Incubating the Future

1. Incubating the Future Piero Formica Professor of Knowledge Economics and Entrepreneurship, Faculty of Economics and Business Administration, University of Tartu Piero formica@cofimp.it Skype: aryatre

2. Incubator as Particle AcceleratorEntrepreneurial Energy Formula 3 E = MC Source: Piero Formica and Elias Carayannis, “Intellectual Venture Capitalists: An Emerging Breed of Knowledge Entrepreneurs”, Industry and Higher Education (forthcoming)

3. 3 E = MC E stands for Ken-Energy KEN (verb) : to have understanding KEN (noun) : a range of vision The entrepreneurial energy performs a function that corresponds to that of the knowledge energy

4. 3 E = MC Mstands for entrepreneurial mass made up of attributes and motivations

5. Attributes and Motivations Attributes • Clarity of leadership • Openness and inquisitiveness that stimulates innovation and learning • Creation of new value or organisational capability • Flexibility to change • Relationship building skills • Ability to convince others (employees, individual investors, suppliers, and landlords) to share start-up risks Motivations • Capacity to think for oneself • Self-confidence: having optimism and personal drive • Sense of autonomy, independence and risk-taking • Intense emotions

6. 3 E = MC • Akio Morita’s (Sony’s founder) Cs: • Creativity in technology (creation) • Creativity in planning (conversion) • Creativity in marketing (commercialization) CT x CP x CM

7. 3 E = MC CT x CP x CM • Interactive conversation • Markets are conversation • Links in human networks: affinity groups - • small pieces loosely joined

8. In the Incubator markets are conversation • Conversation = cum versare: • To turn or • To dance together • Products, inventions and services, great and small, are created through talking: • Watson and Crick vs Linus Pauling • Lunar Society: “The best preceptor is the conversation of eminent men”

9. The Incubator is a low context community… • Member participation is wide open • Participants are on equal footing • Strength of weak ties • Non face-to-face interactions in online based community • Exchange of cognitive elements of tacit knowledge • Self-supporting people that think forward and outward looking • Unconventional effects

10. … A café-type communityA life form whose behaviour is organised from the bottom up It was in coffee-houses that commerce and new technology first became intertwined Blogs (blogger.com) as tools for reflection and interaction Knowledge pools

11. Knowledge Pools at the Incubator - A super collider for the entrepreneurial reaction……bringing them together the reaction starts Different disciplines KNOWLEDGE POOL Market and sale forces Researchers Different backgrounds Different theoretical conditions Knowledge value chain reaction Technologists MKGT experts Business lawyers (IPR, contracts,..) Business strategists “The symbiosis is the building upon one another's strength… one another's competencies…adding value and passing it on”

12. The Emergence of Knowledge Innovation Zones • A gravitation-sensitive context • In a setting of interrelated conditions, knowledge-driven firms accelerate toward each other (‘knowledge cluster’ effect) so as • to close the gap between different business entities • to go above the critical threshold (exponential growth) • A geographical or a conceptual (virtual) space where knowledge flows from the point of origin to the point of need or opportunity • The epicenter of three forces that empower the innovation process: • creativity • science • advanced infra and info structures

13. The Incubator in the Knowledge Innovation Zones • International Academy of • Entrepreneurship • Faculty • Incubation knowledge creation knowledge conversion knowledge commercialization INCUBATOR – NEW VENTURE CREATION Source: http://www.inthekzone.com/principles.htm

14. The International Academy of Entrepreneurship:Education Alliance • A Thinking Society – A cradle to career continuum • An integrated, multi-level, commercial model of private education based on best practices in teaching and learning • The Alliance forges strategic partnerships with selected education providers to achieve the optimal education environment • The Alliance applies innovative learning delivery modalities (virtual and physical) to achieve the optimal business environment

15. New Venture Creation Academics practice-oriented scholars Start-ups Corporate ventures Spin-offs Innovative versus replicative entrepreneurs Competence setters Competence block for entrepreneurial education Originality and heterodox thinking ICT Media Utilities/ Resources Competence setters Competence block for application and experimentation INCUBATOR WITHOUT BORDERS Cross-border, international start-ups The International Academy ofEntrepreneurship International Academy Corporate professors: theory-oriented practitioners Europe Asia North America Latin America Middle East Intel IBM Gartner Nokia …..

16. International Academy of Entrepreneurship Incubator Pre- Incubation • Experiences in new venture creation • Portfolio of idea generation • •Screening & supply of would-be entrepreneurs • •Hands-on guidance • Zero & seed funds Concept Process Business Plans

17. World Business Incubator Cross-border, international start-upsHigh-growth businesses by young entrepreneurs • 100 young people aged 18 to 30 on an annual basis to reside in the Incubator Environment • The would-be entrepreneurs come from a cross section of society, and represent all continents of the World • Participants split into Business Action Groups (BAGs) to pool their resources, backgrounds, and ideas, to develop common Business Projects Source :Mr Bernt Chr. BJAANES, Mr Ragnar SIIL, Mr Fredrick LEE-OHLSSON, Ms Olya SMYRNOVA

18. World Business Incubator Cross-border, international start-ups High-growth businesses by young entrepreneurs TEAMBUILDING to form a tight group IMPLEMENTATION & ACTION to get knowledge how to implement business ideas CREATIVITY to form a creative spirit BUSINESS ACTION GROUP 10 incubator participants with complementary background PARTNERSHIP & CO-OPERATION to get tools to and understanding how to involve partners in collaboration and financing BRAINSTORMING to generate ideas PROJECT MANAGEMENT to get knowledge on how to develop a manage a business project FACTS to get the maximum of knowledge and information GROUPING to create a structure

19. Cultural Integration, Creative Employment and Propensity to Entrepreneurship 7 small European Countries (< 10m population): Ireland, Norway, Finland, Denmark, Switzerland, Austria, Sweden) EU big 4: Germany, France, UK, Italy Tear down man- made barriers (cultural, institutional, geographic) 27.5 28.7 Best performer Cultural Integration Worst performer 25.0 EU average: Proportion of respondents who have thought about or who are thinking about setting up a business – 2003 Eurobarometer survey 27.0 28.8 Emerge from a network of complementary ideas and people UK & Eire 24.4 Central Europe (Netherlands, Germany, Austria, Switzerland) Med Europe (France, Italy, Spain,Portugal, and Greece) 24.3 • Boundary-less • Knowledge • Markets • Know & Info Systems • Customer Knowledge & Support • Knowledge Arbitrage • E-Learning Exchange • Economic and Business Intelligence Incubator TRENDSETTER Scandinavia Eastern Europe (Croatia, Poland, Czech Republic, Hungary, Romania) LowCreative High Employment

20. The opportunity of a lifetime must be seized in the lifetime opportunityMartin Curley, Director Innovation and IT Research, Intel