This document discusses the importance of corporate registration for technology startups and proposes innovative models to promote their formation. It notes that research universities have historically fostered many successful startup companies through graduate founders registering companies. However, long development cycles now pose challenges, so the document suggests universities adopt an "education paradigm" by supporting student startups before graduation to reduce risks. This could encourage more entrepreneurship through innovative corporate registration processes framed as continuing education rather than traditional business investments. The document highlights several Masdar Institute programs supporting this goal through scholarships, grants and business plan competitions.

1. 1
Technology-Based Innovation
and Corporate Registration
Professor Bruce Walker Ferguson,
Head, Masdar Institute Center for Innovation and Entrepreneurship
9 March 2015
Friday, April 24, 2015

2. 2
A Question
Friday, April 24, 2015
Why should a research university
care about
corporate registration?

3. 3
International Perspective
Friday, April 24, 2015
• In 1997, 4,000 MIT-related companies employed 1,100,000 people.
• This single research university fostered the creation of companies with
combined 1997 world sales of $232,000,000,000, greater than the GDP of
Thailand.
• All these companies had at least two things in common:
• At least one founder was an MIT graduate
• The company was registered
→ Corporate registration can help promote the success of technology-
based startup companies.
Source: MIT, Impact of Innovation, 1997

4. 4
Department of
Engineering
Systems and
Management
Department of
Electrical
Engineering and
Computer
Science
Department of
Mechanical and
Materials
Engineering
Department of
Chemical and
Environmental
Engineering
2009
 MSc Engineering Systems and Management
 MSc Mechanical Engineering
 MSc Material Science and Engineering
 MSc Computing and Information Science
 MSc Water and Environmental Engineering
2011
 MSc Chemical Engineering
2010
 MSc Electrical Power Engineering
 MSc Microsystems Engineering
2014+
 MSc Sustainable Critical Infrastructure
 MSc Geomechanics
ACADEMIC DEPARTMENTS
FACULTY
STUDENTS
4
95+
500+
2012
 PhD program
 Practicing Professionals
Masdar Institute’s Academic Programs
Graduate Education as a Foundation for Research
2013

5. 5
Evolution of Research at MI
• Activity to Date
– Capacity building and
development of research
capabilities aligned with
themes that are relevant
globally and locally
• Path Forward
– Establishment of multi-
disciplinary research centers
– Expanded local and
international partnerships
– Technology transfer and
establishment of local
innovation systems
MI Research
Evolution and Path Forward
Energy
Water and
Environment
Microsystems
Sustainable
Engineered
Systems
MI Core Research Domains

6. 6
MCIP: CREATIVELY BRIDGING TWO
“VALLEYS OF DEATH”
External
Funding
Availability
Commercial Sales
Proof of
Concept
Incorporation Venture
Capital
SELECT DIRECT CONNECT MARKET
Basic
Research
Seed Funding (TIP, MMIP)
Mentors (Catalysts); Training; Industry Connections
Accelerator / Incubator
Education (Entrepreneurship, Technology Management)
Technology R&D
Sequenced Assistance for Technology Startups
iInnovation: Vision and Mission
Development Stage

7. 7
MI-MIT Innovation Program (MMIP)
Friday, April 24, 2015
• Seed grant program for joint MI-MIT
faculty teams.
• Call for proposals issued in March 2014.
Four joint grants planned by Fall 2014.
Partly funded by BP.
• One-year, translational, educational.

8. 8Friday, April 24, 2015
BP Collaboration
• An exciting new collaboration
between iInnovation and BP was
announced in January 2014 at Abu
Dhabi Sustainability Week.
• Masdar Institute and BP have
committed US $7 million to develop
new ways of accelerating
sustainable technology innovation.
• The collaboration has already
accelerated introduction of new
student scholarships, seed grants
and seminar speakers.

9. 9Friday, April 24, 2015
• In many industries venture capitalists
and large corporations are moving
away from technology R&D.
• Neither the “triple helix” nor new
investment sources such as crowd
funding meet the financing need for
technology start-ups, thus slowing
innovation in these industries.
• In many cultures, start-ups present
high opportunity cost, high financial
risk and high reputation risk to
individual entrepreneurs, thus
discouraging entrepreneurship.
A Growing Chasm for Start-Ups

10. 10Friday, April 24, 2015
Taking a New Perspective
• Extend the role of the research university farther downstream, helping to
bridge the “valley of death.”
• Do this by creating new university programs that encourage students to
form start-ups before graduation.
• By positioning start-ups as primarily education rather than business,
the new model reduces entrepreneurial risk:
 Student succeeds early: Join a start-up.
 Student succeeds later: Graduate with degree.
Shift the frame of reference for technology entrepreneurship
View early translational work as investment in education
rather than as a business investment.

11. 11Friday, April 24, 2015
BP Innovation Scholarships
Press Release
Masdar Institute Announces BP Innovation Scholarships
New Scholarships to Encourage Pre-Graduation Student Start-ups
Abu Dhabi-UAE: 11 March, 2014 – The Institute Center for Innovation
and Entrepreneurship (i-Innovation) at Masdar Institute of Science and
Technology today launched the BP Innovation Scholarship program.
The first two scholarships . . . . .

12. 12
MCIP: CREATIVELY BRIDGING TWO
“VALLEYS OF DEATH”
External
Funding
Availability
Commercial Sales
Proof of
Concept
Incorporation Venture
Capital
Basic
Research
Commercial PhaseEducation Phase
Adjusting the Frame of Reference
Technology Development Stage
Work with universities to create a new education-
based paradigm of entrepreneurship with
innovative corporate registration processes.

13. 13
Innovative Students
Friday, April 24, 2015
2013
• Five Masdar Institute students won national or regional business plan
competitions:
• Intel Global Business Challenge finalist in Silicon Valley.
• SeedStars WorldwideStartup finalist in Geneva.
• Two students formed startup companies.
2014
• One student won the UAE’s Ibtikari Competition.
• One student won the Khalifa Fund’s
Technopreneur Competition.
• One faculty member formed a startup company.
2015
• One startup company formed; two more in process.

14. 14
International Perspective (cont.)
Friday, April 24, 2015
• “Today the majority of UK companies are formed the same day
electronically. . . . Most agents offer company formation packages for
less than £100.”
Source: Wikipedia, Company Formation
• 2014 Country Rankings: Ease of Starting a Business
5 Rwanda
7 Kyrgystan
32 Jamaica
39 USA
47 UAE
49 UK
Source: The Global Innovation Index 2014

15. 15
Friday, April 24, 2015
Resource Availability Matrix - Current
Ecosystem R&D People Funding Suppliers Customers
Laws &
Regulations

16. 16
Conclusions
Friday, April 24, 2015
• High-technology startup companies can contribute tremendously to
national wealth.
• The corporate registration process is a vital step in translating high-
tech research into useful products, services and processes.
• At present in many societies, the transition from education to
commerce occurs at corporate registration.
• For many societies, a later transition under an “education paradigm”
of entrepreneurship is highly desirable.
• Innovative models of corporate registration may therefore promote
the formation of high-technology startup companies, particularly in
industries characterized by long product life cycles.

17. 17
iInnovation. Sustainable Innovation.
Thank You!