The Tales of Two Cities: A Story of EuropeanAcademic EntrepreneurshipEuropean Entrepreneurship & Innovation Thought Leaders (ME421) Stanford Engineering – 28 January 2013 Peter Bunus Co-Founder and Director of Business Development SenionLab AB email@example.com
SenionLab AB SenionLab is a Swedish expert company focusing on research and development of signal processing and sensor fusion systems for indoor positioning navigation. Founded in 2010 by a group of leading scientists • Experts in sensor fusion, signal processing diagnostics and computer science. • More than 10 years experience in the area of sensor fusion and signal processing Main office in Linköping SWEDEN US Office: Palo Alto, CAGrant Seed funding from: VINNOVA: The Swedish Governmental Agency for Innovation System The Swedish Energy Agency 2
Professor vs. Entrepreneur…but I’m here to tell you about what does it mean to be an Academic Entrepreneur 3
Market Size is the Major DifferentiatorSwedish entrepreneurs are coming to Silicon Valley because of the market size and not because of the climate 6
Academic Entrepreneurship Academia Education Research EntrepreneurshipGovernment Industry 7
Academic Entrepreneurship – Is it popular in Sweden? Only 0.9% off all academics become full time entrepreneurs every year in Sweden Negative selection into entrepreneurship: those with lower pre-entry earnings are more likely to become entrepreneurs Less than 1% of the academic obtaining capital gains higher than half the average pre-entrepreneurship earnings. ¼ of all academics who become full time entrepreneurs already operated as part-time entrepreneurs while employed at their university 60% quit full time entrepreneurship within two years and 66% of those return to academia.Source: Pontus Braunerhjelm, Anders Broström and Thomas Åstebro - Does Academic EntrepreneurshipPay? – Working Paper 2012:20 Research Network Debate – Swedish Entrepreneurship Forum 8
Fashion Trend for Swedish Academic Entrepreneurs 9
We don’t have a process for innovation. We hire good people.Do you have an innovation process at your company? “We don’t have a process for innovation. We hire good people.” Steve Jobs Do we have a European Academic Entrepreneurship System? “We don’t have an European Academic Entrepreneurship System. We hire good people.”
What are the Challenges for an Academic Entrepreneur?
Challenge No. 1 How to be disruptive without risking your academic career?
"Alice laughed: Theres no use trying, she said; one cant believe impossible things. I daresay you havent had much practice, said the Queen. When I was younger, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast." This is a pretty remarkable statement for someone who just stepthrough the magical mirror. You would expect that this experience should have convinced Alice that impossible things are possible
“I daresay you havent had much practice”, said the Queen. “When I was younger, I always did it for half an hour a day. Why, sometimes Ive believed as many as six impossible things before breakfast."Both the academic researcher/educator and the Entrepreneur needto have the same “dreamer” personality To dream six impossible thingsbefore breakfast is part of the job.
Challenge No. 2 How to deal with the Market Risk
Invention –Market RiskHigh Invention Risk Faculty of Medicine BioChemistry, Chemistry Faculty of Electrical Engineering Faculty of Electrical Engineering Faculty of Mechanical Engineering Faculty of Mechanical Engineering Faculty of Computer Science Faculty of Computer Science Personalized Biotech medicine Medical dev. Healthcare Cleantech Electronic Design Automation Semicon Game Software Consumer Electronics Comp. Software Comp. Hardware Enterprise Hardware High Market Risk 17
Medical Research Involves a very high Invention risk Invention risk ≠ Innovation risk
I you are lucky enough to find the “cure for cancer” then market adoption will automatically came
Invention –Market RiskHigh Invention Risk Mostly dominated by college dropouts: Bill Gates, Steve Jobs, and Michael Dell, Personalized Biotech medicine Medical dev. Healthcare Cleantech Electronic Design Genentech, Amgen, Automation Semicon Biogen Idec, Chiron Game Software Consumer were founded by Electronics university professors Comp. Software Comp. Walter Gilbert and Hardware Enterprise Phillip Sharp the Hardware founders of Biogen Idec later won the Nobel Prize High Market Risk 21
Challenge No. 3 How to work countless hours outside the reward system
Academic Reward and Promotion System Academia The Academic reward and promotion at most universities Education Research does not include or favor entrepreneurship EntrepreneurshipGovernment Industry 23
From where all this reluctance came from?Stockholm Syndrome describes the behavior of kidnap victims who, over time, become sympathetic to their captors. The name derives from a 1973 hostage incident in Stockholm, Sweden. At the end of six days of captivity in a bank, several kidnap victims actually resisted rescue attempts, and afterwards refused to testify against their captors.
Academic Entrepreneurs are suffering of the Stockholm Syndrome What causes Stockholm Syndrome?Captives begin to identify with their captors initially as a defensive mechanism, out of fearof violence. Small acts of kindness by the captor are magnified, since finding perspectivein a hostage situation is by definition impossible. Rescue attempts are also seen as a threat,since its likely the captive would be injured during such attempts.
“One day Alice came to a fork in theroad and saw a Cheshire cat in a tree."Which road do I take?" she asked."Where do you want to go?" was hisresponse."I dont know," Alice answered."Then," said the cat, "it doesnt matter."
Actually an Academic Entrepreneur knowsexactly which path to take. We just wish that it should be no fork in the road. One path should the be normal continuation of the other path.