Two Arizona-based entrepreneurs are launching a new venture capital firm that focuses on technology startups. They believe Phoenix and Arizona are not keeping up with other states and regions across the country with investing in intellectual capital.

Doug Gilbeau, a managing partner with E&I ventures, said what makes a community competitive is not necessarily creating some new technology, like a piece of software, but teaching others how to use existing technology to create competency with the resources available.

“If we want to transform an economy, say for example, in the state of Arizona, it’s not always about building things with your hands. It can be just as important to build things with your mind. Or, teach people how to build things with your mind,” Gilbeau said.

Arizona is behind because the state lacks this kind of intellectual investment on a large scale, he said, and that Arizona needs to get out of the mindset that to grow economically, you have to build a new building.