Keynote G20 YEA Summit Sydney - Entrepreneurship Ecosystems

Building and Assessing Entrepreneurship Ecosystems

Presentation at the G20 YEA Summit 2014 - Sydney

Dr. Peter Vogelwww.petervogel.org

@pevogel

© Dr. Peter Vogel (www.petervogel.org)

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Entrepreneurship Ecosystems

Source: Vogel, 2013

© Dr. Peter Vogel (www.petervogel.org)

It all started at the World Entrepreneurship Forum…

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Outline

Introduction to Entrepreneurship Ecosystems

Global Entrepreneurship Ecosystem Project

Assessing Entrepreneurship Ecosystems

Starting an Entrepreneurship Ecosystem

© Dr. Peter Vogel (www.petervogel.org)

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Ecosystems

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Entrepreneurship Ecosystems we know…

Campus

Regional

National

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A dynamic, interactive community within a geographic region, composed of

varied and inter-dependent actors (e.g. entrepreneurs, institutions and

organizations) and factors (e.g. markets, regulatory framework, support setting,

entrepreneurial culture), which evolves over time and whose actors and factors

coexist and interact to promote new venture creation.

Everything starts with a definition...

Entrepreneurship Ecosystems

© Dr. Peter Vogel (www.petervogel.org)

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Introduction to Entrepreneurship Ecosystems

Global Entrepreneurship Ecosystem Project

Assessing Entrepreneurship Ecosystems

Starting an Entrepreneurship Ecosystem

Outline

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Categorize 200k-300k organizations

evaluate & map ecosystems

Global Entrepreneurship Ecosystem Project (2010)

© Dr. Peter Vogel (www.petervogel.org)

www.EntrepreneurShipEcosystems.org

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Introduction to Entrepreneurship Ecosystems

Global Entrepreneurship Ecosystem Project

Assessing Entrepreneurship Ecosystems

Starting an Entrepreneurship Ecosystem

Outline

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Factors and Actors

© Dr. Peter Vogel (www.petervogel.org)

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Factors and Actors

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Ecosystem Index

Sources: Vogel, 2013

© Dr. Peter Vogel (www.petervogel.org)

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Scientific Approaches for Assessment

Primary Data

Historical data (archival) of cities and regions

Understand key competencies of region (manufacturing, education, healthcare,..)

Assess strategy of region (high-tech, tourism, manufacturing, …)

Map, classify and analyze supporting organizations

Performance Measures

Quantity of support for each of the identified pillars

Quality of the support (e.g., via external raters and 1:1 interviews)

Hard-facts (e.g., # participants, # projects funded, survival rates, jobs created, etc)

Match between the regional USP and the pattern of ecosystem dimensions

© Dr. Peter Vogel (www.petervogel.org)

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Scientific Approaches for Assessment

Secondary Data (some examples…)

National statistics offices

GEM

GEDI

Chambers of commerce

Companies Registrars

World Bank Doing Business Report

Heritage Freedom Index

Methodological Approaches

Spiderweb charts (cf Startup Genome Project)

Benchmarking / ranking based on overall indices

Qualitative Comparative Analysis (QCA) for equifinality comparison

© Dr. Peter Vogel (www.petervogel.org)

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Introduction to Entrepreneurship Ecosystems

Global Entrepreneurship Ecosystem Project

Assessing Entrepreneurship Ecosystems

Starting an Entrepreneurship Ecosystem

© Dr. Peter Vogel (www.petervogel.org)

Outline

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How to Start an Ecosystem?

The formation of an ecosystem is a positive, reinforcing loop:

Success Stories

Importance of thelocation

Area attractive to talents

Innovation

© Dr. Peter Vogel (www.petervogel.org)

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How to Start an Ecosystem? Swiss MedTech

Long tradition of watchmaking, machine industry and pharma Expert knowledge in:

Micro- and nanotechnology Precision mechanics and electro-mechanics Material sciences and surface treatment

Unique combination of biotechnology and medical engineering

© Dr. Peter Vogel (www.petervogel.org)

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How to Start an Ecosystem? MedTech Ecosystem Mexico

© Dr. Peter Vogel (www.petervogel.org)

I worked with the government of Nuevo Leon on: (1) Assessing the local USPs(2) Benchmarking the region with other MedTech regions(3) Derive strategic directions for a MedTech ecosystem

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How to Start an Ecosystem? KAUST

King Abdullah Bin Abdulaziz Al Saud: “It is my desire that this new University becomes one of the world's great institutions of research... The University shall have all the

resources that it needs to pursue these goals…” - 2009

10 bn USD initial endowment

© Dr. Peter Vogel (www.petervogel.org)

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When Building an Entrepreneurial Ecosystem, consider…

Each ecosystem is unique

USP first! What are core competencies & goal?

Holistic implementation

Multi-stakeholder approach

Self-employment ≠ Entrepreneurship

Coordination and supervision

Bureaucracy blocks innovation facilitate, don’t regulate!

© Dr. Peter Vogel (www.petervogel.org)

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A Call to Action…

Governments

Promote the power of entrepreneurship as engine of economic growth

Remove the stigma of failure

Create networking opportunities

Create alternative funding opportunities and startup-friendly (1) taxation & (2)

labor laws Entrepreneurs

Share stories (both success and failure)

Help the next generation of entrepreneurs Incumbent Firms

Sponsor incubators and accelerators, build corporate VC practices

Collaborate with universities for long-term strategic M&A goals

Recognize the contributions and success of entrepreneurs

© Dr. Peter Vogel (www.petervogel.org)

Dr. Peter Vogel

University of St. GallenSwitzerland

Mail info@petervogel.orgTwitter: @pevogel

Web http://www.petervogel.org

Thank you for your attention.

“The reasonable man adapts himself to the world; the unreasonable one

persists in trying to adapt the world to himself. Therefore all progress

depends on the unreasonable man.” (George B. Shaw, 1856-1950)

© Dr. Peter Vogel (www.petervogel.org)