UNIVERSITIES AND ENTREPRENEURIAL ECOSYSTEMS,

FOCUSING EFFORTS

Jose Sepulveda PhD., MBAMarch 26th, 2013 D-ETM NUS

WHY ARE TECHNOLOGY STARTUPS GOOD FOR THE

ECONOMY?

JOBS

• Create jobs at a higher rate

• Create jobs that pay higher salaries

• Employ higher skills

STRATEGY

• Plan for future expansion

• Spend more on research

• Use and produce advanced technologies

ECONOMIC

• Produce new products focusing on external markets

• Produce greater revenues

• Their products have a lower impact on the environment

BENEFITS

• The population that becomes more skilled

• Revenues from external markets come into the economy

• Products have less impact on the environment

EXAMPLES

• MIT - 33,600 companies founded (76%) still exist. 3.3 million jobs. Annual worldwide revenues of $2 trillion. Equivalent to the 11th largest economy in the world.

• Stanford - 39,900 active companies. 5.4 million jobs. Annual world revenues of $2.7 trillion. Equivalent to the 10th largest economy in the world.

• Israel - population 7.7 million. 3,800 startups accounting for 40% exports. Attracts more venture capital per person than any country around the world

WHAT MAKES CERTAIN ENVIRONMENTS GOOD FOR

ENTREPRENEURSHIP?

WHAT IS THE FOUNDATION?

CULTURE

• Entrepreneurs are pro business and don’t like working as employees

• Independent characters remain unsuited for traditional jobs

• Entrepreneurial jobs can produce more returns than a regular job

• Parents in traditional jobs pressure children to find secure jobs

• Entrepreneur status  vs traditional job (shame culture)

• Security of a regular job to have access to material goods (averse risk)

INDIVIDUALS

• Entrepreneurial character of individuals

• Hard working and persistent

• Ability to identify opportunities

• Ability to manage and minimize risk

• Business skills to design a detailed business plan and to be able to modify it.

POLITICAL & ECONOMIC

• Political stability

• Good infrastructure (roads, power, communication)

• Legislation (ease to start a company, IP, tax) + lack of corruption

• Purchasing capabilities (market)

• Economic power affects the market and the availability of venture funds

RESOURCES

• Skilled workforce

• Physical infrastructure

•Market

• Capital

FROM GOOD TO GREAT

CREATIVITY

• Creativity replaces labour

• Creatives are the source of startup communities

• Innovators create new products, start new companies, and pioneer new markets

DIVERSITY

• Innovative economies (technology, talent, open to new ideas)

•Domain experts, intellectually receptive, ethnical diversity, political openness

•Meritocracy system

• Homogeneous groups have no potential for change and flow

DENSITY

• Economies of scale

•Network effect - bigger networks give more value interaction and sharing

• Horizontal networks, that adapt faster

• Creatives want - outdoor opportunities, new ideas, active social scene, and other creatives

INCLUSIVENESS

• Inclusiveness mentality - non zero sum game

•Opposite to hierarchical leadership

RESULT

• High credibility attracts more funds

• Attracts more creatives and talent

• Startups are more confident and get more for their work (sell late)

• Stock options are a currency

• Safe social support structures - “if this startup doesn’t work, there are 50 others that will give me a job”

• Less startup credibility makes it more difficult to bring people in

THESE ENVIRONMENTS SHOULD GET TO A CRITICAL MASS WHERE GROWTH AND

GRAVITY PRODUCES A CHAIN REACTION

HOW ARE ENTREPRENEURSHIP ENVIRONMENTS CREATED?

SYSTEMIC APPROACH TO EDUCATION

• Liberal arts education - broad world view - opportunity to test ideas and do research

• MIT motto - mens et manus. Engineering == Science

• Finland’s high standard of education geared towards solving problems in real life  

• Israel: challenge the obvious, ask questions, debate everything, innovate

NETWORKING

• Stanford encourages networking across disciplines, pushing its students to test their ideas. The local community is part of the university.

• MIT’s student projects with local companies are part of the routine.

• Startup Sauna was started by students creating a summer of startups.

• Israel-- where the military service is a network for life, and meetings every year are used for business networking and creation of value.

REAL LIFE ENTREPRENEURIAL EXPERIENCES

• Seasoned entrepreneurs bring experience and insights, and provide key introductions to funders

• Fast track product design and development courses where students imagine, prototype, build, market and sell products or services

• LaunchPad, Creating a Startup, iPhone Development, Facebook App class, Tech Venture Lab

COMPETITIONS AND PROGRAMS

• E-Challenge, Stanford Tech Venture Program, Center for entrepreneurial studies, D-School

• Startup Sauna, SLUSH conference

• Start-UP@Singapore, LaunchPad, Startup Weekend, TechLaunch

• Awareness of entrepreneurship, celebrate entrepreneurship, promotion of startups

FACULTY <=> COMPANY

Faculty(members(

Company(Board(

Exper6se(Insights( Cross(pollina6on(

ALUMNI INVOLVEMENT

Alumni'Mentors'

Entrepreneurship'associa3ons'

Reten3on'of'talent'Teaching''

opportuni3es'Advisor''

opportuni3es'

SUMMARY

Company(

Business(Development(

Growth(services(

taxa8on(

Startup(visa(program(

Opera8ng(environment(

Development(of(exper8se(

IP(

Improvement(of(networks(

Foresight(

Market(research(

Product(development(

Funding(for(demos(and(prototypes(

Risk(funding(

Funding(for(interna8onal(ac8vi8es(

Reinforcement(of(Exper8se(

Growth(and(interna8onaliza8on(

Lean(startup(workshops(

Mentorship(

Entrepreneurship(programs(

QUESTIONS