building innovation-driven entrepreneurial (ide) ecosystems · 1/17/2017 · building...
TRANSCRIPT
Building Innovation-driven Entrepreneurial (IDE) Ecosystems
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Dr. Phil Budden
Senior Lecturer, MIT Sloan
Starting with “Innovation”
Innovation is a key buzzword of the early-C21st, but what exactly is it, and why does it matter?
MIT’s Innovation Initiative (MITii) defines ‘innovation’ as the process of ‘taking ideas from inception to impact’
Innovation happens in start-ups, but also in corporations, non-profits, governments & universities
MIT’s Innovation Capacity Taking ideas to impact in the global economy
$600M
~1/yr
~5000
~375/yr
Annual spending on research
Number of Nobel prizes(~10% of total)
Number of publications by faculty each yr
Number of patents issued (~50% faculty)
….and Entrepreneurial Capacity (E-Cap)
0
50
100
150
200
250
300
350
# Teams in MIT $100K Competition
MIT faculty create ~25
companies a year from labs
MIT students create ~150/yr
MIT alumni create ~900/yr
4 @MIT_REAP
Changing Career Choices
J. D. Kim, Early Employees of Venture-backed Companies: Evidence from MIT, 2016. Data from 2006-2014,
undergraduate seniors who indicate plans to be employed fulltime during the year following graduation.
How is innovation organized? Innovation-driven enterprises (IDEs)…
Start-ups whose competitive advantage &
therefore growth potential are driven by
innovation –
- ie taking ideas from inception to impact
to solve critical problems
Two distinctive types of Enterprises: SMEs & ‘innovation-driven enterprises’
SME revenue over Time
Rev
Time
IDE revenue over Time
Time
Rev
SMEs IDEs
Why focus on IDEs? Start-Ups create most new jobs in the economy
Why focus on IDEs? …and they create jobs in SMEs too.
“Enrico Moretti’s groundbreaking research shows
that you don’t have to be a scientist or an
engineer to thrive in one of the brain hubs.
Carpenters, taxi-drivers, teachers, nurses, and
other local service jobs are created at a ratio of
five-to-one in the brain hubs, raising salaries and
standard of living for all.”
The ‘Moretti multiplier’: 1x IDE job => 5x SME ones
Growing concentration of innovation & entrepreneurship
In the new global innovation economy, the world is NOT flat…..
…a growing number of innovation ecosystems with unique comparative advantage that can support entrepreneurship across sectors.
In the North East US they are concentrated in MA especially around Greater Boston
And within Boston, they are concentrated in Kendall Square
Stakeholders for Henry Ford’s car?
Stakeholders for your project?
Leading to changes for five important stakeholders in each ecosystem
Q&A
@Phil_Budden