This document discusses innovation and technology transfer to support start-up companies. It defines innovation and outlines typical barriers to innovation like lack of resources and expertise. It then discusses ways to enable innovation such as establishing an innovation culture and process. The document also summarizes the CTI Start-up program in Switzerland which provides funding and coaching to address challenges in innovating and obtaining financing. It notes the program aims to get the technology right, provide business knowledge, develop sustainable businesses, and connect start-ups to investors.

1. The role of technology transfer in the
innovation system of SMEs
&
Innovation by supporting start-up
companies
Dr. Urs Guggenbühl
Dr. Urs Althaus
1

2. Agenda
1. What is innovation?
2. Barriers to innovation?
3. Enabling innovation?
4. Typical technology transfer systems in Switzerland
5. CTI Start-up, a Swiss national support system for start-
ups
6. BaseCamp4HighTech, a regional start-up incubator
2

3. An Idea
What now?
3

4. A new idea will only
become an innovation,
after it has been
successfully introduced to
the market!
4

5. Assumption
Innovation
Competitiveness
Success
5

6. Success with Innovation: Studies
1. Long-Term Study from the University of Geneva (IMI) and Kienbaum
(116 companies) Source: Heinz Kurt Wahren, Erfolgsfaktor Innovation, 2004
Findings: (Comparing 30 “Innovative and non-innovative companies”)
• Innovative companies have approximately a 7 times higher profit
margin and return of capital than non-innovative companies
2. Study from Arthur D. Little and BDI from Germany
(300 companies form Germany and Austria) Source, Arthur D. Little und BDI 2004
Findings:
• EBIT-margin of average companies ............................. 3.2%
• EBIT-margin of innovative companies (Top 5%) .......... 11.4%
6

7. Success with Innovation: Top 100 Study (Lothar Späth, 2009)
Share of revenue created by innovations in the last 3 years
Average of all Top 100 ............................................................... 64%
Average of the best 10 ............................................................... 87%
Average SME (Source: ZEW) ................................................... 14%
Share of profit created by innovations in the last 3 years
Average of all Top 100 ................................................................. 63%
Average of the best 10 ................................................................ 93%
7

8. Barriers to Innovation: Study SME from Eastern Switzerland (2009)
Reasons for braking up the innovation process
n=57
Other
Misjudgement
Lacking expertise
Lacking tech. know how
Lacking time
Lacking human resources
Lacking financial resource
8

9. Barriers to Innovation: The Time Factor
Productdevelopment
Cash-flow
Financing
Seed Expansion
R&D Start Exit
9

10. Example - Vario Optics AG, a Radical Innovation
10

11. Example - Vario Optics AG, a Radical Innovation
11

12. Example – Vario Optics AG, Figures
Business Concept
● Production technologies for electro-optical circuit boards (EOCB)
● Volume manufacturing of EOCBs
Markets
● Sensors
● ICT (Information and communication technology)
Company
● 2009 Spin-off from Varioprint, Development of EOCB's since 2002
● Pilot fab installed in clean room
● 5 engineers with long term experience
● Strong patent portfolio
12

13. Enabling Innovation Strategy
SME with an established Innovation strategy
Study from eastern
Switzerland n = 57
Average SME (Späth 2009)
Top 100 innovative SME
(Späth, 2009)
13

14. Enabling Innovation Budget
Innovation Budget in Relation to Total Revenue
Average SME (Späth 2009)
Study from eastern
Switzerland n =57
Top 100 innovative SME
(Späth, 2009)
14

15. Enabling Innovation - Corporate Culture: Top 100 Study (Lothar Späth,
2009)
% of the Top 100-Companies, which give their employees
personal space to develop their own ideas ............................................. 85%
SME (Source: WU Wien) 35%
% of the Top 100-Companies, which run an incentive scheme ................. 91%
SME (Source: WU Wien) 34%
% of the Top 100-Companies, which provide internal venture capital .......... 54%
SME (Source: WU Wien) 2%
% of the Top 100-Companies working with interdisciplinary project teams ...99%
SME (Source: WU Wien) 55%
15

16. Enabling Innovation - Innovation Process: Top 100 Study (Lothar Späth,
2009)
Top 100 SME
% of the Top 100-Companies, which define clear objectives
for each phase in the innovation process ................................. 97% (52%)
% of the Top 100-Companies, which have the following phases
within their innovation process clearly defined and controlled
Collection of ideas ..................................................................... 99% (28%)
Audit ideas ................................................................................. 97% (40%)
Efficiency analysis/Feasibility ..................................................... . 96% (36%)
Construction and development .................................................... 99% (72%)
Analysis of the success of innovation ........................................... 88% (33%)
16
16

17. Enabling Innovation - Corporation
External Sources for Ideas
Others
Open Innovation
Lead User
Universities
Consultants
Competitors
Suppliers
Customers
17

18. Hindering & Enabling Factors for SME’s
1. What is hindering innovation?
• The length of innovation
• Lack of strategic planning
• Missing resources
• Lack of knowledge about the
scope of innovation
2. How is innovation enabled?
• Leadership
• A corporate innovation culture
• An interdisciplinary approach
• Inclusion of stakeholders
• An innovation process
18

19. CTI Addresses the Four Challenges of Innovation
http://www.kti.admin.ch
Public money
CTI Projects CTI Entrepreneurship CTI Start-up CTI KTT
Get the Pull in relevant Develop a Supports
technology right business knowledge sound and platforms
(Grants for R&D) (Education & sustainable & networks
Training) business
(Coaching)
Private money Access to
Private Association
Investors
founded by Investors
(Financing for
SME financing R&D in 2003
start-ups)
19

20. CTI R&D Project Set-up
CTI
One or more CHF
universities One or more
(ETH domain, companies/start-ups
Uni, UAS)
Competence in science Entrepreneurial
and research 50% R&D project 50% competence
infrastructure Market entry
Market impact
20

21. CTI - Applications and Approvals of R&D Projects (2011)
Regular R&D Projects Special Measures R&D Projects
Total Funding in 2011: CHF 94.5 Mio Total Funding in 2011: CHF 100 Mio
21

22. CTI – KTT Strategy with three Axes (2011)
22

23. IBH – Internationale Bodensee Hochschule
http://www.bodenseehochschule.org/
IBH is the largest
cooperation of
Universities in Europe.
• 30 Universities
• 4 Countries
• 1 Cooperation
23

24. IBH – KTT
Activities Tools Sponsor
Collecting know how for Working group KTT IBH
KTT within the IBH- KTT coordinator,
cooperation workshops for idea finding, Euro 200’000.-/Year
Initial funding
(KTT seminars & KTT CALLS)
Innovation platform INVISTA IBH as an incubator
(IBH-Projekt)
REGIO-MATCH IBH as an incubator
Knowledge transfer to Regional technology transfer
the region
Innovation coaching Financed by the industry
via innovation projects
Talent management Financed by the industry
24

25. AAL-JP – a European project to create innovative ICT solutions for
the elderly, http://www.aal-europe.eu/
• 22 countries
• 700 Mio Euro Budget
• 300 Mio Euro Support
• 2008 – 3013
• 141 Projects
• AAL-Forum
• Local AAL Inititaitves
• 3 Countries /
3 organisations
25

26. AAL - Call 1 - 5: Statistics – Participation of Swiss partners
?
26

27. Technopark Zürich – Tech transfer centre for start-
upshttp://www.technopark.ch
Success:
• More than 90% survival rate
of Start-ups
• More than 2000 workplaces
since 1995
• More than 1.5 Mio Visitors
27

28. Summary: What is needed to lead innovation in SMEs?
• A good Education System - Enabling
• Management of Talents - Make available
• Innovation Coaching - Active Support
28

29. CTI Addresses the Four Challenges of Innovation
Public money
CTI Projects CTI Entrepreneurship CTI Start-up CTI KTT
Get the Pull in relevant Develop a Supports
technology right business knowledge sound and platforms
(Grants for R&D) (Education & sustainable & networks
Training) business
(Coaching)
Private money Access to
Private Association
Investors
founded by Investors
(Financing for
SME financing R&D in 2003
start-ups)
29

30. CTI Entrepreneurship
vLeaders
Swiss National Start-up
Team
Intensive Training in
Boston (USA): 10 days
vTraining
Ambitious High-Tech Start-ups
Start-ups
Workshop: 5 days
vPlan
Individual persons with business idea
Strategy Workshop: 5 days
vChallenge
University Students
Lecture: 14 lessons
vIdeas
Students and Start-ups Program is free of charge
Event: ½ day for participants Students
30

31. Criteria for Admisson to CTI Start-up
CTI Start-up
company
31

32. What CTI Start-up offers the Start-up
Professional business coach and access to experts
Customised coaching program and modules for start-ups:
Intellectual property
Business modelling
Financial planning
Sales accelerator
Technology coaching
Etc.
Access to CTI Invest
Access to the Swiss House services in the US (in particular
Swissnex in San Francisco and Boston)
Program is free of charge, but no direct investment possible
32

33. CTI Start-up Process
33

34. CTI Start-up Results: Excellent Survival Rate
34

35. CTI Start-up Ecosystem
The ecosystem
• Great technology ground (ETHZ & EPFL), great universities
• Great industries especially in Engineering, MedTech, Biotech,
Microtechnologies, Foodtech, etc.
• A lot of regional incubators are now popping up.
• Good financing possibility in the FFF and later phase but
critical in the growing phase. (Business angel clubs, VC, high
net worth individuals, CTI invest)
35

36. CTI Invest: A “Match-Making” Platform
Corporate VC
VC Money, management
Money, management & experience BA & Clubs
& experience Money, management
& experience
(since May 2003)
CTI Start-up CTI Start-up
companies Selection by Expertise
CTI Invest Board
Pre-selection Coaches
“Sell Side” - Due Diligence Experts
36

37. CTI Start-up: Some successful cases
37

38. Basecamp
Start-up Incubator in
the Region of Berne

39. Situation
 Number of Start-ups in Switzerland registered in
www.startupmonitor.ch
39

40. What do we want to achieve?
 The success of start-ups can be very much
accelerated by a well functioning local ecosystem,
supporting start-ups with a network of
experienced mentors, with resources such as
office space, laboratories and qualified human
capital and with the necessary financing.
BaseCamp4HighTech uniquely supports high
potentials to successfully start and grow their
businesses, offering a tailor made start-up
coaching/mentoring, a network for all stages of
financing and appropriate workspace around the
area of Berne.
40

41. Success rate: Pre-screend Cases within ½ Year
38 Pre-screened Start-ups in the area:
 ICT – (20)
 Engineering (6)
 New-Energy (5)
 Biotech (2)
 NanoTech (1)
 Medtech (1)
 Water Technologie (1)
 Biomechanic (1)
 Cognitive Training (1)
41

42. THINK BIG!
BASECAMP4HIGHTECH
Wankdorffeldstrasse 102
Postfach 261
CH-3000 Bern 22
T +41 (0) 31 335 62 64
F +41 (0) 31 335 62 63
info@bc4ht.ch
www.bc4ht.ch