Last week Kawasaki answered the following questions from the Advertiser about the challenges Hawai'i faces in building a technology industry:

Q. How can local entrepreneurs reach out to the financial infrastructure on the Mainland and yet remain Hawai'i companies?

A. Local entrepreneurs should not stipulate that the company remain in Hawai'i. The goal is to create a great company, not "a great company in Hawai'i." This may be by creating and maintaining the company in Hawai'i. It may be by moving the company to the Mainland. But entrepreneurs have to understand something: You do what's right for the company, and this means not limiting the company's growth by refusing to move it.

When Israelis want to build a great company, they often move it to the U.S. They may keep development in Israel, but many of the functions move to the U.S. If you said, "I want to be a great actor, but I have to live in Hawai'i," then you've limited yourself to fewer roles. You have to go to where the action is.

Q. What major advantages and disadvantages does the state face in building a technology industry?

A. The major advantage is the high level of education of the workforce, and, frankly, the lack of competition for this workforce. Hawai'i should do everything it can to foster a world-class higher education system if it wants a tech industry. Don't fiddle with tax breaks and short-term fixes. Pour money into the University of Hawai'i. When you have a highly educated workforce, the people will come up with clever ideas, and these ideas will attract investors.

The major disadvantage is that "swing-for-the-fence" entrepreneurship is less ingrained in people in Hawai'i. In Silicon Valley, people wonder why you've worked for the same company for 10 years. In Hawai'i, people wonder why you'd quit a company that you've worked at for 10 years. Hawai'i needs more local Bill Gates (types) who can be heroes and role models, to show Hawai'i's youth that entrepreneurship is a desirable career path.

Q. Is there any one chapter in your book that you would recommend people read in particular, and why?

A. The most important chapter is the first one. It explains how and why to "make meaning." That is, to start something that makes the world a better place and not just try to make money. If you can understand this, then the rest of the book becomes more valuable.

Q. Could you update us on the progress of one of your investments, Hoku Scientific?

A. It's doing quite well. We're very happy and proud to be an investor in Hoku Scientific. Ironically, it's in Kalihi Valley — right where I grew up.

Q. Does Garage have any other Hawai'i investments? Do you see any other potential investments in Hawai'i?