INTRO  Understanding business ecosystems                                  2012
INTROFast growing new companies are important for jobs                   and wealth      Entrepreneurs are a key mechanism...
INTRO  Denmark has a major challenge in scaling up                new companies   We need to meet this challenge to create...
INTRO   In Denmark, very few companies realise their        global potential compared to the US        Source Nordic Entre...
INTROIn Denmark, new companies account for 9% of theemployment. In the US, new companies account for             25% of th...
INTRO  In the US about 90 young companies each year          reach more than 1000 employees   In Denmark, it has not happe...
INTROIn the US, some regions are good in creating fastgrowing new companies while some regions are not          Why do the...
INTRO        Because new companies succeed in           good business ecosystems         which only exist in some regions ...
INTRO        But what is an ecosystem?                                    2012
INTRO   ECOSYSTEMS          Can the ecosystems in nature help our         understanding of business ecosystems?           ...
INTRO   ECOSYSTEMS          When studying business ecosystems,              we asked three questions    Why do strong busi...
INTRO   ECOSYSTEMS   REPORTS            This study has been summarized in                         3 reports               ...
INTRO   ECOSYSTEMS   REPORTS                     Benchmark Report            We have benchmarked regional        ecosystem...
INTRO    ECOSYSTEMS   REPORTS        It seems possible to make a valid ranking of           ecosystems based on the four i...
INTRO              ECOSYSTEMS                  REPORTS  Ecosystem ratings for USA and Northern Europe         IT & Tele   ...
INTRO    ECOSYSTEMS   REPORTS                           Travelogues             We have interviewed people in        stron...
INTRO   ECOSYSTEMS   REPORTS    Strong ecosystems emerge when open and innovative companies - mother companies - are      ...
INTRO      ECOSYSTEMS              REPORTS                                                             Groupon has been a ...
INTRO   ECOSYSTEMS   REPORTS               Danish Biotech EcosystemWe interviewed key players from the Danish biotech Inte...
INTRO   ECOSYSTEMS   REPORTS    The biotech cluster in Copenhagen is one of   the biggest in Europe, but far behind the be...
INTRO   ECOSYSTEMS   REPORTS        The reason Copenhagen is behind the best           US clusters is a lack of experience...
INTRO   ECOSYSTEMS         REPORTS           "In the late 1990s there was relatively easy           access to venture capi...
INTRO   ECOSYSTEMS   REPORTS   CONCLUSION          The key question in this study has been:        Why do ecosystems emerg...
INTRO   ECOSYSTEMS   REPORTS   CONCLUSION    There must be good framework conditions    for entrepreneurship including acc...
INTRO   ECOSYSTEMS    REPORTS   CONCLUSION                             but                     to make a difference Large ...
INTRO        ECOSYSTEMS         REPORTS                                 A model of the Ecosystem                          ...
INTRO        ECOSYSTEMS         REPORTS                                 A model of the EcosystemScalable phase            ...
INTRO        ECOSYSTEMS   REPORTS                           A model of the EcosystemScalable phase   500+     5 years +Gro...
INTRO        ECOSYSTEMS         REPORTS                                 A model of the EcosystemScalable phase            ...
INTRO        ECOSYSTEMS         REPORTS                                 A model of the EcosystemScalable phase            ...
INTRO   ECOSYSTEMS   REPORTS                     A model of the Ecosystem                                                2...
INTRO   ECOSYSTEMS   REPORTS   CONCLUSION   Until now it has been a widespread assumption              that strong ecosyst...
INTRO   ECOSYSTEMS   REPORTS   CONCLUSION                                  But   based on our findings, we will argue that ...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION                      CALL FOR ACTION                           Who sho...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION                      Established companies  Established companies gain...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION             Circulation of employees is an           advantage for bot...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION                                Capital   Capital has more investment o...
INTRO    ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION   Entrepreneurship is a repeated business, and   venture capital has ...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION             Building a new industryrequires large investments from pen...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION                            Universities  Universities benefit from taki...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION             Universities can benefit from         dedicated entrepreneu...
INTRO   ECO-SYSTEMS   REPORTS    CONCLUSION   ACTION                                Politicians  Politicians must raise aw...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION                         SIGN UP!                                      ...
INTRO   ECO-SYSTEMS   REPORTS   CONCLUSION   ACTION          www.foragroup.dk             SIGN UP!                        ...
Thank You!             2012
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understanding Business Eco

  1. 1. INTRO Understanding business ecosystems 2012
  2. 2. INTROFast growing new companies are important for jobs and wealth Entrepreneurs are a key mechanism for turning knowledge into products and jobs Entrepreneurs are a key driver for competition 2012
  3. 3. INTRO Denmark has a major challenge in scaling up new companies We need to meet this challenge to create jobs in the global knowledge economy 2012
  4. 4. INTRO In Denmark, very few companies realise their global potential compared to the US Source Nordic Entrepreneurship Monitor, Fora 2010 2012
  5. 5. INTROIn Denmark, new companies account for 9% of theemployment. In the US, new companies account for 25% of the employment DK USA More than 10 years old 1-10 years old 0-1 years old Source Ibsen og Westergaard-Nielsen (2010): Job creation by Firm in Denmark & Haitiwanger og Miranda (2010): Who Creates Jobs? Small vs. Large vs. Young. Se FORA (2010): Den danske produktivitetsudfordring. 2012
  6. 6. INTRO In the US about 90 young companies each year reach more than 1000 employees In Denmark, it has not happened in many years For Denmark to match the US   1 or 2 young companies must every year reach more than 1000 employees Source Nordic Entrepreneurship Monitor, Fora 2010 2012
  7. 7. INTROIn the US, some regions are good in creating fastgrowing new companies while some regions are not Why do these new high-tech clusters emerge in some places and not in others? 2012
  8. 8. INTRO Because new companies succeed in good business ecosystems which only exist in some regions 2012
  9. 9. INTRO But what is an ecosystem? 2012
  10. 10. INTRO ECOSYSTEMS Can the ecosystems in nature help our understanding of business ecosystems? 2012
  11. 11. INTRO ECOSYSTEMS When studying business ecosystems, we asked three questions Why do strong business ecosystems emerge in some places and not in others?Can business ecosystems be shaped by intention? How strong are Danish business ecosystems compared to the best? 2012
  12. 12. INTRO ECOSYSTEMS REPORTS This study has been summarized in 3 reports Benchmark Report Travelogues Danish Biotech Ecosystem 2012
  13. 13. INTRO ECOSYSTEMS REPORTS Benchmark Report We have benchmarked regional ecosystems in IT, Biotech and Cleantech in the US, Canada and Europe The benchmarks are based on 4 indicators: Dealmakers, Venture capital, Patents, Location coefficient 2012
  14. 14. INTRO ECOSYSTEMS REPORTS It seems possible to make a valid ranking of ecosystems based on the four indicators The best ecosystems are located in the US Europe has no ecosystems that match the best ecosystems in the US 2012
  15. 15. INTRO ECOSYSTEMS REPORTS Ecosystem ratings for USA and Northern Europe IT & Tele Biotech Stockholm Copenhagen Cambridge Seattle London Minneapolis Boston Chicago Denver Silicon Valley Research Triangle Park, Raleigh-Durham San Diego Phoenix AustinSource: Own calculations 2012
  16. 16. INTRO ECOSYSTEMS REPORTS Travelogues We have interviewed people in strong and less strong ecosystems in US The interviewed have helped create the ecosystem or have been key players in the ecosystem 2012
  17. 17. INTRO ECOSYSTEMS REPORTS Strong ecosystems emerge when open and innovative companies - mother companies - are active in the ecosystem and When successful entrepreneurs - serial entrepreneurs - remain in the region and reinvest time and resources 2012
  18. 18. INTRO ECOSYSTEMS REPORTS Groupon has been a big success, and theSeattle, Washington company founders are Chicago guys who will stay and invest in Chicago. CHK Conversation with Craig C. Bradley, “The ecosystem in Seattle started Edwars Wildman growing only when Amazon and Starbucks started with their open and innovative culture.” Conversation with Franck Nouyrigat, Chicago,Illinois Start-up Weekend Seattle Denver, Colorado ”The serial entrepreneurs are an Research Triangle Park, North Carolina important element in the ecosystem.” Paul Jerde, Leeds School of Business “If SAS Institute and RedHat had the same open and innovative culture as many companies in SiliconValley and Austin, RTP could have been one of Americas very successful entrepreneurial regions.” Amit Singh, entrepreneur of Indian origin, 800 employees, including 50 in RTP 2012
  19. 19. INTRO ECOSYSTEMS REPORTS Danish Biotech EcosystemWe interviewed key players from the Danish biotech International data on employment, venture capital and university research illustrates the standing of the Danish biotech cluster 2012
  20. 20. INTRO ECOSYSTEMS REPORTS The biotech cluster in Copenhagen is one of the biggest in Europe, but far behind the best clusters in the US The reason for the relative success was access to venture capital and experienced professionals from established companies e.g. Novo Nordisk 2012
  21. 21. INTRO ECOSYSTEMS REPORTS The reason Copenhagen is behind the best US clusters is a lack of experienced management teams to scale the new biotech companies 2012
  22. 22. INTRO ECOSYSTEMS REPORTS "In the late 1990s there was relatively easy access to venture capital. There was a  “It can be a challenge to become CEO of strong belief in the new technology, and a new biotech company for an employee there was access to public co-financing from e.g. Novo or Lundbeck if they havent from the Growth Fund.    In 1998, Zealand been part of the management team which Pharma raised 175 million DKK in seed often both formulate and execute the capital.” strategy.”  Eva Steiness, newpharma.dk Eva Steiness, newpharma.dk “Many of the leading Danish biotech companies were established in the period 1998 to 2001 and many of them   by talented people from Novo, who had some great ideas and was supported by Novo to take the step. Without any doubts, it has helped to bring the Danish biotech cluster up among the worlds largest clusters" Vækstfonden New Pharma Copenhagen Business School Christian Motzfeldt, Vækstfonden "The culture at large companies play an important role in Danish biotech. It is important that talented people can  join a startup for a while, and still feel they are welcome back. Established companies may be important facilitators when people try to break new ground and start their own business" Mads Øvlisen,Copenhagen Business School 2012
  23. 23. INTRO ECOSYSTEMS REPORTS CONCLUSION The key question in this study has been: Why do ecosystems emerge in some places and not in others? 2012
  24. 24. INTRO ECOSYSTEMS REPORTS CONCLUSION There must be good framework conditions for entrepreneurship including access to the necessary resources in terms of knowledge, skills and capital This is the case in many places in the world 2012
  25. 25. INTRO ECOSYSTEMS REPORTS CONCLUSION but to make a difference Large established companies must be open and play an active role in the ecosystem And successful entrepreneurs must stay in the region and reinvest their time and resources in the ecosystem 2012
  26. 26. INTRO ECOSYSTEMS REPORTS A model of the Ecosystem option 1 option 2Scalable phase Competencies Knowledge 500+ 5 years + Support CapitalGrowth phase 10-40 2-5 years Competencies Knowledge Support CAPITALStart-up phase COMPETENCIES Venturecapitalists KNOWLEDGE Companies Universities 3-10 1-2 years SUPPORT Advisors 2012
  27. 27. INTRO ECOSYSTEMS REPORTS A model of the EcosystemScalable phase option 3 Competencies Knowledge 500+ 5 years + Support CapitalGrowth phase 10-40 2-5 years Competencies Knowledge Support CAPITALStart-up phase COMPETENCIES Venturecapitalists KNOWLEDGE Companies Universities 3-10 1-2 years SUPPORT Advisors 2012
  28. 28. INTRO ECOSYSTEMS REPORTS A model of the EcosystemScalable phase 500+ 5 years +Growth phase 10-40 2-5 yearsStart-up phase 3-10 1-2 years 2012
  29. 29. INTRO ECOSYSTEMS REPORTS A model of the EcosystemScalable phase Competencies Knowledge 500+ 5 years + Support CapitalGrowth phase 10-40 2-5 years Competencies Knowledge Support CAPITALStart-up phase COMPETENCIES Venturecapitalists KNOWLEDGE Companies Universities 3-10 1-2 years SUPPORT Advisors 2012
  30. 30. INTRO ECOSYSTEMS REPORTS A model of the EcosystemScalable phase Competencies Knowledge 500+ 5 years + Support CapitalGrowth phase 10-40 2-5 years Competencies Knowledge Support CAPITALStart-up phase COMPETENCIES Venturecapitalists KNOWLEDGE Companies Universities 3-10 1-2 years SUPPORT Advisors 2012
  31. 31. INTRO ECOSYSTEMS REPORTS A model of the Ecosystem 2012
  32. 32. INTRO ECOSYSTEMS REPORTS CONCLUSION Until now it has been a widespread assumption that strong ecosystems develop randomly - depending on culture, local assets and individuals 2012
  33. 33. INTRO ECOSYSTEMS REPORTS CONCLUSION But based on our findings, we will argue that this could happen by intent anywhere 2012
  34. 34. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION CALL FOR ACTION Who should act? Established companies Venture capitalists Universities Politicians 2012
  35. 35. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Established companies Established companies gain from being located in a strong ecosystem Partnerships and collaborations between established companies and entrepreneurs are beneficial for both 2012
  36. 36. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Circulation of employees is an advantage for both entrepreneurs and established companies Spin-outs are an important building block in the ecosystem Support and collaboration with universities fertilises the whole ecosystem 2012
  37. 37. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Capital Capital has more investment opportunities in strong ecosystems Capital has a special responsibility to get the right management team in place Venture capital has an important role to ensure that the founder is part of the whole journey 2012
  38. 38. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Entrepreneurship is a repeated business, and venture capital has a special responsibility to bring the experience further Venture capital plays a crucial role in creatingsuccessful entrepreneurs with financial resources that stay active in the region and bind the ecosystem together Pension funds have a long term interest in a strong venture capital industry 2012
  39. 39. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Building a new industryrequires large investments from pensions funds and other capital funds 2012
  40. 40. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Universities Universities benefit from taking an active part in strong ecosystems Universities gain from partnerships and collaborations with entrepreneurs and established companiesUniversity spin-outs are important for developing the ecosystem 2012
  41. 41. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Universities can benefit from dedicated entrepreneurship centers interacting in the ecosystem 2012
  42. 42. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION Politicians Politicians must raise awareness about theimportance of strong ecosystems and set it on the political agenda Politicians can encourage public owned companies and institutions to be active in the ecosystems Politicians can ensure that public owned universities are active in the ecosystems 2012
  43. 43. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION SIGN UP! 2012
  44. 44. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION www.foragroup.dk SIGN UP! 2012
  45. 45. Thank You! 2012

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