“Lean startup” model:From fad to best practice in

technology commercialization…and its implications for

understanding “entrepreneurial” universities

Norris Krueger, Entrepreneurship NorthwestDianne Welsh, University of North Carolina Greensboro

Deborah Brazeal, Cal Poly Pomona

Technology Transfer Society 2010

Comparing Innovation Systems: the Entrepreneurial Edge

Theme of this conference

Opportunities for T2S & members

Idea #1: What could we learn if we compared: Innovation systems?

Entrepreneurial ecosystems?

Idea #2: And if it's truly about being… entrepreneurial... WHY is it so HARD?

Comparing Innovation Systems: the Edge IS Entrepreneurial

What makes the special places.. special?A focus on nurturing entrepreneurial mindsetHow do we know if universities are more “entrepreneurial”? (Diagnostics?)

Beyond “best practice”?Diagnostics: Comparing entrepreneurial ecosystems & ecosystems? Org Devel: Competencies?

What we knowPhan & Siegel (2006): Universities must have a technology transfer strategy that emphasizes entrepreneurship (not a 'bolt-on')

TTOs' experience matters – how often is there a strong training in entrepreneurship, let alone the mindset? [ Krueger & Brazeal 1994; Krueger 2000, 2009a, 2009b; Tello, Latham, & Kijewski, 2010; Siegel et al. (2003, 2007) ]

Locus of entrepreneurship?

TTOs & b-schools too often are poorly connected (Wright, Piva, Mosey & Lockett 2010)

University entrepreneurship is at least multi-disciplinary, if not transdisciplinary – a critical insight (Rothaermel, Agung, & Jiang, 2007).

* Cooperative Research Centers (CRCs) & Engineering Research Centers

(Hayton, Sehili, & Scarpello, 2010).

* SBIR - Small Business Innovation Research

(Link & Scott, fc)

* Proof of Concept Centers(Gulbranson & Audretsch, 2008)

Leading new 'Best Practice' models

from Incubating to Accelerating

POC centers: eg, MIT, UCSD

Physical accelerators: eg, Y-Combinator

Virtual accelerators: eg, TechStars

Immersion experiences: eg, Startup Weekend

A Clue?: Why does SW get so little traction at universities?

What do accelerators share?...(And great entrepreneurial training???)

Mindset IS Key: Entrepreneurial Thinking versus Bureaucratic Thinking

Problem-based learning

Effectual not causal

Training minds not filling memories (knowledge structure vs. knowledge content)

Getting to 'Expert': Mentoring, fast feedback

Sounds like...

Principles of Lean Startup Startup = Vehicle to Identify Scable, Sustainable

Business Model

Test assumptions & “pivot”

Learning how to engage customers

Learning to lose 'inventors syndrome”

Execution >>>>> Idea

How a TTO/university might follow – or not? Who does? Who says they do?

Durant versus Sloan?Alfred Sloan = famous; Durant = ??

Steve Blank: “Why Accountants Aren't Entrepreneurs”

Teach entrepreneurship in a business school or..

Teach business in school of entrepreneurship??

Dominant Logic: Bureaucratic or entrepreneurial thinking?

DESIGNING METRICS

Systemic MetricsProcess MetricsCompetencies perspective

Systemic Metrics

Basic philosophy & assumptions: – = INTENT

Protect IP or create value? (Or ???)

Top-down, bottom-up or ?

Focus on entrepreneurial potential?= MINDSET!

Triple Helix or ??

Newly dominant triple helix? or… Bridging assets?A *real* map of the system?

What are the key assumptions?Any evidence to support?

How does this apply to universities? (Ptolemaic or Copernican?)

Mindset

Maybe the #1 takeaway here?

Cultivate entrepreneurial thinking across entire ecosystem, entire innovation system

What IS the “entrepreneurial” mindset”?

How will we know when a university is doing this?

Entrepreneurial PotentialEntrepreneurial potential = f(potential

entrepreneurs)Increasing the quantity & quality of entrepreneurs“ICE”: Innovation = Creativity + Entrepreneurship

1) Cultivate the mindset in everyone AND 2) Provide supporting ecosystem– [human capital & social capital]

What characterizes ideal university efforts?

PROCESS METRICS

Cutting Edge ToolsModeling Best EffortsSustainability

Cutting Edge Tools

More than “best practices”

Tools that reflect 21st century thinking?

Tool that reflect entrepreneurial thinking!

Example #1: Key assumptions of what’s become known as “lean startup”

Example #2: SoMe… done right

Modeling Best Efforts

Mimetic Isomorphism

Who are the role models?

Are they looking at the outstanding programs?(or just looking at “peers”?)

My favorites: U of Utah and STVP

Again: How will we know?

Engaging Entire EcosystemNot enough to recognize

• there IS an ecosystem and• entrepreneurs needed at its heart

Breadth of Ecosystem Engagement• Life cycle / pipeline

Quality of Ecosystem Engagement

Again, what characterizes the truly entrepreneurial university?

Research Project #1

Comparative studies of: state Innovation Councils and/or

state Technology Councils

Catalog what they do & how they do it

Map onto ‘best practices’ or?

Example: comparing Idaho with the Basque Country, Oregon, North Carolina

Research Project #2Recurring desire by trade groups for tech transfer “competencies”

implications for testing (certification)

implications for training Huge risks of using “business as usual”

Combine: comparative study and

Existing knowledge base re ‘best practice’