45th st. gallen symposium: swiss competitiveness: from innovation to entrepreneurship
TRANSCRIPT
SwitzerlandInnovation Leader but not Startup Leader
Dr. Peter Vogel / www.petervogel.org / [email protected] / @pevogel
Swiss Competitiveness
From Innovation to Entrepreneurship - The Role of Entrepreneurial Ecosystems
Tweets: @pevogel #45sgs #proudlysmall
Proudly Small…
2Swiss Competitiveness – From Innovation to Entrepreneurship May 5th, 2015
India United States Switzerland
Area 3’287’263 km2 9’826’675 km2 41’277 km2
Population 1.2 billion 320 million 7.8 million
Capital City New Dehli: 11.1 million
Washington DC: 658’893
Bern: 125’000
Largest Cities Mumbai: 12.4 millionBangalore: 8.4 million
NYC: 8.4 millionLA: 3.8 million
Zurich: 366’000Geneva: 177’000
Subdivisions 28 states 50 states 26 cantons
Languages 22 scheduled languages
1 4
What most people associate with Switzerland
3Swiss Competitiveness – From Innovation to Entrepreneurship May 5th, 2015
But Switzerland is also about Innovation…
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Global Innovation Index Ranking 2014
Source: REPORT Global Innovation Index (GII) 2014
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Drivers of Swiss Innovation
Robust industry
Culture of Innovation
Highly skilled workforce
Macroeconomic stability
Good public infrastructure
Excellent education system
Favorable regulatory environment
Highly attractive location for talents
Internationally recognized research hubs
Source: SECA Yearbook, 2009: „Switzerland Scores High“
Source: Global Competitiveness Report 2015
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The Disconnect…
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• Not a single Swiss region among the top 20 startup ecosystems worldwide
• Study displays ICT focus! Swiss strenghts are elsewhere...
Source: Startup Ecosystem Report 2012
Swiss Startup Ecosystems
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www.startupmonitor.ch
High-Growth Ventures in Switzerland – by Region
Source: Swiss Start-up Monitor
Zurich Basel-Stadt Valais Vaud
11.9%
2.4%
10.7%13.3%
38.6%
14.6%
32.1%29.5%
6.8%
36.6%
3.6%5.2%
9.8%
31.7%
10.7%
16.8%
10.8%
7.3%
17.9%
6.4%
Engineering ICT Biotech & Pharma Medtech & Diagnostics Consulting & Services
Insights from the Swiss Start-up Monitor
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The Swiss Entrepreneurial Ecosystem
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Source: Vogel, 2013: TEDx Lausanne talk
External Factors of the Ecosystem
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Source: Vogel, 2013: TEDx Lausanne talk
Startup Output
Market
Infrastructure
InnovationGovernment & Regulation
Geographic Location
• Market size & attractiveness: 4.6 / 7• Infrastructure: 6.2 / 7• Innovation: 5.7 / 7 • Government & Regulation: 5.6 / 7 • Geographic location:
High attractiveness Great livability Expensive Little raw materials Strong financial power
Entrepreneurial Factors of the Ecosystem
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Source: Vogel, 2013: TEDx Lausanne talk
Startup Output
Market
Infrastructure
InnovationGovernment & Regulation
Geographic Location Training
Culture
Support
Visibility
Network
Funding
• Lots of entrepreneurial support• Many awards & local visibility for startups• Networking: local / national• Funding is available but not targeted
Lots in seed stage Little in growth phase Many growth startups leave country
• Training is readily available University entrepreneurship centers Government offers (CTI, etc) Private initiatives (venturelab, etc)
• Culture Great fear of failure Risk aversion Opportunity costs lead to regular career
How to Create an Entrepreneurial Ecosystem?
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Source: Vogel, 2013: TEDx Lausanne talk
The formation of an ecosystem is a positive, reinforcing loop:
Success Stories
Importance of thelocation
Area attractive to talents
Innovation
How to Create an Ecosystem? Swiss MedTech
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• Long tradition of watchmaking, machine industry and pharma• Expert knowledge in:
Micro- and nanotechnology
Precision mechanics and electro-mechanics
Material sciences and surface treatment
• Unique combination of biotechnology and medical engineering
How to Create an Ecosystem? Monterrey MedTech
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I worked with the government of Nuevo Leon on:
(1) Assessing the local USPs
(2) Benchmarking the region with other MedTech regions
(3) Derive strategic directions for a MedTech ecosystem
How to Create an Ecosystem? Monterrey MedTech
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King Abdullah Bin Abdulaziz Al Saud: “It is my desire that this new University becomes one of the world's great institutions of research... The University shall have all the
resources that it needs to pursue these goals…” - 2009
10 bn USD initial endowment
I worked KAUST on:
(1) Building entrepreneurship training
(2) Forming an entrepreneurship center
(3) Creating some early success stories
When Creating Entrepreneurial Ecosystems, consider…
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• Each ecosystem is unique
• USPs / KPIs first
• Holistic implementation
• Multi-stakeholder approach
• Coordination and supervision
• Self-employment ≠ Entrepreneurship
• Bureaucracy blocks innovation facilitate, don’t regulate!
A Call to Action
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• Governments
Promote the power of entrepreneurship as engine of economic growth
Remove the stigma of failure
Create networking opportunities
Create alternative funding opportunities and startup-friendly (1) taxation & (2)
labor laws
• Entrepreneurs
Share stories (both success and failure)
Help the next generation of entrepreneurs
• Incumbent Firms
Sponsor incubators and accelerators, build corporate VC practices
Collaborate with universities for long-term strategic M&A goals
Recognize the contributions and success of entrepreneurs
Dr. Peter Vogel
Peter Vogel Strategy ConsultingSeuzach - Switzerland
Mail [email protected]: @pevogel
Web www.petervogel.org
Thank you for your attention.
@pevogel
#45sgs
#proudlysmall