1. The Entrepreneurial University Technoentrepreneurship: Latest Findings and Avenues of Development: Research and Practice case: Venturelab Twente Prof. Dr. Aard J. Groen Head of department Entrepreneurship, marketing, strategy and international management Scientific director NIKOS, a.j.groen@utwente.nl

2. The Entrepreneurial University NIKOS Expert centre at the University of Twente, –researching, teaching and supporting –Entrepreneurship, Innovation and Business Development. Department at the School for Management and Governance for (N=50): –Strategic Management –International Management –Marketing and –Entrepreneurship

3. The Entrepreneurial University Research (SRO Innovation Entrepreneurship in IGS) Entrepreneurship in Networks Entrepreneurial University-Industry Interaction Market oriented business development Entrepreneurship & business development in International Perspective Organizing for Innovation Marie Curie Training site K.I. Entrepreneurship High Tech Small firm Conference Business Development TOP (25 years, n=450 entrepreneurs) NENSI (incubator network) KEB (7 years, >300 firms supported) Bepart (Baltic network) Mephi (Moscow University) Global starts International business development Teaching Minor Entrepreneurship, international management Technology Venturing and Innovation at Venture Lab Twente Msc Business administration: - Innovation & Entrepreneurship - International Management ECIU Master Innovation & Entrepreneurship with Aalborg University Training & consultancy Market orientation HTSF KVGO/VNO-NCW Manufacturing Industry Networks Rabo International consultancy Activitities in NIKOS Research Training and Consultancy Business Development Support Teaching Entrepreneurship in networks

4. The Entrepreneurial University How to stimulate growth in high tech based firms? Laissez faire, the invisible hand of the market will do its work Governmental intervention, The visible hand steers the region: e.g.transfer state service organisations to the region; or start an university Co-ordinate many visible hands by building entrepreneurial networks on micro level

5. The Entrepreneurial University ! Healthcare@UT MESA+ BMTI embedded systems CTIT regenerative- medicine nano- medicine IGS- NIKOS behavioral research; users, communication, learning ! Impact Mechanics, processes, and control IBR business development & technology dynamics

6. The Entrepreneurial University Entrepreneurial University excels in generating spin-off companies … but they remain small!  only moderate effect on regional employment 76 78 80828486889092949698000204 600 500 400 300 200 100 0 Spin-off Companies University of Twente spontaneous spin-offspin-off using TOP programme

7. The Entrepreneurial University Research approach combined with practice orientation Engaged Scholarship (Andrew Van de Ven, 2008) Quasi-experimental research: theory guided design of support instruments Practice oriented implementation: entrepreneurs will join a business development facility Longitudinal measurement of processes Measurement instruments which are practical usefull e.g. diary for preparing coach meetings

8. The Entrepreneurial University Research questions 1.Process: how do causation and effectuation approaches to entrepreneurship appear in practice and can differences in approaches explain firm survival and growth? 2.Resources: to what extent do types of resources and capabilities and combinations thereof explain firm survival and growth? 3.Team: to what extent is the composition of start up teams explaining differences in firm survival, growth? 4.Networking: how can differences in early networking of entrepreneurs explain differences in business performance? 5.Internationalization: what is the role of early internationalization for high tech high growth entrepreneurial processes? 6.Method: Can we design a working method of stimulating entrepreneurship?

9. The Entrepreneurial University Process: causation vs. effectuation DimensionCausation modelEffectuation model Starting pointEnds are givenMeans are given Assumptions on futurePredictability means controllability Controllability reduces need to predict Predisposition to riskExpected returnAffordable loss DomainExisting products and markets New products and markets Attitude toward outside firms CompetitionCooperation Type of modelLinearCyclical How do causation and effectuation approaches to entrepreneurship appear in practice and can differences in approaches explain firm survival and growth?

10. The Entrepreneurial University Resources: components vs. sets Economic capital (money, production factors, ideas) Strategic capital (goals, power) Social capital (networks, contacts) Cultural capital (knowledge, routines) Basic functionalist premises: –All four types need to be present –The value of a resource depends on its function To what extent do types of resources and capabilities and combinations thereof explain firm survival and growth?

11. The Entrepreneurial University What we have: opportunities in a VL Groups of entrepreneurs together in one building Early phase entrepreneurship, before idea generation Data on entrepreneurs and on ventures Control of training, coaching and facilities Lifetime relation with developed businesses Real-time a priori data before success is known 3 months of daily contact, followed by a long period of less intensive contact Several batches: theory building and theory testing

12. The Entrepreneurial University What we also have: restrictions in a VL Ethical duty to give the best we can –Can we do experiments? Practical relevance that is leading –Scientific contribution and approach? Many stakeholders –How to maintain research focus? Busy entrepreneurs interested in starting a business –Time for participating in research? A very specific non-natural environment –Generalizability?

13. The Entrepreneurial University Challenges Making data collection unobtrusive Integrating data collection with the program Producing valid and generalizable results

14. The Entrepreneurial University Research possibilities Diary / logbook Participant observation Assessments Questionnaires Interviews Secondary analysis of project data Follow-up questionnaires …

15. The Entrepreneurial University Suggested approach Central structure for data collection: business model –Main output for participants: viable business model and plan –Facilitating reflection and learning –Monitoring progress by coaches –Record of development of the firm –Program is built around it Complementary data –Business plans –Business plan presentations & evaluations

16. The Entrepreneurial University Business model (e.g., Osterwalder) Value proposition Target customer Distribution channel Relationship Value configuration Capability Partnership Cost structure Revenue model

17. The Entrepreneurial University Diary questions What is the intended business model (value proposition, target customer, …) today? To what extent has this changed since the last time? Why did it change? I talked to…and he/she/they said… I heard/read…and learned that… I thought about…and found out that… I did a formal research and…that showed that… I did…and found out that… I followed …training and there I learned that… I … What did you realize so far? –Resources & capabilities

18. The Entrepreneurial University Questions Experiences? Could this work? Suggestions? Related studies? Contribute?

19. VentureLab Twente main hypothesis: supporting four crucial functions of entrepreneurial system will improve growth rate This project is made possible by contributions of the European Union and the Province of Overijssel

20. Entrepreneurial needs (4S model NIKOS) Entrepreneur and Enterprise Not market oriented Scope: from idea to Strategy Social Network- Contacts Skills: Patterns of Organisation Scale: Economy Financial means Ideas Assessing the opportunity Strategic processes Business plan Culture, values, norms Facilities Personelarrangements & Systems Knowledge Contacts with: Clients Suppliers Experts Colleagues Support agents Own capital Bridging development period Financing investments - Venture Capital - Loans Mono-disciplinary Teams (tech) Management skills Strategic drift Technology/market Small ambition “Death valley” Long time to market High cost - high risk Unsufficient funding Academic networks Small markets No networks But companies often underperform VLT CONCEPT Theory based on social system theory and entrepreneurship lit. (a.o. Groen c.s., 2005, 2008, 2009)

21. VLT instruments for success Entrepreneur, team and Enterprise Coaching, Training, Team building & Courses Scope: from idea to Strategy Social Network- Contacts Skills: Patterns of Organisation Scale: Economy Financial means Culture, values, norms Facilities Personelarrangements & Systems Knowledge Ideas Assessing the opportunity Strategic processes Business plan Contacts with: Clients Suppliers Experts Colleagues Support agents Own capital Bridging development period Financing investments - Venture Capital - Loans Knowledge Office space/labs Organisational support Strategic Coach Access to: Soft loans Participation Venture capital Introductions Brokerage Community Networks VLT CONCEPT Theory based on social system theory and entrepreneurship lit. (a.o. Groen c.s., 2005, 2008, 2009)

22. VALUE CREATION Key success factor for value creation.. focus on personal skills & team skills Opportunity recognition Opportunity preparation Opportunity exploitation CTO/COO Culture Capital CFO Economic Capital CEO Strategic Capital CMO Social Capital VLT CONCEPT Theory based on social system theory and entrepreneurship lit. (a.o. Groen c.s., 2005, 2008, 2009)

23. Value Creation model of VLT YOUR VALUE YOUR IDEA VLT support VLT CONCEPT

24. Value creation support.. unique and integral approach Coaching Guidance M T/O€ S Offices Labs Resources Capital Pers. skills Team skills Community Networks S = Strategy M = Marketing T = Technology O = Operations € = Finance VLT CONCEPT

25. Coaching & guidance key for success Internal Development External Environment coaching guiding VLT CONCEPT

26. Therefor: VLT design … addressing all shortcomings Early stage support from (international) trainers, personal coaches and experts –Business planning, marketing, production, finance, etc –Competences and skills Building of and working with multidisciplinary entrepreneurial teams –Partnerships Dynamic entrepreneurial community –Office and lab (high tech factory) facilities –Stimulating environment and networks –Clients and finance VLT CONCEPT

27. Successfull launch of VLT: 18 entrepreneurs and 16 companies Proof of concept

28. Aviation and Bio fuel 3-D printing E-commerce (internet platforms) Remote sensoring/measurement Energy information systems Identity management Synthetic seeds Solar energy Insulation/Cooling Simultaneous multi-language translations etc Wide range of participants Proof of concept

29. Tailor made to need of company.. (1) Aviation and biofuel Ambition: Aviation school, Testing facilities for biofuel, Air carrier based on biofuel, Demoflight USA  EU on Biofuel Support focus 1.Relocation to Twente 2.Development of business model 3.Introduction in networks Partners for collaboration: producers, researchers, etc 4.Corporate finance 5.Team development and training 2 13, 4 5 Proof of concept

30. Tailor made to need of company.. (2) 3-D printing Ambition: Company on printing 3-D products for industry, health care, consumers (via web) Support focus 1.Business skills 2.Development of business model 3.Set-up 3-D expertise centre with UT, supplier,.. 4.Relocation equipment, engineers to Twente 5.Corporate finance 2,3 1 3, 5 4 Proof of concept

31. Tailor made to need of company.. (3) Corporate Venturing Ambition: Spin-out activity of large company Support focus 1.Business skills 2.Development of business model 3.Team building for new company 4.Introduction into relevant networks 2,4 1 4 3 Proof of concept

32. Tailor made to need of company.. (4) Soft Landing Ambition: Establish subsidiary in Twente (Europe) Support focus 1.Guidance 2.Facilities (incubator, office and/or production) 3.Introduction into relevant research and business networks 1 23 Proof of concept

33. Who can participate? Starting entrepreneurs Experienced entrepreneurs Employees of larger firms (BD/NPD) … “corporate venturing” Soft landings Graduate students in engineering, MBA, sciences, arts, … Specialists in marketing, finance, …. Individuals as well as teams … future owners of a fast growing high-tech company VLT for YOU! Participants

34. What are the costs for VLT start-ups? Total costs: € 30,000 per participant Start-up contribution is: Enrollment fee of € 2,000 Provide your personal income during project Promotors: Subsidy of € 28.000 : EU, Province of Overijssel, Twente region, Saxion University, University of Twente (Nikos) VLT for YOU! Costs This project is made possible by contributions of the European Union and the Province of Overijssel

35. Benefit for government Economic development & employment Sustainable, future-oriented business Research on successfull entrepreneurship and economic development (Nikos) This project is made possible by contributions of the European Union and the Province of Overijssel VLT for economy

36. New companyExisting company Soft landing Corporate Venturing Master TV Summerschool