BEST PRACTICES IN ENTREPRENEURSHIP CENTERS

Dr. Rosangela Catunda

PUC – Rio / ICC UT Austin

ICTPI’09 – International Conference on Technology, Policy and Innovation12 – 14 July – Porto - Portugal

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Agenda

1. Research objectives

2. Expected results

3. Research methodology

4. Critical issues

5. Conceptual references

6. Premises adopted

7. Existing relevant practices

8. Practices to validate

9. Best Practices Database as a model

10.Research milestones

and the next steps..

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Research objectives

• Identify and select Technology Incubators in Brazil, Portugal and the United States

• Review in further detail the practices of the selected incubators and the related performance indicators

• Establish a Best Practices Database to be shared with others entrepreneurship centers interested in improving their performance

• Share the research findings through publications, conferences and training sessions as appropriate

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Expected results

• A list of relevant performance measurement indicators

• A methodology for comparing practices among Technology Incubators

• A Best Practices Database

– Comparison of the performance indicators results

– Practices related with the best performer

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Research methodology

1. Preparation of the project2. Bibliographical revision3. Elaboration of the model and identify the relevant

performance indicators4. Identification and selection of the Top Centers for application 5. Data collection and analysis

A. Identification of criteria for data collection B. Identification of the control points to collect data C. Selection of the tools for collecting dataD. Data collection E. Data analysis

6. Establishment of the knowledge base with “best practices”7. Validation the results with Centers involved8. Lessons learned and how to proceed

We are here!

Identify the conceptual basis of the comparison, the variables of

differentiating the types of Incubators and the performance

indicators to compare.

Define the criteria and select the Incubators to be compared

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Critical issues

• Differentiation of Incubators– How to classify and compare them?

• Methodology to compare “practices”– How to identify the “practices”?

• Difficult access– How to collect reliable data?

• Performance indicators– How to select and identify them?

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Conceptual references

Answers…from some relevant studies…

• European Commission’s Final Report Benchmarking of Business Incubators (2002) – performance of business incubators

– impact on businesses and wider economic development

– assessed by obtaining information from companies

• iDISC - infoDev Incubator Support Center– IDISC database (2009)

• Wiggings and Gibson (2003)– Basic components of technology incubators in the U.S.

• Morris (2004) – Key variables to defining a Entrepreneurship Center Model

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Premises adopted

1. Develop a “pilot study” with relevant incubators in the three countries

2. Adopt a “criteria” to classify the incubators

3. Align used relevant performance indicators and build a “KPI” (Key Performance Indicators) list

4. Align existed “database practices” with selected indicators

5. Use the “benchmarking methodology” to collect and compare practices

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Premise #1: Relevant to study

Brazil: 17 IncubatorsU$ 350 million + 5000 companies

To be selectedUSA and Portugal

“O Prime vai patrocinar três rodadas de editais no período de

2009 – 2011, contemplando cerca de cinco mil empresas e

investimentos da ordem de R$ 650 milhões de subvenção. Somando-

se a este valor o adicional em crédito e capital de risco, o total de

recursos disponibilizado será superior a R$1 bilhão.”

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Premise #2: Criteria to classify

hi autonomy lo autonomy

hi budget independence

lo budget independence

hi tenuredfaculty

lo tenured faculty

hi curriculumresponsibility

hi student involvement

hi academicresearch

hi - venturestart ups

lo curriculumresponsibility

lo studentinvolvement

lo academicresearch

lo- venture start-ups

on campusfocus

off campusfocus

Michael H. Morris – Key variablesWiggings and Gibson - Basic components of technology incubators in the U.S.

Correlation of Basic components x Key variables = Similar categories

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Premise #3: KPI list

Align existing indicators…

ANPROTEC portal performance indicators (BSC)

Virtual networking and knowledge-sharing platform for incubators

PNI - National program to support Incubators and Technology Parks

ITCP - Technological Incubator of Popular Cooperativesof the Federal University of Rio de Janeiro

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Premise #4: Existed practices

Align existing practices…

Reference Model that establish “best practices” tobe implemented by Incubators

Virtual networking and knowledge-sharing platform for incubators

Integrated approach to performance excellenceNational Award

Entrepreneurship

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Premise #5: Benchmarking methodology

• Same methodology to measure the indicators results

• Detail and report the analyzed practices– What

– Why

– When

– Where

– Who

– How

• Code of Conduct

• Disseminate the results

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Indicators to validate

1. Social

2. Economic

3. Financial

4. Customer

5. Internal

processes

6. Learning

BSC Perspectives

Local/regional impact

Investments versus Tax

Financial autonomy

Graduated companies

performance

Quality and capacity

Human resources

competency

Strategic indicators Operational indicators

•Total of products / Total of companies•Total of companies with patent / Total of companies •Total of companies certified (ISO, NQA) / Total of companies

•Total revenue this year / year before•Incubator’s Capacity for Generating Taxes (CG2I) •Taxes Generation by the Graduated Enterprises (CGIG) Total revenue / Total of companies

•Incubator revenues and savings •Level of self-sustainability•Cost for square meter•Cost of Employment Generation (CGE)

•Projects selected / Projects candidates•Total distracts companies / Total graduated•Total revenue / Total employees•Total graduated / Total companies

•Modules occupied / Modules available•Time of incubation / Total graduated

•Low employee turnover•Long-term employment / employee satisfaction

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Existing relevant practices

Planning

Training

Advisory

Monitoring, Evaluation and Guidance

Graduation and Future Projects Support

Exploration and Awareness

Qualification of the Entrepreneur

Selection

Contracts

Institutional Model

Financial Management and Sustainability

Physical Infrastructure and Technology

People Management

Systems management support

Communication Systems and Marketing

Start an incubator

Select clients

Graduate clients

Provide services

Manage an incubator

Finance an incubator

Raise awareness

Market an incubator

Monitor & Evaluate an Incubator

Affect policies & regulations

Engage Partners

Leadership

Strategic Planning

Customer Focus

Measurement, Analysis, and Knowledge Management

Workforce Focus

Process Management

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Practices to validate

1. Strategic Planning 2. Monitoring and Evaluation3. Raising awareness 4. Qualification of the Entrepreneur 5. Selection of clients 6. Graduation and Future Projects Support7. Financial Management8. Quality Management9. People Management 10.Marketing11.Engaging Partners12.Processes related to provide services:

– Business Advice– Coaching and Mentoring– Financing– ICT services (Information and communication technologies)– Infrastructure & Facilities– Pre-incubation

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Best Practice Database as a model

RESULTSINCUBATORS

PRACTICESPERFORMANCE INDICATORS

BEST PRACTICE DATABASE

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Research milestones (Tollgates)26st Aug 2009

1. The conceptual basis of the

comparison

2. The variables of differentiating

the types of Centers

3. The performance indicators to

compare.

30rd Sep 2009

1. The selected Centers to be

compared

25rd Nov 2009

1. The criteria for data collection

2. Control points to collect data

3. Methodology to collect data

4. Tools for collecting data

25st Aug 2010

1. Lessons learned

2. Papers proposal

3. Proposal of Training sessions

4. Proposal of Workshops

24th Feb 2010Review of

1. Partial data collected

2. Partial results analysis

3. Draft of the knowledge base

with “best practices”

16th Jun 2010

1. The Best Class Practices

2. The relevant performance

indicators

3. The methodology for

comparing practices

4. The Best Practices Database

• Top Centers

• Comparison results

26st Jan 2011

1. Publications

2. Conferences

3. Workshops

4. Training sessions

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• Validating indicators and practices in USA and Portugal

• Select the Technology Incubators in USA and Portugal

• Develop the instruments to collect data

Next steps

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Thank you!!

Rosangela Catunda

rosangela_catunda@puc-rio.br

(USA) 1 713 3923687

(BRAZIL) 55 21 3255-4268