Building Effective Startup Ecosystems Presented by: Tim Rowe - - PowerPoint PPT Presentation

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Aug 30, 2022 232 likes •632 views

Building Effective Startup Ecosystems Presented by: Tim Rowe February 16, 2017 WHAT IS INNOVATION, REALLY ? Not innovation: water bicycle Never employed by society Real innovation: hybrid electric engine To be real innovation, an idea must

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Building Effective Startup Ecosystems

Presented by: Tim Rowe February 16, 2017

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WHAT IS INNOVATION, REALLY?

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Not innovation: water bicycle Never employed by society

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Real innovation: hybrid electric engine

To be real innovation, an idea must be used by society, at large scale

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WHY SHOULD WE CARE ABOUT INNOVATION?

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INNOVATION FIXES THE WORLD’S PROBLEMS

Example: DNA therapy

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INNOVATION MAKES AN ECONOMY HEALTHY

The Importance of Startups in Job Creation and Job Destruction, T. Kane, The Kauffman Foundation, July 2010 http://goo.gl/eMSqe The Importance of Startups in Job Creation and Job Destruction, T. Kane, The Kauffman Foundation, July 2010 http://goo.gl/eMSqe The Importance of Startups in Job Creation and Job Destruction, T. Kane, The Kauffman Foundation, July 2010 http://goo.gl/eMSqe The Importance of Startups in Job Creation and Job Destruction, T. Kane, The Kauffman Foundation, July 2010 http://goo.gl/eMSqe The Importance of Startups in Job Creation and Job Destruction, T. Kane, The Kauffman Foundation

Japan must re-engineer its economy to create more new enterprises

New Jobs Created by Startups vs. Existing Companies

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HOW DOES INNOVATION HAPPEN?

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Nikola Tesla’s lab in Colorado Springs IN THE PAST, INNOVATION HAPPENED LARGELY IN ISOLATION

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Walt Disney’s garage

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Hewlett and Packard’s garage

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Steve Jobs’ garage

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Innovation works differently today

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Innovators from different organizations work together, in central locations

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“Innovation Hubs” create constant opportunities for innovators to teach each other

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Innovation hubs allow young entrepreneurs to learn from experienced entrepreneurs

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HOW CAN A SOCIETY BUILD A CULTURE OF INNOVATION?

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You have to build “innovation infrastructure” to bring people together

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THERE IS A SIMPLE FORMULA FOR FOSTERING INNOVATION

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In innovation hubs, people connect, like amoebas

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Source: Kraut and Egido, Bell Communications Research, and Galegher, University of Arizona, 1988.

PROXIMITY IS THE KEY

Innovators must be physically close to each other in order to collaborate.

Frequency of Collaboration Is Principally Driven by the Distance Between Researchers

ffice location

Same corridor 10.1% % Same floor 1.9% Different floor 0.3% Different building 0.4% % collaborating

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Source: “Does Colocation Inform the Impact of Collaboration?” (2010)

RESEARCH FINDING: NEARLY ALL RESEARCH IS DONE BY PEOPLE WORKING CLOSE TOGETHER

Proximity causes collaboration

The Distance Between Principal Authors is the Key Driver of Scientific Collaboration

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RESEARCH FINDING: THE QUALITY OF RESEARCH IS HIGHLY IMPACTED BY PROXIMITY

Source: Collaboration: the mother of invention (2011)

We believe the same patterns apply to startup innovation. Proximity is the key.

Researchers Close to Each Other Produce Scientific Papers That Receive More Citations

# of citations

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In innovation hubs, entrepreneurs learn how to take risks

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INNOVATION HUBS ARE NOT A NEW IDEA

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109 Court St, Boston

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Kendall Square in 1969

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Kendall Square Today

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We have helped transform Kendall Square into an innovation “mecca”

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$100,000,000 140X increase in VC in Kendall Square 1999 2016 $14,000,000,000 Half ($7B) based in CIC

VENTURE CAPITAL HAS GROWN DRAMATICALLY SINCE KENDALL SQUARE BECAME AN INNOVATION HUB

Creating a dense cluster of startups attracts venture capital

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Innovation in Massachusetts is now highly concentrated

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RICH MINER, ANDROID

SUCCESSFUL INNOVATION HUBS DRAW WORLD-CHANGING ENTREPRENEURS

Android co-founder Rich Miner grew his team in Massachusetts’ hub

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“The Bay Area has more startups and the venture capital that gives them life than any other U.S. metro region, but the study said entrepreneurs in Boston cite stronger connections with educational and other institutions locally as well as with everyday citizens. Those factors helped vault the Hub, which also has almost as much entrepreneurial capital, to No. 1. “

$458

Source: “The Global Cities Where Tech Venture Capital Is Concentrated“, The Atlantic

THE INNOVATION CONCENTRATION IN MASSACHUSETTS MAY HELP EXPLAIN ITS SUCCESS

$534

Avg investments per capita in CA vs. MA (last decade)

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Confidential - Presented 16.12.20.001

“The newly constructed District Hall is the hub for Boston’s Innovation District, facilitating networking and idea-sharing.” “Who delivers innovation districts? Economic cultivators such as the Cambridge Innovation Center and social networking programmers, such as Venture Café Foundation.” “Cambridge’s Kendall Square is today’s iconic innovation district.” “CIC has helped develop the modern concept of coworking while encouraging entrepreneurs and startups in its high quality environment. Firms at CIC have attracted billions of dollars of seed funding and later-stage investment.”

AND THIS “INNOVATION DISTRICT” MODEL IS INCREASINGLY RECOGNIZED AS A SUCCESSFUL APPROACH TO SUPPORTING INNOVATION

Source: Brookings Institution 2014

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Innovation hubs are attractive magnets for innovators

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GOVERNMENT GOVERNMENT UNIVERSITIES UNIVERSITIES

SMALL INDEPENDENT ACCELERATORS SMALL INDEPENDENT ACCELERATORS SMALL INDEPENDENT ACCELERATORS

LARGE TECH COMPANIES LARGE TECH COMPANIES GOVERNMENT GOVERNMENT UNIVERSITIES UNIVERSITIES

SMALL INDEPENDENT ACCELERATORS SMALL INDEPENDENT ACCELERATORS SMALL INDEPENDENT ACCELERATORS INNOVATION CAMPUS