Transcript Slide 1
New Paradigms in
Business Incubation
May 2010
New Paradigms in Business
Incubation
Evolution 1980 - Present
‣ Beginning
‣ 1989
‣ 1995
‣ 2000
‣ 2002
‣ Today
Future
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New Paradigms in Business
Incubation
In The Beginning
‣ Incubation
- Building
‣ Entrepreneurs
- Small business
- “Mom and Pop”
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New Paradigms in Business
Incubation
@ 1989
‣ Incubation
- Building + Service
‣ Entrepreneurs
- Any type of business
‣ Value-add
- Incubator Director
- Know-how network (service providers)
‣ Metrics
- Jobs created
- Space occupied
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New Paradigms in Business
Incubation
@1995
‣ Incubators
- Specialized by industry, e.g., biotechnology, etc.
‣ Entrepreneurs
- Aligned with target industry
‣ Value-add
- Incubator Director
- Know-how
- Limited industry specific expert(s)
‣ Metric
- Jobs created
- Investment $ raised
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New Paradigms in Business
Incubation
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@ 2000
‣ Incubators
- Virtual
- For profit
‣ Entrepreneurs
- Internet targeted firms
‣ Value-add
- Know-how
- Clustering of similar firms
‣ Metrics
- Time to exit/liquidity
NOTE: Mass failure of publicly traded incubators as well as for-profit within two years
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New Paradigms in Business
Incubation
@2002
‣
Incubators
- Specialized by industry/market verticals
‣
Entrepreneurs
- Industry experienced
‣
Value-add
- Industry specific incubator Director
- Incubator advisory boards
- Know-how
- Social network/orgs.
- Early consulting to firms
‣
Metrics
- Impact of region
- Wealth creation
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New Paradigms in Business
Incubation
Now
‣ Incubators
- Incubators within incubators
- Greater consulting world
- Physical building
- Virtual
- Industry specific
‣ Entrepreneurs
- Highly experienced
- Little experienced in business
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New Paradigms in Business
Incubation
Now cont’d
‣ Value-add
- Providing specialized services by skill and industry
- Forming industry vertical advisory boards
- Assisting clients with forming advisory boards
- Networking
- PR and using media (social and traditional) to get the companies known
- Access to capital
‣ Metric
- Jobs
- New industry clusters, e.g., Cleantech
- Wealth creation
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New Paradigms in Business
Incubation
ETF – Total $ granted to Affiliates of IC² Institute since inception of ETF
YEAR
2006
Company
$ granted
Molecular Imprints
$
3,000,000.00
Monebo Technologies
$
500,000.00
2007
Xtreme Power
$
2,000,000.00
2008
RFMicron,
$
925,000.00
Terapio Corp
$
1,700,000.00
Xitronix
$
500,000.00
Agile Planet
$
1,000,000.00
AnaLogix Development Corp
$
1,000,000.00
Note: two other companies awarded
this year but not pubic
$
2,000,000.00
$
1,000,000.00
$
13,625,000.00
2009
Merkatum
Total awarded by ETF
to IC²/ATI/GCG
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TechBA Program
Market Acceleration through Physical Presence
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GCG, in conjunction with the United States-Mexico Foundation for
Science (FUMEC), operates a technology business accelerator at
UT at Austin. TechBA-Austin is sponsored by the Mexican Ministry
of Economy.
2006 - Present
TechBA-Austin brings representatives of established Mexican
technology businesses to Austin and provides them with office
space and support for accelerating their businesses in the US and
international markets.
TechBA-Austin has operated since 2005 and has worked with over
50 Mexican companies. New companies are assessed and
admitted as space becomes available.
In the past three years, TechBA-Austin has generated over $40M
in revenue for participating companies.
Recently, a company was funded from Texas' Emerging
Technology Fund.
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2
IC Programs
Around the Globe
Poland
Hungary
Portugal
Middle
Egypt
East
India
USA
Mexico
S. Korea
Malaysia
Brazil
Chile
We measure ourselves by business results generated
Currently active programs in 6 countries
Over 100 foreign technology commercialization agreements in 3 years
Four Pillars of Success
1. Global Competitiveness
2. Access to Capital
Develop human capital
Identify most competitive
technology
Pursue most effective, global
commercialization strategies
Develop the Business capital
to support entrepreneurs:
Incubators, TTO, Accelerators,
Centers of Excellence
Develop angel and venture
capital investment funds
Attract economic development
resources (IDB etc.)
Create conditions conducive to
investments in all stages of
venture development
Goals Achieved
1
2
Successful Eco-System
3
4
3. Access to Markets
Position your companies in
external markets
Develop global business
development resources
Lower barriers to service &
product delivery
Strengthen local markets
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4. Sustainability & Momentum
Develop effective know-how to
support the ecosystem – train the
trainers
Train the entrepreneurs – develop a
commercialization culture
Develop global business
partnerships & global access networks
Develop global advisory networks
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Program Results
• Technology transfer, integration and
adaptation in the country
• Know-how transfer and high-skilled
job creation in country
• Long-term sustainability leading to
improved economic value-add
• Business results leading to
enhanced cooperation between local
and international companies
• Access to global markets resulting
in foreign investment
• Specialized training contributing to
the development of a more efficient
and productive labor force
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New Paradigms in Business
Incubation
Future Firms
‣ Firm will require greater degree of “soft-landing” help in both directions (U.S. to
Portugal and Portugal to U.S.)
- Foreign filing
✓ Company formation
✓ Controlling cost
✓ Product standards and compliance
✓ IP standards
✓ Labor laws
✓ Tax
✓ Attracting capital
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New Paradigms in Business
Incubation
Future Firms cont’d
‣ Greater emphasis on creating new firms by incubators rather than wait for
firms to apply
‣ Industry based value add networks will become of greater importance for
faster success to firms
‣ Access to capital will be localized even for “soft-landing” companies
‣ Early stage capital sourcing needs to be addressed
‣ Every geographic location will need to “brand” its dominant feature and get
the message out e.g., “Ireland is the gateway to European markets”
‣ There will be greater amount of near sourcing services
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New Paradigms in Business
Incubation
Future Incubators
‣ Incubators will align with international partners by either market or industry
requirements
‣ Incubators will host foreign incubators as well as firms within their premises
‣ Networks of incubators will form international alliances
‣ Incubators will proactively need to work on new business creation with TTOs and
students (new programs, training, and services will be required)
‣ Incubators will proactively partner on bringing global entrepreneurial economic
development program to their regions
‣ Exchange incubator team members to experience/understand international locations
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India Innovation Growth Program
Ray Johnson
Corporate Social Responsibility Program
Sr. VP & CTO, Lockheed Martin
for Lockheed Martin in India
“The success of this program is
2006 - Present
directly attributable to the strong
partnership formed between industry,
government and academia. It
provides world-class teaching on
innovation strategy with global
business opportunities. This
partnership has enabled new ideas to
cross international borders.”
Dr. Abdul Kalam
Former President of India
“At a time when the world is
struggling with economic recession,
what we need is innovation. And
knowledge is powered by technology
and innovation.”
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Korea - Gyeonggi Province
Program
Global Competitiveness Program
Gyeonggi Province Government
2008 - Present
• Action – Learning program for talented
scientists & engineers to successfully
commercialize new technologies into
global marketplace
• Enhance and promote Korean
entrepreneurship
• Identify promising technology start-up
companies
• Match innovation to complimentary US
companies
Governor Kim & UT Vice Chancellor McDowell
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Innovation Program
Collaboration between:
Chilean Economic Development
Agency (CORFO)
Innovation Committee (INNOVA)
Lockheed Martin Aerospace
IC2 Institute
• Identify, assess and commercialize highcaliber research and development projects in
11 universities.
• Elevate importance of entrepreneurial
endeavors to long-term growth of the
Chilean economy and train entrepreneurs.
• Match Chilean enterprises with technology
and global issues outside Chile.
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Laura J. Kilcrease
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2009 - 2010
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New Paradigms in Business
Incubation
Questions?
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