Gregory Pogue - Innovación es más

1. Building and
Growing Innovation
Ecosystems
Dr. Gregory P. Pogue
July 30, 2014

2. Bienvenidos from Austin!!!
Hook ‘em Horns!
©IC2 Institute, The University of Texas at Austin 2

3. Why Austin?
• According to Geekwire, Austin, TX is THE BEST place to start a company based on key business
metrics (see figure above).
• CNN Money, Under30CEO and other expert business sources rank Austin as THE BEST place to
start a business in the US.
• It is the home of The University of Texas, South by Southwest Interactive, Austin City Limits, the
“Live Music Capital of the World,”where Formula One and MotoGP happen in North America, and
lots more…
• It is a great laboratory for learning entrepreneurship from those who practice it every day!
©IC2 Institute, The University of Texas at Austin 3
2.
Seattle
S:
$96,197
I-­‐T:
0.00%
S-­‐T:
9.50%
P-­‐T:
1.38%
H:
$395,800
Sq/Ft:
$28.88
7.
SF
Bay
Area
S:
$144,828
I-­‐T:
13.30%
S-­‐T:
8.75%
P-­‐T:
1.10%
H:
$805,500
Sq/Ft:
$44.88
3.
Boulder
S:
$93,590
I-­‐T:
4.63%
S-­‐T:
8.21%
P-­‐T:
0.66%
H:
$453,000
Sq/Ft:
$21.50
5.
Boston
S:
$102,230
I-­‐T:
5.3%
S-­‐T:
6.25%
P-­‐T:
1.31%
H:
$396,300
Sq/Ft:
$46.26
4.
New
York
S:
$98,541
I-­‐T:
8.97%
S-­‐T:
8.88%
P-­‐T:
1.11%
H:
$535,900
Sq/Ft:
$47.20
6.
Washington
DC
S:
$100,488
I-­‐T:
8.95%
S-­‐T:
8.21%
P-­‐T:
0.85%
H:
$443,500
Sq/Ft:
$49.40
1.
AUSTIN,
TX
S:
$93,240
I-­‐T:
0.00%
S-­‐T:
8.25%
P-­‐T:
1.74%
H:
$206,300
Sq/Ft:
$25.54
S:
Average
Tech
Salary
S-­‐T:
Sales
Tax
H:
Average
House
Cost
I-­‐T:
State
Income
Tax
P-­‐T:
Property
Tax
Sq/Ft:
OfOice
rental
per
sq/ft

4. Overview of Presentation
• Investigation
• Innovation
• Pre-Incubation
• Technology transfer
• Incubation
• Incubators
• Acceleration
• In-Country Markets
• Growth
• International Markets
©IC2 Institute, The University of Texas at Austin 4

5. Innovation-Based
Economic Process
©IC2 Institute, The University of Texas at Austin 5
Commercialization
Ecosystem
Education,
Research and
Technology Transfer
Philanthropic
Entities
Markets and
Business Relationships
Government
Policy
and Action
Innovation
Economic
Impact
Incubation and
Wisdom
Funding
Institutions
Basic
Research
Licensing
Start-Up
Sponsored
Research

6. The Galapagos
Archipelago
©IC2 Institute, The University of Texas at Austin 6

7. The Galapagos Value
• Projects Ecuador’s leadership in eco-tourism
• Provides unique resources to understanding
natural diversity
• Preserves most original biodiversity due to late
human influence
• Human impact increases on the archipelago by
locals and bio-tourism
• How to conserve the Galapagos as "a natural
laboratory of evolution”?
©IC2 Institute, The University of Texas at Austin 7

8. Protecting the Value of the
Asset
Protect the Asset
with Policies:
• Policy for visitors,
boats, & tourists
• Policy for ecology
conservation
• National sovereignty &
governance
• Share value
Define the Asset:
• Land reserve:
7,882 sq km
• Marine reserve:
50,000 sq km
• 95% of island is
protected lands
©IC2 Institute, The University of Texas at Austin 8

9. Define
the
Asset
Protect
the
Asset
Value Creation
• Tourism
• Fishing
• Job creation
• Economic impact
• National reputation
• National resources
From Asset to Value
©IC2 Institute, The University of Texas at Austin 9

10. Protecting Intangible Assets –
Knowledge, Innovation
Protect the Asset
with Policies:
• Intellectual property
policy and compliance
• Determine regions to
seek protection
• Court protection rules
• Share value
Define the Asset:
• Unique design,
process, composition
or steps
• Compare with
literature and product
• Determine best
monetization strategy
©IC2 Institute, The University of Texas at Austin 10

11. Define
the
Asset
Protect
the
Asset
Value Creation
• Company-university
relationships
• Technology or
product licensing
income
• New companies
• New jobs
• Tax revenues
• Shared value
From Asset to Value
©IC2 Institute, The University of Texas at Austin 11

12. The Innovation Reef: the
IC2 Institute Ecosystem
• Business acceleration is not as much
about space or services as proximity
• Proximity to a high diversity of wisdom,
business, and capital providers
• Impact is ~$150M/year in economy – from
Central Texas to the world
• Our focus: learning how the ecosystem
works and how and what to replicate in
other locations ©IC2 Institute, The University of Texas at Austin 12

13. Incubation Ecosystem Analogy:
The Coral Reef
• Aggregate dilute
resources to form
complex ecosystem
• Structure to build
complex environment
• Provides protection
from large predators
• Form mutualistic
interactions among
ecosystem players
• Grow and expand
through recruitment
and structural
mechanisms
Coral Reef Analogy
Dilute, low
diversity life
Nexus point:
maximum
life and
diversity
Dilute,
large life
forms
©IC2 Institute, The University of Texas at Austin 13

14. Austin Technology Incubator:
Explicit ROI
We Get You Funded!!!
©IC2 Institute, The University of Texas at Austin 14

15. ATI Network Structure
• ATI Cluster – 27 persons on average (full
time and student associates)
• ATI Entrepreneur Alumni Reunion Cluster
– 223 individuals
• ATI Core Advisor Cluster – 338 individuals
• 553 defined individuals (526 outside ATI)
• Broader access to Austin Community
©IC2 Institute, The University of Texas at Austin 15

16. Operationalizing the ATI
Network
Core Advisor Cluster
ATI Alumni Cluster
Shared between Clusters
Broader Community
ATI Constituents
©IC2 Institute, The University of Texas at Austin 16

17. Refined Analysis
• Success Committees Analyzed: 9
• Participants: 85 (less ATI – 63 persons)
• Average number of outside participants: ~8
• Proportion drawn from Core Advisor Cluster: ~60%
• Proportion drawn from ATI Entrepreneur Alumni Cluster:
~10%
• Proportion drawn from Broader Community: ~30%
• Reuse of talent: 1.14 attendees attending other events
• ATI builds a rich and diverse talent network uniquely
fitted for its companies to facilitate funding from four
distinct clusters: – the ATI team, Advisor Core, Alumni
and broader Austin Community ©IC2 Institute, The University of Texas at Austin 17

18. Reef Efficacy: Acceleration of
Companies to Capital
(2010-2014)
• Worked/Trained 70 companies (admitted ~1/15
applicants)
• Find funding for 85% companies in incubator
• Facilitated >$500M investor capital raised (7years)
• Saw >$500M in local company exits (7 years)
• Produced >880M in local economic impact (10 years)
• Created >6,500 jobs/year, direct and indirect (10 years)
• Returned $67 for every public $1 invested in ATI (4 years)
• Worked with 80 student entrepreneurial teams (4 years)
©IC2 Institute, The University of Texas at Austin 18

19. ATI Funding Map – Class of
2012
• ATI brings Central Texas innovations to the world and the world’s
investors to Central Texas.
• Efficiency Example: 2013 Q1: Out of the $37M in VC and Angel Capital
raised among Austin organizations, $35M came to ATI-associated
companies.
©IC2 Institute, The University of Texas at Austin 19

20. Developing an
International Reef Strategy
Austin,
TXCosta Rica
Turkey
Chile
Korea
Colombia
Mexico
Portugal
India
US
Network-based strategy for incubation of companies to accelerate
commercial success. ©IC2 Institute, The University of Texas at Austin 20

21. Facilitating Technology
Transfer in Colombia
• Development of Technology Transfer Offices in:
– Medellin,
– Bucaramanga,
– Bogota
• Accelerating SMEs in Medellin to international markets
• Development of Collaborative Technology Transfer
Model: Medellin and Bogota
• Launch of Collaborative Technology Transfer Model
training: Colciencias
• Developing “Go to Market” and “Dealmaking” training:
Innpulsa
©IC2 Institute, The University of Texas at Austin 21

22. Need for International orientation
Shifting from agricultural to industrialized mindset
Foster environment for SME creation and growth
Sustained revenue for growth for SMEs.
What Challenges Do
Both Korea and Ecuador Face?
©IC2 Institute, The University of Texas at Austin 22

23. Having World Class Companies
is Not Enough…
• Current Challenges:
• 70% of the GDP is
concentrated in 60 companies
• These make up ~14% of
companies in Korea
• These employ only 5% of the
population
• The SME/MME’s are
squeezed by pricing and profit
constraints
• New means for revenue and
employment are needed
©IC2 Institute, The University of Texas at Austin 23

24. Small and Medium Size
Enterprise Growth Initiative.
Strategy:
• Recruit
and
Evaluate
• Simultaneous
training
• Competition-­‐based
selection
• Find
Oirst
international
customer(s)
for
selected
companies
outside
of
Korea
• Facilitate
new
revenue
sources
through
international
advocacy.
Gyeonggi
Innovation
Program
• 2008-­‐2014
• Partners:
Governor’s
OfOice
and
Gyeonggi
Small
&
Medium
Business
Center
• IC2
Institute
of
The
University
of
Texas
at
Austin
as
key
partner
• Program
has
grown
to
2
other
states
and
3
research
centers
in
Korea
©IC2 Institute, The University of Texas at Austin 24

25. GDL/sdl SDL/gdl
Changing Entrepreneurs’
Perspectives
B
Value
creation
Actor
2
Actor
1
C
Value
Creation
©IC2 Institute, The University of Texas at Austin 25

26. Results
From 2008-2013,
• 500 innovation/product/companies reviewed
• >110 companies trained,
• 66 international business deals accomplished.
• Export revenue cannot be reported due to
government request, but estimated at >$80M.
The Gyeonggi Innovation
Program Outputs
©IC2 Institute, The University of Texas at Austin 26

27. Partial Deal Map
The Gyeonggi Innovation
Program Results
©IC2 Institute, The University of Texas at Austin 27

28. Need for International orientation and market
access
Shifting from research to innovation mindset
Foster environment for SME creation and growth
Develop innovation culture and technology transfer
strategies
What Challenges Do
Both Portugal and Ecuador Face?
©IC2 Institute, The University of Texas at Austin 28

29. 1. Development of a globally competitive and sustainable
commercialization infrastructure
2. Facilitate networking among researchers, TTO’s,
entrepreneurs, commercialization experts, angels/VCs, and
academic leaders
3. Provide hands-on training through real-life
commercialization experiences
4. Offer U.S. market soft-landing and promote business
development activities for Portuguese university-based
startups
©IC2 Institute, The University of Texas at Austin 29

30. 30
Building a Technology
Transfer Network
All public universities involved,
as well as those of leading Science
Parks, Incubators, Polytechnic
Schools and Research Laboratories
30+ UTEN Network members
©IC2 Institute, The University of Texas at Austin 30

31. •
50+
specialized
training
and
networking
events
(1500+
par4cipants)
•
30+
internships
in
Texas
•
100+
startups
assessed
•
49%
increase
of
inven4on
disclosures
within
universi4es
•
1,900%
increase
of
provisional
patents
from
universi4es
•
19.6%
increase
of
patents
granted/year
•
26%
increase
of
university
executed
licenses
and
agreements/year
•
137%
increase
license
income
at
universi4es
•
132%
increase
on
new
academic
spinoffs
•
Academic
startups:
127%
annual
growth
rate
in
revenue;
37%
of
startups
export
products;
38%
annual
growth
rate
in
hiring
UTEN overall impact
(2007-2010)
Source: UTEN annual report 2010/2011

32. Learnings:
Reef-Based Incubation
• Full Ecosystem Required – Technical expertise, business skill,
training, service capabilities provided to develop company
readiness
• Networks Essential – relationships decrease the distance
between companies and capital/revenue accelerating deals
• Open System – participants can come and go within ecosystem
• Expert Generalists – provide added openness and improved
connectivity with outside participants
• Stakeholders – participants transition to stakeholder status by
mutual agreement
• Business Driven – actual financial outcomes are the measure of
success
• Leadership Creates Structure – provides reef environment and
incentives for participants to join and find reward
©IC2 Institute, The University of Texas at Austin 32

33. Thank You!!!
Gregory P. Pogue, Ph.D.
Deputy Director and
Senior Research Scientist
IC2 Institute
The University of Texas at Austin
gpogue@ic2.utexas.edu
+1 (512) 560-3717 (cell)
+1 (512) 475-8961 (office)
Skype ID: pogo5708
www.ic2.utexas.edu
J. A. Muñoz Orellana
University Granada
©IC2 Institute, The University of Texas at Austin 33