EFFECTIVE ENTREPRENEURIAL EDUCATION

ROLE OF INTERNAL LINKS FOR STUDENT SPIN-OFFS

AT KAIST TECHNOLOGY INCUBATOR

TAHIR HAMEED, Ph.D. MANAGEMENT SCIENCE DEPARTMENTSOLBRIDGE INTERNATIONAL SCHOOL OF BUSINESSDAEJEON, SOUTH KOREA

KYOUNGOCK ROHKOREA ADVANCED INSTITUTE OF

SCIENCE AND TECHNOLOGYDAEJEON, SOUTH KOREA

UNIVERSITY INDUSTRY INTERACTION NETWORK (UIIN) CONFERENCE MAY 27-29, 2013

AMSTERDAM, THE NETHERLANDS

CONTENT1. Introduction

a) Promoting student start-ups and spin-offs (SSOs)b) Role of entrepreneurial education programmes (EEPs) c) External and internal Links of university offices supporting EEPs

2. Question, Methods and Data3. KAIST and its Technology Business Incubator (TBIC)4. Case Studies of Student Start-ups and Spin-Offs at TBIC5. Stylized Facts about effectiveness of EEPs and internal links of

University Offices6. Implications

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PROMOTING STUDENT START-UPS AND SPIN-OFFS Support for commercialization of technologies developed at university (Shane, 2004; Wright et al., 2007)

Student Spin-Offs (SSOs) are a major vehicle Different initiatives to support commercialization and SSOs: Technology Transfer Offices (TTOs), Technology Licensing Offices (TLOs) Entrepreneurial Education Programmes (EEPs) Technology and Business Incubators (TBIs), etc.

Successful commercialization through SSOs entail: Realization of Entrepreneurial Intention (EI) into New Ventures (Gubeli and Doloreux)

Networking and links inside and outside host university (Perez and Sanchez, 2003; )

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ROLE OF ENTREPRENUERSHIP EDUCATON Entrepreneurship Education Programmes (EEPs) support: Improvements in EI (Mueller, 2011; Lorz, 2011; Cha and Bae, 2010) Identification of opportunities (McGowan and Cooper, 2012) Acquisition of skills and resources for new venture creation and growth (Gubeli and Doloreux, 2005; Cha and Bae, 2010)

Etc.

Universities in developing countries lag academic entrepreneurship & resources AE and EEPs picking up momentum significantly in South Korea (Kim and Park, 2008)

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EXTERNAL AND INTERNAL LINKS OF UNIVERSITY OFFICES SUPPORTING EEPS Offices at Universities looking after commercialization access resources to support EEPs and SSOs through links inside and outside the university (Rasmussen and Borch, 2010; Zahra and Nielsen, 2002) Traditional literature mainly focus developed economies and external links (Mosey and Right, 2007; O’Shea et.al, 2005; Shane and Stuart, 2002; Harmon et al., 1997) Balance between external and internal (Rasmussen and Borch, 2010)

Internal links significant in earlier stages of SSOs and start-ups (Moray and Clarysse, 2005)

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RESEARCH QUESTION, METHODS AND DATA What’s the role of internal (and external) links and resources they connect in support of SSO process in the developing countries context?

1. How do internal links of EEPs relatively affect the SSO process in early stages? 2. How do internal links of EEPs relatively affect the SSO process on tech

intensity?

Multiple case studies, six student start-ups at KAIST TBIC Semi-structured interviews, three sections, five events, inner details surrounding each

Questions on Idea formation, Participation in EEPs prior to and after entering TBIC, and extent of support provided by internal and external links for starting-up

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KOREA ADVANCED INSTITUTE OF SCIENCE AND TECHNOLOGY

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Established 1971specializing in science and engineering education and research

20 deptts., 8 res. institutes, 5 affiliate schools 8,000 students; 3,452 BS, 2,197 MS, 2,357 PhD 842 faculty, 334 staff members All English instruction since 2006 Ranked among top 100 (QS rankings) Annual R&D spending US$320 million, 2,694 domestic patents and 723 international patents

OLEV in Time’s best 50 inventions of 2010

Source: KAIST homepage (www.kaist.edu), Article updated 2009, Accessed May 2013

KAIST TECHNOLOGY BUSINESS INCUBATOR 1994:TBI/TIC, 1997: HTVC, 2006: OUIC (incl. TBIC)

3 buildings, 12280 m2

No. of companies incubated: 500 No. of incubates at KOSDAQ: 10 KAIST Startups: Graduates: 450, Faculty 38 3100 Domestic Patents, 800 Oversaes Patents 300 Tech Transfers, 18 Billion KRW Royalties Currently 11 student spin-offs incubating

Munji Campus Main BLD

Truth Hall

8Source: 2012 Annual Performance Report of KAIST OUIC (2013), APEC (2007)

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2006 2007 2008 2009 2010 2011 2012

107 111100

86 90 9689

<2006-2012 보육기업수 >( 2012 년 12 월 기준 )

2006 2007 2008 2009 2010 2011 2012

33 24 24 27 25 25 22

2420

3541

21 19 29

<2006-2012 연도별 신규 / 졸업 입주기업 수 >

신규 졸업

2006 2007 2008 2009 2010 2011

765

923 946

810

585 583

<2006-2011 보유기업 평균 고용인원 >(2011 년 12 월 기준 , 단위 : 명 )

2006 2007 2008 2009 2010 2011

982 990

1191

973

684766

<2006-2011 입주기업 평균 매출액 >(2012 년 12 월 기준 , 단위 : 백만원 )

Source: 2012 Annual Performance Report of KAIST OUIC (2013)

Entrepreneurial Education and Business Incubation Process

Recruit-ment

Applica-tion

Evalua-tion

Approval Incuba-tion

Promoting Would-be or Newborn Firms (Within 2 years)Global Tech Venture, Start-up Package, Start-up Education, KOTRA, KAIST Partner Institutes, Etc.

Tech Innovation CompanyHelping to register at KOSDAQ(After 5 Years)

Additionally Incubation Promoting INNO-BUSINESS Firms (Within 5 Years)Hidden Champion Support, EBN Soft Land Programme

Jump-up

Start-up

Hidden

Champion

* Donate 5% of Stocks for Development FundEducation Motivating, Identifying Ideas & OpportunitiesE-5, VELOCITY, Summer Camp, TechVAIS, Creative Campus, etc. Idea

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Technology Business Incubation Center

KAISTz

External Links

Internal Links

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CASE STUDY 1: CHALK

MOOC-Massive Online Open Courseware

CEO: Joshua, BS 4-5 year Student Idea: 2011/9, Incubating: 2012/10 1st Stage Prototyping No Ent. Intention before KAIST Organization: 5 strong

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Adm

issi

on

KAIST

2010

Ed

. Po

licy

Idea

Fall

2011

EE

P KA

IST

Prof.

LM

H an

d VC

sEn

try

TBIC Vent

ure

2012

-10

EEP

KAIS

T20

13

SMBA

http://www.playchalk.com

CASE STUDY II: PARTICLA

X-ray Radiation Sources/Equipment CEO: Huh Sung-Hwan, BS, MS, PhD, KAIST

Idea: 2011/09, Incubating: 2012/04 1st Stage Prototyping No Ent. Intention before KAIST Organization: 3 strong

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Adm

issi

on

KAIST

BS M

S Ph

D KA

IST Idea

Ext M

IT co

ntac

ts

Vent

ure

Entry

TB

IC20

13

SMBA

Compact Radiation devices

X-Flashpen

Hyperbaric O2

Chamber

Compact Radiation devices

X-µFocus

CASE STUDY III: I AM COMPANY

School Apps and Education Platform CEO: In Mo Jung, BS 2nd year Student 2nd Stage, Finalized development of customized product

No Ent. Intention before KAIST Organization: 18 including CEO

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Idea

EEP

Exte

rnal

Adm

issi

on

KAIST

2011

- E5

EEP

KA

IST

Crea

tive Ca

mpu

sVe

ntur

e

Entry

TB

ICVC

inv

KAIS

T

CASE STUDY IV:MANNA

Eco-Friendly Vege Factory, Climate Control

CEO: Aaron Park, BS 2nd year Student 1st Stage Prototyping No Ent. Intention before KAIST Organization: 4 strong

15

Adm

issi

on

KAIST

FDC Ide

aMS

Ent

KA

IST

2011

EEP

KAIS

T Vent

ure

Entry

TB

IC

CASE STUDY V:NEW PAGE

Efficiency/Support for School Study CEO: Byung Huk Choi, BS 2nd year Student

1st Stage Prototyping No Ent. Intention before KAIST Organization: 4 strong

16Ad

miss

ion

KA

ISTFD

C Idea

Fall

2011

EE

P KA

IST

Crea

tive Ca

mpu

sVe

ntur

eEn

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TBIC

Dire

ct

Ent

Ment

ori

ng

CASE STUDY VI:CHANGUI INDUSTRY

Ventilated Safety Helmet CEO: Sung Nam Jeon, MS KAIST 1st Stage Strong Ent. Intention before KAIST Organization: 2 strong

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Idea

Adm

issio

n KA

ISTFa

ll 201

1 EE

P KAI

STPr

of. LM

H an

d VC

s

Vent

ure

Entry

TBIC

Cap

Dev

Prog

TBIC

CEO PERCEPTIONS ON EFFECTIVENESS OF LINKS

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External Links

IncubatorsOthersEntrepreneursProfessors/Researchers outside KAIST

Venture Capital Governmental OrganizationsProfessors/Researchers at KAIST

Internal LinksIncubatorsGovernmental OrganizationsVenture CapitalProfessors/Researchers at KAIST

Entrepreneurs

STYLIZED FACTS Three types of SSOs: Based on new or high technology developed at university New application of existing technologies/ideas developed at university New application of existing technologies/ideas developed outside university

No or little Entrepreneurial Intention at joining KAIST For existing tech SSOs: strong Gov. support through internal links is perceived as key

For new or hi-tech SSOs: support is important as per stage of development/start-up Recognize strong support of internal links to start-up but little support to advanced stages and VC

Recognize major idea and venture planning with support from external links Incubation support internal or external remains key to all

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CONLCUSIONS AND IMPLICATIONS Internal Links of EEPs affect the SSO process relatively positively in early stages Internal Links of EEPs affect the SSO process relatively weaker in hi-tech SSOs Institutional support plays more significant role than market links and participation Offices and managers supporting commercialization and SSO process in developing countries should: manage access to resources as per stage of SSO manage access to resources as technology intensity Support SSOs as per technology intensity, increasingly exploiting technological capabilities and resources available inside the university

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THANK YOU!FOR YOUR ATTENTION