SUPPORT ACTIVITIES TO ACADEMIC SPIN-OFFS AND ENTREPRENEURSHIP

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SUPPORT ACTIVITIES TO ACADEMIC SPIN-OFFS AND
ENTREPRENEURSHIP

• Measures and experiences of four European regions

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Aims

• To describe the best practice adopted in the four
  regions to encourage entrepreneurship
• To compare the selected support measures
  to high-tech start-up and academic spin-off
• To highlight some innovative actions to develop
  entrepreneurial culture and to valorize research
  results

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Agenda

• Introduction
• Legal framework
• Benchmarking of the measures
• Best practices
• Conclusions

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General data
Area (km2) Population (units) Density of popolation (per km2)
Barcelona 628 2.923.114 4.654
Dublin 922 1.096.000 1.189
Milan 1.982 3.757.609 1.896
Munich 5.504 2.446.014 444
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Economic data
GDP (bill. ) GDP per capita ()
Barcelona 86 29.294
Dublin 39 35.583
Milan 101 27.000
Munich 107 43.764

• The four cities have similar profiles
• Each city is the first or second most powerful
  economic center in its country
• The economic structure of each city is based
  on the service sector

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Institutions of higher education
Institutions of higher education in the region
Barcelona 10
Dublin 11
Milan 7
Munich 13

• In each region
• there are a lot of institutions of higher
  education
• the universities cover all the faculties

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Spin-off definitions
Barcelona No official definition All spin-offs exploit a university patent, are founded by professors/researchers
Dublin Each university has a specific definition Trinity College Dublin campus companies vs. spin-out companies University College Dublin founded by researchers who can cooperate with the research activity of th university
Milan Legislative Decree 297 (July 27th, 1999) societies of recent creation or in constitution aimed at the industrial use of research results with engagement with university professors/researcher personnel from research entities
Munich No official definition All spin-offs mechanism of technical knowledge/human transfer from a parent organization
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National framework
Spain Ley Organica de Universidades (December 21st, 2001) regulates promotion of the research, scientific development and technological innovation in universities forces each university to establish their own conditions
Ireland National law universities may hold shares in spin-offs
Italy Legislative Decree 297 (July 27th, 1999) regulate the interventions to support industrial research and results dissemination Production of regulations demanded to each University
Germany Spin-off legal framework deeply related to patent law ArbNErfG (latest version January 18th, 2002) the employer has the right of user for the invention but has to provide the employee with a compensation HRG the University owns the right of user for every invention made by its employees
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Local framework
Barcelona Each university prefers entrepreneurs belonging to the institution or with some relation with it The acceptance of the spin-off depends on the capacity of each programme/institution
Dublin Only 2 universities have a regulation Trinity College Colleges mandatory 15 shareholding University College universities hold a 15 share in the equity, spin-offs can exploit university patents
Milan Only 3 universities have a regulation Università degli Studi spin-offs have the right of user for the research results, university holds shares Università degli Studi-Bicocca sometimes university holds shares Politecnico University holds shares, spin-off founded by professors/structures of the Politecnico
Munich Bayernpatent project for the promotion of patenting in Bavarian universities No regulations in universities
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Methodology

• Identification of 10 to 15 best practices in
  start-up support in each region
• Selection of 5 categories in accordance
  with the steps a start-up company has to
  go through during its lifetime
• Formulation of some questions posed
  by entrepreneurs/start-ups for
  each category
• Identification of the measures able to answer
  each questions

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Selected measures
Region Measures Measures
Barcelona Entrepreneurship and Family Business Centre ESADE Entrepreneurship Centre Barcelona Emprèn Entrepreneurs Day XTT, the Technological JumpingNet Quasi Empresas Program Programa Innova Bioincubadora CIDEM-PCB
Dublin Bí Gnóthach and the School Enterprise Programme UCD Campus Company Development Programme Dublin Business Innovation Centre Trinity College Dublin MBA Enterprise Workout Innovation/enterprise Centres at the three Dublin PANEL partner universities
Milan Acceleratore di Impresa Progetto Minerva Start-up-nuova impresa al via Obiettivo Brevetto Progetto PIU Unimpresa
Munich KfW Chair for Entrepreneurial Finance FLÜGGE HOCHSPRUNG KfT MBPW Munich Network Strascheg Center for Entrepreneurship M-Exists ODEON Center
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Categories and start-ups/entrepreneurs needs
Categories Needs
Facilitating emerging of entrepreneurial ideas Get a promotional ethos for Univ. entrepreneurial activities Support the emergence of the innovative capacity of students Support the emergence of managerial and commercial attitude of professors/researchers Promote match between business ideas and know-how of research groups Help to find high-potential entrepreneurs within University
Training Integrate entrepreneurial culture into the curricula of students
Financing Help researchers to find financing to create a company Give economic incentives (directly coming from University) for researchers and professors to become entrepreneurs Promote/finance patenting of Univ. departments/spin-offs Promote and finance licensing/commercialization process for scientific discoveries of university departments and spin-offs Give financial incentives to identify market potential in research projects
Coaching Give coaching services to evaluate ideas with market potential Give coaching services to narrow the gap researchers-managers Give coaching services to protect IPR Give services to support the commercialization of scient. discoveries Provide concrete services to support university spin-offs
Physical infrastructure to facilitate Offer space for free Offer space for rent Offer equipment Offer University laboratories use Offer ICT services Host other start-ups besides spin-offs
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Answers to questions
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Sinthesis of the benchmark
Region Characteristics of the support measures to academic spin-offs and entrepreneurship
Barcelona Several actions to cover as many aspects as possible Many overlappings and, maybe, redundancies The focusing on the problems of new ventures and the legal framework for spin-offs have emerged too recently the region needs time to build a more structured support policy
Dublin Each initiative focused on a specific category No redundancies, few overlappings No measures focused on financing Global policy structured to optimize the exploitment of available resources
Milan Each initiative focused on a specific need of the area Few overlappings Policy contingent needs-driven
Munich Many overlappings 2 kinds of actions (activities promoted by universities and actions promoted by Bavarian Government) with the same aim
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Facilitating the emerging of entrepreneurial ideas
Bí Gnóthach and the Schools Enterprise Programme-DUBLIN Bí Gnóthach and the Schools Enterprise Programme-DUBLIN
Aim To nurture entrepreneurial culture focusing on next generation
Target Bí Gnóthach 10-12 years old children in primary School Schools Enterprise Programme second-level students (12-18 years)
Short description Bí Gnóthach participatory, cross-curricular programme which allows children to shape and enhance their own skills and imaginations through the medium of enterprise The Schools Enterprise Programme first step in developing entrepreneurship which allows students to set up a real business where they sell a product/service, keep accounts, write a business report, mount an exhibition
Budget Bí Gnóthach 1.000 per annum Schools Enterprise Programme 8.000 per annum
Results Bí Gn. 800 students in 42 schools have taken part in to date SEP 2000 students are participating in
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Training
Progetto PIU-MILAN Progetto PIU-MILAN
Aim To facilitate the emergency of entrepreneurship among students To support the technological transfer processes To realize a better connection between universities and enterprises
Target Young graduates/university students at the last year
Short description The project is carried out through a series of connected actions. Orientation and information meetings Courses to develop abilities for training and job, to give the instruments for job searching, to develop transversal abilities Tutoring work experience to accompany and supervise the student during the permanence in the enterprise Tutoring to create the enterprise
Results 439 individual colloquies realized 338 students participated in the courses
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Financing
Barcelona Emprèn-BARCELONA Barcelona Emprèn-BARCELONA
Aim To invest in small companies working on innovative projects in the Barcelona Area
Target Firms which can require the support small, innovative high-tech companies with a turnover of less than 1.500.000, based in Barcelona and its Metropolitan Area
Short description Barcelona Emprèn is a Venture Capital Company promoted by two universities which provide managerial support and establishes links between the financed companies and the leading technological and financial operators
Budget The unit investments are between 200.000 and 600.000.
Results During the 2002 120 requests received, 28 of which were finally studied. 10 firms have developed into real and competitive companies.
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Coaching
The MBA Enterprise Workout DUBLIN The MBA Enterprise Workout DUBLIN
Aim To help and accelerate the growth of university-led new ventures seeking finance and development assistance
Promoter and funding Trinity College Dublin
Target Professional business consulting from MBA students and incubating campus-based new ventures
Short description The actions involves teams of MBA students working with the promoters of new campus business to clarify the business opportunity, define the business model and identify the market.
Budget The estimated cost of the action to Trinity College is 3.000
Results Since 2002, there have been 19 participants, including mentors and assessors.
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Physical infrastructure to facilitate
Action FLÜGGE-MUNICH
Aim To facilitate the transition from employment at university to entrepreneurship To decrease the personal risk of the entrepreneur
Promoter State of Bavarias universities
Funding High-Tech-Offensive of the Bavarian State Government
Target Scientific employees of Bavarian universities
Short description FLÜGGE supports the establishment of spin-offs from university in the early phase by the additional offer of a 50 employment to young college graduates parallel to the conception phase of the business start-up the free use of universities infrastructure an experienced coach assigned to each company
Budget 1.000.000 per year from 2000 to 2003, 800.000 in 2004
Results 89 companies supported (of which 73 still existing) more than 560 jobs created
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Conclusions

• What can PAs of the four regions do?
• Rationalize the support policies to
  spin-offs/start-ups
• Promote common initiatives
• Create monitoring and valuating systems
  for policies results
• Spread entrepreneurial culture in
  secondary-schools and universities
• Improve the quality of initiatives to support BP
  conception
• Strenghten the function of VC industry
• Transfer managerial competencies
• Eliminate legal barriers