Research Trends in Innovation and Entrepreneurship November 29, 2011 Dr. Anthony Briggs University of Alberta School of Business
Anthony Briggs Assistant Professor in the Strategic Management and Organization Doctorate Boston University in areas of strategy, entrepreneurship and high tech Edmonton born and raised Worked/studied for 11 years in novel technology businesses in Cambridge/Boston Teaching experience at MIT Sloan in Corporate Entrepreneurship and Innovation Briggs June 13, 2011 2
US News Top Entrepreneurship Programs MBA Undergraduate 1. Babson Babson 2. Stanford Indiana 3. MIT USC 4. Harvard U Penn 5. U Penn (Wharton) MIT 6. UC Berkeley (Hass) UC Berkeley 7. UT Austin (McCombs) U Arizona 8. USC Syracuse 9. Indiana (Kelley) UT Austin 10. U Arizona U Michigan Ann Arbor 3
Boundary Assumptions Innovation and entrepreneurship, enabled by technology, are key drivers of wealth creation Yet, innovation is hard to do For highly novel technologies, or novel environments, it is very hard to understand the key relationships that will lead to success 4
Modern Beginnings of Innovation and Entrepreneurship Entrepreneurship begins with economists Cantillon, Knight, Hayek MIT Sloan School Sloan, Solow and the MOT group (Roberts, von Hippel, Allen, & Utterback) - Economists and engineers Harvard Business School Schumpeter, Schmookler, and Abernathy, Griliches and Clark, more contemporary Christensen - Historians and productivity economists 5
IEEE TRANSACTIONS 50 YEARS 6
Change in Authorship 7
Increased Focus on New Relationships 8
Novelty and Business Relationships New trends are about how we think about the creation and performance of novel relationships This is NOT about jobs, HR, not work for relationships Also NOT about project management Attention to the earliest stages, before management 9
Well Researched Contexts Business structures: Roberts and Berry (1985) many others Venture capitalists: (Van Osnabrugge, 1998; Sorenson & Stuart, 2001 ; Zacharakis & Meyer, 1995, 1996, etc.) Angel investors: (Van Osnabrugge, 1998, 2000; Mason & Harrison, 1996) Creative works: (Powell, 1985; Elsbach and Cramer, 2003) Stages of process: (Linde, et al, 2000; Feeney, et al, 1999; Van Osnabrugge, 1998; Tyebee & Bruno, 1984) 10
Big Trends 1. Performance Criteria Failure, selection and key venture factors 2. Individuals and New Relationships Emotion passion, well-being, gender differences 3. Dealing with Uncertainty Processes, trust and culture 4. Systems of Business networks, ecosystems and innovation markets 5. Novel Business Models disruption, sustainability and social entrepreneurship 11
1. Performance Criteria http://www.chrisflett.com/uncategorized/dragons-den-causes-me-to-diea-little-everytime-i-watch-it/ February 9, 2011 12
Most Research Information Rich Functional criteria like market size, company financials, and other such economic factors to make investment decisions (Fried & Hisrich, 1994; Hisrich & Jankowicz, 1990; MacMillan et al, 1985; Sahlman, 1990; Siegal et al. 1993; Tyebee & Bruno, 1984) Relational criteria used as well like evaluation of management teams through in person meetings and abilities articulated by management teams (e.g. Baron & Markman, 1992; Mainprinze, Hindle, Smith & Mitchell, 2003) 13
Do We Have Good Information? I listen to hundreds and hundreds of pitches every year. I hear the same fabrications and delusions over and over again. Guy Kawasaki, Top Ten Lies of Entrepreneurs, Harvard Business Review, 2001. 14
2. Individuals and New Relationships 15
The Business Pitch 16
Look at Lots of Variables Presentation Style vs. Content (n=185) idea free 1. Entrepreneurial emotion 2. Entrepreneurial passion 3. Presentation style 4. Appearance 5. Pitch content Gender (n= 185; f=26+) 1. Participation 2. M/F outcomes 3. Gender content outcomes 18
3. Dealing with Uncertainty Potential Relationships (Max. Annual) 10000 1000 100 10 1 (Information from news, websites, directories, casual contacts???) (One cold-call, email introduction every hour) (70-80 market research assessments per year) Ventures per VC Partner (primary data) Stevens and Burley (1997) - 3000 Raw Ideas.. (20-25 entrepreneur meetings/ PowerPoint presentations per week) (400 business plans per year evaluated) (30 strict due diligence reviews including technical and patent reviews, management record checks, audits etc.) (1-3 new deals closed) Minutes Hours Days Weeks Months Years? Time Period Where the Opportunity is Under Active Consideration 19
4. Systems of Businesses 20
Crowdsourcing and Innovation Markets 21
5. New Business Models 1. Sustainability vs. Growth 2. Corporate Social Responsibility a. Developed local b. Developed third world c. Developed to developing 22
In Summary 1. See much more attention to the individual, relationships, systems of business and performance the MODEL 2. Much less attention to large R&D, careers, education, project management the WORK 3. Technology innovation research is increasingly oriented towards the reality of high failure rates of novel entrepreneurial activities 23
THANK YOU! 24
References: Report on Competitiveness: Alberta 2010. (2010) Alberta Competitiveness Council at www.finance.alberta.ca/economic-development/competitiveness/news.html Green House Gas Emmission from Canadian and U.S> Coal-fired Power Plants and Oil Sands Operations (2007) Natural Resources Canada. http://www.capp.ca/getdoc.aspx?docid=162173 Living Planet Report. (2006) World Wildlife Fund. At assets.wwf.ca/downloads/lpr2006.pdf Allen, T.J. and Sosa, M.L. (2004) 50 Years of Engineering Management through the lens if the IEEE Transactions. IEEE Transactions on Engineering Management. 51(4):391-395 Boudreau, K.J. and Lakhani, K. R. (2009) How to Managed Outside Innovation. MIT Sloan Management Review. 50(4):69-76 Porter, ME. and Kramer, MR.(2006) Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review. 84(12):78-92. 25