2. INTRO
Fast growing new companies are important for jobs
and wealth
Entrepreneurs are a key mechanism for
turning knowledge into products and jobs
Entrepreneurs are a key driver for
competition
2012
3. INTRO
Denmark has a major challenge in scaling up
new companies
We need to meet this challenge to create jobs
in the global knowledge economy
2012
4. INTRO
In Denmark, very few companies realise their
global potential compared to the US
Source Nordic Entrepreneurship Monitor, Fora 2010
2012
5. INTRO
In Denmark, new companies account for 9% of the
employment. In the US, new companies account for
25% of the employment
DK USA
More than 10 years old 1-10 years old 0-1 years old
Source Ibsen og Westergaard-Nielsen (2010): Job creation by Firm in Denmark & Haitiwanger og Miranda (2010): Who Creates Jobs? Small vs. Large vs. Young.
Se FORA (2010): Den danske produktivitetsudfordring.
2012
6. INTRO
In the US about 90 young companies each year
reach more than 1000 employees
In Denmark, it has not happened in many years
For Denmark to match the US
1 or 2 young companies must every year reach
more than 1000 employees
Source Nordic Entrepreneurship Monitor, Fora 2010
2012
7. INTRO
In the US, some regions are good in creating fast
growing new companies while some regions are not
Why do these new high-tech clusters
emerge in some places and not in others?
2012
8. INTRO
Because new companies succeed in
good business ecosystems
which only exist in some regions
2012
10. INTRO ECOSYSTEMS
Can the ecosystems in nature help our
understanding of business ecosystems?
2012
11. INTRO ECOSYSTEMS
When studying business ecosystems,
we asked three questions
Why do strong business ecosystems emerge
in some places and not in others?
Can business ecosystems be shaped by intention?
How strong are Danish business ecosystems
compared to the best?
2012
12. INTRO ECOSYSTEMS REPORTS
This study has been summarized in
3 reports
Benchmark Report
Travelogues
Danish Biotech Ecosystem
2012
13. INTRO ECOSYSTEMS REPORTS
Benchmark Report
We have benchmarked regional
ecosystems in IT, Biotech and Cleantech
in the US, Canada and Europe
The benchmarks are based on 4 indicators:
Dealmakers, Venture capital,
Patents, Location coefficient
2012
14. INTRO ECOSYSTEMS REPORTS
It seems possible to make a valid ranking of
ecosystems based on the four indicators
The best ecosystems are located in the US
Europe has no ecosystems that match the best
ecosystems in the US
2012
15. INTRO ECOSYSTEMS REPORTS
Ecosystem ratings for USA and Northern Europe
IT & Tele Biotech
Stockholm
Copenhagen
Cambridge
Seattle London
Minneapolis
Boston
Chicago
Denver
Silicon Valley
Research Triangle Park,
Raleigh-Durham
San Diego
Phoenix
Austin
Source: Own calculations
2012
16. INTRO ECOSYSTEMS REPORTS
Travelogues
We have interviewed people in
strong and less strong ecosystems in US
The interviewed have helped
create the ecosystem or have been
key players in the ecosystem
2012
17. INTRO ECOSYSTEMS REPORTS
Strong ecosystems emerge when open and
innovative companies - mother companies - are
active in the ecosystem
and
When successful entrepreneurs -
serial entrepreneurs - remain in the region and
reinvest time and resources
2012
18. INTRO ECOSYSTEMS REPORTS
Groupon has been a big success, and the
Seattle, Washington
company founders are Chicago guys who
will stay and invest in Chicago.
CHK Conversation with Craig C. Bradley,
“The ecosystem in Seattle started Edwars Wildman
growing only when Amazon and
Starbucks started with their open
and innovative culture.”
Conversation with Franck Nouyrigat, Chicago,Illinois
Start-up Weekend Seattle
Denver, Colorado
”The serial entrepreneurs are an
Research Triangle Park, North Carolina
important element in the ecosystem.”
Paul Jerde, Leeds School of Business
“If SAS Institute and RedHat had the same open
and innovative culture as many companies in
SiliconValley and Austin, RTP could have been
one of America's very successful entrepreneurial
regions.”
Amit Singh, entrepreneur of Indian origin, 800
employees, including 50 in RTP
2012
19. INTRO ECOSYSTEMS REPORTS
Danish Biotech Ecosystem
We interviewed key players from the Danish biotech
International data on employment, venture capital
and university research illustrates the standing of
the Danish biotech cluster
2012
20. INTRO ECOSYSTEMS REPORTS
The biotech cluster in Copenhagen is one of
the biggest in Europe, but far behind the best
clusters in the US
The reason for the relative success was access to
venture capital and experienced professionals
from established companies e.g. Novo Nordisk
2012
21. INTRO ECOSYSTEMS REPORTS
The reason Copenhagen is behind the best
US clusters is a lack of experienced
management teams to scale the new
biotech companies
2012
22. INTRO ECOSYSTEMS REPORTS
"In the late 1990s there was relatively easy
access to venture capital. There was a “It can be a challenge to become CEO of
strong belief in the new technology, and a new biotech company for an employee
there was access to public co-financing from e.g. Novo or Lundbeck if they haven't
from the Growth Fund. In 1998, Zealand been part of the management team which
Pharma raised 175 million DKK in seed often both formulate and execute the
capital.” strategy.”
Eva Steiness, newpharma.dk Eva Steiness, newpharma.dk
“Many of the leading Danish biotech
companies were established in the period
1998 to 2001 and many of them by talented
people from Novo, who had some great ideas
and was supported by Novo to take the step.
Without any doubts, it has helped to bring the
Danish biotech cluster up among the world's
largest clusters" Vækstfonden New Pharma
Copenhagen Business School
Christian Motzfeldt, Vækstfonden
"The culture at large companies play an important role in Danish biotech. It is
important that talented people can join a startup for a while, and still feel they are
welcome back. Established companies may be important facilitators when people
try to break new ground and start their own business"
Mads Øvlisen,Copenhagen Business School
2012
23. INTRO ECOSYSTEMS REPORTS CONCLUSION
The key question in this study has been:
Why do ecosystems emerge in some places
and not in others?
2012
24. INTRO ECOSYSTEMS REPORTS CONCLUSION
There must be good framework conditions
for entrepreneurship including access to the
necessary resources in terms of knowledge,
skills and capital
This is the case in many places in the world
2012
25. INTRO ECOSYSTEMS REPORTS CONCLUSION
but
to make a difference
Large established companies must be open and
play an active role in the ecosystem
And successful entrepreneurs must stay in the
region and reinvest their time and resources in
the ecosystem
2012
26. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
option 1 option 2
Scalable phase
Competencies Knowledge
500+ 5 years +
Support
Capital
Growth phase
10-40 2-5 years Competencies Knowledge
Support
CAPITAL
Start-up phase COMPETENCIES Venturecapitalists
KNOWLEDGE
Companies Universities
3-10 1-2 years
SUPPORT
Advisors
2012
27. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
Scalable phase option 3
Competencies Knowledge
500+ 5 years +
Support
Capital
Growth phase
10-40 2-5 years Competencies Knowledge
Support
CAPITAL
Start-up phase COMPETENCIES Venturecapitalists
KNOWLEDGE
Companies Universities
3-10 1-2 years
SUPPORT
Advisors
2012
28. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
Scalable phase
500+ 5 years +
Growth phase
10-40 2-5 years
Start-up phase
3-10 1-2 years
2012
29. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
Scalable phase
Competencies Knowledge
500+ 5 years +
Support
Capital
Growth phase
10-40 2-5 years Competencies Knowledge
Support
CAPITAL
Start-up phase COMPETENCIES Venturecapitalists
KNOWLEDGE
Companies Universities
3-10 1-2 years
SUPPORT
Advisors
2012
30. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
Scalable phase
Competencies Knowledge
500+ 5 years +
Support
Capital
Growth phase
10-40 2-5 years Competencies Knowledge
Support
CAPITAL
Start-up phase COMPETENCIES Venturecapitalists
KNOWLEDGE
Companies Universities
3-10 1-2 years
SUPPORT
Advisors
2012
31. INTRO ECOSYSTEMS REPORTS
A model of the Ecosystem
2012
32. INTRO ECOSYSTEMS REPORTS CONCLUSION
Until now it has been a widespread assumption
that strong ecosystems develop
randomly -
depending on
culture, local assets and individuals
2012
33. INTRO ECOSYSTEMS REPORTS CONCLUSION
But
based on our findings, we will argue that this
could happen by intent anywhere
2012
34. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
CALL FOR ACTION
Who should act?
Established companies
Venture capitalists
Universities
Politicians
2012
35. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Established companies
Established companies gain from being located
in a strong ecosystem
Partnerships and collaborations between
established companies and entrepreneurs are
beneficial for both
2012
36. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Circulation of employees is an
advantage for both entrepreneurs and
established companies
Spin-outs are an important building block in the
ecosystem
Support and collaboration with
universities fertilises the whole ecosystem
2012
37. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Capital
Capital has more investment opportunities in
strong ecosystems
Capital has a special responsibility to get the
right management team in place
Venture capital has an important role to
ensure that the founder is part of the
whole journey
2012
38. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Entrepreneurship is a repeated business, and
venture capital has a special responsibility to
bring the experience further
Venture capital plays a crucial role in creating
successful entrepreneurs with financial resources
that stay active in the region and bind the
ecosystem together
Pension funds have a long term interest in a
strong venture capital industry
2012
39. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Building a new industry
requires large investments from pensions funds
and other capital funds
2012
40. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Universities
Universities benefit from taking an active part in
strong ecosystems
Universities gain from
partnerships and collaborations with
entrepreneurs and established companies
University spin-outs are important for developing
the ecosystem
2012
41. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Universities can benefit from
dedicated entrepreneurship centers
interacting in the ecosystem
2012
42. INTRO ECO-SYSTEMS REPORTS CONCLUSION ACTION
Politicians
Politicians must raise awareness about the
importance of strong ecosystems and set it on the
political agenda
Politicians can encourage
public owned companies and institutions
to be active in the ecosystems
Politicians can ensure that public owned
universities are active in the ecosystems
2012
