UNIT 1

Introduction to Technology Entrepreneurship

What is technological entrepreneurship?

It is simply entrepreneurship in a technology-intensive context It is a process of merging technology prowess and entrepreneurial talent and skills
Technology + Entrepreneurship = Technopreneurship

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The technological entrepreneurship continuum

P R O D U C T S
Discovery Invention Innovation Entrepreneurship

M A R K E T S

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Who is the technopreneur?

A person who destroys the existing economic order (creative destruction) by introducing new products and services, by creating new forms of organizations and by exploiting new raw materials (Schumpeter, 1934) Someone who perceives an opportunity and creates an organization to pursue it.

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Who is the technopreneur?

A person who undertakes risks (by creating an enterprise or business) that has the chance of profit (or success). Technopreneurs distinguishes themselves through their ability to accumulate and manage knowledge, as well as their ability to mobilize resources to achieve a specified business or social goal (Kuemmerle, 2002)

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Who is the technopreneur?

The technopreneur is a bold, imaginative deviator from established business methods and practices who constantly seeks the opportunity to commercialize new products, technologies, processes, and arrangements (Baumol, 2002)

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Who is the technopreneur?

The technopreneur distinguishes logic from tradition, tradition from prejudice, prejudice from common sense and common sense from nonsense while integrating a variety of ideas from diverse groups and disciplines (Manuel Cereijo, 2002)

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Who is the technopreneur?

Technopreneurs are skilled in applied creativity, thrive in response to challenge, and look for unconventional solutions. They experience challenges, create visions for solutions, build stories that explain their visions, and then act to be part of the solution. They forge new paths and risk failure, but persistently seek success (Dorf and Byers, 2005).

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What is entrepreneurship?
A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced for the purpose of wealth creation (Babsons definition) Entrepreneurship is creative destruction. Dynamic disequilibrium brought on by the innovating entrepreneur, rather than equilibrium and optimization, is the norm of a healthy economy and the central reality of economic theory and practice (Schumpeter, 1934)

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What is entrepreneurship?
The entrepreneur searches for change, responds to it, and exploits it as an opportunity. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service (Drucker, 1985) Entrepreneurship is the pursuit of opportunity without regard to the resources currently under ones control (Stevenson)

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What is entrepreneurship?
Creating the New and destroying the Old

New knowledge New products New processes New services New markets New business models New raw materials
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Entrepreneurial process vs. Technopreneurial process

Entrepreneurial process
Opportunity Analysis Business Planning Gathering Resources Implementation Scaling and Harvesting

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Entrepreneurial process vs. Technopreneurial process

Technopreneurial process
Idea Generation Idea Screening Concept Testing Business Analysis Prototyping Test Marketing Commercialization
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Monitoring & Evaluation

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Technopreneur and the Economy

Technopreneurs as agents of economic growth
Natural capital Financial capital Intellectual capital ECONOMY Entrepreneurs as agents of progress Beneficial outputs (Maximized) Undesired waste Outputs (Minimized) Increase Safety
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Technopreneur and the Economy

Three elements of the intellectual capital

Human capital
The skills, capabilities, and knowledge of the firms people.

Organizational capital
The patents, technologies, processes, databases and networks

Social capital
The quality of the relationships with customers, suppliers and partners
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Technopreneur and the Economy

Relationship between intellectual and entrepreneurial capital towards entrepreneurial activity and economic growth Economic Growth

Entrepreneurial Activity

I i

Intellectual Capital

Entrepreneurial Capital

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Entrepreneurs vs. Technopreneurs (Differences)

Entrepreneur Likes to compete Is a self-starter Is able to do many things at once Is creative, and has dreams and goals Likes to work for him or herself and be in control Technopreneur Likes to innovate Is part of a team Is able to do many things at once, but chooses to delegate Is innovative and has a greater vision Likes to be the one to control innovation and be part of an evolution

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Entrepreneurs vs. Technopreneurs (Differences)

Entrepreneur Is motivated by a strong desire to achieve and attain financial success Focuses his/her attention on the chances of success rather than the possibility of failure Technopreneur Is motivated by a strong vision and his passion to innovate Takes failure in stride and knows it will lead to success if correction can be made

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Entrepreneurs vs. Technopreneurs (Similarities)

Entrepreneur Is able to determine risk and has the courage to take risks Is independent and selfconfident, yet knows where to get help Likes a challenge Hardworking and willing to stick with a project Technopreneur Is able to determine risk and has the courage to take risks Is independent and selfconfident, yet knows where to get help Likes a challenge Hardworking and willing to stick with a project

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Entrepreneurs vs. Technopreneurs (Similarities)

Entrepreneur Is not easily discouraged Maintains good health, has lots of energy and can handle stress Has a strong sense of selfworth Technopreneur Is not easily discouraged Maintains good health, has lots of energy and can handle stress Has a strong sense of selfworth

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Entrepreneurs vs. Technopreneurs (Similarities)

Entrepreneur Is a positive thinker who does dwell on setbacks Often has a close friend or relative who owns a business

Technopreneur Is a positive thinker who does dwell on setbacks Often has a close friend or relative who owns a business

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Successful traits of technopreneur

Integrity Leadership Impatient: bias toward action (with analysis) Quick clock speed Modest ego. Seeks and accepts coaching Willing to be different, but knows it (not oblivious) Pragmatic: willing to compromise Rejoices in others victories Driven to solve a valuable problem for customers Strong entrepreneurial intensity Willingness to incur the costs of growth

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Successful traits of technopreneur

Willingness to use wide range of financing sources Emphasis on a team-based organizing structure Focus on innovation Committed to commercialization of technology discovery Excellent communication skills Understand the value of business principles

Formation and execution of a sound business plan Raising of money Building an organizational team
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Factors leading to entrepreneurial success

Ability to initiate and operate a purposeful enterprise Ability to operate within the context and industrial environment at the time of initiation Ability to identify and screen timely opportunities Ability to accumulate and manage knowledge and technology

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Factors leading to entrepreneurial success

Ability to mobilize resources financial, physical, and human Ability to assess and mitigate uncertainty and risk associated with the initiation of the enterprise Ability to provide an innovative contribution that encompasses novelty and originality Ability to encourage a collaborative team of people who have the capabilities and knowledge necessary for success

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Summary
Technopreneurship is a process through which individuals and teams bring together the necessary resources to exploit opportunities and in doing so create wealth, social benefits and prosperity. The role of technopreneur as agent of economic growth. The technopreneur must know how to use knowledge to create innovation and new firms. The level of economic prosperity of a nation is determined by the level of entrepreneurial activity which flows from a combination of entrepreneurial capital and intellectual capital.

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