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INTERNATIONAL EXPERTS WORKSHOP

MAPPING EU ICT START-UPS & THEIR ECOSYSTEMS

July 4 2014, Brussels

Introduction

Marc Bogdanowicz Institute for Prospective Technological Studies - IPTS

Joint Research Centre - European Commission www.jrc.es / is.jrc.es

Disclaimer: The views expressed are those of the presenter and may not in any circumstances be regarded as stating an official position of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of this presentation.

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THE EUROPEAN COMMISSION'S JOINT RESEARCH CENTRE - JRC

The Joint Research Centre is the Commission's in-house science service.

The IPTS conducts research that provides science-based, customer-driven socio-economic and techno-economic support for the conception, development, implementation and monitoring of EU policies

JOINT RESEARCH CENTRE INSTITUTE FOR PROSPECTIVE TECHNOLOGICAL STUDIES

"European Innovation Policies for the Digital Shift"

Policy relevance and context

• Innovation and ICT part of the solution to growth and employment in EU

• Digital Agenda for Europe

• Entrepreneurship as one of the policy lines to investigate

Purpose

• Provide evidence-based support to the policies, instruments and

measurement needs of DG CNECT for enhancing ICT Innovation in

Europe

Who is involved?

• Joint project of JRC-IPTS and DG CNECT

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EURIPIDIS

ICT entrepreneurship

To make a long story short:

ICT Entrepreneurship policy making is in need of

• Statistically-sound and timely data

• About ICT Startups and ICT-enabled innovative firms

• Within and outside the ICT sector

• Across the whole of EU or more

The available frameworks and data are insufficient to meet the needs

This introduction aims at introducing you to this issue

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Entrepreneurship in the EU policy agenda for Growth and Jobs

Progressively mainstreaming since the late 90ies:

• OECD Bologna process on "SME and entrepreneurship policies" (2000)

• Lisbon Strategy for Growth and Employment (2000)

• European Charter for SMEs (2000)

• Green paper on Entrepreneurship (2003)

• European Agenda for Entrepreneurship (2004)

• Small Business Act (2008)

• Entrepreneurship Action Plan (2012)

More recently targeting ICT entrepreneurship:

• Digital Agenda for Europe (2010)

• Integrated Industrial Policy (2010)

• Digital Entrepreneurship (2012)

• Web-entrepreneurs / Startup Europe (2012)

Note: Also in education and training (DG EAC), socialEntrepreneurship (DG EMPL), Crowdfunding (DG MKT, etc.

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Policy context

ICT Entrepreneurship policies need robust evidence

Examples of needs:

• establish a correct diagnosis of the current situation

• better understand the factors affecting ICT entrepreneurship, and

which can be influenced by policies

• better assess the effects of public intervention on ICT entrepreneurship

• better understand the real impact of ICT entrepreneurship on growth

and jobs

Evidence is about having the right theoretical frameworks, developing

valid indicators and measurements, analysing their relations

Such frameworks have developed since the late 90ies, essentially rooted

in the seminal work of Schumpeter on entrepreneurship (1912, 1934,

1942).

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Support to policy

The 90s: Theoretical frameworks, indicators and measurements

The last two decades saw the emergence of important conceptual work

and data gathering tools, in particular:

The Entrepreneurship Indicators Program – EIP

(joint OECD/ESTAT, 2006)

There are several other frameworks and tools that developed during this

period, but of different scope:

• Global Entrepreneurship Monitor

• Ease of Doing Business Index

• Panel Study on Entrepreneurial Dynamics

• EU Flash Barometer Survey on Entrepreneurship • Enterprise surveys • Global Entrepreneurship Development Index • Compendia database • etc.

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Frameworks & tools

EIP framework Definition

Entrepreneurship Indicators Program - EIP (joint OECD/ESTAT)

What aspects articulate the definition of entrepreneurship ?

1. Creation or expansion of a value generation activity

rooted in

2. Innovation defined as identification and exploitation of new products

or processes

This is truly in line with the Schumpeterian economic theory of entrepreneurship as engine of the market economy, a restless capitalism growing through creative destruction. Note: Business Demography Statistics : see Eurostat – OECD manual at: http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-07-010/EN/KS-RA-07-010-EN.PDF

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Determinants

Performance

Impact

EIP framework Approach

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Public intervention

Diagnosis

Impact

EIP framework Approach

EIP framework

Performance is measured in Business Demography statistics

Startups are all new firms.

Startups rates are calculated as new firms/population of active existing

firms, with a special interest in:

• High growth companies

• Young High growth companies (Gazelles) Scale Ups…

OECD reference publication: "Entrepreneurship at a Glance" Note that it develops little or no analysis about the geography of innovation, the lifecycles of firms, their activities, etc.

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Performance

The missing link

What do the EIP Performance indicators dismiss of the definition?

Business Demography Statistics do not capture the innovation

dimension of entrepreneurship

Entrepreneurship is assimilated to the creation of a startup, which in turn

is defined as any new business, innovative or not.

Note: For a glossary, see for example in Eurostat − OECD Manual on Business Demography Statistics, 2007 edition See also: http://epp.eurostat.ec.europa.eu/portal/page/portal/european_business/special_sbs_topics/business_demography

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ICT entrepreneurship

What aspects should articulate the definition of

ICT entrepreneurship ?

1. Creation or expansion of a value generation activity

rooted in

2. ICT and ICT-enabled innovation defined as identification and

exploitation of new products or processes.

3. Within the ICT sector and in the rest of the economy

Today's interest and challenge !

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Today

There is little or no robust evidence about ICT entrepreneurship

Question: Are we able to gather sound evidence on

• Business Demography of ICT entrepreneurship

• ICT start-ups life cycles, stages,..

• ICT entrepreneurship determinants, Ecosystems,…

• Impacts of ICT entrepreneurship

• …

Yes, as your initiatives try to address those needs

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Today

The way forward

To make a long story short:

ICT Entrepreneurship policy making is in need of

• Statistically-sound and timely data

• About ICT Startups and ICT-enabled innovative firms

• Within and outside the ICT sector

• Across the whole of EU or more

Yes, we can ?

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So what is our task now ?

Listen, understand, discuss, propose improvements, integrate new ideas, join forces…

in view of solving the problem

Discuss key questions with 7 projects:

What is an ICT start-up in your observations ? How do you ensure to have a representative coverage ?

Which data do you collect about those companies ? How do you ensure the validity of the data collected ?

What are your MAIN results, analysis, observations?

What comes next?

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Our task

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09:00 – 09:30: Welcome - Introduction round 09:30 – 11:00 Session 1

Startup Genome project Björn Lasse Hermann, CEO & Founder of Compass & Startup Genome

Compass project Jean-Francois Gauthier, CFO & Head of Business Development, Compass

11:00 – 11:30: Coffee

11:30 - 13:00 Session 2

European ICT Poles of Excellence (EIPE) Giuditta de Prato and Daniel Nepelski, JRC-IPTS

SEP Monitor – Startup Europe Partnership Scale-Ups Mapping project Alberto Onetti, Startup Europe Partnership & Robert Miskuf, Pedal Consulting

13:00 – 14:00 Lunch

14:00 – 15:30 Session 3

Cambridge Cluster Map Charles Armstrong , Trampoline Systems

Dynamic Mapping of web entrepreneurs and start-ups ecosystem Rob Turner, Grant Thornton UK LLP

15:30 – 16:00: Coffee

16:00 – 16:45 Session 4

Digital Entrepreneurship Monitor (DEM) Laura Delgado Garcia and Alessandro Cenderello, EY

17:00 – 18:00 Session 5

Debating the tools, the needs and the projects to come

Agenda

Thank you

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