This document discusses themes related to creating innovative new firms and managing innovation. It defines a startup as an organization searching for a repeatable and scalable business model. It also profiles a technical entrepreneur as someone with a high achievement motivation who likes taking responsibility for problems, sets challenging goals, and needs feedback. The document notes that research shows innovative SME activities tend to involve product over process innovation, target niche markets, focus on final rather than component products, involve external linkages, and are associated with output and employment growth though not necessarily profit.

1. Theme 7
Creating Innovative New Firms
Managing Innovation

3. STARTUP IS AN ORGANIZATION FORMED TO
SEARCH FOR A REPEATABLE AND SCALABLE
BUSINESS MODEL
СТАРТАП ЦЕ БІЗНЕС, ЩО РОСТЕ ВІД5% В МІСЯЦЬ І В
ЯКОМУ ВІДСУТНІ БІЗНЕС ПРОЦЕСИ.

7. © 2009 John Wiley & Sons Ltd.
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7
PROFILE OF A TECHNICAL ENTREPRENEUR

8. A person with a high n-Ach (achievement ):
• Likes situations where it is possible to take personal
responsibility for finding solutions
to problems;
• Has a tendency to set challenging but realistic
personal goals and to take calculated
risks;
• Needs concrete feedback on personal performance.
PROFILE OF A TECHNICAL ENTREPRENEUR

9. SMART Goals
• Specific – target a specific area for improvement.
• Measurable – quantify or at least suggest an indicator of
progress.
• Assignable – specify who will do it.
• Realistic – state what results can realistically be achieved,
given available resources.
• Time-related – specify when the result(s) can be
achieved.

22. Research over the past decade or so suggests that the
innovative activities of SMEs exhibit broadly similar
characteristics across sectors. They:
• are more likely to involve product innovation than
process innovation;
• are focused on products for niche markets, rather than
mass markets;
• will be more common amongst producers of final
products, rather than producers of components;
• will frequently involve some form of external linkage;
• tend to be associated with growth in output and
employment, but not necessarily profit.