stories, which could change the mindset and
serve as an inspiration for the new generations of entrepreneurs.
3.3.2 The institutional environment
Voert (2010) claims that Slovene institutional environment is not suitable for
entrepreneurship. According to the GEM Slovenia 2012 (2013), interviewed national experts
see the main drawbacks in bureaucratic barriers and burdensome administrative procedures,
poor government policies, inefficient educational activities among youths, and nonexistence
of academic-business collaboration and knowledge transfer. On the other hand, business and
professional infrastructure, as well as simple procedures for setting up a business, and
existence of incubators and technology parks, are among the most positive effects that
promote entrepreneurial activity in Slovenia (GEM Slovenia 2012, 2013). An improvement
was made when the government established VEM points, which simplified and shortened
procedures for a new company creation (Erbeznik, 2010).
Some of the most important public institutions, with an important effect on the development
of Slovene entrepreneurial environment, identified by the author are:

SPIRIT Slovenia - Public Agency of the Republic of Slovenia for the Promotion of
Entrepreneurship, Innovation, Development, Investment and Tourism;
Slovene Enterprise Fund;
SID Bank (providing insurance and financing of export for Slovene companies).

In the last two years we could see an improvement and strong progress of entrepreneurial
education among youths. Although Ustvarjalnik is a privately held company, the government
(SPIRIT, Ministry of Economic Development and Technology) has financially backed the
institution. In the last year, they have organized more than 50 entrepreneurship workshops in
Slovene secondary schools, and have helped many youth entrepreneurs to establish their own
companies (Ustvarjalnik - Ustvarjalnikovi podjetniski krozki, 2014).
In Slovenia, there are many organizations of institutional environment. Anyway, these
organizations are not centrally managed and controlled, but are in domain of various
ministries, which usually follow their own policies and commitments (Erbeznik, 2010).
Consequently, many public held agencies operate individually and perform activities, which
were already carried out by institutions of supportive environment (Start:up Slovenija, n.d.).
Supportive environment initiatives still present the main driver of the entrepreneurial
ecosystem, and lack a strong support of governmental and economic policies (Rebernik &
Jaklic, 2014). The state must provide changes on many areas, including taxation and labour
market policies (Erbeznik, 2010). Similarly, the national experts believe that the main
improvement should be made in terms of government policies, entrepreneurial education and
training at all levels of formal education, in creation of clear and long-term strategy for
27

promoting entrepreneurship, and improvements in access to venture funding (GEM Slovenia

2012, 2013).
Based on the past ecosystem learnings, Rebernik and Jaklic (2014) have specified 28
measures which could strengthen the Slovene entrepreneurial ecosystem in upcoming years.
The proposed measures were sent to the Slovene government and public institutions, as a
national strategy for creation of successful entrepreneurial environment. The measures are
summarized in 5 categories (Rebernik & Jaklic, 2014, p. 13-18).

increase access to capital;

raise the level of business talent activation and implement comprehensive support
programmes;
accelerate the commercialization of knowledge and technologies;
encourage growth of startup companies on global markets with connections across the
world;
ensure consistent, comprehensive and strategic governance of the startup support
environment.

Although many improvements in the Slovene entrepreneurial ecosystem have been made in
recent years, the ecosystem still needs to develop significantly; therefore, the support and
development of the institutional environment will play a major role in its advancement.

4 AN EXPLORATORY RESEARCH ON THE ROLE OF THE NEW

ARGONAUTS IN THE SLOVENIAN ENTREPRENEURIAL
ECOSYSTEM
In this part of the master thesis the author presents the scope of empirical research and the
methodology behind the study. Furthermore, results and the main findings of empirical
research, based on in-depth interviews with Slovene new Argonauts and representatives of
domestic entrepreneurial environment are presented.

4.1 Research questions and hypotheses

The main purpose of this exploratory study is to identify the role of the new Argonauts in the
Slovenian entrepreneurial ecosystem and to discover their future role in it. The authors main
objectives are:

to identify Slovene new Argonauts and to search for established entrepreneurial networks
and cooperation with home-country counterparts;
to identify motivational factors of Slovene new Argonauts working in Silicon Valley or
the U.S. in order to cooperate with home-country counterparts;
28

to identify a potential for future development of entrepreneurial networks and how

Slovene new Argonauts could make a contribution to the Slovene entrepreneurial
ecosystem;
to discover potential methods and processes for transmission of business experience,
know-how, skills and connections back to Slovenia in order to boost entrepreneurial
development of Slovene ecosystem.

The two main research hypotheses are:

H1: In the case of Slovene new Argonauts the establishment of networks and cooperation
with home-country counterparts positively contributes to transmission of business experience,
know-how, skills and connections back to the country of origin.
H2: Methods and processes, which stimulate the brain circulation, encourage and motivate
Slovene new Argonauts to cooperate with home-country counterparts.

4.2 Methodology
4.2.1 Model design and the questionnaire
The exploratory research is based on the review of literature in preceding chapters, namely,
new Argonauts phenomenon and related concepts, and on the analysis of Slovene and Silicon
Valley's entrepreneurial ecosystems. The data used in this research was collected through indepth semi-structured interviews, which were held in English. Questions were prepared in
advance to follow the relevant topic, while sub-questions were used in order to dig into
interviewee answers, where clarification was needed. As the number of representatives is very
limited and small, the study covers almost entire population. Consequently, a probability
sampling technique was used, giving representatives equal opportunity of being selected. The
representatives were initially clustered into three different groups:

Representatives of Immigrated new Argonauts and Foreign-based new Argonauts;

Representatives of Home-based new Argonauts;
Representatives of Slovene entrepreneurial environment.

Afterwards, the questionnaires were prepared, each of them covering one group. Immigrated
new Argonauts and Foreign-based new Argonauts were joined into one group, as both live
and work in Silicon Valley, or in the U.S. Consequently, the author was able to incorporate
the same questions for both groups. Since Home-based new Argonauts live and work in
Slovenia, the author needed to adjust the questions in order to discover specific characteristics
like motivation for their return to Slovenia and brain circulation processes after their arrival.
Furthermore, different types of questions were needed for the representatives of Slovene
29

entrepreneurial environment, as they come from a different background and perform

supportive activities in the Slovene entrepreneurial ecosystem.
The questionnaires, as well as the interviews transcriptions, can be found in appendices.
4.2.2 Data collections
The data was collected between 10th and 15th of August 2014 via online communication tool Skype, whereas interviews were firstly recorded and later transcribed. The average duration of
an interview was 30 minutes. The author conducted five (5) in-depth interviews with
representatives of Slovene new Argonauts and three (3) interviews with representatives of
Slovene entrepreneurial environment. A number from 1 to 8 was assigned to each interviewee
(e.g. interviewee 1) in order to use it when specifying interviewees responses under the
results and findings section. All respondents are presented in the Table 1.
Table 1: The exploratory research interviewees
GROUP

COMPANY

OPERATING
COUNTRY

Interviewee 1

Slovene entrepreneurial
environment

Technology park
Ljubljana

Slovenia

Interviewee 2

Foreign-based new Argonaut

Celtra, Inc.

United States

Interviewee 3

Slovene entrepreneurial
environment

Hekovnik Startup
School

Slovenia

Interviewee 4

Foreign-based new Argonaut

FlyKly, Inc.

United States

Interviewee 5

Immigrated new Argonaut

Layer, Inc.

United States

Interviewee 6

Home-based new Argonaut

Zemanta, Inc.

Slovenia

Interviewee 7

Slovene entrepreneurial
environment

Faculty of Economics,
University of Ljubljana

Slovenia

Interviewee 8

Home-based new Argonaut

Toshl, Inc.

Slovenia

4.2.3 Data analysis

For the analysis of obtained primary data, the author used a software package NVivo to code,
classify, sort and arrange information, and additionally to examine relationships in the
obtained data. With the help of NVivo, the author was able to classify large amount of data,
and audit a data analysis process as a whole and in a transparent fashion. The author could
easily check how the data was coded and was able to test nodes, identify patterns and crossexamine information to make various research observations.

30

Firstly, the interviews were uploaded into the programme. After the first reading was made,
the author started to arrange written records into predefined nodes. Predefined nodes were
later divided into subcategories, which enabled better structure of obtained data and easier
analysis of the exploratory research. When looking for a specific point to develop, the author
used a query text search, which helped him creating stronger arguments on a certain topic.
4.2.4 Limitations
The topic of this study is fairly new and unexplored, and has never been studied in the case of
Slovenia. The authors exploratory research is the first research investigating the Slovene new
Argonauts phenomenon. A limited number of interviews were conducted and analysed;
therefore, the study should not be generalised to a broader extent. The study offers a good first
look into investigated area and represents a good foundation for future research.

4.3 Results and findings

4.3.1 Slovene entrepreneurial ecosystem and the factors influencing the role of the new
Argonauts
In order to identify the present and the future role of Slovene new Argonauts properly, we
firstly have to look into the current state of Slovene entrepreneurial ecosystem and find,
which factors directly influence the Slovene new Argonauts.
Slovene entrepreneurial ecosystem is small, and looking specifically from a high-tech and
startup perspective, it is ten to fifteen years old. In comparison to Silicon Valley, where the
ecosystem is almost a hundred years old and where new Argonauts already have an important
role for decades, the Slovene entrepreneurial ecosystem is rather young, and it will take
several more decades before we can quantify the effects the Slovene new Argonauts have for
the economy and society.
Slovenian high-tech ecosystem is much younger than Silicon Valleys. Silicon Valleys hightech ecosystem began in 1920s and is now almost hundred years old. In Slovenia high-tech
and startup ecosystem is ten, maybe fifteen years old. (Interviewee 3)
[] it is still in very embryotic phase and it will never be the same as Silicon Valleys
ecosystem or the one in Berlin, Paris, London or even Moscow, because these are much
bigger cities, but that doesnt mean there shouldnt be a smaller ecosystem that could be
attractive for both national and international entrepreneurs, investors etc. (Interviewee 7)
It is important to understand that the development of the ecosystem goes hand in hand with
the development and role of Slovene new Argonauts. Since the ecosystem is very young, it is
missing some key elements, which are going to develop eventually. Its development will have
31

a positive impact on the role of Slovene new Argonauts. The key elements that the ecosystem
is currently missing and effect the current role of Slovene new Argonauts are:

entrepreneurial mindset and tolerance;

a critical mass of talent;
the role of media and storytelling;
knowledge;
capital.
Figure 4: The key elements missing in the Slovene entrepreneurial ecosystem

As already mentioned the outlook of entrepreneurial mindset is still strongly connected with
the previous system and culture (Erbeznik, 2010). Also, the interviewees see it as a drawback
of the Slovene entrepreneurial ecosystem and they believe it is one of the missing elements,
which will develop in the long run through successful entrepreneurial stories. When
comparing Slovene entrepreneurial ecosystem with Silicon Valley and other ecosystems, we
can see we are missing a really hard working mentality, entrepreneurial drive and tolerance
towards new things, failure, risk and crazy ideas. However, as the entrepreneurial mindset and
tolerance are strongly connected to the volume of entrepreneurs and talented people starting
new ventures, the number of new Argonauts consequently lagging behind too. Nonetheless,
already Lee and Peterson (2000) indicated that cultural characteristics influenced a rise of
entrepreneurial potential in the case of Silicon Valley. Therefore, with the higher number of
entrepreneurs also a higher number of new Argonauts will emerge in Slovenia.
[] the second thing we are missing is a critical mass, so Slovenia can only sustain
probably three to four serious technology companies, because we just dont produce enough
people. (Interviewee 5)
32

[] we produce really good engineers/business people, but not enough of them and not
enough of them are even involved in startups. (Interviewee 1)
The role of media is often criticized and is slowing down the development of the ecosystem
in the terms of entrepreneurial mindset. Media rarely write about success stories of startup
companies, or they write such stories in a trivial fashion, not putting attention to the
comprehensive understanding of success, or the business models behind. Interviewees believe
that media should put more attention to success stories and appraise the role successful
companies have on the development of Slovene economy, entrepreneurial ecosystem and
society.
We should be able to read more about the success of Slovenian companies in Slovenian
media. They should write more about Zemanta, Celtra, Outfit7, BitStamp, and other
companies. (Interviewee 1)
A good example of how media is not helping the ecosystem is an example of the company
called Outfit7. The company is a very successful Slovenian company [] and is probably the
most established and the most well-known Slovenian brand internationally. Yet, the only thing
we know about it are their two founders and that they are rich. [] It is absolutely great that
they have large wealth, but if we want to encourage people to participate, we need to look at
them as people who went through a successful story and have gained experiences, which
could be applied. [] The media could create more inspiring stories for entrepreneurs based
on personal and business experience of their successful companies. (Interviewee 6)
Additionally, media is also resistant and does not see a real value in people going abroad, or
in the ones who already live and work abroad. Brain drain is presented as one of the main
issues in the society and is not seen as a phenomenon to build on (Zupanic, 2012). The story
should be inversed and people should be motivated to circulate between environments, since
brain circulation phenomenon has already shown positive economic benefits for both
countries involved in transaction (Saxenian, 2002a; Chellaraj et al., 2005).
I believe that we, and especially the media, should change the perspective from brain drain
to brain circulation. If we keep good connections, its good for people to go out.
(Interviewee 3)
Currently the media and some politicians look at them as traitors. But at the end, there is a
lot of small things each of us can change and these people will see Slovenia as a nice place
and maybe even come back. (Interviewee 3)
Since the ecosystem is very young, and since the first generation of new Argonauts and
entrepreneurs with international experience have merely emerged, the knowledge of startups
and entrepreneurial ecosystem is very limited. There are only few examples of internationally
33

oriented companies, which were built from the ground up. We have a poor knowledge of
international marketing, go-to-market strategies and unexperienced management in fast pace
growth of companies. If we compare them to Taiwanese, Israeli, Indian and Chinese new
Argonauts, we could observe that they have emerged more than 30 years ago (Saxenian,
2006). Anyway, we can expect the situation to improve in upcoming years, as there are a
number of entrepreneurs and Slovene new Argonauts going through development of startup
companies.
I think Slovenia can get there eventually when enough people are going to build successful
companies, [] but also bring a lot of experience back to Slovenia. (Interviewee 5)
Of course, it would be great to have more people that have previous experience with this
kind of companies. [] some of them have to be successful and they have to keep working
inside the ecosystem in Slovenia, reinvesting their previous returns and reinvesting their time
to build the next wave of entrepreneurs. (Interviewee 6)
[] the whole network of people who have done big projects or startups, from the beginning
to the point of development to a big company, are missing in Slovenia. Slovenia needs more
examples like that, with more people going through the development of a company to become
more experienced entrepreneurs. This is something that is clearly needed to establish an
ecosystem. (Interviewee 8)
Next to knowledge there is a huge lack of early stage capital in Slovenia, which would back
up projects and startups at the beginning of their path. Although few initiatives and funds
additionally emerged in 2014 (Pavlin, 2014; Racunalniske novice - 2,4 mio za financiranje
slovenskih start-upov, 2014; Silicon Gardens - Silicon Gardens Fund, 2014), one of the main
ecosystems issues represents an investment capital, which is mainly publicly owned. In the
case of Silicon Valley and other entrepreneurial ecosystems the case is inversed, as there a
private capital is the main source of financing (Wonglimpiyarat, 2006). In order to Slovene
ecosystem to make a progress, it needs a private capital from their key players new
Argonauts, who will presumably reinvest their money once they build successful companies
on their own.
I think that one of the things which could change a lot in the ecosystem is the moment when
some company will make an exit, meaning when a company like Celtra will be sold and when
founders and investors will get money out of the company. Although many of them moved out
of Slovenia, I believe that they will invest back in this ecosystem. When somebody will invest
back, this means money for the ecosystem. (Interviewee 7)

34

4.3.2 Motivational factors of the new Argonauts to move abroad

In order to further elaborate the key findings, the author researched reasons and motivational
factors that led the Slovene new Argonauts to move abroad in the first place. The analysis
showed that the reasons are somehow different in comparison to the case of the U.S., where
immigrant founders initially came to the U.S. to study or seize a job opportunity (Wadhwa et
al., 2007). In the case of the Slovene new Argonauts, an answer can be partially found in the
previous chapter, especially in regard to investment capital, as there is a lack of it in Slovenia,
and as a company usually needs additional resources for a quick growth and expansion.
Additionally, one interviewee claimed that if a company wants to go global, it is important to
close the gap as quickly as possible. Although the chance of companys failure increases,
because of steeper costs structure, the chance of company success and long term returns
increase exponentially.
[] the main thing is how you close the gap. You can move, you can transplant your
company and employ people there. If you want to go global, you need to close that gap.
Otherwise the competition outside is simply faster, has more opportunities and churns a
product much faster. (Interviewee 6)
Many companies owned by the Slovene new Argonauts are internationally oriented; therefore,
another very strong motive for them to move abroad is companys location, which needs to be
placed close to the market and the customers. Based on the results, companies have several
alternatives. They can transplant the whole company, part of its operations, in order to take
advantage of both environments, or even come back home after initial goals have been
reached. Based on the last point, the new Argonauts decide to go abroad in order to get an
early-stage financing, to close the gap in terms of knowledge and to enhance companys
development.
[] if you look all of Slovenian successful entrepreneurs, or enterprises like Zemanta,
Celtra, Outfit7 and others, they either moved to Silicon Valley (or some other part of the
world) or move part of their operations, especially sales and marketing, because you have to
be where your market and buyers are. (Interviewee 1)
[] I moved to Silicon Valley, because the stuff I was working on was extremely hard to do
from Slovenia and because most of the customers of my company, initial customers at least,
are based here. It is great to be in an ecosystem where you can actually get to talk to your
customers every day and to invite them to the office, and in Slovenia I had a limited exposure
to that. (Interviewee 5)
[] it wasnt necessary for us to stay in the U.S. from the business perspective [] we are
business-to-consumer oriented with a global user base, so there was not a further need for us
to stay in the U.S. Our user base is everywhere from India, to Brasil and Zambia. We dont
35

solely focus on the U.S. market, so we can do just the same from Slovenia, at a lower cost
[] (Interviewee 8)
Figure 5: Motivational factors of the new Argonauts to move abroad

4.3.3 The present role of the new Argonauts

Although Slovene entrepreneurial ecosystem is very young, the first generation of new
Argonauts is active and has a positive effect on the development of the ecosystem. Like
already described in chapter 1.7, they were actively working on the establishment of the
Slovene house in San Francisco, have established the Silicon Gardens Fund, the American
Slovenian Education Foundation, BoundBreaker Business Club and Coinvest high-tech
investment conference, and have started collaborating with the Skydeck - the Berkeley
University startup accelerator. Based at home or abroad, they already transmit knowledge,
business experience and connections back to Slovene entrepreneurial ecosystem. In general,
they are motivated and actively collaborate with home-country counterparts.
[] they already cooperate with the Slovenian environment. Most of them have their
engineering teams in Slovenia [] (Interviewee 7)
We are helping each other with connections, with knowledge and everything. I think young
people with startups are connected and we help each other. (Interviewee 4)
I am happy to help with introductions or I am always happy to give my perspective on some
things that they might be struggling with [] I am trying to be pretty active and just like you
reached out to me and I found time for this interview to help you, I am trying to find time for
all the entrepreneurs that ask me for help. (Interviewee 5)

36

I'm usually a person that is quite accessible, so it's easy for people to reach out. In most of
the cases, if I get at least 2 or 3 emails, I'll respond and take time for people. I'm always open
to help and I'd say also that my colleagues here and co-founders are open to do the same
[] (Interviewee 2)
Anyway, it is believed that there is a room to strengthen collaborations and to integrate the
new Argonauts into the ecosystem more deeply. Currently, the connections are moderate and
offer potential for improvements. Furthermore, opportunity for more organised collaborations
is seen as one of the main challenges. However, by being located in Slovenia, Home-based
new Argonauts are able to collaborate with higher intensity in comparison to the ones being
abroad. By being home, Home-based new Argonauts are deeply integrated into the ecosystem
and can be reached far more easily. The main constraints of collaboration are usually: limited
amount of time and resistance towards inviting them to participate. If the first constraint is
somehow clear, as the new Argonauts are fully committed to their work and companies, the
second stays unresolved. Although we could connect it to the role of media, poor
entrepreneurial mindset and tolerance, no direct proof exists.
The main challenge for me in terms of that is actually time. Time is a constraint. I think I
cooperate with Slovenian environment pretty well in terms of all the constraints I have.
(Interviewee 5)
Our contact books are full of everything that we have learned and are opened to anybody
who comes and asks for help. We actually dont have time to go out and push this knowledge
through the peoples throats, but if people show up we are very opened to dig into anything.
(Interviewee 6)
[] I would say there are not many people from Slovenia who reach out to me with such
requests. If people reach out, I would definitely like to help. (Interviewee 2)
We dont use people or ask them to help in higher positions abroad, as much as we could.
Most of them would like and will help. At the end they are Slovenians by soul, by birth. []
They would like to help, but nobody asks them. [] We do not have to pay them or something.
They will be satisfied if we just asked them for a help. They are motivated just by the
opportunity to offer help. (Interviewee 3)
[] they must be invited and integrated in our ecosystem as much as possible. There must
be no room for envy. Envy is a typical thing for closed environments. [] we need to give
them the respect, and we must be eager to learn from them. [] Just give them the invitation
and I am certain they will respond. (Interviewee 1)

37

4.3.4 Collaboration with the home-country counterparts

As it was already argued, there are a few prerequisites, which need to be fulfilled for crossregional collaboration to develop like political stability, economic openness and development
(Saxenian, n.d.; Solimano, 2007). Located in the heart of the EU, Slovenia has enjoyed very
successful economic development and has fairly stable political system (Government of the
Republic of Slovenia - About Slovenia, 2014; Government of the Republic of Slovenia Economy, 2014). Based on favourable environment the author identified a strong
collaboration and participation of Slovene new Argonauts, who are already actively involved
in the entrepreneurial ecosystem. One of the strongest impacts represents a transfer of
knowledge, business experience, skills and connections from abroad. There is especially
strong connection with younger generations of entrepreneurs and startups that are willing to
ask for advice. This kind of collaboration is extremely important, as participants learn from an
international experience of the new Argonauts and are later able to implement their learnings.
As a consequence, they are able to progress much faster and avoid mistakes, which were
already made by others in the past.
[] we try to share, whatever we think it may be useful like business experience and
connections. There are a lot of entrepreneurs that simply come for a coffee or lunch and we
try to help with an advice. (Interviewee 6)
[] there is a lot of contact between entrepreneurs in Slovenia and generally we really like
to share knowledge about accelerators or some principles of design, UX, testing, metrics, etc.
[] we try to convey everything we have learnt to other teams and startups that they are
cropping up in Slovenia, and we will continue to share that with a broader community. I think
that with the right approach, startup scene in Slovenia, can get an access to more and more
entrepreneurs and similar type of stories, can learn from our mistakes and get started a lot
faster. (Interviewee 8)
The new Argonauts, who are currently based abroad, can help the most by opening new
distribution channels and markets. The fact they live abroad, they have specific market
knowledge and connections to potential customers or even investors. As Slovenia has an
export-oriented economy with more than 72 percent of goods and services exported in 2011
(Trading Economics - Exports of goods and services in Slovenia, 2014), existing and future
collaborations may open new doors for other entrepreneurs as well.
[] I try to give support with helping local Slovenian entrepreneurs connect to potential
customers, or to potential partners here in San Francisco, and I also try to help them like
position the companies in the market in such a way that it feels right and that the opportunity
they messaged out is the right one. (Interviewee 5)

38

I was helping them with Kickstarter campaigns. One project after another I was helping
them. Like really helping them opening the world. Opening Kickstarter, different channels,
different services and things like that, showing them how its done over there and how they
can do it here. (Interviewee 4)
Although Slovene new Argonauts start their companies or move them abroad, where an
access to venture capital and markets are easier, they see a unique advantage to cooperate
with the Slovene environment. Based on their background and connections, they are able to
access a pool of talent, which is much more affordable and easier to access at the beginning of
the companys development. The companies like Celtra, Inc., Outfit7, Ltd. and Zemanta, Inc.
successfully leverage the advantage and employ engineering and R&D teams in Slovenia.
While the revenues are made outside, their foreign presence brings much money to Slovenia
through tax payments as well.
[] hiring in your own cultural environment is always easier. Also, Slovenia is very small
so getting referrals, talking to people, checking the backgrounds, its all much easier. []
Out of all those startups that are functioning outside of the country, Celtra is probably the
one with the biggest presence in Slovenia. As one of our 8 locations, our Slovenian team now
consists of over 40 people and is undoubtedly one of the key locations for us. (Interviewee 2)
The only real advantage being here is somehow lower costs of engineering and an access to
labour market, because we are quite well known here in Slovenia. We have a lot of local,
social and human capital available and this is much more comfortable than being in the U.S.
(Interviewee 6)
Figure 6: Collaboration with the home-country counterparts

39

4.3.4.1 The new Argonauts integration into the ecosystem networks

As Vertovec (2002) claimed, home and host country of new Argonauts can become linked
through specific personal and business networks. It is evident that networks based on friends
and relative ties develop first and ensure that the movement of resources is constantly
emerging (Vertovec, 2002). The Slovenian case is pretty similar too. The new Argonauts are
usually embedded in many informal and formal networks. The informal networks are much
more dispersed and popular among the new Argonauts. The transfer of knowledge, business
experience and connections is mainly based on personal level of individual entrepreneurs,
colleagues, or transmits through small informal or semi-formal communities, like Silicon
Gardens, Kiberpipa, Mobile Mondays, Internet Week, and 3FS network. There are many
organised gatherings, events and small lectures, which support and enable transmission of
knowledge, business experience, and connections between both environments. The main
actors believe that informal networks and personal contacts are extremely important, and
represent a basis for different collaborations, while formal networks do not enjoy much
appreciation.
I would say that there are currently more of informal initiatives. For example, when I have
an interesting case here, then I try to make a direct contact with a guy who is there and who
knows some people. I am sure that similar informal networks are going on [] (Interviewee
7)
[] I always meet with local entrepreneurs or with the other friend that are in the
technology space [] And I just share what I have learned. It is very informal. When I am in
Slovenia I like to keep it very informal, I am not a big fan of formal talks and I think like small
groups are much better at sharing more openly. [] I am also advising quite a few
companies, angel investors and venture funds from the region, but very much on informal
basis, just like bouncing back ideas back and forth, introducing interesting companies and
giving my perspective on things on that front. (Interviewee 5)
[] we help to a certain degree, mostly on informal level. I dont think there is a necessity
for having a well-defined clubs, organisations or associations. I think that the focus should be
put on the intangible networks, which can influence how things are done. (Interviewee 6)
I would say there are more informal networks [] I think it is really important to mainly
keep a personal contact with people and keep organizing events I have mentioned earlier in
this informal way of exchanging experience. (Interviewee 8)
Furthermore, the connections between the main players in supportive environment and the
new Argonauts are established, but are applied only when an opportunity arises. This relates
to the argument that the connections are moderate and that there is an opportunity for stronger
collaboration in future.
40

I am in touch with a lot of them: Tomaz Stolfa, Jure Leskovec, Tim Jausevec, [] etc. When
a guy walks up to me and says I am going to Silicon Valley can you help. I ask him what he
needs, what is he working on, etc. And I connect him with these people. (Interviewee 3)
[] in Silicon Valley I know couple of them, for example Andrej Nabergoj, Bojan
Bostjancic, etc. I have at least 7 of them on the list that I can call anytime, especially when I
am helping others from a business point of view (Interviewee 7)
The formal networks are rare. The new Argonauts do not participate actively in them or their
role is mainly supportive. The organisations, which could currently formalise the transfer of
knowledge, business experience, skills and connections between both environments, are for
instance: Technology park Ljubljana, Hekovnik Startup School, Initiative Start:up Slovenia
and Slovene Enterprise Fund. Anyway, an improvement has been made and from 2014 some
of Slovene new Argonauts will be included in the activities of Slovene Enterprise Fund and
two recently emerged accelerators (Slovenski podjetniski sklad, 2014). With a higher number
of new Argonauts, it could be expected that more formal networks will emerge, as there will
be need for more organised collaboration.
I am not a part of any other formal networks in terms of governments sponsored formal
networks and stuff like that. (Interviewee 5)
[] we work with different actors in the ecosystem and support environment. For example
we help and cooperate with Technology park Ljubljana, Hekovnik Startup School, University
Incubator, Slovene Enterprise Fund, etc. (Interviewee 6)
When networks of such sort have reached out, I do, from time to time, make it a point to help
out in a variety of situations. Most recently, there was an organization in Slovenia that was
also looking for mentors in which I have agreed to participate. I'm still in the process
communicating with them to establish the most effective form of commitment. (Interviewee 2)
4.3.4.2 Motivational factors for collaboration
As already exposed, cross-regional collaboration with a home country develops only when
new Argonauts are motivated to participate in the economic and scientific development at
home (Saxenian, n.d.; Solimano, 2007; Daugeliene & Marcinkeviciene, 2009). Based on the
interviews, it was identified that the Slovene new Argonauts, who actively collaborate with
the Slovene entrepreneurial ecosystem, are highly motivated and committed to the Slovene
environment. They find motivation in common progress of the ecosystem, by helping younger
generations of entrepreneurs towards business creation and by investing time to their
development. Based on strong motivational drive of the new Argonauts, it is important to
understand that Slovene economy, environment and society can only benefit out of their
engagement.
41

[] deep down, I think, most of the entrepreneurs I have met try to help and develop the
Slovenian ecosystem. [] Most of successful entrepreneurs are cooperating and investing in
younger entrepreneurs. (Interviewee 1)
I'm constantly thinking [] how we can help out other companies that are already there and
would need assistance in becoming more international. I think motivation is huge, for me
personally it is and I think for the other folks as well. (Interviewee 2)
As Slovenia is their native country, the emotions are strong. Although they are abroad, they
feel as a part of the environment, where they were raised or born. They would prefer to work
in Slovenia, if they were able to do it from the business point of view. Therefore, motives for
collaboration appear as a natural process of the role they have.
Everyone that I know that lives in the U.S., and is a Slovenian, or even outside in other
markets, like London, typically these people feel strongly about Slovenia. Everyone loves to
go back, everyone would ideally love to do what they do and be able to live in Slovenia as
well, enjoying everything that is so great about Slovenia. I'm constantly thinking about the
things that we could do there, could we build something new that would start in Slovenia and
then become international [] (Interviewee 2)
If I can work with a Slovenian, I would work with a Slovenian. If they are good at what they
do, I prefer to work with Slovenian to help each other. (Interviewee 4)
Another strong motivational factor is seen in creation of successful stories and individuals
with a startup experience, which will move the ecosystem forward. The new Argonauts are
fully committed to their companies and believe that the Slovene ecosystem needs a few
successful stories in order to thrive. Currently, there are not many of them or companies have
not yet gone through the whole cycle of companys development.
[] the only thing that will move the ecosystem forward are success stories - companies that
really rose to the top, achieved something big, and along the way hired and trained a lot of
people who will one day create their own companies or participate in other teams. I feel like
we're giving a great deal back to the Slovene environment with our 100 percent devotion to
the business and to the company. (Interviewee 2)
Like in the case of India and Taiwan, where new Argonauts connected both countries with the
U.S. businesses (Saxenian 2000; Saxenian, 2002b), and like already mentioned in one of the
previous chapters, a strong motivation for collaboration with home-country counterparts
represents an access to the labour market and skilled workers. Next to it, they see Slovenia as
a good market in the early-stage of product development.

42

I think Slovenia is very good place to develop or innovate a prototype. Here are some many
people with knowledge and experience on the other side. There are also young people who
understand all this technology, they are up to date, they know exactly whats going on, and
they get new ideas. (Interviewee 4)
Anyway, it was also mentioned that the motivation of new Argonauts is strongly connected to
their personality, which was already claimed by Saxenian (n.d.), Solimano (2007), and
Daugeliene and Marcinkeviciene (2009). If they have a self-motivation, they will be prepared
to offer help any time.
I know a lot of entrepreneurs who come back, but how they help largely depends on their
personality. Some people just dont have this internal drive and duty to help out, while others
are all around, trying to help out anybody. And this is how the startup business should be
done. I think a lot depends on personality here. (Interviewee 6)
Figure 7: Motivational factors for collaboration

4.3.6 Brain circulation processes

Up to date, brain circulation initiatives have been successful for the countries that have
tremendously invested in higher education, are political and economically stable, and where
immigrants are valued in their home countrys environment (Solimano, 2007; Sternberg &
Mller, 2007). Only then a circular or a two-way process may be developed, in which host
and home countries benefit from mobility in equitable and comparable mode (Teferra, 2005).
Like already mentioned, Slovenia is a politically and economically stable country
(Government of the Republic of Slovenia - About Slovenia, 2014; Government of the
Republic of Slovenia - Economy, 2014) with a rate of 84 percent of people involved in a
tertiary education and with an educational system, which is almost fully financed from the
43

state budget (Government of the Republic of Slovenia - Education, 2014). Unfortunately, the
country and the media still does not recognise a potential of brain circulation, rather they see
it as brain drain or as a one-way process (Zupanic, 2012). In contrast to the countrys and
medias believes, the new Argonauts and representatives of supportive environment have a
strong tendency toward brain circulation and see a positive effect out of it. They would send
more people abroad and are not afraid of losing human capital, as sooner or later these people
will return back, or will start cooperating with Slovene environment from host countries.
Therefore, based on the positive tendencies of the Slovene entrepreneurial ecosystem,
Slovenia has established good foundations to build on strong brain circulation processes in
future. It is clear that the motivational factors for collaboration exist - the factors were
presented in the previous chapter. Anyhow, a strong integration with the home-country
counterparts is needed, as currently there are any processes, which would stimulate or boost
brain circulation processes. Anyway, the analysis showed that brain circulation processes
have already had a positive influence on Slovenia and on the development of entrepreneurial
ecosystem.
I think its a good thing if entrepreneurs move and think globally or internationally. Its also
good for the country. (Interviewee 1)
Its not about brain drain its about brain circulation. Its good people go abroad and study
at Berkeley, Stanford, etc. Thats good for Slovenia, but we need to make a more connected
environment. We need to know people are abroad and try to integrate them in our ecosystem.
[] We need to encourage people to go out. Some people will stay outside. If they are
connected with us in Slovenia, thats not a problem. If they come back, that is even better.
(Interviewee 3)
[] we need even more entrepreneurs to go abroad. [] I would send as many as possible
abroad to a different kind of missions, from students to international projects, because this
wont be money lost. [] Each year we should send around 100 entrepreneurs abroad,
because in this manner Slovenian entrepreneurial ecosystem can progress much faster.
(Interviewee 7)
So we need to travel more, send people abroad and motivate them to come back. This
circulation in general allows the economy to see the opportunities that can be seen.
(Interviewee 6)
From the perspective of brain circulation it was also claimed that some individuals could be
more helpful (from the countrys perspective) by being abroad. By being abroad, they can
help by opening new opportunities and serve as role models to younger generations. Such
example is dr. Jure Leskovec, an Assistant Professor of Computer Science at Stanford
University, who is one of the founders of the American Slovenian Education Foundation
(ASEF - Board, 2014).
44

People like Jure Leskovec can do so much more for us from Stanford, than if he comes back
and teaches at the Faculty of Computer Science University of Ljubljana. Hes more useful for
Slovenia being there. From the academic viewpoint, publicity, and other sides, he is more
useful there. We need that kind of role models. (Interviewee 3)
One of the aspects that is extremely important when talking about brain circulation, is
knowledge. Abroad, especially in high developed high-tech clusters such as Silicon Valley
(Mann & Luo, 2010), the new Argonauts can gain broader knowledge to scale up their
companys business; the knowledge, which is currently missing in the ecosystem, and cannot
be obtained anywhere else than abroad. Later, new Argonauts can become mentors to younger
generations and transplant their learnings further.
We need an experience with international marketing [] If you are in Slovenia, you cant
get this knowledge. [] Is it realistic that we will suddenly educate internationally oriented
marketers? Probably not. So the answer is: Look, that kind of people we have to move
abroad. That should be the norm and thats how we should do it. (Interviewee 6)
[] its great if people who go abroad come back after several years. They could become
mentors to younger generations. When we talk about brain circulation, then that is how it
should be; Slovenian entrepreneurs going abroad, coming back, helping the young
generations [] (Interviewee 1)
Even the ones who go there and fail, they bring knowledge, attitude, etc. back home.
(Interviewee 7)
In the past, there have been four initiatives, which stimulated brain circulation between
Slovenia and Sillicon Valley, or the U.S.: Slovenian house in San Francisco, BoundBreaker
Business Club, Skydeck the Berkeley University startup accelerator and the American
Slovenian Education Foundation. All four have helped entrepreneurs or educators to bridge
the gap and to start operating in Silicon Valley, or in the U.S. While the first two have been
put on hold, the establishment of the American Slovenian Education Foundation and
cooperation with the Skydeck, are the new ones. The initiators of the first two initiatives
realized they were established too soon, since the Slovene entrepreneurial ecosystem is still
underdeveloped and too small for any kind of stronger collaboration. However, new
initiatives are already planned in the future.
We [] already had the startup house for a year and a half, but we found there werent
enough quality startups from Slovenian and the region at that time. [] From a community
perspective, from a learning perspective the house was successful. (Interviewee 7)
We have also developed our own brand for Silicon Valley activities called BoundBreaker.
[] BoundBreaker is still in operation, but its more for building awareness. Nothing bigger
45

is happening. It did not develop as we hopped, but its still alive. Maybe next year it will go
into the second phase of development. (Interviewee 3)
We have sent one entrepreneur there, who is quite successful here in Slovenia, employing 30
people, and he wanted to move one of his projects abroad. After three months he came back
with a different mindset and knowledge. (Interviewee 7)
4.3.6.1 Immigration of foreign new Argonauts
Interviewees believe it is not sufficient to send Slovene entrepreneurs abroad, if we are to
develop Slovene entrepreneurial ecosystem. Undoubtedly, they bring new knowledge to the
ecosystem, but the case of Silicon Valley showed that the biggest contributors and a driving
force of their ecosystem were immigrants from abroad (Wadhwa et al., 2007). In this respect
the analysis pinpointed that Slovenia should open up towards foreigners or foreign
entrepreneurs, as they represent additional human capital for the ecosystem. Currently, there
are not many of them, but with the right approaches and initiatives Slovenia could attract
many of them. Nevertheless, the environment Slovenes live in offers a very high standard and
quality of living (OECD Better Life Index - Slovenia, 2014). Additionally, by attracting
immigrant entrepreneurs the volume of entrepreneurs would consequently enlarge. This
would have a positive effect on the entrepreneurial ecosystem, since a critical mass of talent is
currently missing in the ecosystem.
There is so low amount of immigration coming to Slovenia, that this is actually holding back
entrepreneurial ecosystem. [] we need to open up and it is not enough just to think about
Slovenians. We have to think in direction how to attract interesting people from all over the
world to study and to create companies here. [] We have a very high standard and quality
of living and we could play on this card to attract Slovenian entrepreneurs back home and to
also attract other entrepreneurs to set up a business here. (Interviewee 6)
Therefore, Slovenia should attract people from all over the world, especially from the
Balkans and Eastern Europe. We need to attract talent: engineers, business people, and
others. You need a critical mass of talent to have more startups. (Interviewee 1)
[] We have to become more open towards foreigners and we have to establish an
attractive place for international entrepreneurs, locals and for Slovenes who went abroad.
[] When I mentioned entrepreneurial residence nobody understands. So we should attract
foreign entrepreneurs to come to Slovenia and live here, and they would be prepared, because
Slovenia is a nice country to live in. (Interviewee 7)
One interviewee claimed that language and language practices are currently holding back the
Slovene environment. As a consequence of poor language practices, especially in higher
education, a small amount of people decides to come to Slovenia. In order that Slovenia
46

attracts international entrepreneurs, it should unlock the language berries. The interviewee
believes Slovenia could prosper to a successful global economy, only if it sets a standard
towards becoming a bi-lingual nation.
[] the amount of smart people coming to Slovenia is really diminished, because we are so
forceful with the language in university education. We have not adapted to the fact that
English has become language of the world. [] we need to accept that beside Slovene we will
have to be a bi-lingual, in twenty years maybe English, in hundred years maybe Chinese,
Mandarin. It might happen that we will need to accept it for us to be a successful nation. We
need to accept that we need to keep our identity while being a bi-lingual with some of the
worlds languages. (Interviewee 6)
4.3.7 Initiatives to enhance transmission of knowledge, business experience, skills and
connections
The highlighted cases of Taiwanese, Indian and Chinese best practices in chapter 2.3 showed,
how these countries have created and implemented successful policies, and initiatives to
enhance transmission of knowledge, business experience, skills and connections back home.
In their case, the initiatives were implemented from the side of two groups; policymakers and
new Argonauts. Both groups should be considered in the case of Slovenia as well, but first of
all the environment needs to become more favourable towards the new Argonauts and
entrepreneurs in general. Like already emphasised the media play a crucial role in enhancing
the entrepreneurial mindset. The new Argonauts need to become respected, but this will
evolve in time, when collaborations show more tangible outcomes.
[] we should show a bit more respect to the successful entrepreneurs. Respect in media, in
the environment, respect in general. [] We should be able to read more about the success of
Slovenian companies in Slovenian media. They should write more about Zemanta, Celtra,
Outfit7, BitStamp, and other companies. (Interviewee 1)
In Slovenia we need a few success stories. Companies from Slovenia going to Silicon Valley,
succeeding there, not just raising money, and at the end even make an exit. Some of them will
then come back and invest in new startups.(Interviewee 3)
As described in chapter 3.3.1, the research also identified that the Slovene entrepreneurial
ecosystem needs to become more united. Currently, there are many different events and
organizations, which promote entrepreneurship in Slovenia. Although, this positively effects
development of entrepreneurial mindset, unitization of the ecosystem will enable even
stronger integration of Slovene new Argonauts with it. Current organizations could identify
key players and integrate them into the ecosystem through high quality initiatives.

47

[] the ecosystem in Slovenia is really fragmented. It should be more united, because we

are so small. [] Somebody has to start connecting the organizations together. [] Its just
that people in Slovenia have the opportunity to meet with each other. Right now you have so
many little spaces and people get stuck there. You have Hekovnik, you have Coworking space,
Mobile Mondays, Internet Week, etc. I did so many presentations about Kickstarter. [] and
there were always just thirty people listening, completely different people. They dont know
each other. One didnt know about Hekovnik, the other something else. We should all come
together and start sharing ideas. (Interviewee 4)
[] we need to find the main players with quality competences to push the ecosystem []
even further. Right now we have a lot of projects coming up and it is sort of unclear, who are
the top dogs and what is the best path for entrepreneurs in Slovenia. (Interviewee 8)
What we are trying to do is integrate successful entrepreneurs back home in startup
ecosystem to help young entrepreneurs start their businesses. We have mentors in our
programs with the goal to develop together Slovenian ecosystem and the appropriate
environment for new startups. (Interviewee 1)
In comparison to the Taiwanese, Indian and Chinese cases there are no entrepreneurial
networks or diaspora outside Slovenia, since Slovenia is too small in population to establish
powerful networks abroad. Therefore, Slovenia should create various networks abroad in
order to enhance transmission of knowledge, business experience, skills, and connections
back to Slovenia and among a networks members. Based on the interview proposal, one of
the initiatives, which could be developed in the future, is a connection with other regional
players and nations in order to establish a South-East Europe network of new Argonauts.
Slovenian house in San Francisco, New York, London and other cities would be great to set
up a network. If you just hang out there and you can meet so many new people. We need to
open the doors for them. (Interviewee 4)
We would like to push a more global or a South-East Europe initiative. Slovenia is too small
to be seen in Silicon Valley as a global player. Even Austrians or Greeks are too small. We
need connect the region, the accelerators, the incubators, and become a family, a player in
Silicon Valley. (Interviewee 4)
There is a huge lack of early-stage capital in Slovenia, which would back up projects and
startups at the beginning of their path (GEM Slovenija 2012, 2013; Rebernik & Jaklic, 2014).
The interviewees believe once the new Argonauts made enough money to reinvest in the
ecosystem, they will be able to commit to new companies and projects. By committing they
will spontaneously start to transmit knowledge, business experience, skills and connections to
startups and to new generations of entrepreneurs. Initiatives like private accelerators should
be developed to enhance collaboration and reinvestments of capital of the new Argonauts.
48

Currently, money invested into startups is mainly publicly owned; therefore, private
initiatives should emerge, since they were already proven to be successful in the case of
Silicon Valley and other entrepreneurial ecosystems (Wonglimpiyarat, 2006).
[] there are some ways to handle that: one is establishment of environment where angel
investing makes a lot of sense; so that you put money into specific companies [] Then you
are sort of very incentivised to keep helping them along the way. (Interviewee 5)
I believe that one of the things every ecosystem needs are local investors, people who have
skills for the game and people who invest their own money, and are incentivised to help
entrepreneurs, while not being so much dependent on the outcomes. (Interviewee 6)
4.3.7.1 Governmental policies
In all three cases, Taiwanese, Indian and Chinese, the government and policymakers played a
crucial role in the development of brain circulation processes. They were implementing new
policies and initiatives to attract new Argonauts to start collaborating or returning back home
(Solimano, 2007; Zweig et al., 2008; Daugeliene & Marcinkeviciene, 2009). Therefore, the
author was also researching the role of Slovene government on the transmission of
knowledge, business experience, skills and connections back home. The analysis revealed that
interviewees believe that the government cannot have a bigger impact on the role of new
Argonauts and on the development of the entrepreneurial ecosystem.
I am not sure if the government can help on this particular issue. One day we would like to
achieve this cooperation between Slovenia and the U.S. in general. In Slovenia there are two
kinds of people in the government. One who understand everything, but cannot change
anything and dont have the power. The other kind who are in the power, but do not
understand whats going on. We stopped dealing with them. (Interviewee 3)
Unfortunately, our diplomacy is not working much in direction of keeping informal networks
running. [] I think government could do a very little, because everything at the end turns
out not as good as planned, because of bureaucracy. People at the chain of command are not
inspired or incentivised to put an extra effort to make it work. (Interviewee 6)
However, further analysis underlined that this was only initial reaction to the question, which
was based on previous experience and low engagement of the Slovene government in the
past. Based on the interviews it is believed that some initiatives and government policies
would definitely help to point the ongoing processes on the right track. Some of the current
projects supported by the government are working extremely well and should be supported
onwards. The most commonly mentioned initiatives the government should support, in order
to help the ecosystem, and to enhance collaborations with the home-country counterparts,
were: arrangements in the field of intellectual property and labour market, decrease taxes, less
49

bureaucracy and shorter administrative procedures, tax reliefs based on foreign investments,
and easier procedures for foreigners coming to Slovenia.
The government must continue to support these programs. [] I think we need to further
develop all projects that are running. [] There are multiple incubators and technology
parks in Slovenia. We have Podim conference, Startup Geek House, Go:Global Slovenia,
Start:up of the Year competition [] (Interviewee 1)
[] they can change the legislation, so there would be lower taxes, less bureaucracy, easier
processes for foreigners [] (Interviewee 3)
Then the next issue is how you make sure that capital gains are reinvested. I think we are
definitely lacking some kind of tax reliefs based on foreign investments into young companies,
not startups in particular. (Interviewee 6)
The main thing that the government could do is to lessen the bureaucratic obstacles and
make it easier to act flexibly and get out of the way in terms of hiring and firing. When it
comes to hiring people they should lessen the burdens of who you can hire from abroad.
(Interviewee 8)
Critiques towards ongoing investment policies have been made in sense they are too
bureaucratic and controlled by people from the public sector, who do not exactly understand,
what are the real needs of the ecosystem. A solution is seen in changing the objective criteria
with subjective, managed by experienced entrepreneurs. The explanation is closely connected
to the Silicon Valleys case, where the government did not play the investors role, rather it
offered support to the ecosystem by establishing programmes and initiatives
(Wonglimpiyarat, 2006).
We have seen some movement, but a lot of well-intended governmental support for
entrepreneurship is very bureaucratic. One of the options how can be improved is to replace
it with subjective criteria. The subjective criteria can be brought by entrepreneurs with
previous experience and without direct stake in outcomes. (Interviewee 6)
Furthermore, the research highlighted that the government should put a special focus on the
initiatives, how Slovenia could become internationally attractive for foreign entrepreneurs,
students and professionals. Like stated in one of the previous chapters, the language
represents a huge barrier; therefore, the government should have reacted by setting a standard
that Slovenia becomes a bi-lingual nation, and implement policies to set up a foreign language
in our everyday life, like to schooling system and public offices. In the terms of higher
education a good benchmark could represent Sweden, where over 900 programmes at
universities are taught in English (Study in Sweden, 2014) and since Sweden has enjoyed a
relatively high level of immigration, with about 200 nationalities represented among its
population (Sweden - Sweden and migration in brief, 2014).
50

I see the world as a global village and we should invest more effort into making Slovenia a
more internationally appealing environment for the foreign talent. (Interviewee 1)
Slovenia has the potential to be a magnet not only for Slovenians, but also for international
people who would also want to do certain things in and for Slovenia and we're certainly
doing quite poorly in this respect. (Interviewee 2)
In future we need to develop bridges towards international entrepreneurship. The
government should implement policies, how to attract foreign entrepreneurs and mentors.
[] I believe they should have a public call to put some money into attracting quality and
well-educated immigrants. I think that twenty high-quality immigrants could change a lot in
the ecosystem. (Interviewee 7)
4.3.8 The future role of the new Argonauts
At the end, the author was researching the future role of the new Argonauts, and a potential
for even stronger development of entrepreneurial networks and collaboration with the homecountry counterparts. Based on the results, it is undoubtedly that Slovene entrepreneurs will
keep moving abroad in search for investment capital, markets and its customers. It is a natural
process of a Slovene startup going through evolutional stages in order to succeed globally.
Anyway, a home country can represent a good base for employment of engineering and R&D
teams, while Slovenia may not be the best environment for a companys headquarters, since
the legislation represents an issue for international investors. For example, all of the specified
startups in this paper have their headquarters abroad.
It would definitely be better if Slovenian companies had headquarters in Slovenia, but thats
not realistic. Companies, which have headquarters abroad, usually get funding from abroad.
[] Even if Slovenia would be a tax haven, the legislation would be a problem. The investors
want to invest where they know the legislation. And the market is there. Its a natural step to
fund company where your market, investors and other stakeholders are. Still, it is good to
keep as the biggest part of the company in Slovenia as possible. (Interviewee 1)
Although the new Argonauts are abroad, they have strong feelings towards Slovenia. The
analysis pinpointed there is no need to worry that Slovene entrepreneurs move abroad. As
they run their own business and are independent, a location of their work is unimportant,
rather strongly connected with a success of their company. When the right opportunity arises,
they will be glad to return back to Slovenia. Therefore, the community should keep
developing the ecosystem in order to improve the environment for startups and new
generations of entrepreneurs. Nevertheless, the new Argonauts can also help from abroad by
actively collaborating with home-country counterparts. With a higher number of Slovene new
Argonauts, we could expect that their role may become even more significant in the future.
51

If the ecosystem will be developed further in the future, entrepreneurs will more gladly come
back. If we make Slovenia a success story, a good environment for startups, most of them
living abroad will love to come back and be proud on our country. (Interviewee 1)
They will come back if the environment will be attractive. [] When we have more
companies and when we have more investment opportunities, entrepreneurs, who are abroad
right now, will be prepared to come back. When they see an opportunity, they will come
back. (Interviewee 7)
I have a strong desire to come back and at least spend some time residing in Slovenia for a
while. I always like to return. I don't have any kind of preconditions and I don't need anything
in particular from the country or the government. (Interviewee 2)
When you move out of Slovenia, you really start appreciating Slovenia and that you are
Slovenian. You are proud. I would never say I would never move back to Slovenia and I never
say I will always live here. I will always be a part of Slovenia and active here, if I live here or
not. (Interviewee 4)
I am actually planning to return at some point, probably not in the next few years, but
definitely after that. [] Once I am closer to that I am going to try figure out, the best way to
help the local environment there. I still feel that most of the entrepreneurs that have left or are
living right now, will find home pretty much everywhere. It is just about the best place to be at
the specific point in time, so right now that is San Francisco for me, and eventually it will be
Slovenia. (Interviewee 5)
Furthermore, strong motivational factors for returning to Slovenia were detected. Although
abroad, the new Argonauts really appreciate the quality of life and Slovene lifestyle.
Therefore, many of them have already returned, run their global business from Slovenia or
will return to Slovenia in a few years time. When they return, they will be able to collaborate
with a higher intensity, and like in the case of Home-based new Argonauts, their integration
with the ecosystem will become much deeper. Consequently, the transmission of knowledge,
business experience, skills and connections will become easier and more effective.
[] in five to ten years I plan to be back, after I finish few more adventures abroad. [] the
quality of life in Slovenia is extremely high, the people are extremely nice, there are a lot of
things that can be done from there and it is a good place to live. You can still be anywhere in
the world very easy just by boarding a plane, so Slovenia can be good base. (Interviewee 5)
Well on one hand, most of the teams prefer the lifestyle here. It is a lot nicer to live in
Slovenia, culturally, as well as from other point of views. I could go on and talk about small
things that bother me in the U.S. (Interviewee 8)
52

Based on the interviews we could expect even stronger collaboration of the new Argonauts
with the home-country counterparts in the future. Currently, many new Argonauts are still
highly involved in their own companies, but once they make a success story out of it, they
will be ready to take over the new roles the ecosystem has to offer. They may become
investors, mentors and consultants, or even start working on new projects.
[] as soon as they will sell their own companies, they will have more time and money, and
will go back into the business to work on new project or as investors. This kind of connections
will be developed when Slovene entrepreneurs will have more money and time to work on
other projects, and consequently transferring their business experience and knowledge.
(Interviewee 7)

5 DISCUSSION AND IMPLICATIONS

Slovene entrepreneurial ecosystem is still in a very embryotic phase and the Slovene new
Argonauts just started to emerge in the past decade. Their role and strength of future
collaboration will go hand in hand with the development of the ecosystem. Although
connections with new Argonauts are moderate, they already represent one of the important
pieces in the entrepreneurial ecosystem and have an impact on its development, as they
transmit knowledge, business experience and connections back to Slovenia and have a slight
influence on the entrepreneurial mindset. In addition, with the further development of their
companies, they are opening new opportunities in the ecosystem by employing and training
people, who could one day become entrepreneurs themselves as well. By that, they have a
strong effect on the elements, which are currently missing in the Slovene entrepreneurial
ecosystem. Although their activities have an effect on the ecosystem, other initiatives in
domain of supportive and institutional environment have to be developed simultaneously in
order to boost the development of Slovene entrepreneurial ecosystem further.
Based on described, and, in order to understand the role of the new Argonauts, and their
implications in better way, the author developed a comprehensive model, which explains the
process of brain circulation, transmission of knowledge, business experience, skills and
connections back to Slovenia, and furthermore, defines motivational factors for their
collaboration (Figure 8).

53

Figure 8: Comprehensive model of brain circulation of the Slovene new Argonauts

54

The model underlines that brain circulation processes of the Slovene new Argonauts are
strongly imbedded in the Slovene entrepreneurial ecosystem and shows how Slovenia could
benefit from their stronger integration, and development of cross-regional collaboration and
networks. The analysis revealed that the Slovene new Argonauts perform short-term (0 - 1
year) and long-term (1+ years) assignments, and collaborate with home-country counterparts
from native environment or from abroad. In the case of short-term assignments, the new
Argonauts are usually accepted into business accelerators, temporarily work abroad or are a
part of exchange programmes, while, in the case of long-term assignments, they transplant
their companies abroad, in order to be placed close to the market and its customers.
Furthermore, it was discovered that the new Argonauts, who are located in Slovenia, are able
to collaborate with a higher intensity and have a stronger impact on transmission of
knowledge, business experience, skills, and connections back to Slovenia. Collaboration is
based on many informal and formal networks, while informal networks are much more
dispersed and popular among the new Argonauts. Based on the model and positive outcomes,
Slovenia should be motivated to encourage more entrepreneurs to move abroad. By moving
abroad, Slovene new Argonauts are able to gain new knowledge, business experience, skills,
connections and different mindset, which are later transmitted back into the ecosystem. The
exploratory research showed that they have strong motivation to return or to collaborate with
Slovene environment wherever they are placed. The analysis of results indicated that the most
potential lies in new knowledge creation; the one, which is currently missing in the home
country and cannot be obtained anywhere else than abroad, and in creation of new job
opportunities with a higher added value. Additionally, when successful companies are
created, the new Argonauts will presumably reinvest their money back in the ecosystem as
investors and work on creation of new projects and startups.
Based on the exploratory research, results and findings the author in continuation describes
initiatives and implications, which would enhance the development of brain circulation
processes and the Slovene entrepreneurial ecosystem.
1.

Like emphasised previously, Slovenia can benefit with encouraging entrepreneurs to

move abroad. The country and the ecosystem should develop initiatives to move more
people abroad on a regular basis, either in the form of financially backed exchange
programmes, or temporarily work assignments in terms of business accelerators and
science park programmes. Based on the results and the model, both long-term and shortterm assignments would be beneficial, and would have a long-term impact on the
ecosystem. The collaboration with foreign institutions should be formalised by Start:up
Slovenia Initiative, which connects the main actors of Slovene supportive environment
and plays a core role in the Slovene entrepreneurial ecosystem. The initiative should
establish strong connections with the worlds leading university centres, incubators and
accelerators and start sending teams or individuals for short-term assignments, where
they would be able to gain new knowledge, would have an opportunity to access a larger

market and would be exposed to a different mindset. In return, the initiative could offer to
accept other teams or individuals in Slovene based programmes, where international
entrepreneurs could take an advantage of the Slovene micro-market to test their projects,
build early-stage products or form a team of skilled engineers and specialists. Slovene
Enterprise Fund could back the initiative with publicly owned money, although private
funds in cooperation with business accelerators would be beneficial.
2.

The second proposed initiative is closely connected with the previous one. As elaborated
in chapter 4.3.6.1 Slovenia should attract more foreigners and foreign entrepreneurs to
enter the market. The effect of transmission of foreign knowledge, business experience,
skills and connections could have a very similar effect to the one presented in the model the foreign new Argonauts could have a large impact on the elements, which are currently
missing in the ecosystem. Therefore, the country should unlock the barriers for entry and
implement policies in order to enhance their motivation for coming to Slovenia. The
process of entering the market for high-skilled professionals and entrepreneurs should be
simplified and enabled with an online registration, where all required information would
be presented in detail. Slovenia could find a benchmark in Swedish and Estonian model,
where the process of migration is held online (Sweden - Work in Sweden, 2014) and
where people can also start a visa application procedure (Estonian Investment Agency Coming to Estonia, 2014). The policymakers could enable short-term visas (1-6 months),
which could be extended once a person establish in Slovenia.

3.

The Slovene entrepreneurial ecosystem in quite fragmented and should become more
united in future. More united ecosystem will be a prerequisite for even stronger
integration of the new Argonauts with the environment. While informal networks are
strong, there are not many formal networks, which would cooperate with the new
Argonauts. The author believes the establishment of formal networks is needed in order
to enhance transmission of knowledge, business experience, skills and connections.
Transmission could be formalised through accelerators, mentorship programmes or
modules, which would enable strong collaboration and transmission in implicit form. The
initiative should be put forward by Start:up Slovenia Initiative and policymakers working
together. While Start:up initiative would have an operational role, the policymakers
should manage and stimulate the processes of brain circulation. However, the informal
networks should not be disregarded, but rather strengthened, since they represent a basis
for collaboration and transmission on friendship or personal basis.

4.

Slovenia should establish a few foreign-based meeting points, offices or houses, where
Slovenes would be able to meet, collaborate and learn from each other. These locations
may include strategically important cities like San Francisco, New York and London,
where is a high-intensity of knowledge and capital. Entrepreneurs really loved the
Slovene house in San Francisco and have experienced benefits of such foreign presence.
Unfortunately, Slovenia is a small country in terms of population; therefore, Slovenia
56

should connect with other nations and regional players in order to establish SEE networks
and presence abroad. In this sense SEE diaspora could emerge, which would connect
entrepreneurs, professionals and students, who currently live abroad to find each other,
connect, share knowledge and build on personal ties. The implication could be broader
and include all Slovenes, who are moving abroad. Through established locations the
country could monitor movements of new Argonauts and could implement brain
circulation processes much easier and more effectively. Currently, brain circulation in
mainly based on informal networks and personal connections and therefore is hard to
aspect that the country can do much in attracting new Argonauts back home. The country
should recognise the potential, connect with other nations and invest a couple of million,
in order to establish foreign-based locations.
5.

The analysis showed that the Slovene new Argonauts are highly motivated and
committed to cooperate with Slovene environment. Since motivational factors are
significant, Slovenia should build on initiatives, which would motivate Slovene new
Argonauts to cooperate with the environment even in the stronger way. Many proposals
were already mentioned; therefore, Slovene government should implement policies,
which would foster collaboration and engagement with the home environment. Since it
was identified that the new Argonauts see a unique advantage in access to the skilled
Slovene labour market, the government could offer tax reliefs for establishing
subsidiaries in Slovenia. By that, they would stimulate brain circulation processes and
transmission of knowledge, business experience, skills, and connections back to Slovenia,
while enhancing development of new generations of entrepreneurs. Furthermore, policies,
which would enable easier circulation of workers, should be implemented, like easier
registration and deregistration of residences, health insurances, procedures to avoid
double taxation and simplified regulations for people holding double citizenships.

The proposed initiatives and implications are based on the exploratory study. Therefore,
further project plans accompanied with financial calculations should be made by
policymakers, practitioners and representatives of supportive environment in order to identify
feasibility of proposed measures.
To conclude, the exploratory research determined that the networks and cooperation with
home-country counterparts already exist, and that the new Argonauts are already actively
participating in transmission of business experience, know-how, skill and connections back to
Slovenia. Their motivation for cooperation is significant and based on personal motives. By
establishing formal initiatives and brain circulation processes, the collaboration would be
enhanced and would strengthen the two-way bridge between the Slovene entrepreneurial
ecosystem, and Silicon Valley (the U.S.). Consequently, Slovenia could expect a boost in
development of its entrepreneurial ecosystem. Furthermore, as the ecosystem is young, and
since there are not many representatives of the new Argonauts, we could expect a further
development of both in upcoming years. Nevertheless, the ecosystem showed a huge
57

development in the last decade and the new Argonauts have started to emerge. Therefore, the
development of both is on the right track and will have a broader effect on Slovene economy
in the future.

CONCLUSION
This master thesis examinees the new Argonauts phenomenon, which emerged soon after the
Second World War and originates from Silicon Valley. It was not until early 1980, when the
phenomenon started to flourish and when it was observed that many Taiwanese, Israeli,
Indian and Chinese professionals and entrepreneurs began returning from Silicon Valley to
their home countries. At home they were establishing new business relationships or starting
new companies, while retaining their professional and social ties to the United States. By
being dispersed between two environments, the new Argonauts have developed a strong twoway bridge between Silicon Valley and home-country counterparts, in order to boost the
advancement of home entrepreneurial environment. The process of their collaboration is
circular, and through established formal and informal networks they transmit knowledge,
business experience, skills and connections between both environments.
Globalisation and technological advancements have had an important effect on the evolution
of the new Argonauts phenomenon and contributed to the diminishment of geographic
boundaries, which resulted in increased immigrant entrepreneurship. Consequently, today
new Argonauts can be found in almost every economy around the world.
In addition to the new Argonauts phenomenon, two related concepts were presented, namely
returnee entrepreneurs and transnational entrepreneurs. Although the concept of transnational
(diaspora) entrepreneurs uniforms new Argonauts phenomenon, the author focused its
research solely on new Argonauts, since he analysed linkages between Silicon Valleys (U.S.)
and Slovene entrepreneurial ecosystems.
Next to new Argonauts the author was also researching a concept of brain circulation, which
has developed from increased migration flows of skilled labour in the last 30 years and is seen
as a circular or a two-way process between home and host countries, in which both economies
might be better off. Brain circulation is perceived as a modern phenomenon of a former more
renewed theories such as brain drain, brain gain and brain strain.
In continuation, the paper focused on investigation and embeddedness of Slovene Argonauts
between Silicon Valleys and Slovene entrepreneurial ecosystems. By comparing Slovene
entrepreneurial ecosystem with Silicon Valleys, it was determined that the Slovene
ecosystem is still in very embryotic phase and that the Slovene new Argonauts just started to
emerge in the past decade. The author identified 3 distinctive groups of Slovene new
Argonauts, which are based on their working environment and strength of their collaboration:
58

Immigrated new Argonauts;

Foreign-based new Argonauts;
Home-based new Argonauts.

By exploratory research based on eight (8) in-depth interviews with representatives of

Slovene new Argonauts and representatives of Slovene entrepreneurial environment, it was
found that the networks and cooperation between Slovene new Argonauts and home-country
counterparts already exist. Furthermore, it was found that the new Argonauts are already
actively participating in transmission of business experience, know-how, skills and
connections back to Slovenia. They have showed a significant motivation for cooperation,
which is mainly based on their personal motives, with home-country counterparts. The role of
the new Argonauts in the Slovene entrepreneurial ecosystem was identified and presented
through a comprehensive model, which demonstrates the process of brain circulation,
transmission of knowledge, business experience, skills and connections back to Slovenia.
Moreover, based on the exploratory research, results and findings the author also proposed
five (5) initiatives and implications, which would enhance the development of brain
circulation processes in order to boost entrepreneurial development of Slovene ecosystem in
the future.
Additionally, the author searched for established entrepreneurial networks, which were
identified in formal and informal networks. It was found that informal networks are much
more dispersed and popular among the new Argonauts, as the transfer of knowledge, business
experience and connections is mainly based on personal level of individual entrepreneurs,
colleagues, or transmits through small informal or semi-formal communities. On the other
hand, formal networks are rare and the new Argonauts do not actively participate in them, or
their role is mainly supportive. Additionally, the research indicated strong motivational
factors and commitment of the new Argonauts, who already actively collaborate with the
Slovene entrepreneurial ecosystem. Their motivation was found in common progress of the
ecosystem, by helping younger generations of entrepreneurs towards business creation and by
investing time to their development. Furthermore, their motivation is based on strong
emotions towards home country, in creation of successful stories, an access to Slovene labour
market and on strong self-motivation. Nevertheless, the potential for future development of
networks and cooperation between the new Argonauts and Slovene entrepreneurial ecosystem
is prospective, since the current connections are moderate and offer a potential for
improvements. It was elaborated that by establishment of formal initiatives and networks the
collaboration would be enhanced, and would strengthen the two-way bridge between Slovene
ecosystem and Silicon Valley (the U.S.). It needs to be emphasised that the Slovene
ecosystem is rather young and new Argonauts have just started to emerge; therefore, Slovenia
could expect a further development of both in upcoming years.
Both hypotheses were supported. The research revealed that established networks and
cooperation with home-country counterparts positively contributes to transmission of business
59

experience, know-how, skills and connections back to Slovenia. As presented, Slovene new
Argonauts are motivated to collaborate with home-country counterparts and would be
encuraged to collaborate even stronger, if brain circulation processes and methods would be
further developed and implemented in the future.
At the end it is important to note that the topic of this study is fairly new and unexplored, and
has never been studied in the case of Slovenia. Further, a limited number of interviews were
conducted and analysed, and while the nature of this research project was exploratory, future
research incorporating a larger sample would be necessary before the final conclusions can be
generally applied.

60

REFERENCE LIST
1. Adams, S. P. (2011). Growing where you are planted: Exogenous firms and the seeding of
Silicon Valley. Research Policy, 40(3), 368379.
2. ASEF - About. Retrieved September 4, 2014, from http://www.ase-fund.org/about.html
3. ASEF Goals. Retrieved September 4, 2014, from http://www.ase-fund.org/goals.html
4. ASEF Board. Retrieved September 4, 2014, from http://www.ase-fund.org/board.html
5. Azmat, F. (2010). Exploring social responsibility of immigrant entrepreneurs: Do home
country contextual factors play a role? European Management Journal, 28(5), 377-386.
6. Baruch, Y., Budhwar, P. S., & Khatri, N. (2007). Brain drain: Inclination to stay abroad
after studies. Journal of World Business, 42(1), 99-112.
7. Bernard, N. (2006). Razvitost podjetniske kulture v Sloveniji [The development of an
entrepreneurial culture in Slovenia] (master thesis). Ljubljana: Faculty of Social Sciences,
University of Ljubljana.
8. Borstnik, M. (2013, January 16). V slovenski startup hisi v Silicijevi dolini je pestro
[Slovene startup house in Silicon Valley is active]. Mladi podjetnik. Retrieved July 19,
2014, from http://mladipodjetnik.si/novice-in-dogodki/novice/v-slovenski-startup-hisi-vsilicijevi-dolini-je-pestro
9. BoundBreaker - BoundBreaker Business Club. Retrieved July 19, 2014, from
http://www.boundbreaker.org/community
10. Boundbreaker. (n.d.). Slovenska hisa (Hisa) - Pomoc visokotehnoloskim podjetjem
namenjenim hitri rasti in prodoru na globalni trg [Slovene house]. Retrieved June 22,
2013,
from
http://www.boundbreaker.org/media/website/start-up-house-in-siliconvalley/Slovenska_hisa_SV-maj-2011.pdf
11. Chellaraj, G., Maskus, K. E., & Mattoo, A. (2005). Skilled Immigrants, Higher Education,
and
U.S.
Innovation.
Retrieved
June
23,
2014,
from
http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN022363.pdf
12. Cobik - Coinvest. Retrieved July 19, 2014, from http://www.cobik.si/dogodki/coinvest
13. Cohen, B. (2005). Sustainable valley entrepreneurial ecosystems. Business Strategy and
the Environment, 15(1), 1-14.
14. Couyoumdjian, J. P. (2012). Who walks out? Entrepreneurship in a global economy.
International Review of Law and Economics, 32(1), 158-165.
15. Dai, O., & Liu, X. (2009). Returnee entrepreneurs and firm performance in Chinese hightechnology industries. International Business Review, 18(4), 373-386.
16. Daugeliene, R., & Marcinkeviciene, R. (2009). Brain Circulation: Theoretical
Considerations. Inzinerine Ekonomika-Engineering Economics, 3, 49-57.
17. Dimovski, V., & Znidarsic, J. (2004). Entrepreneurship: An Educational Perspective (The
Case Of Slovenia Compared To Developed Economies). International Business &
Economics Research Journal, 3(7), 17-30.
18. Dobkins, L. H. (1997). Regional Advantage: Culture and Competition in Silicon Valley
and Route 128. Journal of Economic Behavior & Organization, 32(1), 161-163.
61

19. Dunnewijk, T. (2008). Global Migration of the Highly Skilled: A Tentative and
Quantitative Approach (UNU-MERIT Working Paper Series no. 70). Maastricht: United
Nations University - Maastricht Economic and social Research and training centre on
Innovation and Technology.
20. English-Lueck, J. A. (2000). Silicon Valley reinvents the company town. Futures, 32, 759766.
21. Erbeznik, G. (2010). Podporne institucije za podjetnistvo v Sloveniji in razvoj tveganega
kapitala kot alternativnega vira financiranja [Support institutions for entrepreneurship in
Slovenia and development of venture capital as alternative source of financing] (thesis).
Ljubljana: Univerza v Ljubljani, Ekonomska fakulteta.
22. Estonian Investment Agency - Coming to Estonia. Retrieved September 8, 2014, from
http://www.investinestonia.com/en/investment-guide/coming-to-estonia
23. Feldman, M. P. (2001). The Entrepreneurial Event Revisited: Firm Formation in a
Regional Context. Industrial and Corporate Change, 10(4), 861-891.
24. Felsenstein, D. (2003). National and Regional Economic Impacts of Silicon Valley.
Encyclopedia of Information Systems, 3, 225-237.
25. Fidelman, M. (2014, March 6). This Silicon Valley Accelerator Is The Model Of The
Future.
Forbes.
Retrieved
August
8,
2014,
from
http://www.forbes.com/sites/markfidelman/2014/03/06/this-silicon-valley-accelerator-isthe-model-of-the-future/
26. Geek House - 50.000 EUR convertible funds. Retrieved August 10, 2014, from
http://www.geekhouse.si/en/50000-eur-convertible-funds
27. GEM Slovenija 2012. (2013). Nezaznane priloznosti. Maribor: Univerza v Mariboru,
Ekonomsko-poslovna fakulteta.
28. Global Entrepreneurship Monitor. (2013). 2013 Global Report. Babson Park,
Massachusetts: Global Entrepreneurship Monitor.
29. Go:Global - Vsebina pospesevalnika [Go:Global Accelerator's content]. Retrieved
August 10, 2014, from http://www.goglobal.si/ggpospesevalnik/vsebina-pospesevalnika
30. Government of the Republic of Slovenia - About Slovenia. Retrieved September 5, 2014,
from http://www.vlada.si/en/about_slovenia/
31. Government of the Republic of Slovenia - Economy. Retrieved September 5, 2014, from
http://www.vlada.si/en/about_slovenia/economy/
32. Government of the Republic of Slovenia - Education. Retrieved September 5, 2014, from
http://www.vlada.si/en/about_slovenia/society/education/
33. Hwang, V. W., & Horowitt, G. (2012). The Rainforest: The Secret to Building the Next
Silicon Valley. Los Altos Hills, California: Regenwald.
34. Ibrahim, D. M. (2008). Financing the Next Silicon Valley. Washington University Law
Review, 87(4), 717-762.
35. Initiative Start:up Slovenia Kapital [Capital]. Retrieved August 10, 2014, from
http://www.startup.si/?cid=kapitalID
36. Inkpen, A. (2002). From the prune capital of America to Silicon Valley: Knowledge flows,
networks, and innovation. Thunderbird International Business Review, 44(4), 557-563.
62

37. Institut za raziskovanje podjetnistva. (2011). Uporabni napotki za raziskovalce, podjetnike

in tiste, ki se v podjetnistvo sele podajajo: Kaj in kdo je slovensko podporno okolje in kako
vam lahko pomaga pri realizaciji vasega inovativnega produkta oziroma storitve [Slovene
supportive environment]. Maribor: Institut za raziskovanje podjetnistva.
38. Internet Week - Startup ekosistem v Sloveniji [Internet Week Slovene startup
ecosystem]. Retrieved August 5, 2014, from http://www.internetweek.si/?p=1601
39. Isenberg, D. J. (2010). How to Start an Entrepreneurial Revolution. Retrieved July 27,
2014,
from
http://innomagazine.fundacionbankinter.org/akademia/books/pdfs/HowtostartanEntreprene
urialRevolution.pdf
40. Ivanc, S. (2012, December 7). Slovenska startup hisa v San Franciscu [Slovene Startup
House
in
San
Francisco].
Delo.
Retrieved
July
19,
2014,
from
http://www.delo.si/druzba/delova-borza-dela/slovenska-startup-hisa-v-san-franciscu.html
41. Kenney, M., Breznitz, D., & Murphree, M. (2013). Coming back home after the sun rises:
Returnee entrepreneurs and growth of high tech industries. Research Policy, 42(2), 391407.
42. Kordis, R. (2012, December 21). Podjetniski dnevnik Ronija Kordisa (5): Slovenska
startup hisa v San Franciscu [Entrepreneurship diary of Roni Kordis (5): Slovene Startup
House in San Francisco]. Dnevnik. Retrieved July 19, 2014, from
http://www.dnevnik.si/posel/gazele/podjetniski-dnevnik-ronija-kordisa-5-slovenskastartup-hisa-v-san-franciscu
43. Kotabe, M., Riddle, L., Sonderegger, P., & Tube, F. A. (2013). Diaspora Investment and
Entrepreneurship: The Role of People, Their Movements, and Capital in the International
Economy. Journal of International Management, 19(1), 3-5.
44. Lee, S. M., & Peterson, S. J. (2000). Culture, Entrepreneurial Orientation, and Global
Competitiveness. Journal of World Business, 35(4), 401-416.
45. Lin, X., & Tao, S. (2012). Transnational entrepreneurs: Characteristics, drivers, and
success factors. Journal of International Entrepreneurship, 10(1), 50-69.
46. Mahroum, S., Eldridge, C., & Daar, A. S. (2006). Transnational Diaspora Options: How
Developing Countries Could Benefit from their Emigrant Populations. International
Journal on Multicultural Societies, 8(1), 25-42.
47. Mann, A., & Luo, T. (2010). Crash and reboot: Silicon Valley high-tech employment and
wages, 200008. Monthly Labor Review, 133(1), 59-73.
48. Moore, G., & Davis, K. (2001). Learning the Silicon Valley Way. SIEPR Discussion Paper
No. 00-45. Retrieved June 22, 2013, from http://www-siepr.stanford.edu/papers/pdf/0045.pdf
49. OECD Better Life Index - Slovenia. Retrieved September 6, 2014, from
http://www.oecdbetterlifeindex.org/countries/slovenia/
50. Pavlin, C. (2014, June 20). Slovenski podjetniski sklad pet milijonov evrov za zagonska
podjetja [Slovene Enterprise Fund is offering 5 million to startups]. Delo. Retrieved
August 5, 2014, from http://www.delo.si/gospodarstvo/posel/slovenski-podjetniski-skladpet-milijonov-evrov-za-zagonska-podjetja.html
63

51. Pieretti, P., & Zou, B. (2009). Brain drain and factor complementarity. Economic
Modelling, 26(2), 404-413.
52. Pruthi, S. (2014). Social ties and venture creation by returnee entrepreneurs. International
Business Review, 23(6), 1139-1152.
53. Racunalniske novice - 2,4 mio za financiranje slovenskih start-upov [2.4 million for
Slovene startups investments]. Retrieved August 5, 2014, from http://www.racunalniskenovice.com/novice/dogodki-in-obvestila/24-mio--za-financiranje-slovenskih-startupov.html
54. Rebernik, M., & Jaklic, M. (2014). Start:up Manifest: Slovenia, ready for the future 2014 2020+. Retrieved July 29, 2014, from http://www.startup.si/doc/Start-up-Manifest_EN.pdf
55. Riddle, L., Hrivnak, G. A., & Nielsen, T. M. (2010). Transnational diaspora
entrepreneurship in emerging markets: Bridging institutional divides. Journal of
International Management, 16(4), 398-411.
56. Samli, A. C. (2009). Developing and Maintaining an Entrepreneurial Culture. In
International Entrepreneurship (pp. 55-64). Berlin: Springer Berlin Heidelberg.
57. Saxenian, A. (n.d.). The new Argonauts. Retrieved June 22, 2013, from
http://people.ischool.berkeley.edu/~anno/Papers/IMF_World_Bank_paper.pdf
58. Saxenian, A. (1994). Silicon Valley versus Route 128. The New Economy, 16(2), 25-26.
59. Saxenian, A. (2000). Silicon Valleys New Immigrant Entrepreneurs (Working Paper No.
15). San Diego: Center for Comparative Immigration Studies.
60. Saxenian, A. (2002a). Brain Circulation: How High-Skill Immigration Makes Everyone
Better Off. The Brookings Review, 20(1). 28-31.
61. Saxenian, A. (2002b). Silicon Valleys New Immigrant High-Growth Entrepreneurs.
Economic Development Quarterly, 16(20), 20-31.
62. Saxenian, A. (2002c). Transnational Communities and the Evolution of Global Production
Networks: The Cases of Taiwan, China and India. Retrieved July 20, 2014, from
http://people.ischool.berkeley.edu/~anno/Papers/INDUSTRY&INNOVATION.pdf
63. Saxenian, A. (2006). The New Argonauts: Regional Advantage in a Global Economy.
Cambridge, Massachusetts: Harvard University Press.
64. Saxenian, A. (2007). The International Mobility of Entrepreneurs and Regional Upgrading
in
India
and
China.
Retrieved
June
22,
2013,
from
http://people.ischool.berkeley.edu/~anno/Papers/International_Mobility_of_Entrepreneurs.
pdf
65. Saxenian, A., Motoyama, Y., & Quan, X. (2002). Local and Global Networks of Immigrant
Professionals in Silicon Valley. San Francisco, California: Public Policy Institute of
California.
66. Saxenian, A., & Sabel, C. (2008). Roepke Lecture in Economic Geography Venture
Capital in the Periphery: The New Argonauts, Global Search, and Local Institution
Building. Economic Geography, 84(4), 379-394.
67. Schmitt, N., & Soubeyran, A. (2006). A simple model of brain circulation. Journal of
International Economics, 69(2), 296-309.
64

68. Silicon Gardens - Silicon Gardens Fund. Retrieved July 19, 2014, from
http://www.silicongardens.si/angelski-sklad
69. Silicon Gardens Ecosystem 2013. Retrieved August 5, 2014, from
http://www.silicongardens.si/ecosystem2013/
70. Slovenski podjetniski sklad (2014). Javni poziv zainteresiranim kandidatom, da
kandidirajo za mentorja inovativnih start-up podjetij (start-up mentorja) [Public call for
startup
mentors].
Retrieved
August
22,
2014,
from
http://www.podjetniskisklad.si/datoteke/razpisi/drugo/Javnipozivkandidatomzamentorjaino
vativnihstart-uppodjetij.PDF
71. Solimano, A. (2007). Part II: Case Studies: Entrepreneurs, Scientists, Students, Health
Professionals, and Cultural Workers Retrieved July 20, 2014, from
http://people.ischool.berkeley.edu/~anno/Papers/International_Mobility_of_Entrepreneurs.
pdf
72. Startaj.si. (2014). Intervju: Profesor, ki slovenskim start-upom odpira vrata v Silicijevo
dolino [Interview: Professor, who helps Slovene startups to enter in Silicon Valley].
Retrieved July 19, 2014, from http://www.startaj.si/8802087/Intervju-Profesor-kislovenskim-start-upom-odpira-vrata-v-Silicijevo-dolino
73. Start:up Slovenija. (n.d.). Start:up Manifesto 2012: Partnerstvo za globalno konkurencni
nacionalni start-up ekosistem (povzetek) [Start:up Manifesto 2012: Partnership for global
competitiveness of Slovene startup ecosystem (summary)]. Retrieved June 22, 2013, from
http://issuu.com/startupslovenia/docs/startup_manifesto_povzetek_2012/1?e=7203443/1297817
74. Start:up Slovenija. (2014). Ustvarjamo gospodarsko prihodnost Slovenije [Creating
economic future of Slovenia]. Retrieved August 5, 2014, from http://www.startup.si/slsi/novica/21/ustvarjamo-gospodarsko-prihodnost-slovenije75. Statistical Office of the Republic of Slovenia. (n.d.). Meddrzavne selitve po starostnih
skupinah, drzavljanstvu in spolu, Slovenija, letno [International migration by age group,
citizenship and sex, Slovenia, annually]. Retrieved September 4, 2014, from
http://pxweb.stat.si/pxweb/Dialog/Saveshow.asp
76. Sternberg, R., & Mller, C. (2007). The new argonauts, their local and international
linkages and their impact on regional growth - empirical evidence from transnational
entrepreneurs returning to Shanghai/China. DIME WP 2.3 Workshop (pp. 1-22). Jena:
Max Planck Institute of Economics.
77. Study in Sweden. Retrieved September 6, 2014, from http://studyinsweden.se
78. Sweden - Sweden and migration in brief. Retrieved September 6, 2014, from
https://sweden.se/society/sweden-and-migration-in-brief/
79. Sweden - Work in Sweden. Retrieved September 8, 2014, from http://work.sweden.se/
80. Suresh, J., & Ramraj, R. (2012). Entrepreneurial Ecosystem: Case Study on the Influence
of Environmental Factors on Entrepreneurial Success. European Journal of Business and
Management, 4(16), 95-101.
81. Suzuki, K. I., Kim, S. H., & Bae, Z. T. (2002). Entrepreneurship in Japan and Silicon
Valley: a comparative study. Technovation, 22(10), 595-606.
65

82. Teferra, D. (2005). Brain Circulation: Unparalleled Opportunities, Underlying Challenges,

and Outmoded Presumptions. Journal of Studies in International Education, 9(3), 229-250.
83. Trading Economics - Exports of goods and services in Slovenia. Retrieved September 5,
2014, from http://www.tradingeconomics.com/slovenia/exports-of-goods-and-servicespercent-of-gdp-wb-data.html
84. Tung, R. L. (2008). Brain circulation, diaspora, and international competitiveness.
European Management Journal, 26(5), 298-304.
85. Ustvarjalnik - Ustvarjalnikovi podjetniski krozki [Ustvarjalnik's entrepreneurial clubs].
Retrieved August 10, 2014, from http://www.ustvarjalnik.org/podjetniskikrozki/
86. Valdez, J. (n.d.). The entrepreneurial ecosystem: toward a theory of new business
formation.
Retrieved
July
25,
2014,
from
http://www.sbaer.uca.edu/research/sbida/1988/pdf/11.pdf
87. Vertovec, S. (2002). Transnational Networks and Skilled Labour Migration. Retrieved July
22,
2014,
from
http://www.transcomm.ox.ac.uk/working%20papers/WPTC-0202%20Vertovec.pdf
88. Voert, N. C. G. (2010). Institutional Foundations of Varieties in Entrepreneurship: A Case
Study of Hungary and Slovenia (master thesis). Utrecht: Utrecht University.
89. Vogel, P. (2013). The Employment Outlook for Youth: Building Entrepreneurial
Ecosystems as a Way Forward. Conference Proceedings of the G20 Youth Forum (pp. 113). St. Petersburg, Russia.
90. Wadhwa, V., Saxenian, A., Rissing, B., & Gereffi, G. (2007). Americas New Immigrant
Entrepreneurs. Master of Engineering Management Program, Duke University; School of
Information,
U.C.
Berkeley.
Retrieved
June
22,
2013,
from
http://people.ischool.berkeley.edu/~anno/Papers/Americas_new_immigrant_entrepreneurs
_I.pdf
91. Wadhwa, V., Rissing, B., Saxenian, A., & Gereffi, G. (2007). Education, Entrepreneurship
and Immigration: Americas New Immigrant Entrepreneurs, Part II. Master of Engineering
Management Program, Duke University; School of Information, U.C. Berkeley. Retrieved
June
22,
2013,
from
http://people.ischool.berkeley.edu/~anno/Papers/Americas_new_immigrant_entrepreneurs
_II.pdf
92. World Bank and IZA. (2005). Brain Gain: Claims about Its Size and Impact on Welfare
and Growth Are Greatly Exaggerated. Retrieved June 23, 2014, from
http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-3708
93. Wonglimpiyarat, J. (2006). The dynamic economic engine at Silicon Valley and US
Government programmes in financing innovations. Technovation, 26(9), 10811089.
94. Zacharakis, A. L., Shepherd, D. A., & Coombs, J. E. (2003). The development of venturecapital-backed internet companies: An ecosystem perspective. Journal of Business
Venturing, 18(2), 217-231.
95. Zhang, J. (2003). High-Tech Start-Ups and Industry Dynamics in Silicon Valley. San
Francisco, CA: Public Policy Institute of California.
66

96. Zhatkanbaevaa, A., Zhatkanbaevab, J., Zhatkanbaev, E. (2012). The impact of

globalization on "brain drain" in developing countries. Procedia - Social and Behavioral
Sciences, 47, 1490-1494.
97. Zupanic, M. (2012, October 6). Slovenci mnozicno zapuscajo Slovenijo [Many Slovenes
are
leaving
Slovenia].
Delo.
Retrieved
September
4,
2014,
from
http://www.delo.si/novice/slovenija/slovenci-mnozicno-zapuscajo-slovenijo_1.html
98. Zweig, D., Fung, C. S., & Han, D. (2008). Redefining the Brain Drain: Chinas Diaspora
Option. Science, Technology & Society, 13(1), 1-33.

67