Database Management Systems Ramakrishnan (Raghu Ramakrishnan)

TECHNOLOGY ENTREPRENEURSHIP



TECHNOLOGY
ENTREPRENEURSHIP

BRINGING INNOVATION TO THE
MARKETPLACE

NATASHA EVERS
JAMES CUNNINGHAM
THOMAS HOHOLM

SECOND EDITION



© Natasha Evers, James Cunningham, Thomas Hoholm and The Authors, under exclusive licence to
Macmillan Education Limited 2014, 2021

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This edition published 2021 by
RED GLOBE PRESS

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To my father Brian and my late mother Marie,
and to Seán, Catherine and Cillian.

To my loving and supportive family Sammi, Aiden and Riley
and in loving memory of Mary Ann Conboy

To Camilla, Sebastian, Rasmus, Oliver and Linus:
Thank you for keeping up with me.



CONTENTS

List of Figures and Tables
Preface
Acknowledgements
Notes on the Authors
Notes on the Contributors

PART I: TECHNOLOGY ENTREPRENEURSHIP AND
INNOVATION

1 Policy and Environmental Conditions for Technology
Entrepreneurship

• Learning objectives
• Chapter structure
• Introduction
• Policy conditions: innovation and entrepreneurship
• Policy outcomes and impacts
• Future trends
• Chapter summary
• Revision questions
• Further reading and resources
• Appendix 1.1 European Union (2013) Innovation Union Scoreboard indicator

• Appendix 1.2 Sweden Innovation Union Scoreboard indications
• References
• Glossary of terms

2 Technology Entrepreneurs and New Technology Ventures

• Learning objectives
• Chapter structure
• Introduction
• Defining the entrepreneur and technology entrepreneurs
• Technology entrepreneurs’ characteristics
• Motivations and intentions
• Chapter summary
• Revision questions
• Further reading and resources
• References
• Glossary of terms

3 Technology Transfer from Universities

• Learning objectives
• Chapter structure
• Introduction
• Technology transfer
• Technology transfer and mechanisms
• Stimulants and barriers to technology transfer
• Chapter summary
• Revision questions
• Further reading and resources

• References
• Glossary of terms

PART II: CREATING, PROTECTING AND MANAGING
TECHNOLOGY AND INNOVATION

4 Innovation and Diffusion of Technology in Products and
Services

• Learning objectives
• Chapter structure
• Introduction
• Defining innovation
• Classifying innovations
• Sources of innovation
• Technology innovation life cycle
• Diffusion of innovations
• Managing innovation
• Chapter summary
• Revision questions
• Further reading and resources
• References
• Glossary of terms

5 Intellectual Property and Routes to Commercialisation

• Learning objectives
• Chapter structure
• Introduction: what is intellectual property?
• Intellectual property rights

• Choosing the appropriate protection for your intellectual property
• Protecting intellectual property
• Developing an intellectual property strategy
• Searching patents and other intellectual property information
• Enforcing intellectual property rights and dealing with infringement
• Routes to commercialisation of intellectual property
• Chapter summary
• Revision questions
• Further reading and resources
• References
• Glossary of terms

6 Business Modelling: Value Creation in Lean Start-Ups

• Learning objectives
• Chapter structure
• Introduction
• The vision
• Creating value
• Business modelling
• Industry-driven business models
• Business modelling for competitive advantage
• Growth metrics – measuring learning
• Scalable business models
• Chapter summary
• Revision questions
• Further reading and resources

• References
• Glossary of terms

PART III: MARKET OPPORTUNITY AND STRATEGY

7 Market Validation and Analysis

• Learning objectives
• Chapter structure
• Introduction
• Market validation process
• The marketing ecosystem of the new venture
• Business concept testing tools
• Conducting marketing research
• Chapter summary
• Revision questions
• Further reading and resources
• Notes
• References
• Glossary of terms

8 The Marketing Strategy

• Learning objectives
• Chapter structure
• Introduction
• The marketing strategy
• Segmentation and targeting processes – stage one
• Developing and positioning the value proposition – stage two
• Designing the marketing programme – stage three

• Product and branding decisions
• Promotion and communication decisions
• Distribution decisions
• Pricing decisions
• The marketing plan
• Chapter summary
• Revision questions
• Further reading and resources
• Notes
• References
• Glossary of terms

9 The Business Plan and Pitching

• Learning objectives
• Chapter structure
• The business plan
• Pitching
• Chapter summary
• Revision questions
• Further reading and resources
• References
• Glossary of terms

PART IV: GROWING AND MANAGING THE NEW VENTURE

10 Developing Teams and Building the Organisation

• Learning objectives
• Chapter structure

• Introduction
• Analysing and managing for growth
• Building the team
• Team roles
• Shaping the entrepreneurial organisation
• Entrepreneurial network organising
• Learning from success and failure
• Chapter summary
• Revision questions
• Further reading and resources
• Notes
• References
• Glossary of terms

11 International Entrepreneurship

• Learning objectives
• Chapter structure
• Introduction
• International entrepreneurship
• Key drivers of high-tech venture internationalisation
• Strategic options for international market development
• Selecting which foreign markets to enter and segments to serve
• Deciding on foreign market entry strategies (modes)
• Growing international sales through networks
• International growth and competitiveness
• International digital entrepreneurship

• Cultural considerations in international business negotiations
• Chapter summary
• Revision questions
• Notes
• Further reading and resources
• References
• Glossary of terms

12 Funding and Financing New Ventures

• Learning objectives
• Chapter structure
• Introduction
• The financial context for new ventures
• Funding and financing
• Operations decisions – managing cashflow
• Making investment decisions
• The evolving nature of entrepreneurial finance
• The emergence of crowdfunding
• Chapter summary
• Revision questions
• Further reading and resources
• References
• Glossary of terms

Index



LIST OF FIGURES AND TABLES

FIGURES

1.1 OECD new enterprise creations
1.2 OECD venture capital investment
1.3 High technology in Europe
1.4 European Innovation Scorecard 2019 global performance
2.1 Some distinctive common characteristics of entrepreneurs
3.1 Licensing technology stages
3.2 Influencing factors: macro and micro factors
3.3 Technology transfer effectiveness criteria
3.4 Inhibitors to commercialisation
4.1 S-shaped curve
4.2 Five categories of innovators
4.3 Discontinuous technology adoption
4.4 Visual interpretation of Kline and Rosenberg’s (1986) opposing perspectives of

technologist and economist during innovation development
4.5 Visual interpretation of Hoholm’s (2011) contrary forces model
5.1 Conception and reduction-to-practice
5.2 Risk profile of different commercialisation options
6.1 Value chains and competition
6.2 Business model dynamics
6.3 A typology of social and business relationships in new ventures
7.1 The market validation process
7.2 The marketing ecosystem
7.3 5C framework for analysing the venture’s marketing ecosystem
7.4 Assessing the resources of the new venture
7.5 Business concept testing process
7.6 The marketing research process
7.7 Classification of secondary data sources
8.1 Key stages of marketing strategy formulation
8.2 Segmentation variables for consumer markets
8.3 Steps in positioning the value proposition
8.4 Components used to develop a targeted marketing programme
8.5 Branding strategies
8.6 Promotion and communication tools

8.7 Solution-selling process for organisational markets
8.8 Types of channel structures
8.9 Evolution of high-tech distribution channels
8.10 Price elasticity
9.1 The seven steps to making a successful pitch to investors
11.1 Dynamics of push, pull and mediating forces influencing high-tech venture
internationalisation
11.2 The nine strategic windows
11.3 External analysis of foreign markets
11.4 Standardisation and adaptation in international marketing programmes
11.5 Foreign market entry strategies for high-tech ventures
11.6 Strategic attributes for developing and sustaining international competitiveness in
international new ventures
11.7 Characteristics of digital artefacts in born digitals
11.8 Network effects in multi-sided markets
11.9 Strategic attributes of born digitals
12.1 Survival rates of 2011 start-ups in Australia
12.2 The funding chasm for technology start-ups – transitioning from employee to
entrepreneur
12.3 Typical entrepreneurial process
12.4 Indicative use of external finance by UK small to medium enterprises
12.5 Sources of funding and financing linked to stages of venture development
12.6 Mezzanine finance fills the gap between senior debt and equity
12.7 The cashflow cycle
12.8 Typical cashflow profile for a high-potential start-up
12.9 Planning a trade sale or private placement
12.10 Evolution of entrepreneurial finance
12.11 Fall in Facebook share price post IPO
12.12 Financial investments and stages of growth of Facebook

TABLES

1.1 Summary Innovation Union Scoreboard 2019
2.1 Family system characteristics
3.1 Government and corporate approaches to technology transfer
3.2 UK licence numbers by higher education provider, 2017/18
3.3 UK HE business and community interaction survey 2017
4.1 Product versus process innovation classification matrix
4.2 Infrastructure versus platform innovation classification matrix
4.3 Incremental versus radical innovation classification matrix
4.4 Five innovation adoption categories (based on Moore, 2002)
5.1 Protection of software
5.2 Principal considerations in intellectual property decisions
5.3 Summary of routes to commercialisation
5.4 Advantages and disadvantages of the licensing route
5.5 Licensing versus start-up

6.1 Value configurations
6.2 Growth metrics (examples)
7.1 Market types: consumer markets and organisational markets
8.1 Segmenting organisational customers
8.2 Key components for formulating a positioning statement
8.3 Developing the value proposition
8.4 Promotional tools – summary description
8.5 Digital marketing tools – summary description
8.6 Evaluation of channel performance using intermediaries
9.1 Summary of components of the business plan
9.2 Layered communication of the value proposition
9.3 Giving a sense of what the company will look and feel like
9.4 Key items on an investor checklist
11.1 Scope of international activities and geographic coverage
11.2 Summary of foreign market entry strategies
11.3 The INV entrepreneur’s dynamic attributes
12.1 Start-up risk versus requirements of institutional investors
12.2 The entrepreneur’s and the investor’s concerns in negotiation
12.3 Financial statements
12.4 Cashflow problems
12.5 Evidence for investors from a business plan
12.6 Income statement
12.7 Breakeven point
12.8 Discounted cashflows
12.9 Characteristics of IPO-suitable ventures

PREFACE

The knowledge and skills required to transform science and technology into
commercial innovation are commonly termed “technopreneurship”. Local
regional development can be driven by “technopreneurs” (Venkataraman,
2004; Lee and Wong, 2004). Technopreneurs are scientists, lab technicians,
engineers and technologists who utilise their technical knowledge and
know-how to establish business ventures. Technology entrepreneurship is to
the fore for policy-makers, support agencies, venture capitalists, technology
transfer professionals and academic entrepreneurs. The past two decades
have witnessed a dramatic increase in investment in technology
entrepreneurship. Moreover, Covid-19 has further highlighted the
importance of technology and technology entrepreneurship to national
economies and societies. The translation of the discovery, development and
diffusion of technological innovations at the national level has become a
part of the innovation and economic agenda for every developed economy
in Europe, against the background of increased uncertainty and competition
from Asian economies and China. Across primary- and secondary-level
education, there has been greater emphasis on national education policies
and curriculum choices in the subjects of science, technology, engineering
and mathematics (STEM) to improve competitiveness in science and
technology development.

The importance of transferring knowledge and technology,
encompassing intellectual property, from higher education institutions
(HEIs) and public research organisations (PROs) has been highlighted in
Europe through the EU Innovation Scorecard. The founding of small, start-
up firms developing inventions and technology with significant potential

commercial application is critical to the success of innovative and
entrepreneurial economies and societies. Such processes can be referred to
as technology entrepreneurship.

Technology entrepreneurship is defined as “an investment in a project that assembles
and deploys specialised individuals and heterogeneous assets that are intricately
related to advances in scientific and technological knowledge for the purpose of creating
and capturing value for a firm” (Bailetti, 2012, p. 5).

The ability to connect specific knowledge and a commercial opportunity
requires a set of skills, aptitudes, insights and circumstances that are
distributed neither uniformly nor widely (Venkataraman, 1997). In creating
a new venture, scientists, engineers and technologists can be involved in
both the invention and the commercialisation–exploitation phases (Evers
and Andersson, 2019; Grandi and Grimaldi, 2005); thus, they need
scientific knowledge and business, leadership and managerial skills
(Cunningham and O’Reilly, 2019).

There is a critical knowledge and skills deficit among the science and
technology community for commercialising technological discoveries
arising from their research and industry experience. Many technical
entrepreneurs are “in love” with their product and tend to forget to think
about how to build a business around it. Often this leads to business plans
with very convincing technology and product descriptions, but with no sign
of how this will create value for customers and owners, and how to organise
the business in order to capture (a share of) the economic value so as to
profit from it. Research shows clearly how companies within the same
industry may have very different abilities to capture economic value from
their business models.

At the individual and group level, a key challenge is how to translate
promising technologies into a stream of economic returns for their founders,
investors and employees. In other words, the main problem is not so much
invention but commercialisation (Gans and Stern, 2003). Techno-
entrepreneurs need to achieve a good product-market fit in the early stages
for building sustainable and scalable high-technology new ventures. This

book is focused on providing an academic grounding and practical
approaches that address the knowledge and skills deficit through a variety
of pedagogical supports.

CORE AIMS OF THE BOOK

This book caters to pre- and post-experience business and STEM students
by providing them with the knowledge, skills and practical approaches
required to transform scientific ideas into commercial innovation for
enterprise development and the commercial agenda around issues of
discovery, development and diffusion of technological innovations. It gives
the reader a sufficient theoretical grounding as well as practical approaches
and frameworks that assist in and manage the transformation of scientific
discovery for profit and/or for social purpose. It integrates both an academic
and a practitioner perspective of key approaches involved in managing,
commercialising and marketing technological innovation and new business
development. The book introduces the learner to adopting an
entrepreneurial marketing perspective by engaging them in a process of
evaluating opportunities so as to create perceived customer value through
relationships by employing innovativeness, creativity, selling, market
immersion, networking and flexibility. In particular, strong emphasis is
placed upon the development of the value proposition and the business
model as important business development and planning tools. There are
three chapters (Chapters 7, 8 and 11) devoted to decisions most pertinently
related to the strategic marketing of technologies and international
marketing decisions in high-tech ventures. The book further commits a full
chapter to the mechanics of team organisation, leadership and the cross-
disciplinary nature of entrepreneurial teams in technology-based ventures.

A variety of case studies are included from North America, the UK,
Ireland, Scandinavia and Asia in technology-related sectors such as web-
based technologies, green technologies, nano- and biotechnology, material
science, food processing, instrumentation and electronics and information
technology.

Specific aims of the book are to:

• Offer STEM students a framework for understanding the

entrepreneurial process and expose students to the challenges faced
by technology-oriented entrepreneurs.

• Provide students with comprehensive insights into the specialised

field of techno-preneurship. This will exemplify a structured
strategic planning process, from the idea stage to market launch, and
present best practices in raising finance and acquiring and managing
resources to bring technological discoveries to commercial
realisation.

• Equip students with a sound appreciation of the concept of product–

market fit from opportunity validation, developing the value
proposition, to formulating an effective and feasible marketing
strategy required to launch their innovation competitively in the
domestic and international market space.

• Help students understand the entrepreneurial process for technology-

based ideas and the appropriate diffusion and exploitation of
intellectual property.

• Present practical know-how to students so that they can

commercialise and develop effective and implementable strategies
for business modelling, prototyping, marketing and financing their
technological discoveries sourced from industry, universities, public
research institutions and in general.

• Educate students about the concept and application of the strategic

management tool of business modelling to configure the available
resources to create unique customer value and capture economic and
other value from this.

• Guide students through real, short and long case studies, some of

which have been authored by technology entrepreneurs themselves.

The book is augmented by extensive online resources, PowerPoint™ slides,
multiple-choice questions, tools and framework templates and case study

solutions, all designed to help students excel in the study and practice of
technology entrepreneurship.

KEY FEATURES OF THE BOOK

• Comprehensive and exceptionally well written, combining research

knowledge with practice targeted for both business and STEM
students and researchers in HEI and PRO contexts.

• Adopts a global approach to technology entrepreneurship, supported

by a suite of real-life international case studies related to different
technologies, across diverse sectors and geographical parts of the
world.

• Covers entrepreneurship in combination with innovation,

commercialisation, intellectual property issues, product–market fit,
strategy and business modelling, value propositioning,
internationalisation, finance and organisation.

• Addresses the topic of international entrepreneurship, as well as

growing and scaling new ventures, and lends insight into digital
entrepreneurship.

• Offers readable explanations of underpinning knowledge and theory

in combination with case studies, tools for practice, revision
questions and guidance on further resources.

• Includes online resources for instructors and students, including

PowerPoint slides, multiple-choice questions, tools and framework
templates and case study solutions, all designed to support student-
centred learning and practice of technology entrepreneurship.

NEW TO THIS EDITION

• All chapters have been updated to reflect the evolution of theory

and practice with respect to technology entrepreneurship.

• The strategic context of business models, business growth and

scaling, digital entrepreneurship, entrepreneurial marketing,
organisation design and crowd-funding has been updated and
developed.

• There is new material, including cases on digital entrepreneurship,

growth and scaling.

• The sections on business modelling and international

entrepreneurship have been revised to include international
networking and sales strategies.

• There are updates on entrepreneurial practices as well as recent

research.

• The book has extended geographical case study coverage.

ORGANISATION OF THE BOOK

The book is designed to provide a logical and structured approach for
readers to support their development and understanding of key themes,
concepts and processes of technology entrepreneurship.

As illustrated in Figure P.1, the book consists of four parts (I–IV), with
each part containing three chapters (totalling 12 chapters). The book is
designed to support semesterised courses as well as shorter, more intensive
formats (one-week block courses). Part I provides the reader with an
overview of policy and environmental conditions for technology
entrepreneurship, technology entrepreneurship and new technology
ventures, and technology transfer from universities. Chapter 1 focuses on
the environmental and policy conditions that support technology
entrepreneurship and some of the macro future that will impact technology
entrepreneurship. Chapter 2 explores different interpretations of technology
entrepreneurship and the characteristics and motivations of technology
entrepreneurship. Chapter 3 explores how universities support technology
entrepreneurship through technology transfer and examines some key

technology transfer mechanisms – patents, licensing and company
formation.

Figure P.1 Structure of the book

Parts II, III and IV then examine the issues and steps in the
entrepreneurial process for high-tech entrepreneurs, from creating and
protecting their innovation to managing and growing the venture. Part II
provides a systematic understanding of contemporary challenges facing
STEM students in managing, protecting and capturing value from their
innovative ideas through the transformation into a viable business model.
First, Chapter 4 introduces the reader to the concept and classification of
innovation and innovation platforms, and goes on to discuss the stages from
concept development to prototyping. Chapter 5 then presents the
fundamental and critical issues in intellectual property and
commercialisation routes. Chapter 6 discusses the dynamic tool of business
modelling and the business plan as an important outcome of business model
development, followed by the most effective metrics for measuring business
growth.

As product-market fit in the early stages of venture creation plays a key
role in building sustainable and scalable high-technology new ventures,
Part III (Chapters 7, 8 and 9) comprehensively addresses how
entrepreneurs can attain product-market fit through validating the market
opportunity for the innovation, establishing a clear value proposition and
developing and sustaining effective marketing strategies to bring innovation
to the marketplace. In Chapter 7, market analysis and market validation
processes are presented; in Chapter 8 the marketing strategy is designed,
formulated and refined for a value proposition; from here operational or
tactical marketing decisions are implemented, managed and monitored.
Finally, Chapter 9 outlines the components of the business plan and the
importance of investor pitching for initial investor funding, as well as steps
in making an effective sales pitch. The remainder of this section introduces
the learner to core marketing concepts and the relevance of entrepreneurial
marketing for high-technology ventures.

Part IV looks at growing and managing the venture for sales growth,
expansion and financial viability, with specific focus on three core areas.
Chapter 10 addresses managing teams, leadership and organisational
culture. Chapter 11 considers in detail internationalisation decisions,
growing and scaling the venture, and takes a closer look at digital
entrepreneurship. Chapter 12 examines how financial capital is sourced and
managed to grow the business and equally to ensure the venture is
financially viable and can deliver a profitable return for the founder and
investors.

STRUCTURE OF EACH CHAPTER

Each chapter has a number of pedagogical features designed to support the
learning experience of non-experts who are new to this domain. Each
chapter begins with a synopsis and we have designed the text so that each
chapter covers three core issues. In doing so, we provide clear guidance to
learners, by way of an overall framework, an accessible writing style and
illustrative examples throughout. Each chapter includes an end-of-chapter
case study that provides course leaders with a basis for group discussion
and exercises. Each chapter is structured as follows:

• Learning objectives
• Chapter structure
• Core chapter themes
• Chapter summary
• Case study
• Revision questions
• References
• Further reading and resources
• Glossary of terms

SUMMARY OF CHAPTERS

Chapter 1 begins with exploring the environmental context that helps
technology entrepreneurs create new businesses and innovate. In particular,
we focus on the triple helix and entrepreneurial ecosystems as means to
understand the policy conditions that support technology entrepreneurship.
We then focus on policy outcomes and impacts to comprehend the
challenge that policy-makers and governments face with respect to the
evaluation of their policy interventions and supports for technology
entrepreneurship. We conclude the chapter by focusing on some future
trends - the gig economy, the internet of things, convergent technology
spaces and crowdfunding. The end-of-chapter case study, Reinshaw
Diagnostics Ltd, illustrates the complexities and challenges of technology-
based entrepreneurship, the importance of technology and newness, and
how environmental conditions can have a positive influence for technology-
based firms.

Chapter 2 explores three areas with respect to technology entrepreneurs
and new technology ventures. It begins by considering the different
definitions of entrepreneur-ship and then examines how technology
entrepreneurship is different from other types of entrepreneurship. The

chapter then focuses on the motivations and intentions of entrepreneurs and
technology entrepreneurship. The concluding case study on Rovio
Entertainment, the Angry Birds creators, reinforces the difference between
technology entrepreneurship and other forms of entrepreneurship. The
novelty of the game and the technology platform created an addictive and
simple offering that gained worldwide attention and significant growth as a
new technology firm.

Chapter 3 examines how universities support technology
entrepreneurship through technology transfer, or what is termed more
broadly third-mission activities. We begin by exploring the different
theoretical perspectives on technology transfer, then focus on the
technology transfer process and some specific mechanisms for technology
transfer – patents, licensing and company formation (start-ups and spin-
outs). We conclude the chapter with the stimulants and barriers to
technology transfer and the inhibitors to commercialisation. The case study
on Allergy Standards Ltd provides insights into the entrepreneurial journey
from new idea inception through to international marketplace success. The
case further highlights the role of campus-based and external support as
well as the importance of environmental conditions.

Chapter 4 introduces the core issues and central ways of understanding
innovation and innovation processes. It presents the variety and complexity
of innovation as well as some of the main challenges related to managing
innovation. The chapter provides insights into the concepts and
classifications of innovation and innovation platforms. Next, it discusses
how innovation processes are organised and managed, from the idea
development stage to prototyping of the innovation lifecycle. The chapter
then identifies key challenges for organising and managing innovation
processes and provides some suggestions for overcoming them. Finally,
Chapter 4 addresses the technology diffusion process of moving
innovations through commercialisation into widespread use. The end-of-
chapter case study, Salma, tells the story of biotechnical innovation in the
food industry from a research project, via product development to
marketing. It illustrates the typical crooked path of innovation processes,

and how dead-ends may spur new ideas that eventually lead to success in
the market.

Chapter 5 is divided into two parts. The first part addresses the role of
intellectual property (IP) and its significance to technology start-ups, and
presents fundamental and critical issues faced by technology entrepreneurs
with regard to IP. While many people are familiar with some of the basic
concepts of IP, such as patents, copyrights or trademarks, for the first-time
entrepreneur, managing IP can take on the aura of a full-blown crusade. The
chapter outlines the processes for identifying and capturing, legally
protecting and commercially exploiting IP, and further takes an inside look
at IP issues for artificial intelligence. The second part continues with the
possible commercial options available for commercialising the technology
– and the merits and pitfalls associated with each. It addresses decisions
relating to how best to commercialise IP to generate revenue and considers
five fundamental questions, namely: Why would an individual or
organisation consider commercialising IP? Which geographical market(s)
and customer segments should be addressed? When should an individual or
organisation commercialise their IP? How should they commercialise their
IP? Who should lead the commercialisation effort?

Chapter 6 emphasises the development of business concepts and
business models for testing and learning how to create a profitable match
between customer values, production factors and income factors. Business
model innovation has become an important way to get ahead of competitors
in today’s globalising and increasingly connected world. First, the chapter
highlights the need for opportunities to be developed into business concepts
consisting of products/services, and what value they will create in the
market (value proposition). Second, it argues that the iterative development
of a viable business model helps configure the available resources in order
to create unique customer value and how the company will capture
economic and other values from this. Finally, the chapter explains how to
develop metrics for measuring growth and business model performance.
The end-of-chapter case study is on Spotify, Inc. The Swedish music
streaming service has taken a strong position in many countries with a

potentially disruptive service, showing that people are willing to pay for
user-friendly and socially oriented online services.

Chapter 7 presents the key analytical tools for inventors to conduct the
market validation process (MVP) for high-tech ventures to ensure the
product or service is entering a valid and sustainable market. MVP helps
assess the market-worthiness of ideas that are based around incremental,
radical or disruptive innovations. This chapter also introduces the learner to
the marketing ecosystem and presents the necessary frameworks for
carrying out a market ecosystem analysis for a new technology. It presents
the key processes available for testing the business concept and
distinguishes between the nature and dynamics of customer and business
markets for conducting customer analysis. Finally, it details the key
marketing research techniques needed to carry out the validation process for
both consumers and business markets. The end-of-chapter case study on
Skype highlights the importance of environmental factors, using the
marketing ecosystem analysis to illustrate the strategic development of the
company.

Chapter 8 presents the key processes and analytical tools for inventors
to conduct, design, implement and manage an effective marketing strategy
for a new technology. It discusses a step-by-step process that will help
inventors develop a value proposition for their innovation in response to a
validated market opportunity. The chapter also discusses identification of
target customer markets (as mentioned in Chapter 7). It then addresses the
tactical decisions related to designing a marketing programme that will help
an individual or organisation deliver their value proposition and position it
correctly in the minds of their target customers. It outlines the different
marketing approaches for both consumer and business-to-business markets
and the importance of “solution” selling processes and customer
relationship building. Finally, this chapter highlights the marketing plan as a
key output underpinning the marketing design and implementation plans
required to deliver an effective marketing strategy to target customers. The
HMS Ltd case illustrates how a high-tech Swedish company focuses on
customer segmentation and business relationships to market its network

card designed for original equipment manufacturers for a diverse range of
industrial applications across different industry sectors.

Chapter 9 addresses the business plan and outlines its importance in
pitching to investors in order to raise the requisite funds for
commercialising a given technology. Firstly, the rationale for and the
components of a typical business plan are identified and explained. The
written business plan on its own is not sufficient to secure funding from
investors, and entrepreneurs need also to demonstrate an ability to clearly
communicate and defend their plan in person (i.e. “pitch” the business
plan). The chapter thus takes the reader through the challenges encountered
in commercialising IP, up to the actual pitching of the technology to
investors, and considers the need to tailor the level of detail communicated
to audiences with different levels of technical knowledge. It identifies key
decision-making criteria of investors to whom you pitch and how to best
“paint a picture” of your idea or new business, which gives you the best
chance of securing funding. The chapter concludes with a discussion on a
notional “checklist” of items on which most potential investors typically
seek comfort before investing. The end-of-chapter case study presents how
Aganova Ltd, a Spanish water engineering global venture, successfully
secured funding that enabled its born global expansion.

Chapter 10 addresses managing teams, leadership and organisational
culture within a business, as new ventures need to integrate and combine
their technologies with excellent leadership and management of human
talent. In high-tech ventures, knowledge is embedded in the intellectual
capital created by people. A core task for the entrepreneur is to design and
execute effective management and to leverage the intellectual capital
embedded in human resources, both inside and outside the organisation, as
well as to lead and nurture an organisational mindset and culture towards
growth and success. The end-of-chapter case study, Meltwater Ltd, is about
a highly successful information and communication technology venture
providing software-as-a-service monitoring of news and social media for
companies and organisations. Its success is partly based on its focus on
recruiting and building a strong sales-oriented organisational culture, to an
extent that is somewhat unusual for a technology venture.

The rapidly changing global business environment, economic integration
and advances in technology and communications have created
unprecedented opportunities for small firms looking to extend their sales
activities beyond the domestic market. Chapter 11 addresses international
entrepreneurship and unravels the complexity of internationalisation by
providing the learner with a comprehensive insight into the necessary
knowledge, skills and techniques to gain an appreciation of the nature of
and issues that affect international marketing decisions for growing and
scaling a technology venture in order to develop and sustain international
competitiveness. It further raises some of the key issues for digital
entrepreneurial ventures and the key strategic attributes of these ventures to
be considered when launching globally. The relevance of international
networking and trade shows as key mechanisms for growing and sustaining
customers is examined and illustrated through rich real-life case study
examples. The end-of-chapter case on Aerogen Ltd, an Irish global medical
device company, is written by the founder and CEO. He explains his
strategy, which took the company from one innovative product to being a
global market leader of electronic nebuliser products that are used in acute
care facilities in at least 65 countries throughout the world.

Chapter 12 provides the tools to evaluate whether or not an idea is
worth pursuing. It applies financial theory to the decision-making process in
planning a new venture. While many textbooks on entrepreneurship focus
on institutional financing issues, such as sources of finance and valuation,
the focus of this chapter is on using finance in the strategic decision-making
process. While good ideas are a dime a dozen, it is much harder to find
good people with an eye for detail to implement them. Entrepreneurs
therefore need to have financial literacy if they are to turn their visions into
reality. They have to be comfortable with investment decisions and
financing decisions. This chapter looks at the centrality of maximising
value to the entrepreneur. It outlines how finance and its sources are
intrinsically linked to the new venturing process, from inception of an idea
to harvesting of the investment. It gives the learner an insight into the key
operational imperatives for planning a new venture, such as funding, cash
flow and profitability. The chapter underpins the importance of relating

classic financial theory to the practice of new venturing, leading to better
financing and investment decisions and a higher success rate for a new
enterprise. The end-of-chapter case details the Facebook initial public
offering and takes us through the financing and growth stages of this social
media giant.

REFERENCES

Bailetti, T. (2012) “Technology Entrepreneurship: Definition, Overview and Distinctive Aspects”,
Technology Innovation Management Review, February: 5–12.

Cunningham, J.A. and O’Reilly, P. (2019) Roles and Responsibilities of Project Coordinators: A
Project Contingency Model for Project Coordinator Effectiveness. EUR 29869 EN. Luxembourg:
Publications Office of the European Union. ISBN 978-92-76-11711-7, DOI:10.2760/55062,
JRC117576.

Evers, N. and Andersson, S. (2019) “Predictive and Effectual Decision-Making in High-Tech
International New Ventures - A Matter of Sequential Ambidexterity”, International Business
Review. DOI: https://doi.org/10.10167j.ibusrev.2019.101655.

Gans, J.S. and Stern, S. (2003) “The Product Market for ‘Ideas’: Commercialization Strategies for
Technology Entrepreneurs”, Research Policy, 32: 333–350.

Grandi, A. and Grimaldi, R. (2005) “Academics’ Organizational Characteristics and the Generation
of Successful Business Ideas”, Journal of Business Venturing, 20(6): 821–845.

Lee, S.H. and Wong, P.K. (2004) “An Exploratory Study of Technopreneurial Intentions: A Career
Anchor Perspective”, Journal of Business Venturing, 19: 7–28.

Venkataraman, S. (1997) “The Distinctive Domain of Entrepreneurship Research: An Editor’s
Perspective”, in J. Katz and R. Brockhaus (eds), Advances in Entrepreneurship, Firm Emergence
and Growth, Vol. 3. Greenwich: JAI Press.

Venkataraman, S. (2004) “Regional Transformation through Technological Entrepreneurship”,
Journal of Business Venturing, 19: 53–167.

ACKNOWLEDGEMENTS

The authors collectively would like to acknowledge the contributions of Dr.
Cormac McMahon and Dr. Brian Kelly.

The authors wish to thank and acknowledge all our case study
contributors: Prof. Alex Rialp, Ann Walsh, Dr. Breda Kenny, Brian
Campbell, Casey T. Carney, Prof. Eythor Ivar Jonsson, Dr. Gabriela Gliga,
Dr. Grace Walsh, Prof. John Power, Prof. Maria-Ángeles Rastrollo-Horrillo,
Prof. Martin Hannibal, Michelle O’Connell, Prof. Patrik Ström, Prof.
Pernille Juhl Mogensen, Dr. Robert Wentrup, Prof. Rod B. McNaughton,
Ruari Conroy, Prof. Svante Andersson, Prof.Tom Ove Grønlund, Prof. Tor
Grønsund and Vibeke Isachsen for his contribution to the business plan
online material for Chapter 9.

Natasha Evers wishes to thank and acknowledge Prof. Jim Ward for his
early seed research funding, which enabled the preliminary research process
for the first edition of the book. Natasha also wishes to thank Dr Teresa
Hogan of Dublin City University for her expert feedback into
entrepreneurial financing for developing Chapter 12.

James Cunningham wishes to acknowledge funding support from
Science Foundation Ireland (SFI) and is co-funded under the European
Regional Development Fund under Grant No. 13/RC/2073.

Thomas Hoholm wishes to thank his students in entrepreneurship,
innovation and new venture creation classes at BI for participating in
developing and testing designs for learning.

The editor and publishers wish to thank the following for permission to
reproduce copyright material:

Emerald Publishing Limited for Figure 11.6, from N. Evers, “International
new ventures in ‘low tech’ sectors: a dynamic capabilities perspective”
in Journal of Small Business and Enterprise Development (2011)
Volume 18, Issue 3, pp. 502–528, © Emerald Group Publishing Limited,
all rights reserved;

EU Commission for Figure 1.3 and Case Box 2.1, from Van Roy, V. and
Nepelski, D. (2017) Determinant of high-tech entrepreneurship in
Europe, Joint Research Centre, JRC Scientific and Policy Reports –
EUR 28299 EN; doi:10.2791.96153. ©EU Commission;

European Union for Figure 1.4, Appendix 1.1 and Appendix 1.2, from
European Union (2019) European Innovation Scoreboard 2019, ©
European Union 2019;

KU Leuven for their TTO mission statement in Case Box 3.1, from
https://lrd.kuleuven.be/en/mission-statement-knowledge-and-
technology-transfer;

MIT Technology Licensing Office for their mission statement in Case Box
3.1, from https://tlo.mit.edu/engage-tlo/say-hello-tlo;

Pearson Education, Inc. for Figure 8.9, from Mohr, Jakki, J., Sengupta,
Sanjit, Slater, Stanley, Marketing of High-Technology Products and
Innovations, 3rd edition, ©2010, printed and electronically reproduced
by permission of Pearson Education, Inc., New York, New York.

Sciendo for Figure 11.1, adapted from N. Evers, “Factors influencing new
venture inter-nationalisation: a review of the literature” in Irish Journal
of Management (2011), Volume 30, Issue 2;

Tamer Cavusgil for Figure 11.8, from T. Cavusgil, “From Born Globals to
Born Digitals: Two-Sided Markets and Research Implications.” Keynote
presentation at McGill International Entrepreneurship Conference, SDU,
Odense.

Taylor & Francis Ltd. for Figure 6.3, from N. Evers and C. O’Gorman,
“Improvised internationalization in new ventures: The role of prior
knowledge and networks” in Entrepreneurship and Regional
Development (2011) Volume 23, Issue 7–8, reprinted by permission of
the publisher (Taylor & Francis Ltd., www.tandf.co.uk/journals);

Tomasz Tunguz for Table 6.2, from Your Startup’s 10 Most Important
Metrics, from https://tomtunguz.com/your-startups-10-most-important-
metrics;

University of Cambridge for the Cambridge Enterprise mission statement in
Case Box 3.1, from www.enterprise.cam.ac.uk/who-we-are.

NOTES ON THE AUTHORS

Natasha Evers is Associate Professor of Business Strategy at Trinity
Business School, Trinity College Dublin, Ireland, and is Programme
Director of the MSc in Management at Trinity Business School. Her main
research lies in the field of international marketing strategy, SMEs and
international entrepreneurial growth. She has published in international
journals including International Business Review, Journal of World
Business, Entrepreneurship and Regional Development, International
Marketing Review, Journal of International Marketing and Journal of Small
Business & Enterprise Development, among others. Natasha is also Visiting
Professor of International Entrepreneurship and Marketing at Halmstad
University, Sweden, and is a Research Fellow at the Strategy and
International Business Group, Molde University College, Norway.

James A. Cunningham is a Professor of Strategic Management at
Newcastle Business School, Northumbria University, UK. His research
intersects the fields of strategic management, innovation and
entrepreneurship. He focuses on strategy issues with respect to scientists as
principal investigators, university technology transfer, commercialisation,
academic, public sector and technology entrepreneurship, entrepreneurial
universities and business failure. He has papers published in leading
international journals such as Research Policy, Small Business Economics,
R&D Management, Long Range Planning, Journal of Small Business
Management, Journal of Technology Transfer, Technological Forecasting
and Social Change and Journal of Rural Studies, among others.

Thomas Hoholm is Associate Professor and Head of Department of
Strategy and Entrepreneurship at BI Norwegian Business School, Oslo,
Norway. He has taught entre-preneurship and innovation at BI for the last
15 years, at graduate, postgraduate and executive levels, as well as to PhD
and executive students of informatics, biotech and medicine at the
University of Oslo. He is researching the management and organisation of
innovation, particularly related to the healthcare, energy and food sectors.
His studies have been published in journals such as Human Relations,
Industrial Marketing Management, Journal of Business Research and
Management Learning.

NOTES ON THE
CONTRIBUTORS

Cormac MacMahon is a lecturer at TU Dublin, Ireland, with teaching and
research interests in innovation and entrepreneurship. Between 2011 and
2016 Cormac served as Dean of Business at Bahrain Polytechnic, a new
higher education institution dedicated to developing enterprising and
professional work-ready graduates in the Middle East region. He was a
founding member of the accelerating campus entrepreneurship (ACE)
initiative in Ireland, which sought to embed entrepreneurship within higher
education for the development of entrepreneurial graduates. Cormac is a
chartered engineer and holds a Doctorate in Business Administration from
Waterford Institute of Technology.

Brian Kelly is an entrepreneur, mentor and leader in the Irish life sciences
industry. He has successfully founded and helped build innovative research-
based, technology-driven companies in the life sciences and software
industries. He has also worked with a number of early and mid-stage
companies, providing them with interim management, mentor-ship, advice
and strategic oversight to support their growth and development. He has
been involved (both as chairman and member) in numerous high-level
boards, task-forces and committees, including being appointed by the Irish
Prime Minister to the National Innovation Taskforce in 2009. He has
chaired the University College Dublin Campus Company Development
Programme and the Commercialisation Board of Trinity College Dublin’s
world-leading CRANN Institute.



Part I

TECHNOLOGY
ENTREPRENEURSHI

P AND INNOVATION

I.1 INTRODUCTION

Starting a new venture is a significant event in a
person’s life. Becoming an entrepreneur is now
more socially accepted and is a legitimate career
option in more societies. Becoming an
entrepreneur has many positive outcomes for both
the individual and society. One of the main
benefits to society is the creation of wealth and
jobs and the utilisation of the individual’s
knowledge. Entrepreneurs are distinguished by
certain personal characteristics, such as the need
for achievement and a type A personality.
Technology entrepreneurs and technology-based
ventures provide significant growth opportunities
for individuals, but also carry great risk.
Technology entrepreneurs have to bring a unique
newness to the market in order to survive. Small
incremental innovations may not be enough to
succeed in hyper-competitive marketplaces.

With the rapid advances in science, growing
market opportunities in convergent technology
marketplaces and sustained levels of public and
private investment in research and development
mean there are ample opportunities for
technology-based entrepreneurs. Skills, knowledge
and location are no longer significant barriers to
setting up a technology-based venture. The
increasing levels of educational attainment in
many societies not only provide opportunities for
technology entrepreneurs to attract the best talent,
but also mean they are engaging with more
sophisticated customers who have a more nuanced
understanding of technology. The growth of
smartphones over a short period of time is an
indicator of this change. In peripheral regions,
technology entrepreneurs can provide much-
needed employment, generate economic activity
and help build a reputation for a region.

Universities and public research organisations
have a significant influence on technology
entrepreneurship and the creation of technology
ventures. Universities are competing in a global
marketplace for the best students, researchers and
faculty. The more research intensive universities
and public research organisations are, the more
opportunities they will have to engage in
technology entrepreneurship. Novelty is one of the
defining characteristics of knowledge creation in
universities and public organisations, and it is an
essential ingredient for technology
entrepreneurship. In addition to novelty,
universities provide formal training in
entrepreneurship as well as a location for informal

interactions and the creation of networks through
cooperative research centres and research
institutions (see Dolan et al., 2019) – formal and
informal. Such informal interactions provide
opportunities for individuals to extend their own
personal networks beyond their areas of
competence and expertise.

I.1.1 Policy and Environmental Conditions

In order to encourage technology entrepreneurs to
form new ventures, the appropriate economic
conditions are needed. Without favourable
economic conditions, particularly with respect to
growth, technology entrepreneurs will not be
inclined to take a risk and start a new technology
venture. In our first chapter, we address how
innovation and entrepreneurship policy supports
technology entrepreneurship. Such national
policies can shape and influence the decision-
making process of technology entrepreneurs.
Issues such as national public investment in
research and development, the number of PhD
students and availability of government supports,
among many other factors, all have an influence in
creating the conditions necessary for new
technology entrepreneurship venture formation.

There are different approaches used to
understand how different public and private actors
collaborate to support technology
entrepreneurship. The triple helix approach
(Etzkowitz, 2002) simply outlines the roles that
governments, universities and industry play in
creating the conditions that shape knowledge
creation and contribute to technology

entrepreneurship. Entrepreneurial ecosystems are
another perspective that draws on a wide range of
elements supporting technology entrepreneurship
and that is becoming increasingly popular among
policy-makers. We conclude the first chapter by
examining policy outcomes that are designed to
create appropriate environmental conditions for
technology entrepreneurship. We also consider
future trends such as the gig economy, the Internet
of Things, convergent technology spaces and
crowdfunding with respect to technology
entrepreneurship.

I.1.2 Technology Entrepreneurship and New
Ventures

In Chapter 2 we focus on technology entrepreneurs
and new technology ventures. Entrepreneurs and
technology entrepreneurs share many common
characteristics. Some key differences emerging in
defining technology entrepreneurs include
company formation, the entrepreneurial process
and the technology focus. While these may seem
like nuanced differences, the core difference
focuses on the exploitation of a technology. The
novelty of the technology provides a strong basis
for the survival of the new technology venture and
its long-term viability and sustainability. Much
research has been conducted on the distinctive,
common characteristics of entrepreneurs. We focus
on and discuss opportunity recognition, perception
and emotions, dealing with uncertainty, risk profile
and appetite, resource appropriation, rewards and
career and family context. Work experience,
educational attainment and age are the personal

characteristics that we review. In concluding our
understanding of technology entrepreneurship, we
consider the motivations and intentions of
technology entrepreneurs. Independence, control
and achievement are strong motivating factors for
technology entrepreneurs that we focus on.
Through a short review of empirical studies of
technology entrepreneurs, we note that they have a
strong desire for achievement, they enjoy being at
the cutting edge of their technology domain and
contextual factors influence their behaviour. We
also highlight through some empirical studies the
difference in personalities, the need for proactive
public policies as well as the need to support the
person – the technology entrepreneur.

I.1.3 Technology Transfer from Universities

Universities and public research organisations are
at the fore in creating novelty and new knowledge.
The challenge is creating the most effective and
efficient technology transfer systems and
mechanisms between universities, business and
technology entrepreneurs. In Chapter 3, this is the
central focus. We begin by exploring linear and
non-linear models of technology transfer. With
more open innovation systems being adopted, non-
linear models of technology transfer are becoming
more prevalent. We then examine the technology
transfer process and some common mechanisms –
patents, licensing and company formation.
Irrespective of the mechanism, technology transfer
can be a complex process as well as a costly one.
Technology transfer offices within universities are
charged with the responsibility for protecting and

exploiting university intellectual property. We also
explore the stimulants and barriers to technology
transfer at both macro and micro levels. From this
we see that there are multiple factors that influence
and shape technology transfer between
universities, business and technology
entrepreneurs.

I.2 REFERENCES

Dolan, B., Cunningham, J.A., Menter, M. and McGregor, C. (2019)
“The Role of Function of Cooperative Research Centres in
Entrepreneurial Universities: A Micro Level Perspective”,
Management Decision, 57(12): 3406–3425.

Etzkowitz, H. (2002) MIT and the Rise of Entrepreneurial Science.
London: Routledge.

POLICY AND Chapter
ENVIRONMENTAL
1

CONDITIONS FOR

TECHNOLOGY

ENTREPRENEURSHIP

1.1 LEARNING OBJECTIVES

We begin this chapter and our book by exploring the
environmental context that supports technology entrepreneurs in
their efforts to create new businesses and to innovate.
Entrepreneurs, through creating new businesses, contribute to
wealth creation in economies. We begin the chapter by outlining
the triple helix approach and entrepreneurial ecosystems, which
have influenced national policy approaches in global economies
in creating policy and environmental conditions that support
technology entrepreneurship. We then discuss some of the
impact of innovation and entrepreneurship policies on aspects of
technology entrepreneurship. We conclude the chapter by
highlighting some macro future trends that will impact technology
entrepreneurs.

After reading this chapter, you will be able to:

1. Explain the triple helix concept and what entrepreneurial
ecosystems are;

2. Describe the direct and indirect impacts of innovation and
entrepreneurship policies on technology entrepreneurship;
and

3. Discuss some future trends that will directly affect technology
entrepreneurs.