Transcript Document

Technoentrepreneurship: Latest
Findings and Avenues of
Development: Research and
Practice
case: Venturelab Twente
Prof. Dr. Aard J. Groen
Head of department Entrepreneurship, marketing, strategy and international
management
Scientific director NIKOS,
[email protected]
The Entrepreneurial University
How to stimulate growth in high tech based firms?
• Laissez faire, the invisible hand of the market will do
its work
• Governmental intervention, The visible hand steers
the region: e.g.transfer state service organisations to
the region; or start an university
• Co-ordinate many visible hands by building
entrepreneurial networks on micro level
The Entrepreneurial University
Healthcare@UT
MESA+
nanomedicine
business
development &
technology
dynamics
IGSNIKOS
embedded
systems
behavioral
research; users,
communication,
learning
CTIT
IBR
!
Impact
!
regenerativemedicine
Mechanics,
processes,
and control
BMTI
The Entrepreneurial University
Entrepreneurial University excels in generating
spin-off companies
… but they remain small!
 only moderate effect on regional employment
Spin-off Companies University of Twente
600
500
400
300
200
100
0
76
78
80
82
84
86
spontaneous spin-off
88
90
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94
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98
00
02
04
spin-off using TOP programme
The Entrepreneurial University
Research approach combined with practice
orientation
• Engaged Scholarship (Andrew Van de Ven, 2008)
• Quasi-experimental research: theory guided design
of support instruments
• Practice oriented implementation: entrepreneurs will
join a business development facility
• Longitudinal measurement of processes
• Measurement instruments which are practical usefull
e.g. diary for preparing coach meetings
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Research questions
1. Process: how do causation and effectuation approaches to
entrepreneurship appear in practice and can differences in
approaches explain firm survival and growth?
2. Resources: to what extent do types of resources and
capabilities and combinations thereof explain firm survival and
growth?
3. Team: to what extent is the composition of start up teams
explaining differences in firm survival, growth?
4. Networking: how can differences in early networking of
entrepreneurs explain differences in business performance?
5. Internationalization: what is the role of early
internationalization for high tech high growth entrepreneurial
processes?
6. Method: Can we design a working method of stimulating
entrepreneurship?
The Entrepreneurial University
Process: causation vs. effectuation
Dimension
Causation model
Effectuation model
Starting point
Ends are given
Means are given
Assumptions on future
Predictability means
controllability
Controllability reduces need to
predict
Predisposition to risk
Expected return
Affordable loss
Domain
Existing products and
markets
New products and markets
Attitude toward outside
firms
Competition
Cooperation
Type of model
Linear
Cyclical
How do causation and effectuation approaches to
entrepreneurship appear in practice and can differences
in approaches explain firm survival and growth?
The Entrepreneurial University
Resources: components vs. sets
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Economic capital (money, production factors, ideas)
Strategic capital (goals, power)
Social capital (networks, contacts)
Cultural capital (knowledge, routines)
• Basic functionalist premises:
– All four types need to be present
– The value of a resource depends on its function
To what extent do types of resources and capabilities and
combinations thereof explain firm survival and growth?
The Entrepreneurial University
What we have: opportunities in a VL
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Groups of entrepreneurs together in one building
Early phase entrepreneurship, before idea generation
Data on entrepreneurs and on ventures
Control of training, coaching and facilities
Lifetime relation with developed businesses
Real-time a priori data before success is known
3 months of daily contact, followed by a long period
of less intensive contact
• Several batches: theory building and theory testing
The Entrepreneurial University
What we also have: restrictions in a VL
• Ethical duty to give the best we can
– Can we do experiments?
• Practical relevance that is leading
– Scientific contribution and approach?
• Many stakeholders
– How to maintain research focus?
• Busy entrepreneurs interested in starting a business
– Time for participating in research?
• A very specific non-natural environment
– Generalizability?
The Entrepreneurial University
Challenges
• Making data collection unobtrusive
• Integrating data collection with the program
• Producing valid and generalizable results
The Entrepreneurial University
Research possibilities
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Diary / logbook
Participant observation
Assessments
Questionnaires
Interviews
Secondary analysis of project data
Follow-up questionnaires
…
The Entrepreneurial University
Suggested approach
• Central structure for data collection: business model
– Main output for participants: viable business
model and plan
– Facilitating reflection and learning
– Monitoring progress by coaches
– Record of development of the firm
– Program is built around it
• Complementary data
– Business plans
– Business plan presentations & evaluations
The Entrepreneurial University
Business model (e.g., Osterwalder)
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Value proposition
Target customer
Distribution channel
Relationship
Value configuration
Capability
Partnership
Cost structure
Revenue model
The Entrepreneurial University
Diary questions
• What is the intended business model (value proposition, target
customer, …) today?
• To what extent has this changed since the last time?
• Why did it change?
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I talked to…and he/she/they said…
I heard/read…and learned that…
I thought about…and found out that…
I did a formal research and…that showed that…
I did…and found out that…
I followed …training and there I learned that…
I…
• What did you realize so far?
– Resources & capabilities
The Entrepreneurial University
Questions
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Experiences?
Could this work?
Suggestions?
Related studies?
Contribute?
The Entrepreneurial University
VentureLab Twente
main hypothesis: supporting four crucial
functions of entrepreneurial system will improve
growth rate
This project is made possible by contributions of the European Union and the Province of Overijssel
But companies often
Entrepreneurial
needsunderperform
(4S model NIKOS)
•Mono-disciplinary
Culture, values, norms
• Facilities
(tech)
•Teams
Personelarrangements
Management
skills
& Systems
•
Knowledge
Skills:
Patterns of
Organisation
Contacts
with: networks
Academic
• Clients
markets
•Small
Suppliers
networks
•NoExperts
• Colleagues
• Support agents
VLT CONCEPT
Scope:
from idea
to
Strategy
Entrepreneur
Not market
and
oriented
Enterprise
Social
NetworkContacts
Theory based on social system
theory and entrepreneurship lit.
(a.o. Groen c.s., 2005, 2008, 2009)
• Ideas
Strategic
drift
• Assessing the opportunity
Technology/market
• Strategic processes
Small
ambition
• Business
plan
Scale:
Economy
Financial
means
• Own capital
“Death
valley”
• Bridging development
Long
periodtime to market
High
costinvestments
- high risk
• Financing
- Venture Capital
Unsufficient
funding
- Loans
VLT instruments for success
• Culture, values, norms
Knowledge
• Facilities
Office
space/labs
• Personelarrangements
& Systems
Organisational
• Knowledge
support
Skills:
Patterns of
Organisation
Contacts with:
Introductions
• Clients
•Brokerage
Suppliers
•Community
Experts
• Colleagues
•Networks
Support agents
VLT CONCEPT
Scope:
from idea
to
Strategy
Coaching,
Entrepreneur,
Training,
teambuilding
and
Team
Enterprise
&
Courses
Social
NetworkContacts
Theory based on social system
theory and entrepreneurship lit.
(a.o. Groen c.s., 2005, 2008, 2009)
•Strategic
Ideas
Coach
• Assessing the opportunity
• Strategic processes
• Business plan
Scale:
Economy
Financial
means
•Access
Own capital
to:
• Bridging development
Soft
loans
period
•Participation
Financing investments
- Venture Capital
Venture
- Loans capital
VALUE
CREATION
Key success factor for value creation
.. focus on personal skills & team skills
VLT CONCEPT
Strategic Capital
Economic Capital
CEO
CFO
Opportunity
recognition
Opportunity
preparation
Opportunity
exploitation
CTO/COO
CMO
Culture Capital
Social Capital
Theory based on social system
theory and entrepreneurship lit.
(a.o. Groen c.s., 2005, 2008, 2009)
Value Creation model of VLT
YOUR
IDEA
YOUR
VALUE
VLT support
VLT CONCEPT
Value creation support
.. unique and integral approach
M
S
Pers. skills
T/O
€
Team skills
Coaching
Guidance
Offices
Labs
Resources
Capital
VLT CONCEPT
Community
Networks
S = Strategy
M = Marketing
T = Technology
O = Operations
€ = Finance
Coaching & guidance key for success
Internal
Development
External
Environment
VLT CONCEPT
coaching
guiding
Therefor: VLT design
… addressing all shortcomings
• Early stage support from (international)
trainers, personal coaches and experts
– Business planning, marketing, production, finance, etc
– Competences and skills
• Building of and working with
multidisciplinary entrepreneurial teams
– Partnerships
• Dynamic entrepreneurial community
– Office and lab (high tech factory) facilities
– Stimulating environment and networks
– Clients and finance
VLT CONCEPT
Successfull launch of VLT:
18 entrepreneurs and 16 companies
Proof of
concept
Wide range of participants
Proof of
concept
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Aviation and Bio fuel
3-D printing
E-commerce (internet platforms)
Remote sensoring/measurement
Energy information systems
Identity management
Synthetic seeds
Solar energy
Insulation/Cooling
Simultaneous multi-language translations
etc
Tailor made to need of company
.. (1) Aviation and biofuel
Ambition: Aviation school, Testing facilities for
biofuel, Air carrier based on biofuel,
Demoflight USAEU on Biofuel
5
Support focus
1. Relocation to Twente
2. Development of business model
3. Introduction in networks
•
Proof of
concept
2
1
3, 4
Partners for collaboration: producers, researchers, etc
4. Corporate finance
5. Team development and training
Tailor made to need of company
.. (2) 3-D printing
Ambition: Company on printing 3-D products for
industry, health care, consumers (via web)
1
2,3
Support focus
3, 5
4
1. Business skills
2. Development of business model
3. Set-up 3-D expertise centre with UT, supplier, ..
4. Relocation equipment, engineers to Twente
5. Corporate finance
Proof of
concept
Tailor made to need of company
.. (3) Corporate Venturing
Ambition: Spin-out activity of large company
1
Support focus
1. Business skills
2. Development of business model
3. Team building for new company
4. Introduction into relevant networks
Proof of
concept
3
2,4
4
Tailor made to need of company
.. (4) Soft Landing
Ambition: Establish subsidiary in Twente (Europe)
1
2
Proof of
concept
3
Support focus
1. Guidance
2. Facilities (incubator, office and/or production)
3. Introduction into relevant research and
business networks
Who can participate?
• Starting entrepreneurs
• Experienced entrepreneurs
• Employees of larger firms (BD/NPD)
… “corporate venturing”
• Soft landings
• Graduate students in engineering, MBA,
sciences, arts, …
• Specialists in marketing, finance, ….
• Individuals as well as teams
VLT for YOU!
Participants
… future owners of a fast growing
high-tech company
What are the costs for VLT start-ups?
• Total costs: € 30,000 per participant
Start-up contribution is:
• Enrollment fee of € 2,000
• Provide your personal income during
project
Promotors:
• Subsidy of € 28.000 : EU, Province of
Overijssel, Twente region, Saxion
University, University of Twente (Nikos)
VLT for YOU!
Costs
This project is made possible by contributions of the European Union and the Province of Overijssel
Benefit for government
• Economic development & employment
• Sustainable, future-oriented business
• Research on successfull entrepreneurship
and economic development (Nikos)
VLT for
economy
This project is made possible by contributions of the European Union and the Province of Overijssel
New company
Existing company
Master TV
Summerschool
Corporate
Venturing
Soft landing