1. Donato Iacobucci Università Politecnica delle Marche
KNOWLEDGE ECONOMY FORUM VII
Technology Absorption by Innovative Small and Medium Enterprises
Fostering high-tech start-ups for regional transformation: tangible to intangible factors
Donato Iacobucci
Università Politecnica delle Marche
Ancona, Italy - June 17-19, 2008

2. Presentation outline Policy in context: the Marche region
The role and place of tangible factors
From tangible to intangible factors
Lessons and recommendations

3. High-tech startups What are they? Why promote them?
new companies that have evolved from universities and research centers, as a result of a technology transfer process from research to the commercialization of products or services
Why promote them?
they create jobs for highly educated people
they facilitate entry into high growth sectors
they transform the regional economy
I would take for granted that we can agree on a general definition of technology startups and on why regional and national governments try to promote them.

4. Policy in context
The role of technology start-ups (and regional policy to sustain them) varies according to context
In this presentation I refer to the experience of the Marche region

5. From agriculture to industry
Percentage of employees by sector in the Marche region
1951
1971
1991
Agriculture
60.2
25.3
7.8
Industry
21.9
40.8
41.7
Services
17.8
33.8
50.5
Source: Industry census
Over 40 years the Marche has gone from an agricultural area, to one of the most highly industrialized regions in Italy and Europe

6. Manufacturing LLS by firm size
“The Third Italy”
Features of the model:
fast growth during the ’60s and ’70s
prevalence of small and medium sized firms (high rates of entrepreneurship)
high degree of internationalization (export)
spread of activity across the territory, reducing population migration and urban congestion
Small firms
Medium-sized firms
Large firms
Non-manufacturing areas
Source: ISTAT

7. The industry model
LLS in 2001
Industrialization based mainly on the agglomeration of small firms in industrial districts
Textiles and clothing
Leather and footwear
Furniture
Musical instruments and goldsmithing
Food
Mechanical equipment and machinery
Primary metal industry
Coke, oil refining industry
Transportation equipment
Paper, printing and publishing
Non-manufacturing areas
Small-sized firms
Medium-sized firms
Large firms
Non-manufacturing areas
Refer to the slide of prof. Bianchi
Source: Industry census

8. Industry specialization
The manufacturing industry is dominated by traditional industries and small firms
The average size of manufacturing firms in 2001 was 9.2 employees
Employees by industry in 2001
Source: Industry census

9. are critical to both objectives
The new challenges
Diversifying the industrial structure from traditional industries to high-tech activities
Changing the innovation model from “innovation without research” to “R&D based activities”
High-tech start-ups
are critical to both objectives

10. The first attempt: building a tangible infrastructure
The 1990s
EU, national and regional funds used to build a network of business innovation centers (3 EuroBICs) and a technology park (TecnoMarche)
They had almost no effects on the development of high-tech firms or high-tech clusters in the region

11. Why was this?
No close relationships with research centers (universities)
Location: they were located in less developed areas of the region
Sequence: it was too early to build the ‘tangible infrastructure’ for high-tech start-ups

12. The second attempt: reconsidering the role of the university
At the beginning of this decade our university redefined its
Mission
Talent: attract and educate the best people
Technology: excellence in research and technology transfer
Territory: serve the needs of firms in the region
and its
Name
from “Università di Ancona” to
Università Politecnica delle Marche

13. Technology transfer
To foster TT activity UPM created an industrial liaison office and launched a series of projects and activities in this area
Main aims:
Foster relations with industrial firms in the region
Promote spin-offs in high-tech sectors

14. Some of the ILO projects
Talent for competitiveness
PhD programs co-financed (50% UPM – 50% firms)
Database of competences
People, projects, research structures
Supporting spin-offs from research
Support for development of a business plan
Minority shares in initial capital
Use of university facilities (in the incubation phase)

15. Spin-off promoted, 2001-2207 Arteis Name Activity Nautes
Knowledge management software
A.MI.CA.
Innovative building materials
ArieLAB
Telecommunication systems
Arteis
Measurement and diagnostoc technology
CEDAR Solutions
CAD-CAM in printed circuits production
BINT
Biotechnology
EcoTechSystems
Environmental technology
INGEGNA
Industrial automation in the footwear sector
L.I.V.E.
Models for intangible factors
Oce.AN
Artificial breeding of tropical fish
P.C.Q.
Technical controls in building constructions
S.I.B.E.
Bio-energy
SeiTec
Building protection against earthquakes
Smart Space Solutions
Security and domotica – NOT ENGLISH
STRATEGIE
Refrigeration technology
Thermal TIDE

16. Time for a new phase... Supporting take-off
UPM is aware of the need to provide support for spin-offs to sustain their development
Projects with local governments to create incubators and technology parks for the location of spin-offs and high-tech firms
Agreements with financial institutions to facilitate the raising of capital
Specific bank loans
Regional government support measures

17. Lessons from experience
Providing tangible factors (technology parks, incubators, financial aids) is not a sufficient condition for technology startups
The development of tangible factors must follow rather than precede the early development of the phenomenon
Other factors are required in the early phases

18. Intangible factors to foster high-tech start-ups
Induce universities to play a proactive role in technology transfer activities
Promote an entrepreneurial culture within research institutions (universities)
Identify regional strengths in terms of research capabilities and possible relationships with business activity

19. Promoting an entrepreneurial culture
Stimulate highly educated people to embrace an entrepreneurial career
Legitimation (it is an interesting and respected career path) and feasibility proof (someone like me has succeeded)
Actions
courses on entrepreneurship and business plan
nurturing activity of young entrepreneurs by academics

20. From tangible to intangible factors
Policy based on intangible factors is more complex than policy based on tangible factors
Problems:
Requires ‘visionary’ leaders in local institutions
Requires coordination between institutions
Requires changes in organizations and in people’s behavior
Requires focus and selection
Outcomes not easily observable in the short period