Innovation A Necessity for Entrepreneurship by Professor Charles L. Cooney

September 16, 2008 INNOVATION – A Necessity for Entrepreneurship Business Innovator Conference September 9, 2008 Prof. Charles L. Cooney Faculty Director Leon Sandler Executive Director web.mit.edu/deshpandecenter Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology The Deshpande Center for Technological Innovation • Launched September 2002 • Founded by gift of $20M from Desh and Jaishree Deshpande 2 MISSION: • Create impact through technological innovation Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology WHY? BRIDGING THE GAP: WHAT CAUSES IT? 3 Academic Research Corporate Sponsored Research Federal grants • Academic research is not intended to address short-term market needs • Investors reluctant to take risks Marketplace VC Funding Corporate Licensing Angel Investing Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology SBIR Risk = Probability X Impact 4 Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology HOW? BRIDGING THE GAP: HOW WE ADDRESS IT 5 Academic Research Corporate Sponsored Research Federal grants Catalyst Program Marketplace VC Funding Corporate Licensing Angel Investing InnovationTeams Events Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology SBIR Grant Program Supporting the Idea-Innovation Value Chain SELECT Idea 6 DIRECT Invent CONNECT Innovate Impact IGNITION GRANTS INNOVATION PROGRAM GRANTS OUTSIDE FUNDING 2-3 cycle time In the university Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 7 “Progress is about taking and managing risk” C. L. Cooney, Faculty Director Deshpande Center. Approaching summit of Ama Dablam, 22,600 ft Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology MIT ECOSYSTEM 8 EL TECHLINK OD ENTREPRENEURSHIP VCPE SM INNOVATION CENTER ES N CLUB X-Prize SEBC MIT VMS SI MIT SLOAN BU Lab SCHOOL $100K BP D TE COMPETITION MIT DA I-Teams I ENTERPRISE AL V MIT TLO FORUM DESHPANDE CENTER Supporting environment with complimentary assets Legatum Center D-Lab Business Plan Customers Funding Growth Idea for Innovation a company Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology Leverage on Science Platform • Incredible leverage: » Funded 75 projects with $8.5M in grants » One third are making progress towards startups » Sixteen startups have attracted ~$140m in venture financing » Created >200 new jobs 9 • We have involved: » 200+ faculty and their students » 100+ VCs and entrepreneurs Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology Transition and Translation of Innovation New Venture Creation 10 Broad support for platform research 2-3 yr cycle Connection Selection Direction Innovation & Entrepreneurship Ecosystem 5+ yr funding cycle Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 3-D IMAGING TECHNOLOGY “The Deshpande Center brings together resources and expertise that I could not pull together on my own.” -Prof Doug Hart 11 • Originally a tool for lab analysis • Very fast, high resolution 3D imaging with off-the-shelf parts • Current status: venture-backed startup Brontes Technologies Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology Some Observations: • Build on a platform of basic science – “Prior Knowledge” • Unrestricted research support • Innovative and entrepreneurial human resource available – “Risk Takers” • Decentralized Innovation Ecosystem – “Internal Ecosystem” • Protection of intellectual property • Availability of venture financing • Build networks in a business environment receptive to new ventures – “External Ecosystem” Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 12 What is the next step? 13 Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology International Innovation Initiative – I3 • Multi-institutional research collaboration • Addressing local and global markets • Multi-institutional Innovation-Teams as an educational paradigm • Broadening the Innovation Ecosystem across national boundaries 14 Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology Global Network of Technological Innovation Centers t ac p Innovation Center a de I −> s n io t en v In −> ov n In n io at Im −> Innovation Center Innovation Center Innovation Center Global Innovation-Teams MIT Innovation Model • SELECT research projects that if successful will have significant impact on a product or service valued by the market and/or society • DIRECT the research towards a solution of an important problem • CONNECT the researchers with the venture financing and business community • LEVERAGE the assets of the local innovation ecosystem 16 Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 17 PLANNING & EXECUTION ARE CRITICAL Each step counts! Summit Ridge, Denali Alaska - 20,200 ft Copyright 2002-2005 Deshpande Center for Technological Innovation, Massachusetts Institute of Technology