# Presentation: 079148

## Entrepreneurship,Technology Commercializationand Industrial DevelopmentMontevideo, UruguayAugust, 2003Richard M. SteinKLIOS, Inc.

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy

## Agenda 

- Entrepreneurship
- Entrepreneurial Mindset
- Small Business
- Business Life Cycle:  Births, Deaths, Survival
- Business Life Cycle: Firm Stages & Dynamics
- Networks and Connectivity

- Technology Commercialization
- Industrial Development
- “Co-opetition” (Definition)
- Conclusions
- Useful Websites
- Q & A

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurship

- _Identifying_ a market opportunity
- AND
- _Exploiting_ it!!!

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Passionate
- Initiative
- High energy
- Minimal needs
- Energized by chaos, ambiguity and challenge
- Persistent
- Responsible

- Problem solvers
- Persuasive
- Self-disciplined, organized
- Financially prudent
- Self-confident
- Natural leaders
- Market savvy

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Passionate
- Burn with desire
- _Must_ try
- Must _succeed_

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Initiative
- Aggressive
- “Just do it”

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- High energy
- “If you want something done, give it to a busy person.”
- 24/7

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Minimal needs
- Low support requirements
- Able to “go it alone”
- “Independent”

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Energized by chaos, ambiguity and change
- Not frightened by lack of structure
- Welcome uncertainty
- Expect the unexpected

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Persistent
- “When the going gets tough, the tough get going.”
- Won’t accept “no”

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Responsible
- ...for success or failure
- Not afraid of risk

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Problem solvers
- Adaptive
- Enjoy / “welcome” uncertainty

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Persuasive
- Salespeople
- Skilled negotiators

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Self-disciplined, organized
- 24/7 operations
- Able to delegate

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Financially prudent
- Must understand the “value” of money

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Self-confident
- Willing to stand alone
- Not paralyzed by fear

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Natural leaders
- Able to build teams and convince followers
- Not ruled by hubris

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurial  Mindset

- Market savvy
- Able to identify opportunities
- Perceptive to subtle signals

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurs are not...

- Lazy
- Greedy
- Dishonest
- Paranoid

- Impatient
- Disorganized
- Ignorant
- Unlucky

- Entrepreneurship, Technology Commercialization & Industrial Development

## Entrepreneurship...begins as small business 

- Small business in the US...
- = 1-499 employees
- > 99% of US employers
- > 50% US private sector employment
- > 44% US private sector payroll

- 60-80% of annual new job creation
- > 50% of nonfarm private GDP
- 13-14 times more patents/employee
- 39% of high-tech workers
- 97% of exporters
- 29% of exports ($)
- ...Small business is _big_!

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Births, Deaths, Survival

- In the US...
- Births : Deaths = 1:1
- Start-ups year0-2 = 100% of net new jobs
- Survival:  67% @ 2 years
- Survival:  50% @ 4 years

- Open or close (SMEs)?
- Access to capital
- Workforce/labor
- Educational achievement
- Lifestyle decisions
- Successful firms do close!

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- Attributes for firm survival/ success
- Intellectual Capital
- Research, ideas, patents, intellectual property
- Human Capital
- Workforce, skills
- Financial Capital
- Proximity and connectivity
- Concentration, critical mass, partnerships
- Social Capital
- Regional mindset, collaboration	*Source:*  New Economy Strategies

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- _Stage 1_:  Conception/ startup/ birth
- _Stage 4_:  Maturity

- _Stage 2_:  Fledgling/ Formation
- _Stage 3_:  Adolescence/ Growth

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- _Stage 1_:  Conception/ startup/ birth
- Intellectual Capital
- Ideas, research, technology transfer, proof-of-concept, market information
- Human Capital
- Financial Capital
- Proximity and connectivity
- Small firm-large firm relationships
- Public-private-academic partnerships
- Social capital
- Entrepreneurial mindset, peer groups, mentors, networks

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- _Stage 2_:  Fledgling/ Formation
- Intellectual Capital
- Ongoing research and development
- Human Capital
- Managerial, financial, legal talent
- Financial Capital
- Investment, credit
- Proximity and connectivity
- Small firm-large firm, public-private-academic relationships
- Social capital
- Entrepreneurial support services, networks

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- _Stage 3_:  Adolescence/ Growth
- Intellectual Capital
- Human Capital
- Managerial, financial, legal and operations talent
- Expanded personnel requirements
- Financial Capital
- Investment, credit
- Proximity and connectivity
- Small firm-large firm, public-private-academic relationships
- Expanded market access
- Social capital

- Entrepreneurship, Technology Commercialization & Industrial Development

## Business Life Cycle:  Firm Stages & Dynamics

- _Stage 4_:  Maturity
- Intellectual Capital
- Research and innovation, productivity enhancements
- Human Capital
- Financial Capital
- Investment, credit
- Proximity and connectivity
- Small firm-large firm, public-private-academic relationships
- Extended supply chain
- Expanded market access
- Social capital

- Entrepreneurship, Technology Commercialization & Industrial Development

## Networks and Connectivity 

- Proximity and connectivity
- Concentration
- Critical mass
- Industrial clusters
- Small firm-large firm
- Public-private-academic

- Social capital
- Entrepreneurial mindset
- Peer groups
- Mentors
- Entrepreneurial support services - infrastructure
- Informal networks

- Entrepreneurship, Technology Commercialization & Industrial Development

## Technology Commercialization

- New or improved products and services are vital ingredients for industrial cluster growth
- Formal mechanisms for technology commercialization assist entrepreneurs
- Technology transfer
- In-licensing = jobs
- Out-licensing = royalties
- Spin-outs

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Industrial clusters
- _Policy objective_:  Grow industry sectors by leveraging competitive advantage(s)
- Result of horizontal and vertical concentrations of firms that achieve critical mass
- Sustainable if:
- A mix of firms (by size & type) who work together
- A mix of public-private-academic relationships

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Social capital
- _Policy objective_:  Strengthen entrepreneurial mindset
- Entrepreneurial support services—i.e., infrastructure—can accelerate social capital growth
- Peer networks
- Mentor relationships
- Informal networks become organic

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Without critical mass, industrial clusters will not grow
- Remain small or decline
- Lose or never gain competitive advantage(s)
- Unsustainable
- _Building relationships_ is a valid policy objective
- Attract, retain, grow...
- ...Talent/ workforce, jobs, companies

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Identify industries with appropriate mix of attributes in order to strengthen and leverage competitive advantage(s)
- Requires extensive data analysis and market research
- Establish/ improve mechanisms for technology commercialization
- Focus on relationships
- Create infrastructure
- Attract, retain, grow...
- ...Talent/ workforce, jobs, companies

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Identify industries with appropriate mix of attributes in order to strengthen and leverage competitive advantage(s)
- Macroeconomic analysis
- Microeconomic analysis
- Market research
- Forecasting and scenario planning
- Interview and survey research

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Establish/ improve mechanisms for technology commercialization
- Public-private-academic
- Formally engage key decision makers and technical experts
- Develop review mechanisms
- Scan for new developments
- Push technology—i.e., don’t let it sit unused
- Partner/ combine technologies
- Meet regularly

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Focus on relationships
- Public-private-academic
- Formally engage key individuals and organizations
- Meet regularly
- Network formally as well as informally
- Connect!

- Entrepreneurship, Technology Commercialization & Industrial Development

## Industrial Development

- Attract, retain and grow:
- Talent/ skilled workforce;
-  Jobs;
- Companies

- Entrepreneurship, Technology Commercialization & Industrial Development

## Definition:  “Co-opetition”

- Cooperation
- Competition

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy

- Entrepreneurship, Technology Commercialization & Industrial Development

## Conclusions

- Despite current economic conditions, opportunities are big and growing
- Uruguay has a unique mix of advantages
- Based on location, socioeconomic and demographic mix, infrastructure, policies,...
- Technologic opportunities
- Location opportunities

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy

- Entrepreneurship, Technology Commercialization & Industrial Development

## Useful Websites

- http://www.entreworld.org/ —resources for entrepreneurs (Kauffman Foundation)
- http://www.kauffman.org/ —Ewing Marion Kauffman Foundation (GEMS:  Global Entrepreneurship Monitor)
- http://www.celcee.edu/ —Kauffman Center for Entrepreneurial Leadership Clearinghouse on Entrepreneurship Education
- http://www3.babson.edu/eship/ —Arthur M. Blank Center for Entrepreneurship (Babson College)
- http://edwardlowe.org/index.shtml —Edward L. Lowe Foundation; advice for entrepreneurs
- http://www.lowe.org —”Peerspectives” (Lowe Foundation); advice for entrepreneurs
-  http://www.developmentgateway.org/ —Portal for information on international and sustainable development
- http://knowledge.wharton.upenn.edu/ —Knowledge@Wharton (see “The Importance of Being Latin America”)

- Entrepreneurship, Technology Commercialization & Industrial Development

## Thank you!

- www.KLIOS.net

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy

## Q & A

**K**nowledge
**L**ogic
**I**nformation
**O**pportunity
**S**trategy
- www.KLIOS.net

- Entrepreneurship, Technology Commercialization & Industrial Development