Innovation Strategy Management Lecture 4

Programme Part 1 – The basis of Innovation Part 1 – The basis of Innovation Part 2 – Innovation and New Product Development Part 2 – Innovation and New Product Development Part 3 – Innovation and Technology development Part 3 – Innovation and Technology development Part 4 – Innovation and Intellectual Property Part 4 – Innovation and Intellectual Property Part 5 – EU Green paper of Innovation Part 5 – EU Green paper of Innovation Part 6 – Innovation policies in different countries Part 6 – Innovation policies in different countries

Part 1 The Basis of innovation

Lecture 4: Innovation support structures Innovation centres Innovation centres Business incubators Business incubators Technology centres, BICs Technology centres, BICs Technology Parks, Science Parks Technology Parks, Science Parks Networks Networks

International History The first business incubator was founded in 1959 in the USA and is still operating. The first business incubator was founded in 1959 in the USA and is still operating. The Batavia Industrial Center (BIC) had much in common with the aims and working methods of actual initiatives The Batavia Industrial Center (BIC) had much in common with the aims and working methods of actual initiatives Revitalization of industrial premises, helping small business incubators to start and to grow. Revitalization of industrial premises, helping small business incubators to start and to grow. The first US incubator has much in common with the present initiatives in Eastern and Central Europe as well: The first US incubator has much in common with the present initiatives in Eastern and Central Europe as well: Such as the restructuring and revitalization of industrial areas. Such as the restructuring and revitalization of industrial areas.

International History European pioneers in business incubators – based on the science park concept and focusing on promoting technology based start-up companies – are the Harriot Watt University, Edinburg (started in 1969) and the Cambridge University. European pioneers in business incubators – based on the science park concept and focusing on promoting technology based start-up companies – are the Harriot Watt University, Edinburg (started in 1969) and the Cambridge University. In 1983 the first German business incubator began working in Berlin. In 1983 the first German business incubator began working in Berlin.

Today some 35 national and 4 international associations of business and innovation centers or science/technology parks all over the world are actively promoting the development of new companies and regional economic development. Today some 35 national and 4 international associations of business and innovation centers or science/technology parks all over the world are actively promoting the development of new companies and regional economic development.

Business incubators have proved their potential to help overcoming such problems by reducing the risk for start-up entrepreneurs and growing companies. The concept of a business incubator is flexible enough to be adapted to different demands and environments. Business incubators have proved their potential to help overcoming such problems by reducing the risk for start-up entrepreneurs and growing companies. The concept of a business incubator is flexible enough to be adapted to different demands and environments.

Operators, consultants and regional planners of business incubators are different names or definitions for this instrument of regional economic development. Operators, consultants and regional planners of business incubators are different names or definitions for this instrument of regional economic development.

While a center is primarily made for not yet existing and young firms at the agebetween 0 and 5, parks are more real estate oriented and therefore destined for already existing firms od certain size from the age 3 years on. While a center is primarily made for not yet existing and young firms at the agebetween 0 and 5, parks are more real estate oriented and therefore destined for already existing firms od certain size from the age 3 years on.

The House of Innovation: Business Incubators/Innovation Centres and their relation with their environment

Business incubators In general business incubators are aimed at promoting the establishment and development of new enterprises. In general business incubators are aimed at promoting the establishment and development of new enterprises. This aim should be achieved by offering favorable conditions for start-up enterprises, i.e. By saving costs and offering business support services. This aim should be achieved by offering favorable conditions for start-up enterprises, i.e. By saving costs and offering business support services.

Technology Centers The Technology Center (TC) model is aimed at technology based entrepreneurs and provides space, infrastructure and access to an external network of consultancy and support services. The Technology Center (TC) model is aimed at technology based entrepreneurs and provides space, infrastructure and access to an external network of consultancy and support services. The goal of a TC is to create an optimal working environment and thereby minimize the risk taken by start-up firms, new and growth businesses and spin-offs. The goal of a TC is to create an optimal working environment and thereby minimize the risk taken by start-up firms, new and growth businesses and spin-offs.

Innovation Centers This type of incubator provides similar services but is more open for any form of innovative businesses. This type of incubator provides similar services but is more open for any form of innovative businesses. The innovative factor consists not only in applied techniques or services, but also in new forms of organization and financing of the new enterprises. The innovative factor consists not only in applied techniques or services, but also in new forms of organization and financing of the new enterprises.

Innovation Centers Of major importance are: Of major importance are: The medium-term growth and export potential of the users and The medium-term growth and export potential of the users and their ability to add to the location and the region. their ability to add to the location and the region. The main task of these centers is to provide support to start-ups, to new, innovative businesses with growth potential and the ability to regenerate the local economy. The main task of these centers is to provide support to start-ups, to new, innovative businesses with growth potential and the ability to regenerate the local economy.

Business and Innovation Center (BIC) BICs are developed by the EU-Commission with have special features, which have to be realized in accordance with the needs of the respective region. BICs are developed by the EU-Commission with have special features, which have to be realized in accordance with the needs of the respective region. BICs are local organizations for the purpose of locating, selecting and advising new businesses as well as corporate projects. BICs are local organizations for the purpose of locating, selecting and advising new businesses as well as corporate projects.

The BICs give special importance to a general service package for businesses. This package includes: The BICs give special importance to a general service package for businesses. This package includes: Finding and encouraging plans for new businesses, Finding and encouraging plans for new businesses, Rating and selecting candidates and their projects, Rating and selecting candidates and their projects, Business planning, Business planning, Financing, Financing, Management training, Management training, Innovation and technology consulting, Innovation and technology consulting, Marketing and market research, Marketing and market research, Technical advisory services, Technical advisory services, Office space and services, Office space and services, Post-advisory services. Post-advisory services.

Business Support Centers (BSC) There is no must for a BSC to provide space for the accomodation of firms, although they very often do. There is no must for a BSC to provide space for the accomodation of firms, although they very often do. The main task lies un the managerial support by internal (BSC) consultants as well as by external ones to help these firms to grow. The main task lies un the managerial support by internal (BSC) consultants as well as by external ones to help these firms to grow. The BSC should emphasize the service and industrial potentials of a region. The BSC should emphasize the service and industrial potentials of a region.

Managed Work Spaces (MWS) This concept focuses on low/no tech handicraft and service firms in a limited area. This concept focuses on low/no tech handicraft and service firms in a limited area. The main offer is leasable space for such firms on flexible terms and the provision only limited common services, mainly of a more technical kind. The main offer is leasable space for such firms on flexible terms and the provision only limited common services, mainly of a more technical kind.

(Commercial) Parks Tenants of the incubators wanting to expand, as well as external, (innovative) businesses looking for a better location can then relocate in the park. Tenants of the incubators wanting to expand, as well as external, (innovative) businesses looking for a better location can then relocate in the park. Main types of specialized commercial parks: Main types of specialized commercial parks: Science Research Park Science Research Park Technology Park Technology Park Business or Industry Park Business or Industry Park

Target groups In principle the following groups might be interested in participating in a business incubator project: In principle the following groups might be interested in participating in a business incubator project: (regional) politics (regional) politics universities/research institutes universities/research institutes banks, industries banks, industries start-up enterprises start-up enterprises

Tenant Mix In general, the target groups of a business incubator can be divided in: In general, the target groups of a business incubator can be divided in: New, (innovative) businesses, New, (innovative) businesses, Established firms, Established firms, Institutions. Institutions.

Criteria for Target Group Definition

Effects of the Right Mixture

LATVIA TECHNOLOGY PARK Latvia Technology Park organisatorical structure

LTP MANAGEMENT AND ADMINISTRATION Latvia Technologic Park management and administration structure