Building capacity for Innovation

March 23, 2010

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Thanks to our partners

Why are we here?

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Next two days

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Ecosystem definede·co·sys·tem (ē'kō-sĭs'təm)

n. a system formed by the interaction of a community of organisms with their environment.

Science Dictionary

A community of organisms together with their physical environment, viewed as a system of interacting and interdependent relationships and including such processes as the flow of energy through trophic levels and the cycling of chemical elements and compounds through living and nonliving components of the system.

Cultural Dictionary

A collection of living things and the environment in which they live. For example, a prairie ecosystem includes coyotes, the rabbits on which they feed, and the grasses that feed the rabbits.

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Ecosystemmmmm

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Traditional models have

failed!

Not this….

Or this….

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What’s this about ecosystems for building tech clusters?

• Relevance to developing a regional strategy

• Why is this a good approach?– A holistic view of community – Recognition of interdependence– Awareness of need to think & act

at all levels & with all constituents relevant to the growth & success of tech companies, and the sector overall

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a mash-up of informed linkages

Academic institutions

Research institutions

Sources of funding

Other enabling organizations

All levels of government

Technology companies at all levels of enterprise

Non-technology companies at all levels of enterprise

Every player matters!

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Knowledge Creation

Entrepreneurial Culture

Financing Expertise

Enabling organizations

Venture Services/EiRs

550Tech Firms

Professional Services

Firms

Government

FinancialInstitutions

PublicListing

Agencies

Entrepreneur The Company

Venture CapitalFirms

Angels

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What it means for Communitech• Catalyst for technology-focused economic

development in Waterloo Region.• We have a vested interest in every

organization with potential to impact the success of our companies. We need to know what they do and how they help.

• We take responsibility for community awareness of tech sector needs, and tech sector involvement in community needs.

• We remain firmly committed to the needs of tech companies at all levels, and to continually improving our capacity to deliver.

Why now?

Because we’ve evolved

Why now?

1997 – 2004 Trade association

2004 – 2007Information hub

2007 – 2009Enabling organization

2010+Enabling organization & ecosystem catalyst

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What’s next for

Digital Media

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mobility

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mobility

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Successful ecosystems:1. Culture

– Risk-taking– Entrepreneurship

2. Connectedness– Uber-networks– Partnerships – usual and unusual

3. Capability– System-wide i.e. Tech talent and business talent

4. Capital– The right kind at the right time

5. Community– Identification with industry/ cluster as well as company

Building towards these objectives will make you successful

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How to make it work for you• Invest in an accurate understanding of what the

companies do, and what each other organization in the ecosystem does

• Blur the lines to become more intentionally involved in business success

• Understand where engagement is urgent and where it isn’t

• Embed yourself at the local, provincial and national levels

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Deployment 1011. Asset inventory – who’s in your universe?

– Partners– Technology capability– Existing players– companies

2. What’s missing?– What are the gaps?

3. Leadership– Step into the void – don’t wait for the stars to align

4. Engagement– Find a way to get everybody on the bus (process, structure and culture)– Win-wins, common enemies, and one team

5. Critical: Build a strong enabling organization

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What is an enabling org?

There’s no one model – they characterize themselves as:

• Business incubators• EcDev• Trade associations• Off-shoots of universities• Tech councils

Different, yes. But all follow the same principles.

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Core principles• It’s not about YOU• Put your companies/ customers first• Be focused & strategic

– Ensure your activities align with objectives

• Business-driven – it’s about making $$$, stupid!• Relevance (not just responsiveness) – know what your

companies don’t know yet• Business-led• Respond to company needs using a life-cycle model

– Programs for companies at every stage– Understand gaps / barriers along the way– Feed the whole system

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Place – building and belonging

(the right environment)Club house – real

estate as a strategy; engineering interactions

A sense of attachment /

identity/ belongingYour cluster in

context

What it takes to build the enabling org?

What it takes to build the enabling org?• Programs – the right line card for each level of enterprise:

Small / Medium/ Large– Events; networking; capacity-building; relationship-engineering;

cultural– Govt relations; public relations– Peer learning– Venture support– Workforce development: recruitment/ training/ youth outreach– Export support

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What it takes to build the enabling org?

• Partners – the right relationships to help companies grow– Finding a way for all

players to participate – universities, government, professional service firms, sister orgs vs warring tribes

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What it takes cont’d

• Profile – the right awareness of the sector, its needs and its contributions– External: get the world to take notice– Give your companies a street address that

matters– Balancing act: building the brand of your org so

people know where to go vs. the brand of your cluster

– Company profile as brand driver for your cluster

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What it takes cont’d

• Pennies – the right governance, funding and organizational model– Diversity in your funding model– Sustainability plans– Cult or Culture?– Your customer service model– Your back-end enterprise model– Commitment to constantly reinventing

yourself

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What it takes cont’d

• People – the right staff and the right board– Skill sets; networks; experience;

credibility– Cult? Or culture?– Proof– the right measurement– - Varies by region and by

program area– - Set your bench marks, check in

regularly and report back

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On being strategic

What you do needs to line up to what you’re trying to achieve

Culture xx Capability Capital Community

Programs XX XX

Place xx

Profile XX

Partners XX

Pennies XX

People XX

Intersection of Org and Ecosystem…

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Ecosystemmmmm

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Iain KlugmanCommunitech

Waterloo Regioniain@communitech.ca

Building capacity for Innovation

March 23, 2010