The role of technology transfer in the

innovation system of SMEs

&

Innovation by supporting start-up

companies

Dr. Urs Guggenbühl

Dr. Urs Althaus

1

1. What is innovation?

2. Barriers to innovation?

3. Enabling innovation?

4. Typical technology transfer systems in Switzerland

5. CTI Start-up, a Swiss national support system for start-

ups

6. BaseCamp4HighTech, a regional start-up incubator

2

Agenda

An Idea

What now?

3

A new idea will only

become an innovation,

after it has been

successfully introduced to

the market!

4

Assumption

Innovation

Competitiveness

Success

5

1. Long-Term Study from the University of Geneva (IMI) and Kienbaum

(116 companies) Source: Heinz Kurt Wahren, Erfolgsfaktor Innovation, 2004

Findings: (Comparing 30 “Innovative and non-innovative companies”)

• Innovative companies have approximately a 7 times higher profit

margin and return of capital than non-innovative companies

2. Study from Arthur D. Little and BDI from Germany

(300 companies form Germany and Austria) Source, Arthur D. Little und BDI 2004

Findings:

• EBIT-margin of average companies ............................. 3.2%

• EBIT-margin of innovative companies (Top 5%) .......... 11.4%

6

Success with Innovation: Studies

Share of revenue created by innovations in the last 3 years

Average of all Top 100 ............................................................... 64%

Average of the best 10 ............................................................... 87%

Average SME (Source: ZEW) ................................................... 14%

Share of profit created by innovations in the last 3 years

Average of all Top 100 ................................................................. 63%

Average of the best 10 ................................................................ 93%

7

Success with Innovation: Top 100 Study (Lothar Späth, 2009)

Reasons for braking up the innovation process n=57

Other

Misjudgement

Lacking expertise

Lacking tech. know how

Lacking time

Lacking human resources

Lacking financial resource

8

Barriers to Innovation: Study SME from Eastern Switzerland (2009)

Pro

du

ctd

evel

op

men

t

Seed

Start

Expansion

R&D Exit

Cas

h-f

low

F

inan

cin

g

9

Barriers to Innovation: The Time Factor

10

Example - Vario Optics AG, a Radical Innovation

11

Example - Vario Optics AG, a Radical Innovation

12

Example – Vario Optics AG, Figures

Business Concept

● Production technologies for electro-optical circuit boards (EOCB)

● Volume manufacturing of EOCBs

Markets

● Sensors

● ICT (Information and communication technology)

Company

● 2009 Spin-off from Varioprint, Development of EOCB's since 2002

● Pilot fab installed in clean room

● 5 engineers with long term experience

● Strong patent portfolio

SME with an established Innovation strategy

Study from eastern

Switzerland n = 57

Average SME (Späth 2009)

Top 100 innovative SME (Späth, 2009)

13

Enabling Innovation Strategy

Innovation Budget in Relation to Total Revenue

Average SME (Späth 2009)

Study from eastern

Switzerland n =57

Top 100 innovative SME (Späth, 2009)

14

Enabling Innovation Budget

% of the Top 100-Companies, which give their employees

personal space to develop their own ideas ............................................. 85%

SME (Source: WU Wien) 35%

% of the Top 100-Companies, which run an incentive scheme ................. 91%

SME (Source: WU Wien) 34%

% of the Top 100-Companies, which provide internal venture capital .......... 54%

SME (Source: WU Wien) 2%

% of the Top 100-Companies working with interdisciplinary project teams ...99%

SME (Source: WU Wien) 55%

15

Enabling Innovation - Corporate Culture: Top 100 Study (Lothar Späth,

2009)

Top 100 SME

% of the Top 100-Companies, which define clear objectives

for each phase in the innovation process ................................. 97% (52%)

% of the Top 100-Companies, which have the following phases

within their innovation process clearly defined and controlled

Collection of ideas ..................................................................... 99% (28%)

Audit ideas ................................................................................. 97% (40%)

Efficiency analysis/Feasibility ..................................................... . 96% (36%)

Construction and development .................................................... 99% (72%)

Analysis of the success of innovation ........................................... 88% (33%)

16

Enabling Innovation - Innovation Process: Top 100 Study (Lothar Späth,

2009)

16

Others

Open Innovation

Lead User

Universities

Consultants

Competitors

Suppliers

Customers

17

Enabling Innovation - Corporation

External Sources for Ideas

1. What is hindering innovation?

• The length of innovation

• Lack of strategic planning

• Missing resources

• Lack of knowledge about the

scope of innovation

2. How is innovation enabled?

• Leadership

• A corporate innovation culture

• An interdisciplinary approach

• Inclusion of stakeholders

• An innovation process

18

Hindering & Enabling Factors for SME’s

Access to

Investors

(Financing for

start-ups)

Get the

technology right

(Grants for R&D)

Pull in relevant

business knowledge

(Education &

Training)

Develop a

sound and

sustainable

business

(Coaching)

Private Association

founded by Investors

in 2003

Public money

Private money

CTI Entrepreneurship CTI Start-up CTI Projects CTI KTT

Supports

platforms

& networks

CTI Addresses the Four Challenges of Innovation

http://www.kti.admin.ch

19

SME financing R&D

20

CTI R&D Project Set-up

One or more companies/start-ups

One or more universities

(ETH domain, Uni, UAS)

Market impact

R&D project Entrepreneurial competence Market entry

50%

Competence in science and research infrastructure

50%

CTI

CHF

21

CTI - Applications and Approvals of R&D Projects (2011)

Total Funding in 2011: CHF 94.5 Mio

Regular R&D Projects Special Measures R&D Projects

Total Funding in 2011: CHF 100 Mio

22

CTI – KTT Strategy with three Axes (2011)

23

IBH – Internationale Bodensee Hochschule

http://www.bodenseehochschule.org/

IBH is the largest

cooperation of

Universities in Europe.

• 30 Universities

• 4 Countries

• 1 Cooperation

24

IBH – KTT

Activities Tools Sponsor

Collecting know how for

KTT within the IBH-

cooperation

Working group KTT

KTT coordinator,

workshops for idea finding,

Initial funding

(KTT seminars & KTT CALLS)

IBH

Euro 200’000.-/Year

Knowledge transfer to

the region

Innovation platform INVISTA IBH as an incubator

(IBH-Projekt)

REGIO-MATCH

Regional technology transfer

IBH as an incubator

Innovation coaching Financed by the industry

via innovation projects

Talent management Financed by the industry

25

AAL-JP – a European project to create innovative ICT solutions for

the elderly, http://www.aal-europe.eu/

• 22 countries

• 700 Mio Euro Budget

• 300 Mio Euro Support

• 2008 – 3013

• 141 Projects

• AAL-Forum

• Local AAL Inititaitves

• 3 Countries /

3 organisations

26

AAL - Call 1 - 5: Statistics – Participation of Swiss partners

?

27

Technopark Zürich – Tech transfer centre for start-

upshttp://www.technopark.ch

Success: • More than 90% survival rate of Start-ups • More than 2000 workplaces since 1995 • More than 1.5 Mio Visitors

• A good Education System - Enabling

• Management of Talents - Make available

• Innovation Coaching - Active Support

28

Summary: What is needed to lead innovation in SMEs?

Access to

Investors

(Financing for

start-ups)

Get the

technology right

(Grants for R&D)

Pull in relevant

business knowledge

(Education &

Training)

Develop a

sound and

sustainable

business

(Coaching)

Private Association

founded by Investors

in 2003

Public money

Private money

CTI Entrepreneurship CTI Start-up CTI Projects CTI KTT

Supports

platforms

& networks

CTI Addresses the Four Challenges of Innovation

29

SME financing R&D

Students and Start-ups

Event: ½ day

University Students

Lecture: 14 lessons

Individual persons with business idea

Strategy Workshop: 5 days

Ambitious High-Tech

Start-ups

Workshop: 5 days

Swiss National Start-up

Team

Intensive Training in

Boston (USA): 10 days

Students

Start-ups

Program is free of charge

for participants

vIdeas

vChallenge

vPlan

vTraining

vLeaders

CTI Entrepreneurship

30

CTI Start-up

company

Criteria for Admisson to CTI Start-up

31

Professional business coach and access to experts

Customised coaching program and modules for start-ups: Intellectual property

Business modelling

Financial planning

Sales accelerator

Technology coaching

Etc.

Access to CTI Invest

Access to the Swiss House services in the US (in particular

Swissnex in San Francisco and Boston)

Program is free of charge, but no direct investment possible

What CTI Start-up offers the Start-up

32

CTI Start-up Process

33

CTI Start-up Results: Excellent Survival Rate

34

The ecosystem

• Great technology ground (ETHZ & EPFL), great universities

• Great industries especially in Engineering, MedTech, Biotech,

Microtechnologies, Foodtech, etc.

• A lot of regional incubators are now popping up.

• Good financing possibility in the FFF and later phase but

critical in the growing phase. (Business angel clubs, VC, high

net worth individuals, CTI invest)

35

CTI Start-up Ecosystem

VC Money, management

& experience

BA & Clubs Money, management

& experience

CTI Start-up

companies CTI Start-up

Expertise

Pre-selection

“Sell Side” - Due Diligence

Coaches

Experts

Corporate VC Money, management

& experience

Selection by

CTI Invest Board

(since May 2003)

36

CTI Invest: A “Match-Making” Platform

CTI Start-up: Some successful cases

37

Basecamp

Start-up Incubator in

the Region of Berne

Situation

39

Number of Start-ups in Switzerland registered in

www.startupmonitor.ch

What do we want to achieve?

The success of start-ups can be very much

accelerated by a well functioning local ecosystem,

supporting start-ups with a network of

experienced mentors, with resources such as

office space, laboratories and qualified human

capital and with the necessary financing.

BaseCamp4HighTech uniquely supports high

potentials to successfully start and grow their

businesses, offering a tailor made start-up

coaching/mentoring, a network for all stages of

financing and appropriate workspace around the

area of Berne.

40

Success rate: Pre-screend Cases within ½ Year

41

38 Pre-screened Start-ups in the area:

ICT – (20)

Engineering (6)

New-Energy (5)

Biotech (2)

NanoTech (1)

Medtech (1)

Water Technologie (1)

Biomechanic (1)

Cognitive Training (1)

THINK BIG!

BASECAMP4HIGHTECH

Wankdorffeldstrasse 102

Postfach 261

CH-3000 Bern 22

T +41 (0) 31 335 62 64

F +41 (0) 31 335 62 63

info@bc4ht.ch

www.bc4ht.ch