batten institute annual report 2009-10

BATTEN INSTITUTEAdvancing knowledge about entrepreneurship and innovation

ANNUAL REPORT 2009 – 2010

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http://www.darden.virginia.edu

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CONTENTS

Mission....................................................................................................................2History .......................................................................................................................3

From the Executive Director..................................................................................4Highlights ..................................................................................................................6Transformative Research.........................................................................................7 Initiatives Batten Grants Batten Fellows Publications

Consequential Voice................................................................................................11 Events Communications Public Relations

Inspired Education...................................................................................................15 Curricular Initiatives Experiential Programs Batten Scholarships

Energetic Community..............................................................................................19 Batten Affi liates University Partners

Leadership Team…..................................................................................................22

Financial Statement..................................................................................................23

Contact.......................................................................................................................25


2 • ANNUAL REPORT 2009 – 2010

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

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

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 infl uence the world of practice.

Inspired EducationCultivate the next generation of entrepreneurial leaders through rigorous academic and experiential programs.

Energetic CommunityFoster a diverse and collaborative community of scholars, students, alumni, and practitioners.

Frank Batten, Sr. (1927 – 2009)


HISTORYIn 1996, University of Virginia alumnus Frank Batten, Sr., and his family gave the Darden School a generous gift to be used for the establishment of a community of scholars and practitioners who would pursue leading-edge research and develop educational programs in entrepreneurship 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. Charged with a mission to become a preeminent institution for thought leadership and educational excellence, and to help create and disseminate knowledge in the fi elds of entrepreneurship and innovation, the Institute set about forging ties with a wide range of organizations and individuals in the national and international business community.

The defi ning of terms was an essential task early on. “Entrepreneurship,” the Institute’s major stakeholders decided, would mean not just the act of starting a new business venture but would be expanded to include the sort of opportunity-seizing and action-oriented behavior that is essential for sustained growth in companies both large and small. “Innovation” would not be just of the sort refl ected in new products and services but would also include new business models and processes, and new ways of thinking about value creation.

During these early years, the Institute launched the Batten Fellows pro-gram, expanded its portfolio of research projects, supported the devel-opment of numerous case studies and educational materials, published books and a research-based newsletter, launched the Darden Incubator, and supported business plan competitions and other educational offer-ings for Darden students.

Today, the Batten Institute is organized in two operating units, a research center focused on academic scholarship and Darden’s newly created 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 Institute’s mission to create knowledge and improve society.

The important work of the Batten Institute has been made possible by the vision and support of the Institute’s benefactor, Frank Batten, Sr., who passed away on September 10, 2009. The Institute celebrates and honors the legacy of Mr. Batten, a media pioneer and philanthropist, who is remembered for his extraordinary generosity, his abiding com-mitment to education, and his unparalleled entrepreneurial energy and vision.

Executive Directors

Robert F. Bruner 2000 – 2004Dean and Charles C. Abbott Professor of Business Administration

Jeanne M. Liedtka 2004 – 2008United Technologies Corporation Professor of Business Administration

Michael J. Lenox 2008 – presentAssociate Dean and Samuel L. Slover Research Professor of Business Administration

BATTEN INSTITUTE • 3


http://www.darden.virginia.edu/web/Faculty-Research/Directory/Full-time/Robert-F-Bruner/

http://www.darden.virginia.edu/web/Faculty-Research/Directory/Full-time/Jeanne-M-Liedtka/

http://www.darden.virginia.edu/web/Faculty-Research/Directory/Full-time/Michael-Lenox/


FROM THE EXECUTIVE DIRECTORIn these challenging economic times, the vital importance of entrepre-neurship and innovation in driving economic growth and general welfare has never been so evident. From sustainability to human health, from poverty relief to business vitality, entrepreneurship and innovation serve as powerful mechanisms for addressing society’s most critical challenges. At the Batten Institute, we are dedicated to advancing the transformative power of entrepreneurship and innovation. We do this by providing stu-dents with the tools and capabilities to become successful entrepreneurs and innovators. We also conduct cutting-edge research on topics of relevance to the business community and policymakers, and we instigate vibrant conversations with critical constituencies.

For the Institute, the past year has been one of signifi cant progress toward Frank Batten, Sr.’s vision to become “the preeminent thought leader and educator in entrepreneurship and innovation.” First, we deepened our support of research of practical relevance and importance. We awarded well over $500,000 to faculty through the Batten Grant and other research initiatives, and we partnered with leading scholars through our Batten Fellows program. Our team of researchers is generating high-visibility reports through our revamped Batten Briefi ngs series.

The Institute sponsored a number of timely events, including a symposiumon Health Care Innovation featuring executives from the Cleveland Clinic and IDEO, a panel on entrepreneurship policy at UVA’s second Annual Venture Summit featuring U.S. Senator Mark Warner, and a day-long series of events around innovation and organic growth featuring best-selling author Daniel Pink.

We also enhanced our capability to achieve worldwide visibility and impact for the work emerging from the Institute. We reorganized and completed our staffi ng in vital support functions such as outreach and communications, and we continued to engage with well-respected part-ners, such as National Public Radio’s Marketplace. New signature events, including the Darden E-Conference aimed at alumni and students, and the Darden Entrepreneurship and Innovation Research Conference aimed at academics, were launched with great success. Our newly com-menced Ideas to Action tour featured Darden faculty and their research in evening receptions held in major cities around the world.

In September, we announced the establishment of the Center for Entre-preneurial Leadership, a new Center within the Institute, led by Philippe Sommer, who has directed Darden’s Entrepreneurship Program. The


Center allows us to formalize a critical component of our mission, to cultivate principled entrepreneurial leaders through our student-focused activities.

During 2009-2010, under Philippe’s direction, we continued to augment our student offerings. In response to growing demand, we expanded both the Batten Scholarship Program and the Batten Venture Internship Program. In the summer of 2010, we hosted the largest number of stu-dent ventures since the inception of the Darden Incubator. A new con-centration in entrepreneurship, and new electives such as Entrepreneurs Taking Action and Technology Accelerator, have further strengthened our academic offerings. In the fall of 2009, we also restructured the Business Concept Competition into a UVA-wide event called the UVA Entrepreneurship Cup. Our forward-thinking approach to teaching entrepreneurship continues to be recognized, and our program was recently ranked seventh in the nation by Princeton Review for Entrepreneur magazine.

Finally, in March 2010 we offi cially launched the i.Lab – a collaborative learning space where students can create and innovate. A special thanks to Batten Institute Managing Director Elizabeth O’Halloran and Professor Jeanne Liedtka for their leadership and vision in bringing to fruition this groundbreaking initiative.

Looking forward to 2011, we will be celebrating our tenth anniversary. From this vantage point we will refl ect on all that has been accomplished while looking toward the future to realize our full potential. These are exciting times at Darden and the Batten Institute. We invite your support and involvement as we move forward to advance the fi elds of entrepre-neurship and innovation and realize our important mission to improve society and cultivate principled entrepreneurial leaders.

Michael J. LenoxAssociate Dean and Executive Director, Batten InstituteSamuel L. Slover Professor of Business AdministrationDarden School of Business



http://www.darden.virginia.edu/web/Faculty-Research/Directory/Full-time/Michael-Lenox/


2009 – 2010 ACADEMIC YEAR HIGHLIGHTSBatten Ideas to Action Tour Launched – October ’09Events held in Richmond, New York, Atlanta, Chicago, San Francisco, Los Angeles, Boston, and London.

E-Conference – November ’09Over 75 students, alumni, entrepreneurs, and business leaders participated in Darden’s inaugural E-Conference. 71 Business concepts were submitted.

UVA Entrepreneurship Cup – November ’09UVA’s fi rst-ever Entrepreneurial Concept Competition, the UVA Cup, spanned multiple schools and awarded over $35,000 in non-dilutive funds.

Health Innovation Symposium – February ’10Leading executives and scholars examined the role of employers and providers in transforming health care.

i.Lab Launched – March ’10Opening event activities featured best-selling author Daniel Pink, a ribbon cutting ceremony, and a pan-UVA discussion about innovation in education.

University of Virginia Venture Summit – March ’10Batten-sponsored event featured U.S. Senator Mark Warner on the topic “Government Policy, Entrepreneurship, and the Financing of Innovation.”

Darden-UVA Business Plan Competition – April ’10The 2010 competition drew 28 business plans from schools UVA-wide, including the schools of medicine, engineering, and the Curry School of Education.

Entrepreneurship and Innovation Research Conference – April ’10Darden’s fi rst annual Entrepreneurship and Innovation Research Conference was attended by over 70 leading academics from across the world.


http://www.darden.virginia.edu/web/Batten-Institute/Events/Overview/

TRANSFORMATIVE RESEARCHThe Batten Institute cultivates research that addresses questions central to entrepreneurship and innovation. Institute-supported research is practical, rigorous, and informs business practice and/or public policy. The Batten Grant program provides fi nancial support to Darden and University of Virginia faculty. The Batten Fellows program engages scholars and thought leaders through Institute residencies and other offerings. Finally, the Institute supports a team of staff researchers who lend their talents to a range of projects.

INITIATIVESThe Institute pursues a diverse portfolio of projects but has adopted a number of focused initiatives of criticalimportance to society where Institute-supported scholars hold substantial expertise. Current initiativescenter on four areas of public interest:

Innovation and Organic GrowthShrinking markets, unrelenting competition, and swiftly evolving technologies challenge the vitality of every business enterprise, large and small. The Institute’s Innovation and Organic Growth initiative examines how innovation can be the engine for sustained, internally generated business growth.

Entrepreneurship in Emerging MarketsNew businesses are crucial for the sustained economic development of the world’s emerging regions. The Entrepreneurship in Emerging Markets initiative supports research projects focused on entrepreneurs and the ingredients of entrepreneurship in emerging regions around the world: seed-stage capital, mentors, sound social institutions, and a culture that welcomes new ideas by educating and supporting those who pursue them.

Innovation and SustainabilityThere is growing acceptance that business must play a constructive role in addressing global issues of sustainability. The Institute’s Innovation and Sustainability initiative focuses on the mechanisms by which entrepreneurship and innovation can simultaneously drive a fi rm’s market success and discover sustainable solutions to societal challenges.

Health Care InnovationAlthough U.S. policymakers, medical professionals, and health care consumers may not agree on a single solution, all agree that the country’s health care system is not working. The Health Care Innovation initiative supports research that refl ects the need for novel approaches to this seemingly intractable problem.



http://www.darden.virginia.edu/web/Batten-Institute/Initiatives/Overview/

http://www.darden.virginia.edu/web/Batten-Institute/Initiatives/Growth/

http://www.darden.virginia.edu/web/Batten-Institute/Initiatives/Emerging/

http://www.darden.virginia.edu/web/Batten-Institute/Initiatives/Sustainability/

http://www.darden.virginia.edu/web/Batten-Institute/Initiatives/Health-Care/

BATTEN GRANTSThe Batten Grants program provides fi nancial support to scholars to underwrite a variety of research-related expenses, including data collection, analysis, software, subscriptions, and travel. SSince 20000, the Institute haas fundedd over 150 projects undertakeen by approximatelyy 75 sccholarss.

In 2009-2010, over $5000,000 was awarded to 20 faculty research projects through the Batten Grants and other research programs. Grants were awarded by a committee of Darden faculty through a competitive process.

Batten Grants to Darden Faculty for 2009 – 2010


Chao, Raul

Chao, Raul

Davidson, Martin

Hess, Edward

Larson, Andrea

Lenox, Michael

Lenox, Michael

Li, Wei

Teisberg, Elizabeth

Loutskina, Elena

Fairchild, Greg

Chao, Raul

Frank, Mary Margaret

Wallace, Scott

Operations

Operations, Finance

Entrepreneurship

Entrepreneurship

Strategy, Entrepreneurship

Strategy

Strategy

Global Economies and Markets

Strategy

Organizational Structure and Incentives

Complexity, Instability and Innovation Portfolio Management

Minority Entrepreneurship

Managing Growth in Small- to Medium-Sized Businesses

Clean Energy and Sustainability Innovations

The Division of Innovative Effort: How to Manage a Portfolio of Innovation

Policy Drivers of the Direction of Innovative Activity: The Role of Tax Credits

Entrepreneurship and Clustering in China

Comparative Effectiveness and Innovation in Health Care

PRINCIPAL PRINCIPAL INVESTIGATORINVESTIGATOR CO-INVESTIGATORCO-INVESTIGATOR ACADEMIC AREAACADEMIC AREA PROJECT NAMEPROJECT NAME


http://www.darden.virginia.edu/web/Batten-Institute/Contributors/Faculty/

BATTEN FELLOWSSince the launch of the Batten Fellows program in 2001, the Institute has hosted over 60 leeading scholars and thoughht leadeers to connducct reseearch related to entreepreneurship and innoovattion. Batten Fellows, who are nominated by members of Darden’s scholarly community and receive appointments without term, spend their time in residence participating in the life of the Darden community and generating new intellectual capital.

In the 2009-2010 academic year, the Institute sponsored two new Fellows in residence:

Michael Mooore Principal, Chicago Partners, LLC; Research Associate, National Bureau of Economic Research

Batten Fellowship Project: Benefi ts and Costs of Health Care Innovation

Michael Moore is investigating the effects of pharmaceutical innovation and intellectual property rights on health care costs, in particular, pharmaceutical pricing. A key area of his research evaluates the tradeoffs between granting unlimited access to the existing stock of patented pharmaceutical products and preserving the intellectual property rights currently in place. In this exploration, he is comparing the benefi ts to consumers of immediate but more limited access to current products and of future innovations. Moore is also investigating the claim that “new drugs pay for themselves,” and he is working with industry policy groups such as PhRMA to examine specifi c compounds and their effects on health care utilization, costs, and, ultimately, on health.

Charles E. Eeesley Assistant Professor, Department of Management Science & Engineering, Stanford University

Batten Fellowship Project: Universities, Career Experiences, and Entrepreneurship

Charles Eesley is analyzing the determinants of individual entrepreneurshipusing a sample of alumni at several universities. He is attempting to determine the roles that university experience, career experience, back-ground, and psychology play in choosing entrepreneurship over wage work. His research will provide guidance on the development of effec-tive university programs related to innovation and entrepreneurship. In addition, Eesley’s research will help clarify the impact that universities have, through their alumni, on economic development and job creation.

BATTEN FELLOWS2001–2010

Batten Fellows span a variety of disciplines and scholarly inter-ests. A full list of Fellows and detailed descriptions of their research are available at www.batteninstitute.org.

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 Entrepre-neurship: Education, Policy, and Practice



http://www.darden.virginia.edu/web/Batten-Institute/Contributors/Fellows/

http://www.darden.virginia.edu/web/Batten-Institute/Contributors/Fellows/

PUBLICATIONSSince 2000, Batten-supported and Darden researchers have published 16 bbookss, 87 ressearch ppapers, and 1442 cases, teaaching notes, technicaal nottes, aand muultimmeddia teaching maateriaals. The following is a list of recent publications.

BOOKS

Smart Growth: Building an Enduring Business by Managing the Risks of GrowthEdward D. HessColumbia Business School Publishing, 2010

The Catalyst: How You Can Become an Extraordinary Growth LeaderJeanne Liedtka, Robert Rosen, and Robert WiltbankCrown Business, 2009

ACADEMIC ARTICLESChao, R., Kavadias, S., and Gaimon, C., “Revenue Driven Resource Allocation: Funding Authority, Incentives, and New Product Development Portfolio Management,” Management Science, 2009.

Dew, N., Read, S., Sarasvathy, S., and Wiltbank, R., “On the Entrepreneurial Genesis of New Markets: Effectual Transformations versus Causal Search and Selection,” Journal of Evolutionary Economics, 2010.

Hayward, M., Forster, W., Sarasvathy, S., and Fre-drickson, B., “Beyond Hubris: How Highly Con-fi dent Entrepreneurs Rebound to Venture Again,” Journal of Business Venturing, 2010.

Lenox, M., Rockart, S., and Lewin, A., “Does Inter-dependency Affect Firm and Industry Profi tability? An Empirical Test,” Strategic Management Journal, 2010.

Meek, W., Pacheco, D., and York, J., “The Impact of Social Norms on Entrepreneurial Action: Evidence from the Environmental Entrepreneurship Context,” Journal of Business Venturing, 2009.

Pacheco, D., York, J., Dean, T., and Sarasvathy, S., “The Coevolution of Institutional Entrepreneurship: A Tale of Two Theories,” Journal of Management, 2010.

York, J. and Venkataraman, S., “The Entrepreneur-Environment Nexus: Uncertainty, Innovation, and Allocation,” Journal of Business Venturing, 2010.

CASES AND TECHNICAL NOTES“Nottingham Spirk: Blending Economics and Design,” Kamalini Ramdas, 2009.

”SecureWorks: An Experienced CFO & COO Join a Growing Start-up Company” (UVA ENT-0140) Gosia Glinska and Edward Hess, 2010.

“Enchanting Travels: Two Entrepreneurs Create a Differentiating Business Model Dependent on Qual-ity Service and Excellent Execution” (UVA-ENT-0144) Edward Hess, 2010.

“LG Investments, LLC: A Family Business in Genera-tional Transition” (UVA-ENT-0123) Edward Hess, 2010.

The Institute has long served as the underwriter of the Journal of Business Venturing (JBV), the premier scholarly journal devoted to entrepreneurship and innovation. JBV is ranked by the Social Science Citation Index as one of the most infl uential 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 fi eld editors.



http://www.darden.virginia.edu/web/Batten-Institute/Publications/Overview/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/Journals/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/Research/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/Cases/

http://www.elsevier.com/wps/find/journaldescription.cws_home/505723/description#description

CONSEQUENTIAL VOICEThe Batten Institute invests in a variety of outreach activities to share its research and fi ndings with key constituencies and to create an informed, rigorous dialog on the topics of entrepreneurship and innovation. The Institute reaches its audiences through numerous channels including mainstream media, high-visibility reports, non-academic articles, books, pioneering teaching cases, executive education, thought-provoking conferences, workshops, and guest speakers. The Institute’s outreach program targets a broad audience, including students, alumni, academics, policymakers, business leaders, and the general public interested in the critical role that entrepreneurship and innovation play in economic and social advancement.

EVENTSConferences, workshops, and speaking events (virtual and in-person) provide the Institute with a platform to foster critical conversations with key stakeholders throughout the year.

Ideas to Action Tour Batten-affi liated faculty traveled to major cities to discuss their research with alumni, prospective students, and community members. Professor Edward Hess launched the inaugural Ideas to Action tour in Richmond in October 2009. Over the course of the academic year, nearly 170 aalumni particippated in eventts in NNew Yorkk, Atlanta, Chicaago, Saan Franccisco, Los Angeeles, Booston, annd London, featuring Professors Hess, Greg Fairchild, Jeanne Liedtka, and Michael Lenox.

Darden E-Conference On November 17-19, the Batten Institute convened Dardeen’s inauggural EE-Conferrence, bringing together over 75 students, aluumni, entreepreneeurs, andd business leaders to learn how to be more effective entrepreneurial leaders. The conference featured workshops and panels on topics such as ”Entrepreneurship After Darden” and “Entrepreneurial Opportunities and Challenges in Clean Tech.” The fi rst evening of the conference featured Darden’s Entrepreneurial Concept Competition, in which 71 student teams from Darden competed.

Health Innovation Symposium On February 19, Darden Professor Elizabeth Teisberg convened leading executives and scholars to examine the role of employers and providers in transforming health care. The informative and timely event featured Dr. Delos “Toby” Cosgrove of the Cleveland Clinic, Tim Brown of IDEO, Batten Fellow Scott Wallace, and other thought leaders. Over 150 participants attended the symposium.

i.Lab Launch On March 19, Darden and the Batten Institute unveiled the i.Lab, a sttate-of-the-aart learrning environment designed to engagge MBA sttudents wiith the core skills eessentiall to innovative business. Opening event activities featured a ribbon

Greg Fairchild(Los Angeles, March 2010)

Greg Fairchild(San Francisco, March 2010)

Mike Lenox(New York, Nov. 2009)

Jeanne Liedtka(Boston, March 2010)

Ed Hess(Richmond, Oct. 2009)

Ed Hess(Atlanta, Nov. 2009)

Greg Fairchild(Chicago, March 2010)

Mike Lenox(London, July 2010)



http://www.darden.virginia.edu/web/Batten-Institute/Events/Overview/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/Ideas-To-Action/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/Ideas-To-Action/

http://www.darden.virginia.edu/web/mba/entrepreneurship/practicum/innovation-lab/

http://www.darden.virginia.edu/web/Batten-Institute/Publications/The-Quest-For-Chronic-Health/

BATTEN DISTINGUISHED LECTURERS

Thought leaders directly engage with the Darden community.

Carl Schramm (November 2003)

Reinhard Selten (March 2004)

Malcolm Gladwell (March 2005)

Jim Collins (March 2008)

Daniel Pink (April 2010)

cutting ceremony and best-selling author Daniel Pink, who shared his thoughts on how best to inspire and encourage innovation. The day concluded with a pan-UVA discussion on innovation education featuringPink and University leaders such as the Vice President for Research and senior faculty from architecture, business, engineering, medicine, and arts & sciences.

UVA Venture Summit On March 25 - 26, the University of Virginia’s second annual Venture Summit brought over 25 prominent venture capitalists to Charlottesville to engage in discussions about science, technology, and the future of the venture capital industry. Starting in 2009, the Batten Institute worked closely with the University’s Offi ce of the Vice President for Research to convene this special event. The 2010 Summit included a Batten-sponsored session featuring U.SS. Sennator Mark Warner and a panel of leading academicsexploring the topic “Government Policy, Entrepreneurship, and the Financing of Innovation.” The panel was open to the public and held in Old Cabell Hall on UVA’s historic Lawn.

Darden’s Entrepreneurship and Innovation Research Conference On April 30 - May 1, oover 700 leadding acadeemics from around tthe worrld gathhered at DDarden to participate in Darden’s fi rst annual Entrepreneurship and Innovation research conference. The event featured presentations of new and as-yet-unpublished scholarship on a wide range of topics, including “Entrepreneurs, Incumbents, and Industry Dynamics” and “The Role of Status and Standing in Entrepreneurial Success.” Conference highlights also included a rousing debate between Sidney Winter, the Deloitte & Touche Professor Emeritus of Management at Wharton, and Jay Barney, the Chase Chair for Excellence in Corporate Strategy and Professor of Management and Human Resources at Ohio State. The debate was facilitated by Darden Professor S. Venkataraman.

Batten Distinguished Lectures The Batten Institute routinely invites accomplished intellectuals from all disciplines to lecture broadly on the topics of entrepreneurship and innovation to the Darden and University community. In 2009-2010, acclaimed author Daniel Pink gave the Batten Distinguished Lecture as part of the i.Lab launch. Previous lecturers have included prominent Batten Fellows such as best-selling author Malcolm Gladwell, Nobel Prize-winning economist Reinhard Selten, and best-selling author and president of the Kauffman Foundation, Carl Schramm.



http://www.darden.virginia.edu/web/Media/Darden-News-Articles/2009/UVA-Venture-Summit/

http://conference.darden.virginia.edu/DEIRC/

COMMUNICATIONSThe Institute’s website, www.batteninsttitute.orrg, provides an important connection to members of the Batten community and beyond. Site features include a newly launched blog, general information about the Institute’s major initiatives, brief articles on supported projects, profi les of Batten-affi liated researchers and professionals, links to academic articles and teaching cases, and news and events listings. Real-time and on-demand access to Batten Institute events, such as the unveiling of Darden’s i.Lab, have made it possible for the Institute to reach an even broader audience regardless of time and geography constraints.

Social networking channels are an important addition to the Institute’s communications program. The Batten Insttitute bblog andd Twiitter presence enable the Institute to engage an ever broader online audience with instantaneous updates and timely commentary on news and events shaping the global online conversation on entrepreneurship and innovation. As of July 2010, the Batten Institute Twitter feed, @BBattenInstitute, had over 250 followers.

In Fall 2009, the BBatten Bulletin – an oonline newsleetter highhlighhting rresearch and activitiees supported by the Institute – was launched. The Batten Bulletin is currently distributed to approximately 1800 individuals, and an archive of the Bulletin is available online.

From 2001 to 2008, the Institute published the Batteen Briefifi ngs, a geeneral inteerest quarterly featuring articles about Institute-sponsored research. In Fall 2010, a re-envisioned Batten Briefi ngs will be launched, providing a regular series of executive briefi ngs that address important and timely topics in entrepreneurship and innovation. Intended for a wide but knowledgeable audience, the Briefi ngs will provide relevant analysis and objective insight for managers, business educators, researchers, policymakers, and other decision makers concerned with the transformative role of entrepreneurship and innovation in business and society. Briefi ngs will include a number of different items, including research summaries, policy briefi ngs, and interviews. Batten Briefi ngs will be available both in print and electronically through the Institute’s website.

BATTEN BRIEFINGSForthcoming:

Venture Capital’s Crossroads (3-part series)

The Locus of Greentech Innovation

Making Sense of Innovation and Growth

Business Model rEvolution

Design Thinking in Business

The Napsterization of Pharmaceuticals




http://twitter.com/BattenInstitute

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PUBLIC RELATIONSPublic relations activities focus on generating press about the Institute’s work across a range of top tier, trade, and digital news outlets. The Institute engages the media by meeting one-on-one with key targeted reporters, publishing editorials and opinion pieces, and issuing press releases that announce major developments and milestones. The Institute also partners with leading news organizations, and such programs as Naational PPublic Radio’s Marketplace, a highly rated business news program that airs nationally on public radio stations across major U.S. markets.

The Batten Institute received more than 50 key media placeements over the year that reported on or referenced Batten Institute initiatives, the Institute’s leadership team, and supported professors in top tier domestic and international news organizations. These outlets included the Financial Times, New York Times, Wall Street Journal, Times of London, Economic Times, Businessweek.com, Forbes.com, as well as key wire services such as Bloomberg, Thomson Reuters, and Dow Jones. In addition, Battenn Institute presss releasses are rooutinely included on more thhan 200 WWeb sites reeaching over 70 million viewwers, including dozens of leading regional business news outlets such as the Boston Business Journal, Baltimore Business Journal, and Silicon Valley/San Jose Business Journal, as well as portals such as Yahoo! and Google News.

SELECT MEDIA PLACEMENTS (2009-2010)

“Long-term U.S. rates would be about a percentage point higher without foreign government and central bank buyers, according to studies done in 2006 and 2009 by Professors Francis and [Batten Fellow] Veronica Warnock at the University of Virginia in Charlottesville, who researched the matter for the Federal Reserve.”– Bloomberg News, June 20, 2010– Bloomberg News, June 20, 2010

“This week, University of Virginia’s Darden School of Business unveiled its new “i.Lab,” a center that includes a design lab. The aim of the new space … is to arm business students with tools typically mastered by art-ists, engineers and architects. It’s part of Darden’s new ‘design thinking’ initiative, which makes students think innovative[ly] and more creatively, key skills for entre-preneurs.”– Wall Street Journal, March 19, 2010– Wall Street Journal, March 19, 2010

Commentary: Bigger Is Not Always Better“What the Toyota shutdown can teach us about growth”By Edward D. Hess, professor of business administration and Batten Executive-in-Residence at the Darden Graduate School of Business, University of Virginia – Forbes.com, February 3, 2010– Forbes.com, February 3, 2010

“Other prominent business schools are also making curriculum changes, though the specifi cs and degree vary. The Darden School of Business at the University of Virginia recently introduced design thinking into its cur-riculum and has built an innovation lab, called I-Lab, to accommodate the classes’ informal, collaborative style.” – New York Times, January 10, 2010– New York Times, January 10, 2010

“In the absence of hard data, Philippe Sommer, director of entrepreneurship programs at the University of Virginia’s Darden School of Business, said he believes that competitions are good for start-ups and prepare them to do business in the real world in a few, but not all, ways...” – New York Times, December 18, 2009– New York Times, December 18, 2009

“‘Small is beautiful in both good times and bad,’ according to Jeanne Liedtka, Professor of Business Administration at the Darden School of Business at the University of Virginia. ‘Find a customer - maybe just a single one. Try to sell that customer something, even if it’s just a rough prototype. Think of your new business as a hypothesis that you are testing.’”– Times of London, July 1, 2009– Times of London, July 1, 2009



http://marketplace.publicradio.org/show/marketplace/

INSPIRED EDUCATIONThe Batten Institute’s Center for Entrepreneurial Leadership provides educational opportunities to Darden MBA students and alumni as well as to the broader UVA community. Darden’s entrepreneurship program, which includes a rigorous academic offering and a range of experience-based educational opportunities, is led and funded by the Center.

Center for Entrepreneurial Leadership – At a Glance

Program

• #7 in the U.S. for Entrepreneurship, Princeton Review for Entrepreneur magazine, 2010

Curricular Initiatives • 25 entrepreneurship courses

• 70% of Darden students enroll in entrepreneurship and innovation electives

• #1 ranked faculty by Princeton Review for Entrepreneur magazine, 2008 and 2011

Experiential Programs • 92 unique ventures and 220 entrepreneurs/participants hosted in the Darden Business Incubator since 2000

• $80,500 awarded in concept and business plan competitions in the academic year (funding provided by the Institute, Third Security, and participating schools UVA-wide)

• 130 student participants in the VC, health care, and IP licensing boot camps in the academic year

• 38 summer venture internships funded in 2009 and 2010

• Alumni mentorship program launched

Scholarships • 10 full scholarships awarded annually, valued at $1.06M for the 2009-2010 academic year



http://www.entrepreneurship.darden.virginia.edu

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

Entrepreneurs Taking ActionEntrepreneurs Taking ActionStudents interact with experienced entrepreneurs and learn from their successes and failures as they examine a diverse set of management challenges faced at different stages of a company’s development.

The Technology AcceleratorThe Technology AcceleratorStudents master the process of adapting technology to the needs of the market, creating an actionable strategy, and developing the skills necessary to launch a start-up.

BioInnovationBioInnovationA multidisciplinary course drawing students from Darden, UVA’s Department of Biomedical Engineering, and the schools of nursing, architecture, engineering, and medicine. Students collaborate across disciplines to identify and frame clinically based challenges at the UVA Health Center.

Corporate Innovation & the Design Experience Corporate Innovation & the Design Experience This course examines how design thinking and innovation principles can be used to enhance the value and accelerate the development of business opportunities that deliver organic growth.

CURRICULAR INITIATIVESThe Institute’s research arm supports scholarship that advances the fi elds of entrepreneurship and innovation, and this research often manifests itself in novel, forward-thinnkingg neww cooursses, such as Corpooratee Inno-vation & the Design EExxperriencee, Neeww Prooduct Developpmennt, annd Staartiing NNew Venturess. Research supported by the Institute also takes the shape of groundbreaking initiatives, such as Darden’s new i.Lab, a non-traditional, fl at-classroom teaching environment that includes a design-build studio where students can transform their ideas into physical prototypes. A number of Darden’s new entrepreneurship and innovation courses are steeped in design and multidisciplinary thinking and are taught in Darden’s i.Lab.

In 2010, an entrepreneurrship coonceentrration was launched as part of Darden’s MBA curriculum. The concentration lays the foundation for a deeper understandingof 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/fi nancing 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 theyy need to creatte succcessful, reaal-liife bbusinesses upon graaduattion. The Center’s experiential programs include a business Incubator, numerous competitions (including support for national and global competi-tions), 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 2010, the Center hosted 18 companies in the Darden Incubator, the largest group in its ten-year history. To date, 46% of Inncubaator-lauuncchedd or supported companiees remmain acctive enterprisees aftter fi vve years.

The Center also sponsors three major competitions each academic year: the Darden Concept Competition, UVA Entrepreneurship Cup, and the Darden/UVA Business Plan Competition. In the fall of 2009, 139 concepts were submitted for the UVA Entrepreneurship Cup competition from six schools of the University (Darden Business School – 71, Curry Education School – 15, Law School – 12, McIntire Commerce School – 8, Medicine/BME/Nursing School – 18, Engineering School – 15). For the fi rst time, each school sponsored its own con-cept competition, with the winners progressing

to the overall UVA Cup competition. Also for the fi rst time, UVA received outside sponsorship from Third Security for $50,000. Overall, a total of $$800,500 was awardedd at the afore-mentioned competitions during the 2009-2010 academic year.

Lastly, the Center actively develops or supports alumni and student entrepreneurship groups and networks, such as Darden’s Entreprenneurship and VVentuure Caapittal CClub – Darden’s most active student organization – and the E*Society, a group that connects entrepreneurs from various schools across the University of Virginia.

Global Cell Solutions, a Darden Incubator company, was cofounded in 2004 by Uday Gupta (Darden MBA ‘04) and Robin Felder, Ph.D., University Profes-sor and Director of the Medical Automation Research Center at UVA.

BioLevitator, a groundbreaking cell culturing technol-ogy invented at the UVA School of Medicine and commercialized by Global Cell, was named one of the 10 “most exciting tools to hit the life sciences” by The Scientist magazine.


THE SCIENTIST MAGAZINE NAMES GLOBAL CELL INVENTION “TOP 10 TOOL TO HIT THE LIFE SCIENCES”


http://www.the-scientist.com/2009/12/1/41/1/


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.

Yebo fund, a socially minded private equity and economic development fund based in Africa was created by Batten Scholarship winner and Darden Second Year student Joe Andrasko. Thhe ffundd purchased aa farmm in Swwazzilannd in the sprinng off 20009, geenerateed 125 local fuull-timme joobs, annd hhas increased expportss fromm onne tton per week to ssix ovver the paast yyearr.

Joe Andrasko (left), of Yebo fund and Themba Dlamini (right), manager of Sdemane Farm.

HUSK POWER SYSTEMS

Husk Power Systems (HPS) was co-founded by Batten Scholarship winner Chip Ransler. A Darden Incubator company, HPS is revolutionizing the Indian power industry and provides power to over 250,000 rural Indians in a fi nancially sustainable, scalable, environmentally friendly, and profi table manner. HPS has won numerous business plan competitions worldwide, including the $250,000 DFJ/Cisco Global Business Plan competition. HPS was recently named one of 12 fi nalists in the BBC World challenge, “a global competition aimed at fi nding projects or small businesses from around the world that have shown enterprise and innovation at a grassroots level.”


Husk Power Systems Founders, Batten Scholarship winner Chip Ransler (left) and Darden MBA graduate Manoj Sinha (right).


http://www.darden.virginia.edu/web/Media/Darden-News-Articles/2010/Student-in-Dardens-Business-Incubator-Helps-African-Farm-Flourish/

http://www.huskpowersystems.com/

FACULTY AWARDS AND RECOGNITION 2009–2010

2010 Decade Award – Academy of Management ReviewThe AMR Decade Award, given to the article published 10 years prior with the greatest impact in terms of citations, was awarded to Professor S. Venkataraman (Venkat) and his coauthor, Scott Shane, for their 2000 Academy of Management Review article, “The Promise of Entrepreneur-ship as a Field of Research.”

2010 Research Professor in Entrepreneurship – Financial TimesThe Financial Times named Associate Professor Greg Fairchild the world’s top research professor in the category of entrepreneurship.

2010 Best Symposium Award – Academy of ManagementProfessor Jeanne Liedtkareceived the Best Symposium Award in the Management Education and Development division of the Academy of Management for the symposium “Finding the Right Side of the MBA Brain: Teaching Design Thinking.”

ENERGETIC COMMUNITYAt the heart of the Batten Institute is a diverse and collaborative com-munity of scholars, students, alumni, and practitioners. This energetic community is the source and inspiration for many of the Institute’s growing programs.

BATTEN AFFILIATESBatten Institute affi liated faculty play a key role in shaping the continued evolution of the fi elds of entrepreneurship and innovation through both their teaching and research. This past year, a number of faculty affi liatedwith the Institute have been recognized for their contributions and scholarship.

Batten-affi liated experts are also called to testify on key issues facing the United States. In October 2009, PProfessoor Andrea Larsson appeaared before the U.S. House Com-mitttee oon Energy and Commerce on thhe topicc of exppandding UU.S. trade in green teechnoloogy. In her testimony to the committee, Larson asserted three critical interrelated recommendations for the United States: invest in clean energy and materials, use greentech to drive economic development domestically, and support U.S. greentech competitiveness.




2010 Aspen Ideas Festival “Scholar” – Aspen InstituteAssociate Professor Greg Fairchild was named a Festival “Scholar” at the 2010 Aspen Ideas Festival, hosted by the Aspen Institute and The Atlantic and featuring the world’s lead-ing scholars who are “exploring ideas, deepening dialogue and inspiring action.”

2010 ONE Best Dissertation Award – Academy of ManagementFormer Senior Batten Researcher Jeffrey York was honored for the quality, importance, originality, methodology, structure, and readability of his dissertation.

2009 Best Innovation and Design Books – Bloomberg BusinessWeekThe Catalyst: How You Can Become an Extraordinary Growth Leader, written by Professor Jeanne Liedtka and co-authored by Batten Fellows R. Rosen and R. Wiltbank, was named one of Bloomberg BusinessWeek’s best innovationand design books of 2009. Thebook focuses on the role that midlevel managers play in achieving organic growth.

Raul O. Chao Assistant Professor of Business Administration

Susan Chaplinsky Tipton R. Snavely Professor of Business Administration and Associate Dean for Faculty Scholarship

Robert L. CrossAssociate Professor of Commerce, and Director, Network Roundtable, McIntire School of Commerce

Gregory B. Fairchild Associate Professor of Business Administration

Mary Margaret FrankAssociate Professor of Business Administration

Yael Grushka-CockayneAssistant Professor of Business Administration

Andrew M. HessAssistant Professor of Commerce, McIntire School of Commerce

Edward D. Hess Professor of Business Administration and Batten Executive-in-Residence

Andrea Larson Associate Professor of Business Administration

Michael J. Lenox Samuel L. Slover Research Professor of Business, Associate Dean and Executive Director of the Batten Institute

Wei LiProfessor of Business Administration

Jeanne M. Liedtka United Technologies Corporation Professor of Business Administration

Elena LoutskinaAssistant Professor of Business Administration

Luann J. LynchProfessor of Business Administration

Anton S. OvchinnikovAssistant Professor of Business Administration

Kamalini Ramdas Associate Professor of Business Administration

Gal RazAssociate Professor of Business Administration

Saras D. Sarasvathy Isadore Horween Research Associate Professor of Business Administration

Paul J. Simko Associate Professor of Business Administration and Associate Dean, MBA for Executives

Thomas C. SkalakVice President for Research and Professor of Biomedical Engineering

Christopher Sprigman Professor of Law

Elizabeth O. Teisberg Associate Professor of Business Administration

Sankaran Venkataraman MasterCard Professor of Business Administration

Rajkumar VenkatesanBank of America Research Associate Professor of Business Administration


CURRENT BATTEN AFFILIATES WITHIN THE UNIVERSITY OF VIRGINIA



UNIVERSITY PARTNERSThe Batten Institute partners with many units and organizations of the University of Virginia. These partnerships are critical to delivering programs and events to enhance the scope of the Institute’s efforts.

In 2009-2010, the Institute partnered with the University’s Offifi ce of thee Vicce Preesident for Researchh (VPRR) to host UVA’s second Annual Venture Summit. The Institute also worked closely with the VPR’s offi ce to redesign how UVA translates and commercializes research conducted in University labs and was actively involved in the recruitment of UVA’s fi rst Executive Director and Associate Vice President for Innovation Partnerships and Commercialization.

The Institute also proudly collaborates with DDarden’s Taylloe Muurphyy Cennter. An independent center housed at Darden, the Tayloe Murphy Center forms alliances with communities in the Com-monwealth of Virginia facing challenging economic conditions. Under the leadership of Darden faculty member Greg Fairchild, the center aims to take a multidisciplinary and multipronged approach to creating and sharing expert knowledge in building globally competitive communities.

Finally, the Institute also works closely with various student organizations. In 2009-2010, the Center for Entrepreneurial Leadership collaborated with Darden’s Enntrepreneurship andd Ventture Caapital (EVVC) CClub to host the fall E-Conference, and the Institute is a strong supporter of the university-wide E*Societyy formed in 2009 by Darden students.

2009 Emerging Scholar Award – Strategic Management SocietyProfessor Michael Lenox received the Emerging Scholar award from the Strategic Management Society. Lenox, who specializes in innovation strategy, was chosen to receive this award on the basis of his research productivity and his contributions to the fi eld.

2009 Faculty Pioneers – Aspen InstituteAssociate Professor Greg Fairchild and Professor Michael Lenox were both recognized as “Faculty Pioneers” by the Aspen Institute’s Center for Business Education.The award recognizes “instruc-tors who have demonstrated leadership and risk-taking in integrating ethical, environmen-tal, and social issues into the MBA curriculum.”



www.virginia.edu/vpr/

http://www.darden.virginia.edu/web/tayloe-murphy-center/

http://www.darden.virginia.edu/web/mba/student-life/organizations/entrepreneurship-venture-capital/entrepreneurship-and-venture-capital/

http://www.darden.virginia.edu/web/mba/academics/curriculum-electives/areas/entrepreneurship-innovation-and-strategy/

LEADERSHIP TEAMADMINISTRATION

Michael LenoxAssociate Dean and Executive Director, Batten Institute, Samuel L. Slover Research Professor of Business AdministrationB.S., M.S., University of Virginia Ph.D., Massachusetts Institute of Technology

Elizabeth O’HalloranManaging DirectorB.A., Haverford CollegeM.B.A., University of Virginia

Gayle NobleOffi ce ManagerPan American Business School

Debbie WhiteBudget CoordinatorB.A., University of VirginiaM.A., George Washington University

CENTER FOR ENTREPRENEURIAL LEADERSHIP

Philippe SommerDirector and Senior LecturerB.A., Amherst College M.B.A., Columbia University

MJ Dougherty TomsAssociate DirectorB.A., Williams CollegeM.B.A., Yale University

Ashley BickersSpecial Projects ManagerAmerican InterContinental University

RESEARCH DIVISION

Sean CarrDirector of Corporate Innovation ProgramsB.A., Northwestern UniversityM.S., Columbia UniversityM.B.A., University of Virginia

Malgorzata “Gosia” GlinskaSenior Research AssociateB.A., University of Gdansk, Poland M.A., Boston UniversityM.F.A., University of Virginia

Amy L. HallidayResearcher and EditorA.B., Brown UniversityM.Phil., Oxford University

Andrew KingResearch AssociateB.A., The University of the South M.S., Oxford Brookes University

MARKETING AND COMMUNICATIONS

Joyce SmaragdisAssociate Director of OutreachB.A., University of VirginiaM.A., Virginia Polytechnic Institute and State University

Derry Voysey WadeCommunications ManagerA.B., Smith CollegeM.A., University of Virginia



http://www.darden.virginia.edu/web/Batten-Institute/Contributors/Leadership/

FINANCIAL STATEMENTIncome to support the Batten Institute is provided by an endowment created by Frank Batten, Sr., and his family. As of June 2010, the market value of the endowment had reached $80 million. The annual budget from this endowment is $4.77 million for FY 2010-2011.


Batten Institute Budget(FY 2010 – 2011)

Faculty Salary Support 22%

Receptions & Outreach 1%

Course Support & Workshops 1%

Competitions 2%

Venture Internship Program 2%

Marketing 3%

Communications 5%

AdministrativeStaff 10%

PhD Scholarships 3%

Research Conferences 3%

Batten Fellows Program 1%

Faculty Research Grants 5%

Research Staff 9%

Batten Scholarships 21%

Incubator Support 5%

CEL Staff 8%

RESEARCH DIVISION

CENTER FOR ENTREPRENEURIAL

LEADERSHIP

Percentages are rounded to the nearest whole number.



BATTEN INSTITUTE BUDGET (FY 2010 – 2011)

CATEGORY

Administrative and Marketing Staff $462,000 10%

CENTER FOR ENTREPRENEURIAL LEADERSHIP

CEL Staff $405,836 8%

Incubator Support $228,725 5%

Venture Internship Program $104,000 2%

Competitions $75,600 2%

Course Support & Workshops $54,075 1%

Receptions & Outreach $41,084 1%

Batten Scholarships $992,000 21%

RESEARCH DIVISION

Research Staff $436,447 9%

Faculty Research Grants $260,093 5%

Batten Fellows Program $30,000 1%

PhD Scholarships $122,400 3%

Research Conferences $143,600 3%

Faculty Salary Support $1,047,648 22%

MARKETING SUPPORT

PR & Communications $248,500 5%

Sponsorships $125,000 3%

TOTAL $4,777,008 100%

BUDGET %

Percentages are rounded to the nearest whole number.


ANNUAL REPORT 2009 – 2010 • X

CONTACTBATTEN INSTITUTEThe Darden School of BusinessUniversity of VirginiaP. O. Box 6550Charlottesville, VA 22906-6550

COURIER ADDRESSBatten InstituteThe Darden School of BusinessUniversity of Virginia100 Darden BoulevardCharlottesville, VA 22903

PHONE434.924.1335

FAX434.924.7104

[email protected]

WEBwww.batteninstitute.org

CREDITSGraphic design: Adam PortzelFront cover photograph: Stephanie Gross


mailto:[email protected]


Batten InstituteThe Darden School of BusinessUniversity of VirginiaP.O. Box 6550Charlottesville, VA 22906-6550

www.batteninstitute.org



batten institute annual report 2009-10

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