the entrepreneurial university technoentrepreneurship: latest findings and avenues of development:...

The Entrepreneurial University

Technoentrepreneurship: Latest Findings and Avenues of Development: Research and Practice

case: Venturelab TwenteProf. Dr. Aard J. GroenHead of department Entrepreneurship, marketing, strategy and international managementScientific director NIKOS,

[email protected]


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


!

Healthcare@UT MESA+

BMTI

embeddedsystems

CTIT

regenerative- medicine

nano-medicine

IGS-NIKOS

behavioral research; users, communication, learning

! ImpactMechanics,processes,and control

IBR business development & technology dynamics


Entrepreneurial University excels in generating spin-off companies… but they remain small!

only moderate effect on regional employment

76 78 80 82 84 86 88 90 92 94 96 98 00 02 04

600

500

400

300

200

100

0

Spin-off Companies University of Twente

spontaneous spin-off spin-off using TOP programme


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


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?


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?


Resources: components vs. sets

• 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?


What we have: opportunities in a VL

• 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


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?


Challenges

• Making data collection unobtrusive• Integrating data collection with the program• Producing valid and generalizable results


Research possibilities

• Diary / logbook• Participant observation• Assessments • Questionnaires• Interviews• Secondary analysis of project data• Follow-up questionnaires • …


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


Business model (e.g., Osterwalder)

• Value proposition• Target customer• Distribution channel• Relationship• Value configuration• Capability• Partnership• Cost structure• Revenue model


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?

• 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


Questions

• Experiences?• Could this work?• Suggestions?• Related studies?• Contribute?

VentureLab Twentemain 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

Entrepreneurial needs (4S model NIKOS)

Entrepreneur and

Enterprise

Not market oriented

Scope: from idea

to Strategy

SocialNetwork-Contacts

Skills:Patterns of

Organisation

Scale: EconomyFinancial

means

• Ideas• Assessing the opportunity • Strategic processes• Business plan

• Culture, values, norms• Facilities• Personelarrangements

& Systems • Knowledge

Contacts with:• Clients• Suppliers• Experts• Colleagues• Support agents

• Own capital • Bridging development

period• Financing investments

- Venture Capital- Loans

Mono-disciplinaryTeams (tech)Management skills

Strategic driftTechnology/marketSmall ambition

“Death valley”Long time to marketHigh cost - high riskUnsufficient funding

Academic networks Small markets No networks

But companies often underperform

VLT CONCEPT

Theory based on social system theory and entrepreneurship lit. (a.o. Groen c.s., 2005, 2008, 2009)

VLT instruments for success

Entrepreneur,team andEnterprise

Coaching, Training,

Team building& Courses

Scope: from idea

to Strategy

SocialNetwork-Contacts

Skills:Patterns of

Organisation

Scale: EconomyFinancial

means

• Culture, values, norms• Facilities• Personelarrangements

& Systems • Knowledge

• Ideas• Assessing the opportunity • Strategic processes• Business plan

Contacts with:• Clients• Suppliers• Experts• Colleagues• Support agents

• Own capital • Bridging development

period• Financing investments

- Venture Capital- Loans

Knowledge Office space/labsOrganisationalsupport

Strategic Coach

Access to:Soft loansParticipationVenture capital

IntroductionsBrokerageCommunity Networks

VLT CONCEPT


VA

LU

EC

RE

AT

ION

Key success factor for value creation.. focus on personal skills & team skills

Opportunity recognition

Opportunity preparation

Opportunity exploitation

CTO/COOCulture Capital

CFO

Economic Capital

CEO

Strategic Capital

CMOSocial Capital

VLT CONCEPT


Value Creation model of VLT

YOURVALUE

YOURIDEA

VLT support

VLT CONCEPT

Value creation support.. unique and integral approach

CoachingGuidance

M

T/O €

S

OfficesLabs

ResourcesCapital

Pers. skills

Team skills

CommunityNetworks

S = StrategyM = MarketingT = TechnologyO = Operations€ = Finance

VLT CONCEPT

Coaching & guidance key for success

InternalDevelopment

ExternalEnvironment

coaching

guiding

VLT CONCEPT

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 ofconcept

• 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

Wide range of participants

Proof ofconcept

Tailor made to need of company.. (1) Aviation and biofuel

Ambition: Aviation school, Testing facilities for biofuel, Air carrier based on biofuel, Demoflight USAEU on Biofuel

Support focus1. Relocation to Twente2. Development of business model3. Introduction in networks

• Partners for collaboration: producers, researchers, etc

4. Corporate finance5. Team development and training

2

1 3, 4

5

Proof ofconcept

Tailor made to need of company.. (2) 3-D printing

Ambition: Company on printing 3-D products for industry, health care, consumers (via web)

Support focus1. Business skills2. Development of business model3. Set-up 3-D expertise centre with UT, supplier, .. 4. Relocation equipment, engineers to Twente5. Corporate finance

2,3

1

3, 54

Proof ofconcept

Tailor made to need of company.. (3) Corporate Venturing

Ambition: Spin-out activity of large company

Support focus1. Business skills2. Development of business model3. Team building for new company 4. Introduction into relevant networks

2,4

1

4

3

Proof ofconcept

Tailor made to need of company.. (4) Soft Landing

Ambition: Establish subsidiary in Twente (Europe)

Support focus1. Guidance2. Facilities (incubator, office and/or production)3. Introduction into relevant research and

business networks

1

2 3

Proof ofconcept

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… future owners of a fast growing high-tech companyVLT for YOU!

Participants

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 projectPromotors:• Subsidy of € 28.000 : EU, Province of

Overijssel, Twente region, Saxion University, University of Twente (Nikos)

VLT for YOU!Costs


Benefit for government • Economic development & employment• Sustainable, future-oriented business• Research on successfull entrepreneurship

and economic development (Nikos)


VLT for economy

New company Existing company

Soft landingCorporateVenturing

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the entrepreneurial university technoentrepreneurship: latest findings and avenues of development:...

Documents

entrepreneurship slide

university coordinate

entrepreneurial networks

igs entrepreneurship

avenues of development

nikos research training

international perspective

micro level slide