Nurturing Science-based Ventures

Few would deny that small entrepreneurial firms play an important economic and social role. Not only do they generate a significant number of jobs but they also contribute a large proportion of gross national product (GNP). Not all small firms qualify as entrepreneurial entities, however. While “small” refers mostly to size, “entrepreneurial” refers to growth and a value-creation orientation. The vast - jority of small firms have no growth aspirations, nor do they have the means and skills to grow. As such, they may still provide employment and local value but would not embrace the high-potential aspirations of entrepreneurial ventures. This book clearly addresses those entrepreneurs who are interested in leading hi- growth-potential companies (Table 1). Table 1 Growth Typology of Small Firms [1] Type of venture Desired sales range Future employees Lifestyle 0 to $1 million 0 to 4 Smaller high potential $1 million to $20 million 5 to 50 High potential over $20 million Over 50 High-innovation technology-based startups assume a very special role in hi- growth entrepreneurship. Although these startups constitute a comparatively low number of small businesses, they produce proportionately far more jobs than their low- and medium-innovation counterparts. The aim of achieving rapid growth is typically referred to as high-expectation entrepreneurship. An area of major con- 1 cern to us is a fact revealed in the latest GEM report: The rate of European hi- expectation entrepreneurial activity is among the lowest in the world.

Ralf W. Seifert holds a dual appointment as Professor of Operations Management at IMD and Professor of Technology & Operations Management at Ecole Polytechnique Fédérale de Lausanne (EPFL). Professor Seifert is also Director of the Mastering Technology Enterprise (MTE) program, a six-week management development program for technically trained managers. Since 1995, the MTE program has been jointly offered by the Alliance for Technology-based Enterprise formed by IMD, EPFL and ETH Zurich. His primary research and teaching interests relate to supply chain management, technology network management and entrepreneurship.

Benoît Leleux is the Stephan Schmidheiny Professor of Entrepreneurship and Finance at IMD. He is a specialist in venture financing, combining expertise in entrepreneurship, venture capital, private equity and growth management. His experience includes four years of corporate venturing in Southeast Asia for a major agribusiness conglomerate. He is active in a number of private equity funds, as well as numerous start-up companies in Europe and the US, as director, investor and/or advisor. He is also a co-founder of Venture Growth Strategies LLC, a Boston-based consulting company specializing in corporate venturing and early-stage private equity investments.

Christopher L. Tucci is Professor of Management of Technology at the Ecole Polytechnique Fédérale de Lausanne (EPFL). Professor Tucci joined EPFL in 2003. Prior to EPFL, he was on the faculty of New York University where he taught Technological Innovation & New Product Development, Foundations of Entrepreneurship, Business Policy & Strategy, and Competitive Advantage from Operations in the MBA program. He has also taught strategic management at MIT, and has taught a global strategy module for engineering managers in the Tufts University Gordon Institute.