Entrepreneurship Ecosystems - Keynote Liverpool

Building and Assessing Entrepreneurship Ecosystems

Dr. Peter Vogel [email protected] www.petervogel.org

© Dr. Peter Vogel (www.petervogel.org)

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Entrepreneurship Ecosystems

Source: Vogel, 2013


It all started at the World Entrepreneurship Forum…

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Outline

§  Introduction to Entrepreneurship Ecosystems

§  Global Entrepreneurship Ecosystem Project

§  Swiss Startup Monitor

§  The Evolution & overview of the Swiss MedTech Ecosystem

§  Assessing Entrepreneurship Ecosystems

§  Starting an Entrepreneurship Ecosystem


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Ecosystems


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Entrepreneurship Ecosystems we know…

Campus

Regional

National


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A dynamic, interactive community within a geographic region, composed of

varied and inter-dependent actors (e.g. entrepreneurs, institutions and

organizations) and factors (e.g. markets, regulatory framework, support setting,

entrepreneurial culture), which evolves over time and whose actors and factors

coexist and interact to promote new venture creation.

Everything starts with a definition...

Entrepreneurship Ecosystems


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Outline




§  The Evolution & overview of the SwissMedTech Ecosystem




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Source: Vogel, 2013

Categorize 200k-300k organizations

evaluate & map ecosystems

Global Entrepreneurship Ecosystem Project (2010 -)


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www.EntrepreneurShipEcosystems.org

Symbolic map


We’re looking for more sponsors and partners

for this project!

Global Entrepreneurship Ecosystem Project (2010 -)

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Outline







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Swiss Startup Monitor

Start-‐ups

Universi/es

CTI

Cantons

Banks & Analysts

Tech-‐transfer Centers

Tech Parks

Public & Press

Investors

Founda/ons

Research Labs

Swiss Start-‐up Monitor


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§  Profile §  Public Profile §  Community Profile §  Awards §  Groups §  Financing History §  Founders & Team Development §  Revenue Development

§  Operational Dashboard §  CashFlow §  Liquidity in/out §  Key Facts §  Budget

§  Reports §  Monthly Reports §  Executive Summaries

§  Knowledge Exchange §  File and template exchange database

§  Jobs §  Job Offerings

§  Benchmarking §  Role-Admin

Startup Functionalities

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Stakeholder Functionalities

§  Profile

§  General Information

§  Offering

§  Contact

§  Links & Dates

§  Application Deadlines §  Deal Flow

§  Add / Remove Deal

§  List Overview

§  Filtering (Sector, Tag, Status, Responsibility, Targets, …)

§  Export to Excel

§  Analytics §  Key Facts of Deals

§  Revenue & raised capital §  Jobs

§  Map Overview of Deals §  Dev. Number of Jobs (by year) §  Dev. Number of Power (by year) §  Start-up Status

§  Active / Passive §  M&A

§  Start-up Ranking §  Employee Growth Rate §  Revenue Growth Rate

§  Social Media Ranking

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Stakeholder Functionalities

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We are now expanding our software solution to other countries

and regions around the world

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Outline







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Education

Source: Vogel, 2013 © Dr. Peter Vogel (www.petervogel.org)

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MedTech & Medical Education in Switzerland §  Med Schools

50 km


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MedTech & Medical Education in Switzerland §  University Hospitals

50 km


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MedTech & Medical Education in Switzerland §  MedTech Education Programs

50 km


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Culture


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Entrepreneurial Culture in Switzerland

Sources: Global Entrepreneurship Monitor – Google Data Explorer

§  Intention to Start Business in next 3 years (% of population: age 18-64)


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§  Entrepreneurship as desirable career (% of population: age 18-64)


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§  Fear of Failure (% of population: age 18-64) Level of agreement to the statement:

“Fear of failure would keep me from founding a company”.


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Support


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Institutions Supporting Swiss Medical Technology


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MedTech Clusters in Switzerland

Source Map: SMTI Report, 2012 © Dr. Peter Vogel (www.petervogel.org)

§  Help in developing business plans §  Tax exemption §  Allowances for R&D §  Contributions for investments and technological training §  Setting-up of financial and business partnerships §  Work and residence permits §  Search for premises, terrains and technological parks §  Contacts with financial and VC institutions §  Access to networks §  Help for negotiations with the state §  Support in export activities

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Cantonal Business Support in Switzerland


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CTI - Entrepreneurial Support in Switzerland §  Commission for Technology and Innovation §  Mandate: Improve the innovative strength of Switzerland

Ø market-oriented R&D projects Ø  foundation and development of start-ups Ø knowledge and technology transfer

Source CTI

Basic research

Applied research Product development

Market

SNSF Turns money into knowledge

CTI Turns knowledge into money


§  Technology Parks Switzerland

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Entrepreneurial Support in Switzerland

Sources: Swissparks.ch © Dr. Peter Vogel (www.petervogel.org)

§  Technology Transfer

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Entrepreneurial Support in Switzerland

University Tech Transfer Office Website EPFL EPFL TTO www.sri.epfl.ch ETHZ ETH Transfer www.transfer.ethz.ch Uni Lugano Ticinotransfer www.ticinotransfer.ch Uni Basel Unitectra www.unitectra.ch Uni Bern Unitectra www.unitectra.ch Uni Fribourg TT Fribourg www.tt-fr.ch Uni Geneva unitec www.unige.ch/unitec Uni Lausanne pactt www.pactt.ch Uni Neuchâtel TT Neuchatel www.unine.ch Uni Zurich Unitectra www.unitectra.ch


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Visibility


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Entrepreneurial Visibility in Switzerland


§  CTI MedTech Event

Ø 27th August

Ø First event: 2003 (178 participants)

Ø Last year’s event (>600 participants)

§  World MedTech Forum Lucerne

Ø 17th-19th September

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MedTech Visibility in Switzerland


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Networks


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Entrepreneurial Networks in Switzerland


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MedTech & Medical Networks in Switzerland

§  MedTech Companies

50 km


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Financing


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Outline







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Factors and Actors


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Factors and Actors


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Ecosystem Index

ORGANIZATIONAL PERFORMANCE

ORGANIZATION

CULTURE INDEX PERSONAL WEALTH INDEX

WORK- & LIFE SATISFACTION INDEX

POLICY INDEXMARKET INDEX

LOCATION INDEXJOB CREATION INDEX

INFRASTRUCTURE INDEX

VISIBILITY INDEXSUPPORT INDEXNETWORK INDEX

TALENT INDEX FUNDING INDEXEDUCATION INDEX

INNOVATION INDEXNEW VENTURE INDEX

INDIVIDUAL

COMMUNITY

Sources: Vogel, 2013


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Scientific Approaches for Assessment

§  Primary Data §  Historical data (archival) of cities and regions

§  Understand key competencies of region (manufacturing, education, healthcare,..)

§  Assess strategy of region (high-tech, tourism, manufacturing, …)

§  Map, classify and analyze supporting organizations

§  Performance Measures

§  Quantity of support for each of the identified pillars

§  Quality of the support (e.g., via external raters and 1:1 interviews)

§  Hard-facts (e.g., # participants, # projects funded, survival rates, jobs created, etc)

§  Match between the regional USP and the pattern of ecosystem dimensions


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Scientific Approaches for Assessment

§  Secondary Data (some examples…) §  National statistics offices §  GEM §  GEDI §  Chambers of commerce §  Companies Registrars §  World Bank Doing Business Report §  Heritage Freedom Index

§  Methodological Approaches §  Spiderweb charts §  Benchmarking / ranking based on overall indices §  Qualitative Comparative Analysis (QCA) for equifinality comparison


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Outline








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How to Start an Ecosystem?

The formation of an ecosystem is a positive, reinforcing loop:

Success Stories

Importance of the location

Area attractive to talents

Innovation


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How to Start an Ecosystem? Swiss MedTech §  Long tradition of watchmaking, machine industry and pharma §  Expert knowledge in:

Ø Micro- and nanotechnology Ø Precision mechanics and electro-mechanics Ø Material sciences and surface treatment

§  Unique combination of biotechnology and medical engineering


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How to Start an Ecosystem? MedTech Ecosystem Mexico


I worked with the government of Nuevo Leon on: (1)  Assessing the local USPs (2)  Benchmarking the region with other MedTech regions (3)  Derive strategic directions for a MedTech ecosystem

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How to Start an Ecosystem? KAUST King Abdullah Bin Abdulaziz Al Saud: “It is my desire that this new University becomes

one of the world's great institutions of research... The University shall have all the resources that it needs to pursue these goals…” - 2009

10 bn USD initial endowment


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The Liverpool City Region

§  1.5m people §  38’000 VAT registered companies. However, still a large deficit compared to national average §  Survival rates are comparable to national average à General startup conditions seem OK §  Self-employment rate (10.1%) still lower than nat. average (13.5%), but catching up §  Above-average proportion of people with lower levels of education à customize programs! §  Above-average levels of youth unemployment (& NEET)


Business start-up rates

Sources: LCR Evidence Report

Occupational structure 16-18y NEETs

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Industrial Assessment §  Above-average labor productivity in manufacturing, construction, transport and storage,

information & communication, financial activities, among others. §  Strong reputation in creative and digital industries §  Strong growth in specific sectors (e.g., health)


Overrepresented sectors in the LCR Business enterprises by sector

Sources: LCR Evidence Report

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§  Strategic Goals of the Liverpool City Region (LCR)

§  Strengthen the economy through the formation of a unified LCR

§  Increasing the level of education and skills among the younger population in LCR

§  Increasing the density of businesses in the LCR

§  Building an entrepreneurial culture in the LCR

§  Building off the great livability of the LCR to attract entrepreneurial talents to the region

§  Extend on the excellent infrastructure and connectivity (via airport, train and boat)

§  Create 60’000 new jobs until 2020s by focusing on Life Sciences, Advanced Manufacturing,

Creative and Digital Industries, and Financial- and Professional Services

§  Attract FDI for major projects such as the Liverpool Bio Innovation Center


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When Building an Entrepreneurial Ecosystem, consider…

§  Each ecosystem is unique

§  USP first! What are core competencies & goals?

§  Holistic implementation

§  Multi-stakeholder approach

§  Self-employment ≠ Entrepreneurship

§  Coordination and supervision

§  Bureaucracy blocks innovation à facilitate, don’t regulate!


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A Call to Action…

§  Governments §  Promote the power of entrepreneurship as engine of economic growth

§  Remove the stigma of failure

§  Create networking opportunities

§  Create alternative funding opportunities and startup-friendly (1) taxation & (2) labor laws §  Entrepreneurs

§  Share stories (both success and failure)

§  Help the next generation of entrepreneurs §  Incumbent Firms

§  Sponsor incubators and accelerators, build corporate VC practices

§  Collaborate with universities for long-term strategic M&A goals

§  Recognize the contributions and success of entrepreneurs


Dr. Peter Vogel

University of St. Gallen Switzerland

Mail [email protected]

Twitter: @pevogel Web http://www.petervogel.org

Thank you for your attention.

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress

depends on the unreasonable man.” (George B. Shaw, 1856-1950)


Entrepreneurship Ecosystems - Keynote Liverpool

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