Batten Institute Annual Report 2011-12

REP

OR

T20

11-2

012 A

NN

UA

L

FROM THE EXECUTIVE DIRECTOR

MISSION

HISTORY

ACADEMIC YEAR HIGHLIGHTS

INSPIRED EDUCATION

TRANSFORMATIVE RESEARCH

CONSEQUENTIAL VOICE

ENERGETIC COMMUNITY

FINANCIAL STATEMENTS

2

4

5

6

7

11

17

23

28

TABLE OF CONTENTS

ANNUAL REPORT

11/12

FROM THE EXECUTIVE DIRECTOR

This past year, the Batten Institute began its second decade with a nice rec-

ognition. In September, The Princeton Review for Entrepreneurship magazine

ranked the Darden School of Business as having the 3rd best entrepreneur-

ship program in the world – our highest rankings to date. This recognition

reflected our evolving and deepening programs in entrepreneurship and innova-

tion including such curricular and extracurricular initiatives as Batten Scholar-

ships, Batten Venture Internships, the Darden Business Incubator, Innovation

Lab, and business plan and concept competitions.

In October, we held the first Jefferson Innovation Summit bringing 60 thought

leaders to Charlottesville to discuss how to create and sustain an entre-

preneurial society. Featuring a dialogue in the Rotunda lead by CNBC’s Tyler

Mathisen, the Summit led to the drafting of a Declaration of Principles, outlin-

ing a set of seven principles fundamental to an entrepreneurial society.

In November, we held our third annual E*Conference at Darden. Focusing this

year on how to innovate and effectuate, the conference provided an opportu-

nity for students, alumni and community members to learn how to be entre-

preneurial. Featured at the conference was Darden’s annual business concept

competition.

In December, the Batten Institute moved into its new offices on the second

floor of Darden’s Camp Library. This was a significant milestone for Batten as

this is the first time the Institute has had a well defined space with our mar-

quee on the door. It also contributes to the transformation of the library into a

research library for the 21st century.

In February, we convened our second gathering of the Innovators’ Roundtable,

bringing together chief innovation officers from leading corporations with

Darden’s expert faculty. Discussions focused on how to create an agile innova-

tion organization especially in a world of increasingly globalized R&D opera-

tions.

In April, we hosted a large gathering of venture capitalists here at Darden to

hear pitches by a number of University-affiliated ventures as part of U.Va.’s

annual Venture Summit. Featured at the Summit was a recent Batten Briefing

looking at innovation in the green tech sector.

OUR QUEST TO DELIVER ON FRANK BATTEN’S CHALLENGE TO BECOME ‘THE PREEMINENT THOUGHT LEADER AND EDUCATOR IN ENTREPRENEURSHIP AND INNOVATION’ IS AN ETERNAL ONE.”

2 | ANNUAL REPORT 2011-2012

In May, we held our third annual Darden Entrepreneurship and Innovation Research Conference featuring paper

presentations, panel discussions, and keynotes from leading academics from around the world. This year, we held

the conference in partnership with the Academy of Management as part of their Entrepreneurship Exemplars series.

Over 120 scholars visited here in Charlottesville, and another 500 participated online.

We also laid the groundwork for a number of important emerging initiatives:

In April, we closed on a gift that promises to be transformative in our efforts to build the entrepreneurial ecosystem at

the University and in Charlottesville. The new W.L. Lyons Brown Innovation Lab will more than double the space of our

existing i.Lab and allow us to extend our Incubator to ventures from all of U.Va. and the Charlottesville community.

Working with the Virginia Governor’s Office, we will convene our second Jefferson Innovation Summit in September,

the Jefferson Innovation Summit for the Commonwealth, focusing on the role that state and local policy play in creat-

ing entrepreneurial ecosystems.

This spring, we began an effort to reinvigorate our research initiatives to help focus our intellectual capital generat-

ing efforts. Enlisting Darden faculty to take significant leadership roles, our revamped initiatives will leverage our

research resources — our grant program, fellows, and research associates — to increase the exposure and impact

of the work we do at the Institute.

While we have begun our second decade at the Batten Institute, we continue to look forward. We maintain an en-

trepreneurial spirit and a hunger to grow and improve. Our quest to deliver on Frank Batten’s challenge to become

“the preeminent thought leader and educator in entrepreneurship and innovation” is an eternal one. We continually

strive to deliver on our mission to improve society by cultivating principled, entrepreneurial leaders and by creating

knowledge about the transformative power of entrepreneurship and innovation.

Onward and upward!

Michael J. Lenox

Associate Dean and Executive Director, Batten Institute

Samuel L. Slover Professor of Business Administration

Darden School of Business

BATTEN INSTITUTE | 3 3

MISSION

INSPIRED EDUCATIONCultivate the next generation of entrepreneurial leaders

through rigorous academic and experiential programs.

TRANSFORMATIVE RESEARCHCreate thought leadership through a diverse portfolio

of research projects of consequence to business and society.

CONSEQUENTIAL VOICEEngage leaders through a broad array of channels to directly

influence the world of practice.

ENERGETIC COMMUNITYFoster a diverse and collaborative community of scholars,

students, alumni and practitioners.

The Batten Institute seeks to improve society by creating knowledge about the transformative power of entrepreneurship and innovation and by cultivating principled, entrepreneurial leaders.

To fulfill its mission, the Institute has adopted a four-pronged strategy.

FRANK BATTEN, SR.1927-2009


HISTORY

In 1996, University of Virginia alumnus Frank Batten Sr. and his family

gave the Darden School a generous gift to be used for the establish-

ment of a community of scholars and practitioners who would pursue

leading edge research and develop educational programs in entrepre-

neurship and innovation. In 2000, after a subsequent gift from Frank

Batten Sr. the former CEO and chairman of Landmark Communications

and founder of the Weather Channel, the initial community formally

became the Batten Institute.

The Batten Institute was officially launched in January 2001 with

Bob Bruner as the Institute’s first Executive Director. Early initiatives

included expanding the Darden Business Incubator and establishing

the Batten Fellows program. Darden faculty member, Jeanne Liedtka,

assumed the post of Executive Director in 2004. Under Jeanne’s lead-

ership, the Institute launched a major initiative in Organic Growth and

Innovation and set in motion the creation of the i.Lab. Current Execu-

tive Director, Michael Lenox, joined the Batten Institute in 2008.

Today, the Batten Institute is organized in two operating units, a re-

search center focused on academic scholarship and Darden’s Center

for Entrepreneurial Leadership, focused on student activities. The

extensive programs and initiatives supported by these units bring

together scholars, students, alumni, and business leaders, fostering a

diverse and energetic collaborative community in support of the Insti-

tute’s mission to create knowledge and improve society.

Since 2000, MORE THAN 150 GRANT-FUNDED RESEARCH PROJECTS undertaken by more than 75 scholars BOOT CAMPS offered in Venture Capital, Entrepreneurship, and Health Care 46% OF INCUBATOR COMPANIES remain active after 5 years

MORE THAN $1 MILLION AWARDED ANNUALLY IN SCHOLARSHIPS

MORE THAN $80,000 IN STUDENT GRANTS ARE AWARDED AT U.VA.-WIDE COMPETITIONS ANNUALLY

40 BATTEN VENTURE INTERNSHIPS FUNDED ANNUALLY

MORE THAN 70% OF DARDEN STUDENTS TAKE ENTREPRENEURSHIP COURSES

BATTEN INSTITUTE | 5

2011–2012 ACADEMIC YEAR HIGHLIGHTS

NOV2011

FEB2012

APR2012

MAY2012

OCT2011

E-CONFERENCE: INNOVATE.EFFECTUATE

DARDEN RESEARCH AND AOM EXEMPLARS CONFERENCES

JEFFERSON INNOVATION SUMMIT

UVA ENTREPRENEURSHIP CUP

UNIVERSITY OF VIRGINIA VENTURE SUMMIT

INNOVATORS’ ROUNDTABLE


INSP

IRED

ED

UC

ATI

ON

EXPERIENTIAL PROGRAMS

CURRICULAR INITIATIVES

CENTER FOR ENTREPRENEURIAL LEADERSHIP

The Center provides a broad array of academic and experiential programs for

students supporting dozens of exciting courses, a business incubator, full-time

internships, business plan and concept competitions, workshops, boot camps,

mentorship opportunities and scholarships.

AT A GLANCE

#3 IN THE U.S. FOR ENTREPRENEURSHIP, THE PRINCETON REVIEW FOR

ENTREPRENEUR MAGAZINE, 2011120 UNIQUE VENTURES AND 270 ENTREPRENEURS/PARTICIPANTS

HOSTED IN THE DARDEN BUSINESS INCUBATOR SINCE 2000

$85,000

AWARDED IN CONCEPT AND BUSINESS PLAN COMPETITIONS IN

THE ACADEMIC YEAR (FUNDING

PROVIDED BY THE INSTITUTE, THIRD

SECURITY, AND PARTICIPATING

SCHOOLS UVA-WIDE)

32 SUMMER VENTURE INTERNSHIPS FUNDED IN 2012

40 ENTREPRENEURSHIP COURSES

70% OF DARDEN STUDENTS ENROLL IN

ENTREPRENEURSHIP AND

INNOVATION ELECTIVES

#1 RANKED FACULTY BY THE PRINCETON

REVIEW, 2011

10 FULL SCHOLARSHIPS

AWARDED ANNUALLY, VALUED

AT $971,600 FOR THE 2011-12

ACADEMIC YEAR

SCHOLARSHIPS

VENTURE FAIR FOR DARDEN

ALUMNI AT REUNION

LAW CLINIC WITH UVA LAW SCHOOL

E*TECH MASH-UP

INTERNET START-UP WORKSHOP

INNOVATION LABORATORY

INNOVATE.EFFECTUATE. ONLINE

ENTREPRENEURSHIP CONFERENCE

PROGRAMS AND INITIATIVES


CURRICULAR INITIATIVESFORWARD-THINKING COURSES

The Institute’s research arm supports scholarship that advances the fields of

entrepreneurship and innovation, and this research often manifests itself in

novel, forward-thinking new courses, such as “Corporate Innovation & the De-

sign Experience,” “New Product Development,” and “Starting New Ventures.”

DARDEN’S i.LAB

Research supported by the Institute also takes the shape of groundbreaking

initiatives, such as Darden’s i.Lab, a non-traditional, flat-classroom teaching

environment that includes a design-build studio where students can transform

their ideas into physical prototypes. A number of Darden’s new entrepreneur-

ship and innovation courses are steeped in design and multidisciplinary think-

ing and are taught in Darden’s i.Lab.

ENTREPRENEURSHIP CONCENTRATION

In 2010, an entrepreneurship concentration was launched as part of Darden’s

MBA curriculum. The concentration lays the foundation for a deeper under-

standing of corporate and entrepreneurial success, covering topics such as

how to create value not only through new products or services, but with novel

technologies, business concepts, organizing structures, transaction/financing

mechanisms, distribution channels, and market segmentation.

EXPERIENTIAL PROGRAMSThe Center builds on Darden’s academic offerings with a range of experience-

based programs and initiatives, providing students the critical skills they need

to create successful real-life businesses upon graduation.

The Center’s experiential programs include a business Incubator, numerous

competitions (including support for national and global competitions), funded

internships, workshops, boot camps, and mentorship opportunities.

The Center’s experiential programs enjoy a broad level of student participation

and interest. In the summer of 2012, the Center hosted 16 companies in the

Darden Business Incubator. To date, 46% of Incubator-launched or supported

companies remain active enterprises after five years.

The Center also sponsors three major competitions each academic year:

the Darden Concept Competition, U.Va. Entrepreneurship Cup, and the

Darden/U.Va. Business Plan Competition.

U.Va. received outside sponsorship from Third Security for $50,000 awarded

to U.Va. Cup top winners. Overall, a total of $85,000 was awarded at the

aforementioned competitions during the 2011-12 academic year.

DARDEN EXPANDS ITS BUSINESS INCUBATOR TO LAUNCH MORE ENTREPRENEURS’ BRIGHT IDEAS

In the summer of 2012,

Darden began expansion

of its existing innovation

laboratory to include a new

cutting-edge Darden Busi-

ness Incubator facility. The

i.Lab will be named the W.L.

Lyons Brown III Innovation

Laboratory, for the alum-

nus who championed the

project. When the facility is

operational in the summer

of 2013, the incubator will

admit an expanded group

of entrepreneurs. Admitted

Darden students will be

joined by qualified, high-

potential entrepreneurs

from the larger U.Va. and

Charlottesville, Virginia,

communities.

BATTEN INSTITUTE INSPIRED EDUCATION | 9

The Center also actively develops or supports alumni and student entre-

preneurship groups and networks, such as Darden’s Entrepreneurship and

Venture Capital Club—Darden’s most active student organization—and the

E*Society, a group that connects entrepreneurs from various schools across

the University of Virginia.

BATTEN SCHOLARSHIPSTen full scholarships are awarded annually to incoming Darden MBA students

interested in starting their own ventures or becoming innovative leaders at

established companies.

Lucas Rogers (Class of 2013) spent the summer

of 2012 in the Darden Business Incubator further

developing Mobile Motions, his venture that will offer

a smartphone app which allows the user to perform

various functions through motion control by tapping

into technology native to the phones. Rogers’ Batten

Scholarship and acceptance into the Incubator program provided the funding,

time and space needed to create a prototype. In coming to Darden after work-

ing as an engineer for General Motors, Rogers has “always envisioned myself

as an entrepreneur .… I keep a journal of ideas and a list of problems with

solutions. This was an opportunity to work on one of those.”

Lendstreet, a peer-to-peer lending venture, was

founded by R. Jerry Nemorin (MBA ’08) and devel-

oped in the Darden Business Incubator during the

summer of 2010. Unlike other peer-to-peer lending

operations, Lendstreet provides loans to distressed

debtors to help them restructure their debt. “People

can’t get equity loans anymore to pay off credit card debt,” said Nemorin.

Batten Scholarship recipient Jordhy “J.V.” Ledesma (MBA ’12) joined with

Nemorin to further Lendstreet’s growth in the summer 2011 Incubator. “The

scholarship gives you more leverage to work on your business and takes the

risk out of being an entrepreneur,” Ledesma said. Anticipation for Lendstreet’s

launch is growing: it has been featured in Forbes and discussed in leading

financial blogs. Nemorin believes that Lendstreet will further serve its users by

teaching good spending habits and helping them establish a higher credit

rating, “This is a way to help people who are distressed minimize the future

impact of their debt,” he said.

Learn more: www.batteneship.org

INSTITUTE-SUPPORTED COURSES SOLVING BUSINESS CHALLENGES IN REAL-LIFE SETTINGS

BIOINNOVATION

A multidisciplinary course

drawing students from

Darden, U.Va.’s Department

of Biomedical Engineering,

and the schools of nursing,

architecture, engineering,

and medicine. Students col-

laborate across disciplines

to identify and frame clini-

cally based challenges at

the U.Va. Health Center.

THE TECHNOLOGY ACCELERATOR

Students master the pro-

cess of adapting technology

to the needs of the mar-

ket, creating an actionable

strategy, and developing the

skills necessary to launch a

start-up.


TRAN

SFO

RMAT

IVE

RE

SE

AR

CH

INITIATIVES

The Institute supports a diverse portfolio of research initiatives in

entrepreneurship and innovation. Current initiatives address five topics of critical

importance to society:

ENTREPRENEURIAL FINANCEFACULTY LEADER: SUSAN CHAPLINSKY

Financial capital plays an important role in

most entrepreneurial ventures. However,

robust data on financing events and inves-

tor networks for businesses is scarce.

This initiative takes a rigorous approach to

developing data and analyses that explore

how entrepreneurs in public and private

business build investor networks and

finance their operations.

ENTREPRENEURIAL INNOVATION AND SUSTAINABILITYFACULTY LEADER: ANDREA LARSON

Global concerns about sustainability

have resulted in a wave of new products,

processes, technologies, markets and

ways of organizing business — inside

firms, through supply chains and across

vast networks of stakeholders. These

entrepreneurial innovations are creating

markets in clean energy and materials

and generating product substitutions

that yield future goods and services. This

initiative focuses on the mechanisms by

which entrepreneurship and innovation

can simultaneously drive a firm’s market

success and discover solutions to critical

societal challenges.

ENTREPRENEURSHIP EDUCATIONFACULTY LEADER: SARAS SARASVATHY

Recent decades have brought an explosion

in activity in the field of entrepreneurship

education, with the number of U.S. colleges

and universities offering courses related to

entrepreneurship. This initiative seeks to

illuminate effective strategies for teaching

entrepreneurship and to better understand

the outcomes of these programs.

INNOVATION AND GROWTHFACULTY LEADER: EDWARD HESS

Shrinking markets, unrelenting competition,

and swiftly evolving technologies challenge

the vitality of every business enterprise,

large and small. This initiative examines how

innovation can be the engine for sustained,

internally generated business growth.

ENTREPRENEURSHIP IN EMERGING MARKETSFACULTY LEADER: GREG FAIRCHILD

New businesses are crucial for sustained

economic development. This initiative

supports research projects focused on

entrepreneurs and the ingredients of entre-

preneurship: seed-stage capital, mentors,

sound social institutions and a culture that

welcomes new ideas and educates and

supports those who pursue them.


Spearheaded by Darden Professor Saras Sarasvathy, the

Society for Effectual Action, is dedicated to the ground-

breaking form of entrepreneurial thinking known as effec-

tuation. Effectuation fundamentally rethinks how entrepre-

neurship is researched and taught around the world, and

its principles are learned and applied in several Darden

entrepreneurship courses and programs.

Learn more: www.effectuation.org

Design@Darden provides resources for academicians inter-

ested in teaching design, and the Center for Entrepreneur-

ial Leadership is applying a design-based methodology to

help Darden’s students through the product conception and

innovation stages of developing a new business.

Learn more: www.designatdarden.org

FORUMS

The Batten Institute supports the formation of online

forums, communities centered on the topics of

entrepreneurship and innovation.

FACULTY LEADERS

BATTEN INSTITUTE TRANSFORMATIVE RESEARCH | 13

FELLOWS

The Batten Fellows Program brings prominent and high-potential thought leaders

to the Darden School of Business for short and long-term visits. The aims of the

program are as follows:• To develop intellectual capital that culminates in published articles, books and other high-impact publications

• To provide thought leadership of importance to managers, policy makers and the public

• To support work related to current Institute research initiatives

• To stimulate the intellectual life of the Institute and the Darden School

A complete list of fellows and descriptions of their research are available at www.batteninstitute.org.

2011-12 BATTEN FELLOWSDr. Béatrice Boulu-Reshef is currently a visiting scholar at The Wharton School

of Business at the University of Pennsylvania. She earned her Ph.D. in econom-

ics from University Lumière of Lyon where she developed research interests in

behavioral, organizational and social economics. Dr. Boulu-Reshef will collabo-

rate with the Batten Institute’s Sean Carr on experimental research exploring

how entrepreneurs use affordable loss reasoning (in contrast to return on

investment reasoning) to affect their decision to ‘take the plunge’ to start a

new venture. She and Carr will conduct experiments in which they frame the

approach subjects take as they make investment decisions. One group will be

prompted to think in terms of affordable loss — that is, how much they are

willing to risk in the investment. Another group will be led to think in terms of ex-

pected returns. A baseline group will be given no prompting. The new knowledge

developed during Dr. Boulu-Reshef’s fellowship will generate scholarly articles,

teaching materials, and a novel experimental scenario instrument.

Dr. Graciela Kuechle, a senior researcher at the Basque Institute of Competi-

tiveness and a lecturer at the University of Deusto, both in San Sebastian,

Spain, is working with Darden professor Saras Sarasvathy to develop math-

ematical models of effectuation — the decision-making approach that Saras-

vathy has documented among expert entrepreneurs. The two also plan to

review the past decade of economic research and synthesize entrepreneurship-

related findings in a way that is appropriate for the business academy. Kuechle

currently holds research positions at the University of Deusto and the Basque

Institute of Competitiveness in San Sebastián, Spain. She is originally from Ar-

gentina and earned her Ph.D. from the University of California in Los Angeles.

Her research agenda with Professor Sarasvathy will culminate with the publica-

tion of three peer-reviewed journal articles and an in-depth book.


GRANTS

Each spring, the Batten Institute solicits grant proposals

from faculty members of the University of Virginia who

are conducting rigorous and relevant research about

entrepreneurship and innovation that results in high-

impact intellectual outputs consistent with the missions

of the Darden School and the University.

For a complete list of the 2011-12 grant recipients and information about

applying to the program, please visit www.batteninstitute.org

PROFILE OF A 2011-12 RESEARCH GRANT PROGRAM PROJECT

Project: Experimental Tests of Creativity and Incentives in Intellectual Property

Principal: Christopher Sprigman, University of Virginia School of Law

Co-applicant: Christopher J. Buccafusco, Chicago-Kent College of Law

Christopher Sprigman and Christopher Buccafusco are gaining insights into

the behaviors and motivations of buyers and sellers as they value, license,

and sell intellectual property. The fundamental issue is that buyers and

sellers are not as aligned as rational choice theory — on which U.S. IP law

is based — suggests. Indeed, parties to IP transactions do not necessarily

make wealth-maximizing decisions; they are not driven solely by the pros-

pect of financial gain. The result is an inefficient market in which buyers and

sellers are so far apart that negotiations between them are time-consuming,

costly, and sometimes unsuccessful. Sprigman and Buccafusco began their

exploration of IP transactions in 2008 with experimental studies of the

“endowment effect”: the tendency of people to overvalue what they own. The

researchers were the first to test the effect for IP that people had created

rather than property they merely owned. In the most recent phase of their

work, Sprigman and Buccafusco tested whether nonfinancial incentives —

publication and attribution — mitigate the creativity effect.

For more on their project, visit www.batteninstitute.org and use the search

term “inefficient market.”

SELECT FELLOWS2000-2012

JOEL BROCKNERThe Implications of Crisis

Management for Corporate

Innovation, Creativity, and

Change

CLAIR BROWNInnovation Dynamics in the

Electronics Sector

JOHN SEELY BROWNLearning in the Innovation

Process

GERD GIGERENZERConsumer Responses to

Product Innovation

ROGER GORDONCorporate Taxation

LUTZ HILDEBRANDTDriving Innovation Through

Marketing and R&D Synergies

MICHAEL JENSENThe Agency Costs of Overvalued

Equity

HENRY MINTZBERGDesigning Strategy, Designing

Global Management Education

HOWARD STEVENSONInsights on Global Entrepreneurship:

Education, Policy, and Practice

BATTEN INSTITUTE TRANSFORMATIVE RESEARCH | 15

PUBLICATIONS

BOOKS AND CHAPTERS“Environmental Entrepreneurship” in

Oxford Handbook of Business and the Environment

Michael Lenox and Jeffrey G. York.

Eds. Pratima Bansal and Andrew J. Hoffman

(Oxford: Oxford University Press) November, 2011

Grow to Greatness: Smart Growth for

Entrepreneurial Businesses

Edward D. Hess

(Palo Alto: Stanford University Press) March, 2012

The Physics of Business Growth:

Mindsets, System and Processes

Edward D. Hess and Jeanne M. Liedtka

(Palo Alto: Stanford University Press)

March, 2012 [e-Book for Kindle]

The DNA of Business Growth v. The Myths of Business

Growth: A Case for Smart Growth

Edward D. Hess

(Charlottesville: Darden Business Publishing)

January, 2012 [e-Book for Kindle]

BATTEN BRIEFINGSBatten Briefings is a series of research reports that ad-

dress important and timely topics in entrepreneurship

and innovation. The reports are offered free of charge

online: www.darden.virginia.edu/batten/briefings

Innovators’ Roundtable Series: Leading Global R&D

Networks - Rewards, Risks and Realities

Innovators’ Roundtable Series: Workforce Agility - An

Executive Briefing

Financing Innovation Series: VC 2.0 - Venture Capital

Goes Retro

Greentech Innovation Series: Winning the Green Innova-

tion Economy - An Analysis of Worldwide Patenting

SELECT ACADEMIC ARTICLESDew, N., Read, S., Sarasvathy, S.D., and Wiltbank, R.

2011. “On the Entrepreneurial Genesis of New Mar-

kets: Effectual Transformations Versus Causal Search

and Selection.” Journal of Evolutionary Economics 21

(2): 231–253.

Harmeling, S. S., and S. D Sarasvathy. 2011. “When

Contingency Is a Resource: Educating Entrepreneurs in

the Balkans, the Bronx, and Beyond.” Entrepreneurship

Theory and Practice.

Sarasvathy, S. D. 2011. “Causation and Effectuation:

Toward a Theoretical Shift from Economic Inevitability to

Entrepreneurial Contingency.” Academy of Management

Review 26 (2): 243–263.

Sarasvathy, S. D., and S. Venkataraman. 2011.

“Entrepreneurship as Method: Open Questions for an

Entrepreneurial Future.” Entrepreneurship Theory and

Practice 35 (1): 113–135.

Venkataraman, S., Sarasvathy, S.D., Dew, N. and For-

ster, W. 2012. “Reflections on the 2010 AMR Decade

Award: Whither the Promise? Moving Forward with Entre-

preneurship as a Science of the Artificial,” The Academy

of Management Review.

JOURNAL OF BUSINESS VENTURINGThe Institute has long served as the underwriter of the

Journal of Business Venturing (JBV), the premier schol-

arly journal devoted to entrepreneurship and innovation.

JBV is ranked by the Social Science Citation Index as

one of the most influential management journals. From

1995 to 2009, Darden Professor S. Venkataraman

served as editor-in-chief. Darden faculty Michael Lenox

and Saras Sarasvathy currently serve as field editors.


CON

SEQ

UEN

TIAL

VO

ICE

EVENTS

JEFFERSON INNOVATION SUMMIT :: 2011 Sixty leaders in innovation and entrepreneurship from business, government, academia, media, public service

and the arts convened for the Jefferson Innovation Summit in October 2011 to grapple with how best to create

and sustain a society of entrepreneurs and innovators. The two days of purposeful conversation yielded bold and

original ideas that were integrated into a Declaration of Principles, a guiding framework to improve the nation’s

innovative capacity and entrepreneurial ecosystem. To build on these principles and promote further action-

oriented dialogue, the Batten Institute, the Summit Delegates, and other partner organizations have committed

to undertaking a robust set of initiatives over the years to come.

LOOKING AHEAD: On 7 September 2012, the Jefferson Innovation Summit for the Commonwealth, hosted by the

Batten Institute in partnership with the Office of the Governor of Virginia, will convene a diverse and influential

group of 60 policymakers, entrepreneurs, executives and thought leaders to discuss how to create and sustain a

society of entrepreneurs and innovators in Virginia.

FOR MORE INFO: www.jeffersoninnovationsummit.org

Conferences, workshops and speaking events provide the Institute with a platform

to foster critical conversations with key stakeholders throughout the year.


E-CONFERENCE: INNOVATE.EFFECTUATE

Approximately 250 Darden alumni and students, as

well as students from other U.Va. schools, gathered

for a concept competition followed by a full day of

alumni panels moderated by Darden faculty.

UVA ENTREPRENEURSHIP CUP

The Office of the Vice President for Research and

the Darden School sponsor the U.Va. Cup competi-

tion which boasts entries from multiple schools and

awards $50,000 in non-dilutive funds. Generous sup-

port is provided from Third Security LLC.

UNIVERSITY OF VIRGINIA VENTURE SUMMIT

In the spirit of Thomas Jefferson, venture capitalists

and alumni from top investment firms across the

nation gather annually with innovative researchers,

academics and students at the Summit, sponsored

by the Office of the Vice President for Research with

assistance from the Batten Institute.

DARDEN ENTREPRENEURSHIP AND INNOVATION CONFERENCE

The third annual Darden Entrepreneurship and Innova-

tion Research Conference was co-organized by the

Batten Institute and the Academy of Management’s

Entrepreneurship Division as part of the Entrepreneur-

ship Research Exemplars Conference Series. Leading

scholars in the fields of entrepreneurship and innova-

tion gathered to highlight best practices for top-tier

research that advances the evolution of these fields.

CONSEQUENTIAL VOICE | 19

EVENTS

ZURICH

FRANKFURT

NEW YORK CITYSAN FRANCISCOMichael Lenox & Erika Herz

D.C.Edward Hess

RICHMONDPhilippe Sommer

Peter Rodriguez

Peter Rodriguez

DALLASEdward Hess

DENVEREdward Hess

Philippe Sommer & Trip Davis

HYDERABADS. Venkataraman

HONG KONGPeter Rodriguez

IDEAS TO ACTION TOUR2011-2012

Expanding the Institute’s reach and impact nationally and globally.

LOCATIONS

SAN FRANCISCO

Professor Michael Lenox

Erika Herz, Manager of Sustainability Programs

DALLAS

Professor Edward Hess

DENVER


NEW YORK CITY: ENTREPRENEURS IN ACTION

Philippe Sommer, Director of the Center for

Entrepreneurial Leadership

Trip Davis, President of the Darden School Foundation

and Senior Associate Dean for External Relations

WASHINGTON, D.C.


UNIVERSITY OF RICHMOND: ENTREPRENEURS IN ACTION

Philippe Sommer, Director of the Center for Entrepre-

neurial Leadership

FRANKFURT, GERMANY

Professor Peter Rodriguez

HONG KONG


HYDERABAD, INDIA

Professor S. Venkataraman

ZURICH, SWITZERLAND


IDEAS TO ACTION

Since 2009, Batten-affiliated faculty have traveled to major cities to discuss their research with alumni,

prospective students, and community members.


e+i NEWSLETTER

So You Want to Be an Entrepreneur?

“ENTREPRENEURS AREN’T JUST GUYS WORKING ON

AN INVENTION IN A GARAGE. THEY’RE USUALLY

PEOPLE WHO GET ANNOYED BY SOMETHING AND

WANT TO FIX IT.”

The Inefficient Market for IP

“INDEED, PARTIES TO IP TRANSACTIONS DO

NOT NECESSARILY MAKE WEALTH-MAXIMIZING

DECISIONS; THEY ARE NOT DRIVEN SOLELY BY THE

PROSPECT OF FINANCIAL GAIN.”

New Perspectives on Entrepreneurship Research

“THIS EMPHASIS ON VALUE DISTRIBUTION, ON

DELIVERING SOCIAL GOOD IN ANY WAY POSSIBLE,

DOWNPLAYS THE DISTINCTIONS BETWEEN

ENTREPRENEURIAL AND ESTABLISHED VENTURES.”

Sign up for the e+i Newsletter by emailing [email protected].

COMMUNICATIONS & MEDIA

The Institute’s website, www.batteninstitute.org, provides an important connection to

members of the Batten community and beyond. Site features include news, information

about the Institute’s major initiatives, brief articles on supported projects, profiles of Batten-

affiliated researchers and professionals, links to academic articles and teaching cases, and

events listings.

As of June 2012,

@BattenInstitute had

620 fo l lowers

(an increase of 38% from

the previous year), and

@DardenEShip had more than

1,600 fo l lowers

(an increase of 45% from

the previous year).

BATTEN INSTITUTE CONSEQUENTIAL VOICE | 21

During the 2011-12

academic year, the

Batten Institute’s

programs and faculty

affiliates appeared

more than 100

times in national and

international media.

DESIGNING FOR GROWTH – APPLE DOES IT, SO CAN YOUPOSTED BY JEANNE LIEDTKA

“IN BUSINESS, WE LIKE THINGS

THAT ARE HARD AND RATIONAL

AND DEFINED … . BUT DESIGN

NEED NOT BE ALL ABOUT MAGIC

AND INTUITION – DESIGN

THINKING, AS WE DEFINE IT, IS

A SYSTEMATIC APPROACH TO

PROBLEM-SOLVING THAT IS

USER-DRIVEN, POSSIBILITY

FOCUSED, AND ITERATIVE.”

Read more:

blogs.forbes.com/darden

RECENT TOP POSTS FROM DARDEN’S FORBES.COM BLOG

CREATING AN INNOVATION CULTURE: ACCEPTING FAILURE IS NECESSARYPOSTED BY EDWARD HESS

“INNOVATION IS THE RESULT

OF ITERATIVE LEARNING

PROCESSES AS WELL AS

ENVIRONMENTS THAT

ENCOURAGE EXPERIMENTATION,

CRITICAL INQUIRY, CRITICAL

DEBATE, AND ACCEPT FAILURES

AS A NECESSARY PART OF THE

PROCESS.”

THE INS AND OUTS OF OPEN INNOVATIONPOSTED BY RAUL CHAO

“IT IS UNLIKELY THAT THE BEST

(OR EVEN VERY GOOD) IDEAS

ARE ALL LOCATED IN ONE

ORGANIZATION AND, EVEN WITH

AN IDEA IN HAND, SHOULD ONE

ORGANIZATION REALLY MANAGE

ALL OF THE TECHNICAL AND

MARKETS RISKS ASSOCIATED

WITH COMMERCIALIZING

TECHNOLOGIES? THAT’S WHERE

OPEN INNOVATION COMES IN.”

MEDIA COVERAGE

The Batten Institute partnered with Forbes.com in the spring of 2012 to launch a new contributors’ channel featuring

the insights of Darden faculty and research staff on the topics of entrepreneurship and innovation.


ENER

GET

IC C

OM

MU

NIT

Y

PARTNERS

The Batten Institute partners with many units and organizations of the Universi-

ty of Virginia. These partnerships are critical to delivering programs and events

to enhance the scope of the Institute’s efforts. In 2011-12, the Institute part-

nered with CNBC and the Thomas Jefferson Foundation (Monticello) to host the

Jefferson Innovation Summit; the University’s Office of the Vice President for

Research (VPR) to host U.Va.’s third annual Venture Summit; and several other

schools to host the U.Va. Entrepreneurship Cup.

Institute-affiliated faculty members play a key role in shaping the continued

evolution of the fields of entrepreneurship and innovation through both their

teaching and research.

Finally, the Institute also works closely with various student organizations. In

2011-12, the Center for Entrepreneurial Leadership collaborated with Darden’s

Entrepreneurship and Venture Capital (EVC) Club to host the fall E-Conference,

and the Institute is a strong supporter of the University-wide E*Society, formed

in 2009 by Darden students.


SAMUEL E. BODILYJohn Tyler Professor of Business

Administration

RAUL O. CHAOAssistant Professor of

Business Administration

SUSAN CHAPLINSKYTipton R. Snavely Professor of Business

Administration and Associate Dean for

Faculty Scholarship

MING-JER CHENLeslie E. Grayson Professor of Business

Administration

ROBERT L. CROSSAssociate Professor of Commerce, and

Director, Network Roundtable,

McIntire School of Commerce

GREGORY B. FAIRCHILDBigelow Research Professor in


MARY MARGARET FRANKAssociate Professor of


YAEL GRUSHKA-COCKAYNEAssistant Professor of Business

Administration

ANDREW M. HESSAssistant Professor of Commerce,

McIntire School of Commerce

EDWARD D. HESSProfessor of Business Administration and

Batten Executive-in-Residence

ANDREA LARSONAssociate Professor of


DAVID LEBLANGJ. Wilson Newman Professor of

Governance; Chair, Department of Politics,

College of Arts and Sciences

MICHAEL J. LENOXSamuel L. Slover Research Professor of

Business, Associate Dean and Executive

Director of the Batten Institute

JEANNE M. LIEDTKAUnited Technologies Corporation Professor

of Business Administration

ELENA LOUTSKINAAssistant Professor of


LUANN J. LYNCHProfessor of Business Administration

ANTON S. OVCHINNIKOVAssistant Professor of


SONAL S. PANDYAAssistant Professor, Department of Politics

College of Arts and Sciences

BIDHAN L. PARMARAssistant Professor of Business

Administration

GAL RAZAssociate Professor of


SARAS D. SARASVATHYIsadore Horween Research Associate

Professor of Business Administration

KATHRYN M. SHARPEAssistant Professor of Business

Administration

PAUL J. SIMKOAssociate Professor of Business

Administration and Associate Dean,

MBA for Executives

THOMAS C. SKALAKVice President for Research and

Professor of Biomedical Engineering

CHRISTOPHER SPRIGMANProfessor of Law

ELIZABETH O. TEISBERGAssociate Professor of


SANKARAN VENKATARAMANMasterCard Professor of


RAJKUMAR VENKATESANBank of America Research

Associate Professor of


FRANCIS E. WARNOCKPaul M. Hammaker Associate Professor of


BATTEN AFFILIATES

BATTEN INSTITUTE ENERGETIC COMMUNITY | 25

LEADERSHIP TEAM

Michael Lenox Executive Director and Associate Dean

Samuel L. Slover Research Professor of Business

Administration; B.S., M.S., University of Virginia;

Ph.D., Massachusetts Institute of Technology

Sean CarrDirector of Intellectual Capital

B.A., Northwestern University; M.S., Columbia

University; M.B.A., University of Virginia

Debbie WhiteAssociate Director of Operations

B.A., University of Virginia; M.A., George Washington

University

Daniel BierenbaumSenior Research Associate

B.S., Duke University; M.A., Columbia University

Joyce Smaragdis Associate Director of Outreach

B.A., University of Virginia; M.A., Virginia Polytechnic

Institute and State University

Malgorzata “Gosia” Glinska Senior Research Associate

B.A., University of Gdansk, Poland; M.A., Boston

University; M.F.A., University of Virginia

Derry WadeCommunications Manager

A.B., Smith College; M.A., University of Virginia

Andrew KingResearch Associate

B.A., The University of the South; M.S., Oxford

Brookes University

Gayle NobleOffice Manager

Pan American Business School

Philippe Sommer Director, Center for Entrepreneurial Leadership

Director, Darden Incubator

B.A., Amherst College; M.B.A., Columbia University

Molly McFarlandSpecial Projects and Events Manager

B.A., University of Virginia

MJ Dougherty TomsAssociate Director, Center for Entrepreneurial

Leadership

B.A., Williams College; M.B.A., Yale University

Nancy PriceAssociate Director for Special Projects (Consultant)

B.A., Lamar University

ADMINISTRATION

RESEARCH DIVISIONCENTER FOR ENTREPRENEURIAL LEADERSHIP


FY 11 (Actual) FY 12 (Estimated) FY 13 (Budget)

Spendable Balance $2,369,224 $2,618,455 $2,337,496

Endowment Interest $4,312,996 $4,517,880 $3,426,678

Craddock Fund $42,000 $45,000 $45,000

20 Account Interest --- $34,400 $30,505

Sponsorships & Fees 1 $1,989 $109,050 $115,000

iLab Expansion Project --- --- $1,300,000

Scholarships 2 --- --- $971,600

Adjustments $251,008 --- ---

TOTAL INCOME $4,607,993 $4,706,330 $5,888,783

Operating Expenses $(4,193,908) $(4,408,252) $(4,751,397)

Extraordinary Expenses $(164,854) 3 $(579,037) 4 $(25,000) 5

iLab Expansion Project --- --- $(1,300,000)

TOTAL EXPENSES $(4,358,762) $(4,987,289) $(6,076,397)

ENDING BALANCE $2,618,455 $2,337,496 $2,149,882

inc

om

ee

xp

en

se

s

FINANCIAL STATEMENTSFY 11 (Actual) FY 12 (Estimated) FY 13 (Budget)

Administrative Staff $537,377 $455,110 $431,097

Outreach, PR & Marketing $344,716 $368,145 $198,323

Subtotal $882,093 $823,255 $629,420

CEL Staff $319,305 $350,381 $486,256

Communications $33,992 $52,725 $47,600

Incubator $147,483 $223,100 $205,000

BVIP Interns $68,678 $145,000 $145,000

Competitions $38,935 $51,400 $46,000

Courses $35,375 $44,367 $34,400

Batten Scholarships $810,501 $676,900 $971,600

Subtotal $1,454,269 $1,543,873 $1,935,856

Researchers $351,848 $449,111 $472,005

Faculty Research Grants $246,686 $190,000 $250,000

Batten Fellows $5,056 $15,000 $20,000

Ph.D. Student Scholarships $116,430 $119,790 $79,251

Faculty Salary Support $1,026,196 $1,165,623 $1,250,000

Conferences $111,330 $101,600 $114,865

Subtotal $1,857,546 $2,041,124 $2,186,121

TOTAL OPERATING BUDGET $4,193,908 $4,408,252 $4,751,397

cen

ter f

or e

ntr

ep

ren

eu

ria

l le

ad

er

sh

ipr

es

ea

rc

h d

ivis

ion

ad

min

CASH FLOW

EXPENSES

1. Jefferson Innovation Summit, Innovators Roundtable, E*Conference, Roundtable, i.Lab 2.0

2. Partitioned in FY 13

3. Extraordinary expenses in FY 11: $86,244 Summit; $78,610 i.Lab lobby furnishings

4. Extraordinary expenses in FY 12: $451,037 Summit; $20,000 post-Summit; $18,000 Innovation Timeline; $75,000 for Effectuation research; $15,000 i.Lab 2.0

5. Extraordinary expenses in FY 13: $25,000 for the Jefferson Innovation Summit for the Commonwealth


BUDGET

Administration

Administrative Staff $431,097

Public Relations $200,948

Marketing $44,975

Research Division

Researchers $472,005

Faculty Grants $250,000

Batten Fellows $20,000

Ph.D. Scholarships $79,251

Conferences $114,865

Faculty Salaries $1,250,000

Center for Entrepreneurial Leadership

CEL Staff $486,256

Incubator $205,000

BVIP Interns $145,000

Competitions $46,000

Courses $34,400

Scholarships $971,600

TOTAL $4,751,397

26%

9%

4%

1%

10%

4%

3%

1%

1%

21%

2%

2%

<1%

5%

10%

Faculty Salaries

Administrative Staff

Public Relations

Marketing

CEL Staff

Incubator

BVIP Interns

Competitions

Courses

Scholarships

Conferences

Ph.D. Scholarships

Batten Fellows

Faculty Grants

Researchers

Percentages are rounded to the nearest whole number.

Income to support the Batten Institute is provided by an endowment created by Frank Batten Sr. and his fam-

ily. As of June 2012, the market value of the endowment had reached approximately $105 million. The annual

budget from this endowment is $4.75 million for FY 12-13.

RES

EAR

CH

DIV

ISIO

N

ADMINISTRATION

CENTER FO

R ENT

REPR

ENEU

RIA

L LE

AD

ERSH

IP

BATTEN INSTITUTE

BUDGET$4,751,397

FY 2012-13

FINANCIAL STATEMENT | 29

CONTACT

BATTEN INSTITUTE

THE DARDEN SCHOOL OF BUSINESS

UNIVERSITY OF VIRGINIA

P.O. BOX 6550

CHARLOTTESVILLE, VIRGINIA 22906-6550

PHONE

+1.434.924.1335

FAX

+1.434.924.7104

EMAIL

[email protected]

WEB

WWW.BATTENINSTITUTE.ORG

TWITTER

@BATTENINSTITUTE

@DARDENESHIP

@DESIGNATDARDEN

Batten Institute Annual Report 2011-12

Documents

Transcript of Batten Institute Annual Report 2011-12