Training Course: Training Course:

Leadership in Regional InnovationLeadership in Regional Innovation

Paris, FranceParis, FranceSeptember 21-23, 2005September 21-23, 2005

Integrating Company Strategies into Integrating Company Strategies into Regional Innovation StrategiesRegional Innovation Strategies

Dr. David V. Gibson, Associate Director Dr. David V. Gibson, Associate Director IC² Institute, The University of Texas at AustinIC² Institute, The University of Texas at Austin

www.ic2.orgwww.ic2.org

A Global ChallengeA Global Challenge

Education

Innovation

GovernmentIndustry

Creativity

T2

Mechanisms

Processes Metrics

Two Basic Forms Two Basic Forms of Technology of Technology

Transfer to Transfer to Commercial Commercial ApplicationsApplications

private sector

national labs

universities

consortia

Existing company

process application

R&D/Mfg.

Marketing/Sales

spin-out technologies

technologyincubation

private sector

national labs

universities

consortia

ROI

2

1

start-upcompany

But its ...

““So we went to Atari and said, ‘Hey So we went to Atari and said, ‘Hey we’ve got this amazing thing, even built we’ve got this amazing thing, even built with some of your parts, and what do with some of your parts, and what do you think about funding us? Or work you think about funding us? Or work for you.’ And they said, ‘No.’ So then for you.’ And they said, ‘No.’ So then we went to Hewlett-Packard and they we went to Hewlett-Packard and they said, ‘Hey, we don’t need you. You said, ‘Hey, we don’t need you. You haven’t gone through college yet.’”haven’t gone through college yet.’”

Apple Computer Inc. founder Steve Jobs on Apple Computer Inc. founder Steve Jobs on attempts to get Atari and HP interested attempts to get Atari and HP interested

in his and Steve Wozniak’s innovative in his and Steve Wozniak’s innovative technologytechnology

A Famous Quote on A Famous Quote on Innovation...Innovation...

Two Survival Strategies: Camel Versus RocketTwo Survival Strategies: Camel Versus Rocket

Fast-Paced Strategies/ Intentions

(Rockets)

Organic-PacedStrategies/ Intentions

(Camels)

Ideation Survival Growth(C

ash

Flow

) $

Ideation Survival Growth

Time(C

ash

Flow

) $

Time

Deadline for First Major External

Investment

Major Investment

$

$

$

Venture Mortality

© Darius Mahdjoubi, 2005

$

$

$

Startup

Enterprise activities can be categorized into Enterprise activities can be categorized into

four main groups: four main groups:

1.1. Technology: Technology: How to MakeHow to Make

2.2. Customer/Market: Customer/Market: How to SellHow to Sell

3.3. Human Resources: Human Resources: How to Recruit and How to Recruit and Retain employees Retain employees

4.4. Organization: Organization: How to manageHow to manage

The Innovation Iceberg ModelThe Innovation Iceberg Model

Customer/MarketDevelopment

Human Resources Development -(Learning and

Creativity)

TechnologyDevelopment/

Innovation

Organizational Development/

Change (Leadership)

• Like an iceberg, technology holds the most visible part of innovation and change

• Technology, however, it is not necessarily always the most important part.

• Examples: Dell, Southwest Airlines, Wal-Mart, Whole Foods

© Darius Mahdjoubi, 2005

Technology continues to shrink the Technology continues to shrink the world. There is no choice other than to world. There is no choice other than to participate in the global community. participate in the global community. Science and technology is too precious Science and technology is too precious a resource to be restricted from drawing a resource to be restricted from drawing the world together. That is what the 21the world together. That is what the 21stst Century is all aboutCentury is all about

Dr. George KozmetskyDr. George KozmetskyRemarks to company graduationat the Austin Technology Incubator,September 6, 1996

Austin Technology Incubator (ATI)Austin Technology Incubator (ATI)

• 65 companies launched• 10,000 jobs created (2,850

direct, 7,150 indirect)• $1.2 billion in revenue

generated • $500 million+ in VC and other

investments secured• TCN [Thecapitalnetwork.com]

• ATC [Austintechnology council.org]

• Clean Energy Incubator

AUSTIN TECHNOLOGY AUSTIN TECHNOLOGY INCUBATOR Building CompaniesINCUBATOR Building Companies

Factory LogicFactory Logic BMC SoftwareBMC Software

Input/OutputInput/OutputSun XSun X

Adv. EnergyAdv. EnergyNew Work Ass.New Work Ass.

CompuSeisCompuSeisHaystack LabsHaystack Labs

EvityEvity4 State Tech4 State Tech

Ampersand Ampersand ArtArt

ClockworkClockwork

Evolutionary Evolutionary TechnologiesTechnologies Applied ScienceApplied Science

FictionFiction

Chisolm TechChisolm Tech

Encore MedicalEncore MedicalPolo Polo Int’lInt’l

Utility CompositesUtility Composites

Key Concepts Gp. 5Key Concepts Gp. 5

DTM CorporationDTM Corporation

Corporate MemoryCorporate MemoryPolyDyne PolyDyne

DevelopmentDevelopment

TexasTexasResearchResearchInst. 100Inst. 100

Silicon MetricsSilicon Metrics

SkipstoneSkipstone

CEDRA CorpCEDRA Corp

UTUTAustinAustin

ATI

19891989

1990199019911991 19921992

19931993

199419941995199519961996

19981998

19991999

20002000

Crossing the Knowledge Transfer Crossing the Knowledge Transfer Gap with Know-HowGap with Know-How

Regional, National, Global Knowledge and Technology

• Government• Academic• Corporate

Regional, National, Global Knowledge and Technology

• Government• Academic• Corporate

Leveraging for Regional Firm

• Diversification• Expansion• New Formation

Leveraging for Regional Firm

• Diversification• Expansion• New Formation

Technology Commercialization with …Technology Commercialization with …• Market research know-how• Financial know-how• Legal know-how• Production know-how• Distribution, sales, and service know-how

GAPGAP

Ten Success Factors Ten Success Factors

Realistic and Success-Oriented

SME Selection Processes

SMEsSMEs

On-Site Entrepreneurial

Training and Education

Concise Program Milestones with

Clear Policies and Procedures

In-Kind Local Business Know-

How Support

Access to Global Financing and Capitalization Opportunities

Access to Capital and Markets

Motivated Champions

Access to Sufficient Computer and

Information Technologies

Regional Business, Academic, and

Community Support

Access to Global Entrepreneurial Know-

How Network