OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 - - 25, 2007 25, 2007 Ronald Kysiak, IDEA Partnerships Ronald Kysiak, IDEA Partnerships Technology Incubators: Technology Incubators: Best Practices in the USA Best Practices in the USA
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OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Technology Incubators: Technology Incubators: Best Practices in the USABest Practices in the USA
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
National Study of US Tech National Study of US Tech Incubators Incubators -- 20032003
National Business Incubator Association National Business Incubator Association Study looked at 79 tech incubators in Study looked at 79 tech incubators in the USAthe USAAlmost half of all incubators focused Almost half of all incubators focused on information technology and on information technology and electronicselectronics24% focused on bio24% focused on bio--sciences and sciences and biomedical applicationsbiomedical applicationsRemainder are mixed technologiesRemainder are mixed technologies
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
National Study of US Tech National Study of US Tech Incubators Incubators -- 20032003
National Business Incubator AssociationNational Business Incubator Association
Study found no definite statistical Study found no definite statistical relationship between incubator assistance relationship between incubator assistance practices and sales or revenue growth of practices and sales or revenue growth of tenant companiestenant companies
Study posits that strength and Study posits that strength and pervasiveness of community ties, pervasiveness of community ties, technology generators and individual skills technology generators and individual skills of the incubator manager are greater of the incubator manager are greater predictors of performancepredictors of performance..
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
“Our research clearly shows that a significant profit barrier exists in themanufacturing industry and this barrier is directly related to the failureof most new products and services, as well as the lack of priority placed on successful innovation practices," says Doug Engel, Deloitte's NationalManufacturing Industry Director.
------- "Mastering the Innovation Paradox," a study by Deloitte, February, 2004 a study by Deloitte, February, 2004
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Technology Incubators: Best Technology Incubators: Best Practices in the USAPractices in the USA
Most technology incubators in the Most technology incubators in the United States are associated with or United States are associated with or sponsored by a research universitysponsored by a research university
23 out of the top 25 research 23 out of the top 25 research universities have tech parks universities have tech parks –– and and most have incubators (Except most have incubators (Except Harvard and University of Chicago)Harvard and University of Chicago)
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Growing Technology Growing Technology Businessesin the USAin the USA
StartStart--up companies do not come to up companies do not come to incubators to find technology.incubators to find technology.
In most cases they already have In most cases they already have their technology.their technology.
What they do not have is the What they do not have is the knowledge and/or resources to turn knowledge and/or resources to turn that technology into a business.that technology into a business.
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech Incubators More Expensive/Need Tech Incubators More Expensive/Need to Provide Higher Level of Servicesto Provide Higher Level of ServicesShort term leases for dry & wet lab Short term leases for dry & wet lab space/water/gases space/water/gases Fume hoods/larger HVAC capacityFume hoods/larger HVAC capacityGreater need for mentoring Greater need for mentoring Require much greater amounts of seed & Require much greater amounts of seed & venture investment capitalventure investment capitalNeed more access to human capitalNeed more access to human capitalTake more time to develop and bring product Take more time to develop and bring product to market (Northfield Labs)to market (Northfield Labs)Much greater need to access university Much greater need to access university equipment/labs/resources/grad studentsequipment/labs/resources/grad students
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech incubator companies need Tech incubator companies need access to university servicesaccess to university services
Use of specialized instrumentation Use of specialized instrumentation (Microscopy lab, lasers)(Microscopy lab, lasers)Animals for experimentation Animals for experimentation (transgenic mice)(transgenic mice)Removal of hazardous materials Removal of hazardous materials (radioactive waste, etc)(radioactive waste, etc)Glass lab/machine shopGlass lab/machine shop
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Technology companies locate in Technology companies locate in incubators near universities incubators near universities
because they need human capitalbecause they need human capital
Especially graduate studentsEspecially graduate studentsInexpensiveInexpensiveQuality workQuality workFlexible hours Flexible hours Allows evaluation of talent for future Allows evaluation of talent for future hiringhiring
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech Incubators: Stand alone or Tech Incubators: Stand alone or interspersed in multiinterspersed in multi--tenant bldg?tenant bldg?One of first tech incubators in US is One of first tech incubators in US is in Philadelphia: University/City in Philadelphia: University/City Science CenterScience Center200,000 Sq M200,000 Sq MStartStart--up companies spread throughup companies spread through--out the complex out the complex Mostly bioMostly bio--science from University of science from University of Pennsylvania Health Science CenterPennsylvania Health Science Center
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Advantages of interspersionAdvantages of interspersion
Synergy with more established Synergy with more established businessesbusinessesMentors/investors close byMentors/investors close byVetted service providersVetted service providers
AttorneysAttorneysAccountantsAccountants
Professional atmosphereProfessional atmosphere
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Disadvantages of InterspersionDisadvantages of Interspersion
Reduced contact with similar small Reduced contact with similar small companiescompaniesFewer examples of common Fewer examples of common problems and solutionsproblems and solutionsTendency to “get lost” in the Tendency to “get lost” in the business trafficbusiness trafficLittle feeling of uniquenessLittle feeling of uniquenessRents usually higherRents usually higher
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech Incubators Cost MoreTech Incubators Cost More
Short term leases by nonShort term leases by non--credit worthy credit worthy incubator tenants make it difficult to incubator tenants make it difficult to finance expensive lab build outfinance expensive lab build outNormal financing channels such as banks Normal financing channels such as banks will not participate will not participate Usually requires grants, creative financing Usually requires grants, creative financing or university credit enhancement or university credit enhancement (Wisconsin Technology Park Incubator)(Wisconsin Technology Park Incubator)
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Tech Incubators ReSome Tech Incubators Re--use use Older Lab BuildingsOlder Lab Buildings
Older university or abandoned private Older university or abandoned private industry labs used as tech incubatorsindustry labs used as tech incubators
“Research Transitional Lab” “Research Transitional Lab” ----University of University of Calgary, Calgary, Alberta, Canada Calgary, Calgary, Alberta, Canada Former Pfizer lab building in Kalamazoo, MI Former Pfizer lab building in Kalamazoo, MI being outfitted for biobeing outfitted for bio--science incubatorscience incubatorFormer Searle labs in Skokie, IL purchased by Former Searle labs in Skokie, IL purchased by developer for small and startdeveloper for small and start--up bioscience up bioscience companiescompanies
Great shortage of lab space for small tech Great shortage of lab space for small tech companies throughout USAcompanies throughout USA
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech Incubator companies Tech Incubator companies need more mentoringneed more mentoring
ProPro--bono service providersbono service providers
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Tech incubator companies need larger Tech incubator companies need larger amounts of capital over a longer period amounts of capital over a longer period of time: But not ITof time: But not IT
Cost of technology infrastructureCost of technology infrastructureinstrumentation/animals/clinical trialsinstrumentation/animals/clinical trials
Different types of capital neededDifferent types of capital neededProof of concept capitalProof of concept capitalSeed capitalSeed capitalMore seed capitalMore seed capitalVenture capitalVenture capitalBuyer or IPOBuyer or IPO
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Technology Incubators: Best Technology Incubators: Best Practices in the USAPractices in the USA
Two incubators with long histories going Two incubators with long histories going back to the 1980’sback to the 1980’sOn the left, the original home of the On the left, the original home of the Technology Technology Innovation CenterInnovation Center in the Northwestern in the Northwestern University/Evanston Research Park in Evanston, Illinois.University/Evanston Research Park in Evanston, Illinois.On the right, one of two buildings housing the On the right, one of two buildings housing the Advanced Advanced Technology Development CenterTechnology Development Center in Atlanta, Georgiain Atlanta, Georgia
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Technology Innovation Center, Technology Innovation Center, Evanston, ILEvanston, IL ---- 19861986
More than 275 companies housed over More than 275 companies housed over 21 years21 years4,600 Sq. M, two labs4,600 Sq. M, two labsCurrently has 50 tenantsCurrently has 50 tenantsMost are IT or advanced manufacturingMost are IT or advanced manufacturingRaised initial $1 Million seed fundRaised initial $1 Million seed fundSmall Business Development CenterSmall Business Development Center
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Technology Innovation Center, Evanston, Technology Innovation Center, Evanston, IL IL –– 1986 (more)1986 (more)
Sponsored by Northwestern University Sponsored by Northwestern University and City of Evanston: now privatizedand City of Evanston: now privatizedProvides access to university library, Provides access to university library, exercise center, fiberexercise center, fiber--optic telecom optic telecom system, cultural programs, university ID system, cultural programs, university ID for all tenantsfor all tenantsProvides proProvides pro--bono legal advicebono legal adviceAccess to seed and venture capitalAccess to seed and venture capital
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Advanced Technology Development Advanced Technology Development Center, Atlanta, Georgia Center, Atlanta, Georgia -- 19801980
Operates stateOperates state--wide with satellite wide with satellite incubators in two other citiesincubators in two other citiesAn arm of state governmentAn arm of state governmentManaged by Georgia Tech UniversityManaged by Georgia Tech UniversityGeneral tech incubator with wet labsGeneral tech incubator with wet labs16,000 sq. M of office and lab space16,000 sq. M of office and lab space
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Advanced Technology Development Advanced Technology Development Center, Atlanta, GeorgiaCenter, Atlanta, Georgia (more)(more)
Scientific equipment provided freeScientific equipment provided freeAccess to Georgia Tech core lab facilitiesAccess to Georgia Tech core lab facilities
Use of Georgia Tech libraryUse of Georgia Tech libraryHas housed 150 companies, 110 gradsHas housed 150 companies, 110 grads
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Center for Emerging Technologies, Center for Emerging Technologies, St. Louis, Missouri, 1998St. Louis, Missouri, 1998
NonNon--profit bioprofit bio--science incubatorscience incubatorDeveloped by University of Missouri at Developed by University of Missouri at St. LouisSt. LouisLocated between Washington University Located between Washington University and St. Louis University Health Science and St. Louis University Health Science CentersCenters9,000 Sq M of office and lab space9,000 Sq M of office and lab space
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Some Best Practices in American Some Best Practices in American IncubatorsIncubators
Center for Emerging Technologies, Center for Emerging Technologies, St. Louis, MissouriSt. Louis, Missouri,, (more)(more)
Two buildings: rehabilitated commercial Two buildings: rehabilitated commercial facilities, one once an auto plantfacilities, one once an auto plantProvides autoclave, dishwater, diProvides autoclave, dishwater, di--water, water, ice, darkroom, conference rooms, DNA ice, darkroom, conference rooms, DNA lab, access to mentoring, etc.lab, access to mentoring, etc.Financed w/federal & state tax credits, Financed w/federal & state tax credits, grants and loansgrants and loansThree graduates growing in areaThree graduates growing in area
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Most Difficult Tech Incubator Most Difficult Tech Incubator IssuesIssues
Not enough seed capitalNot enough seed capitalInability to afford lab space for short Inability to afford lab space for short term uses by incubator companiesterm uses by incubator companiesLack of local government interest Lack of local government interest and supportand supportUniversity IT policies that reward University IT policies that reward “highest value” licensing instead of “highest value” licensing instead of local company creationlocal company creation
OECD Entrepreneurship Evaluation OECD Entrepreneurship Evaluation Zagreb, Croatia May 21 Zagreb, Croatia May 21 -- 25, 2007 25, 2007 Ronald Kysiak, IDEA PartnershipsRonald Kysiak, IDEA Partnerships
Technology Incubators: Technology Incubators: Best Practices in the USABest Practices in the USA
Ron Kysiak, former CEO Ron Kysiak, former CEO Northwestern University/Evanston Northwestern University/Evanston Research ParkResearch ParkSenior Project Manager, IDEA Senior Project Manager, IDEA PartnershipsPartnershipsExecutive Director, Evanston Executive Director, Evanston [email protected]@[email protected]@ideapartnerships.com