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TCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship

By Allan O'Connor, given during the 3rd TCI Oceania Cluster Conference, Adelaide, 1-3 June 2016

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TCIOceania16 Fostering Innovation, Ecosystems and Entrepreneurship

  1. 1. Fostering Innovation, Ecosystems and Entrepreneurship Allan O’Connor 3rdTCI Oceania Cluster Conference, Adelaide, 1-3 June 2016 "Driving (Regional) Competitiveness through Innovative Clusters to Bolster National Prosperity"
  2. 2. Fostering Innovation, Ecosystems and Entrepreneurship Allan O’Connor
  3. 3. Entrepreneurship, Commercialisation and Innovation Centre Overview • How do clusters and entrepreneurship link? • What is an entrepreneurial ecosystem? • The Adelaide Case • The Research • Acknowledgements – Department of State Development – Adelaide City Council; Paul Daly – Co-researcher; Gerard Reed
  4. 4. Clusters and Entrepreneurship: Different lenses, common issues With permission Thank you Christian Ketels
  5. 5. 4 Copyright 2015 © Christian Ketels Clusters and Economic Performance Prosperity Entrepreneurship Structural Change • Wages • Productivity • Job growth • Resilience • Patenting • New business formation • Survival of new firms • Job growth in new firms • Path of structural change(emergence of new clusters) Presence of Strong Clusters
  6. 6. Entrepreneurship, Commercialisation and Innovation Centre Entrepreneurship: The Innovation School of Thought • Joseph Schumpeter (1883-1950) – An entrepreneur introduces innovation – Disrupts market equilibrium – An entrepreneur creates demand – Is responsible for ‘creative destruction’
  7. 7. 6 Copyright 2015 © Christian Ketels Putting Clusters into Context (Creative) Skills Complexity Social Capital Innovation Systems Entrepreneurial Ecosystems Framework Conditions Clusters Urbanization
  8. 8. Entrepreneurship, Commercialisation and Innovation Centre The Global Entrepreneurship Monitor (2016) University of Adelaide 7
  9. 9. What is an Entrepreneurial Ecosystem?
  10. 10. Entrepreneurship, Commercialisation and Innovation Centre A Comprehensive Definition • ‘a set of interconnected entrepreneurial actors (both potential and existing), entrepreneurial organisations (e.g. firms, venture capitalists, business angels, banks), institutions (universities, public sector agencies, financial bodies) and entrepreneurial processes (e.g. the business birth rate, numbers of high growth firms, levels of ‘blockbuster entrepreneurship’, number of serial entrepreneurs, degree of sell-out mentality within firms and levels of entrepreneurial ambition) which formally and informally coalesce to connect, mediate and govern the performance within the local entrepreneurial environment’ (Mason & Brown 2014) University of Adelaide 9
  11. 11. Entrepreneurship, Commercialisation and Innovation Centre Performances… • To improve socioeconomic performances – Greater employment – Better wealth distribution – Reduce cost of living – Higher living standards • To improve market efficiency performance – Product/service distribution – Reduce transaction costs (supply and demand side) • To increase industry effectiveness performance – Benefits of co-location – Greater innovation and technology advances • To facilitate greater private investment in growth economies – More start-ups – Greater business capital investment University of Adelaide 10
  12. 12. Some issues with defining an entrepreneurial ecosystem
  13. 13. Entrepreneurship, Commercialisation and Innovation Centre What do you see? University of Adelaide 12 • Everyone will see their ecosystem differently! The beauty and the crone
  14. 14. Biological ecosystems differ to social ecosystems • Human/social systems differ to (eco)systems of nature due to foresight/intentionality, communication and technology (Holling 2001) • Intent to intervene in a ecosystem runs counter to the concept of a biological ecosystem where there is no elected or non-elected governance in nature University of Adelaide 13
  15. 15. Entrepreneurship, Commercialisation and Innovation Centre Ecosystems are unique to place • The policies, practices and inherent activities of one ‘ecosystem’ should not be expected to be easily or readily supplanted into another ‘ecosystem’ University of Adelaide 14
  16. 16. Entrepreneurship, Commercialisation and Innovation Centre Layers of participant influence on outputs University of Adelaide 15 Venture Exits Venture Growth Venture Survival Venture Start-up Nascent entrepreneurs and opportunities Decreasing Number Many Few
  17. 17. Entrepreneurship, Commercialisation and Innovation Centre Geographic association with layers of influence University of Adelaide 16 Venture Exits Venture Growth Venture Survival Venture Start-up Nascent entrepreneurs and opportunities Increasing dispersion Local Global
  18. 18. Entrepreneurship, Commercialisation and Innovation Centre Ecosystems can be curated and designed • The frame of regional (eco)system governance is to cultivate the seeds of entrepreneurship and innovation that can adapt to the local conditions University of Adelaide 17
  19. 19. Entrepreneurship, Commercialisation and Innovation Centre Entrepreneurial Ecosystem: What does it comprise? University of Adelaide 18 People Entrepreneurial Process Supportive entrepreneurship infrastructure (regional resources including social and professional networks) New Venture CulturePolicy Support Programs Human Capital Finance Markets Nascent entrepreneurs Start-up Survival Growth Exit Role models
  20. 20. The Case of Adelaide’s Entrepreneurial Ecosystem
  21. 21. Entrepreneurship, Commercialisation and Innovation Centre Entrepreneurial Adelaide • ‘… how do you keep track of it?’ – Dec. 2012 • 4th January 2013 Meeting – (InnovyzSTART function) • Post-it-notes • 4 categories • Yellow = educational programs • Pink = network programs • Blue = incubators • Green = government support programs
  22. 22. Entrepreneurship, Commercialisation and Innovation Centre Adelaide Entrepreneurial Ecosystem (AEE) • Mapping exercise first iteration • Lack of a device indicative of an ecosystem • Adelaide City Council support • 25th June 2013 Forum Convention Centre • 3rd Sept 2013 Public Forum Adelaide Town Hall • Momentum Fund Grant The University of Adelaide 2014 • Follow-on grant from the SA Department of State Development
  23. 23. Entrepreneurship, Commercialisation and Innovation Centre Adelaide Entrepreneurial Ecosystem Map University of Adelaide 22
  24. 24. Entrepreneurship, Commercialisation and Innovation Centre Eight Categories 1. Network and Start-up Events 2. Formal Education 3. Industry Education 4. Co-working Spaces 5. Incubators and Accelerators 6. Advisory Services 7. Government Assistance 8. Investors University of Adelaide 23
  25. 25. The Research
  26. 26. Entrepreneurship, Commercialisation and Innovation Centre Some Demographics University of Adelaide 25 No. of participants 43 Avg age (yrs) 43.8 Avg age of venture (yrs) 8.0 GENDER Male 24 Female 19 Stage of business No in PS 5 ST 7 SU 5 GR 20 EX 3 NOT IND 3 Check sum 43 Education Uni 37 Vocat 6 Avg yrs work exp IND 42 22.5 NOT IND 1 Management Expe Yes 37 No 1 NOT IND 5 Prior Experience No. in Private Sector 25 Public Sector 9 Self-employment 7 Unemployed 0 Parenting 0 Student 2 Other 0 NOT IND 0 Check sum 43 Prior Entrepreneurial Exp Yes 17 Avg yrs 6.3
  27. 27. Entrepreneurship, Commercialisation and Innovation Centre Profile of business sectors • Service sector bias – Education and training, – Business services, – Web or application development, – Social media, – Advertising and/or marketing, – Human resources, – Health care, – Property services or similar. • Three businesses with more complex value chains? – Construction, publishing and manufacturing sectors. University of Adelaide 26
  28. 28. Entrepreneurship, Commercialisation and Innovation Centre Characteristics perceived of entrepreneurs and their endeavours University of Adelaide 27 Differentiating entrepreneurship → Opportunity centric enterprise → Entrepreneur attributes Business founder (commercial or social) OR Intrapreneur • Growth oriented (but inclined more toward organic growth) • Generating employment and contributing to social good • Disruptive (technology and/or business model) • Propensity for risk • Making money (for profit or non- profit surplus) • Original ideas • Innovative • Creative problem solvers • Visionary, flexible, ambitious and agile • Determined and persistent • Enjoy challenge • Passionate • Confident in self & idea • Networker • Leader • Team player • Adaptive • Responsive • Action focused
  29. 29. Entrepreneurship, Commercialisation and Innovation Centre Industry: Help or Hinder? • Two Views: – The more innovative ventures at odds with established industry structures (Radical innovation) – Industry could be helpful for certain ventures (Incremental innovation or differentiation) • Early stage business start-up and survival support (such as grants and relevant training) not generally available within established industry structures • Mixing with established industry players led to network development, ideas for start-up, learning and knowledge • IMPORTANTLY: Being part of a community was an important ingredient to supporting new ideas and businesses that were innovative and/or disruptive University of Adelaide 28
  30. 30. Entrepreneurship, Commercialisation and Innovation Centre University of Adelaide 29 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Start-up Survival Growth Exit Networking and Start-up Events Formal Education Industry Education Co-working Incubators and Accelerators Advisory Services Government Assistance Investors Entrepreneurial-Ecosystem (Total 274 items)
  31. 31. Entrepreneurship, Commercialisation and Innovation Centre The Entrepreneurial Ecosystem Emergence Model University of Adelaide 30
  32. 32. Entrepreneurship, Commercialisation and Innovation Centre A Proposed Evaluation Model • Relevance: The AEE needs to be designed to respond to different types of opportunities. The types of opportunities have particular needs for support. • Accessibility: Regardless of the type of support service to the entrepreneur, the service must be both visible and accessible. • Strength: Once the support service of the ecosystem is located, the service provision must be strong in its capability to service the needs of the entrepreneur. • Continuity: As a venture evolves, a strong ecosystem will have a continuity of relevance, accessibility and strength as the needs of the venture change through different periods of development. • Economically and Socially Responsive: A strong ecosystem will develop the socioeconomic strengths of a particular region, will not harm or undermine the socioeconomic status of a region and will address the shortcomings and opportunities of a socioeconomic system to provide for future changes in economic structure. University of Adelaide 31
  33. 33. Entrepreneurship, Commercialisation and Innovation Centre Some Specific Recommendations • Survey entrepreneurial awareness programs • Introduce entrepreneurship education during the secondary and university education years • Consider for immediate and special attention. – A pathway for higher cost start-ups to have visibility of and accessibility to low cost seed funds, and • Increase collaboration and cooperation both across and within the public and private sectors to prioritise resolutions to issues that slow entrepreneurship • Develop an entrepreneurial ecosystem measurement methodology University of Adelaide 32
  34. 34. Entrepreneurship, Commercialisation and Innovation Centre Conclusion • Majority profile of service-oriented businesses – Consider the trading pattern of firms; locally traded versus inter- regional, interstate or international. • South Australian entrepreneurship characterised by type of opportunity – (organic) growth oriented disruptive ventures, providing employment opportunities, contributing to the social betterment of South Australia • Being part of a community that supports new ideas, businesses, and the entrepreneur themselves – An emotionally and progressive supportive community was thought to be as important as other forms of support. University of Adelaide 33
  35. 35. Entrepreneurship, Commercialisation and Innovation Centre South Australia’s Entrepreneurial Ecosystem: Voice of the Customer Research Report • The link to the report is: http://ecic.adelaide.edu.au /docs/ecosystem-research- project-13-08-2015.pdf University of Adelaide 34
  36. 36. Entrepreneurship, Commercialisation and Innovation Centre Integrating Innovation: South Australian Entrepreneurship Systems and Strategies • Now published and free on web • https://www.adelaide.edu.au/p ress/titles/integrating- innovation/ University of Adelaide 35
  37. 37. Entrepreneurship, Commercialisation and Innovation Centre Thank you! Allan O'Connor Entrepreneurship, Commercialisation and Innovation Centre University of Adelaide, AUSTRALIA 5005 Ph : +61 8 8313 0188 e-mail: allan.oconnor@adelaide.edu.au Web: http://www.ecic.adelaide.edu.au/

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