Guided Entrepreneurship

1
Guided Entrepreneurship

• Powering A Knowledge Economy
• Boris N. Reznik, Ph.D.Chairman, Vendevia
  GroupMiami, Florida USAwww.vendevia.com

Riga, LatviaJune 9, 2004
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How Latvia Can Become A Worldwide LeaderIn The
Commercialization Of Science Technology

• The Lessons of HistoryHow Silicon Valley grew
  from a small agricultural region to the worldwide
  leader in the commercialization of science and
  technology.
• The Emergence of the EntrepreneurWhy the
  entrepreneur is the real key to commercializing
  science and technology.
• Guided EntrepreneurshipThe most effective
  method for building an army of entrepreneurs in
  the least possible time.
• Guided Entrepreneurship Centres How and why
  they work to implement Guided Entrepreneurship
  programs.
• A GEC Case Study
• Creating the Latvian LegendTaking the first
  steps

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Imagine thePossibilitiesFrom Silicon Valley
toThe Latvian Legend
SiliconValley
BostonCorridor
ResearchTriangle
New JerseyBiogarden
BangaloreIndia
Latvia
How Latvia can become a worldwide leader in the
commercialization of science and technology
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In The BeginningIt Wasnt Always CalledSilicon
Valley
The Bay AreaNorthern California

• Two great Universities (Stanford UC Berkeley)
  with great scientists and great students
• Cultural reverence for science
• No real local markets for ST
• Great potential business environment (Lots of
  Land, Low Taxes, Cheap Labor)

Then came Sputnik followed by NASA The Age of
MegaTech was bornHuge CompaniesMaking Huge
ProductsFor Huge Contracts
Sunnyvale California c1955
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Mid 1960sTeknekron Gives Birth To A New
ParadigmTo Create Entrepreneurs Apollo Versus
Harvey Wagner
Product Entrepreneur
GovernmentContracts CommercialContracts
TechnologyCentric MarketCentric
SellingSize SellingCapabilities
The Foundations of the Entrepreneurial Factory
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Market CentricityHow the Entrepreneurs Took
OnThe MegaTech Giants - And won!
RETNA

• The Major Elements of Market Centricity
• The market asks and the entrepreneur finds the
  science and answers
• Small and agile versus big and slow
• Market Solutions versus Products
• From the God of the to the Goal of the Contract

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Building An Army of EntrepreneursTeknekron and
The Mushroom Effect
Litton

• Teknekron spin offs grow
• The new entrepreneurship becomes the legacy
• Teknekron Alumni defined entrepreneurship through
  the80s

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Bridging the GulfWhat Entrepreneurs Do And How
They Do It
WorldwideMarkets
Latvian Science Technology
The entrepreneur is a connector between the source of the technology and the users of the technology.
No one buys technology for the sake of technology, they buy it to solve a problem or realize an opportunity. - H. Wagner
Connector Requirements Client and market centric Entrepreneurially driven Mastery of runningan entrepreneurial business Problem Solving Point Of View Desire
WorldwideMarkets
Latvian Science Technology
Latvian
Thats all fine and good, butHow do you build
an army of entrepreneurs?
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Guided Entrepreneurship Is Both Effective
EfficientThe Lowest Cost Per Entrepreneur
Developed
Venture
Fund
Number of EntrepreneursPer Centre
Accelerator
Incubator
Cost Per Entrepreneur
Guided
Entrepreneurship
Focuses onthe financial deal
Focuses onthe technology
Focuses onthe market
DevelopsCompanies
DevelopsProduct
DevelopsEntrepreneurs

• All approaches are designed for a different
  purpose
• Guided Entrepreneurship creates the
  entrepreneurial soup and builds the critical mass
  required for an army

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Guided Entrepreneur CentreA Look Inside and
Outside
The GEC supplies the basic infrastructure.But
its the constant interaction that makes it
run.Candidates - Entrepreneurs - Mentors -
Technologists - Clients
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Climbing The Stairs In The GECA Competitive
Approach To Progress
Spin Off The goal is to go public.
The Race To The Top
Division Manager Is running a Division. Goal is
to dominate market niche and spin off a
company.
Entrepreneur Has first signed contract in hand.
Goals is to build team and make more sales to
create a division.
In Training Working on a full time basis in a
GEC. Goal is to get out into the field, meet
clients and land a contract.
Candidate Application made to join a specific
GEC. Goal is to get selected.
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Inside A Guided Entrepreneurial CentreFrom
Candidate To Spin Off
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Creating Entrepreneurs How Guided
Entrepreneurship BuildsAn Army of Entrepreneurs
That Makes A Difference
Driving World Wide Markets
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The GEC - A Case StudyBoris Reznik Founds ATC in
1985

• Weve done it in IT and are doing it in Biotech
• Thousands of jobs created along with and billions
  of of value

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Creating The Latvian LegendA Look At The Basic
Architecture

• The Government Role
• The Setup Role
• The GEC
• Specialized to Market Segment
• Ensures Market Focus
• Fosters Competition
• Creates Tailored Incentives
• Provides Access to Resources
• Provides Guidance

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Creating The Latvian LegendGetting Started

• Do conceptual design of GEC program for Latvia
• Create a GEC Strategic Initiative
• Establish Setup Agency and fund it appropriately
• Do detail design of the overall GEC Initiative
  Infrastructure
• Create the first GEC and start Guided
  Entrepreneurship
• Evaluate progress and make adjustments
• Continue rolling out the program

17
Guided Entrepreneurship

• Powering A Knowledge Economy
• Boris N. Reznik, Ph.D.Chairman, Vendevia
  GroupMiami, Florida USAwww.vendevia.com

Riga, LatviaJune 9, 2004