Skolkovo vs. Best Practices

in Business Incubation

1

Overall Score Card: Skolkovo vs. Best Practices in Business

Incubation

Overall Objectives

Management Practices

Public Sector Support

Board Composition

Collection of Data on Outcomes

On par with best practice

4 out of 6 (more details follow)

On par with best practice (funding)

4 out of 6 (more details follow)

Ongoing, so far on par with best practice

Best practice according to the study

Source: Incubating Success. Incubation Best Practices that Lead to Successful New Ventures, a study by University of Michigan, State University of New York at Albany, National Business Incubation Association, Cybergroup Inc.

2

• Size or growth of the region’s economy is not important

• Region’s capacity to support entrepreneurship has limited effect.

• Only urbanization, workforce skills, availability of locally controlled capital and educational attainment have moderate influence on success of new business incubation.

Important Non-Issues

3

Are We Focusing on the Right Things?

Jobs created

Client and Graduate Revenues

Annual Number of Graduates

Survival Rate of Graduates

Retention of Graduates in Host Region

A Strategic KPI

A Strategic KPI

Relevance unclear, not a KPI

Not a KPI, hard to measure accurately

Not a KPI, hard to measure accurately

4

How Do Our Practices Compare to the Best?

Written Mission Statement

Selecting clients based on:- cultural fit- potential for success

Reviewing client needs at entry

Showcasing clients to community and potential funders

Robust payment plan for rents and service fees

Create an ecosystem for entrepreneurship and research in five technology areas

Participant status is awarded through a selection process when potential for success is evaluated. Cultural fit not a criterion due to subjectivity, risk of personal favoritism.

Yes

Showcasing participant companies on every occasion

Not enough tenants: most buildings still in construction

5

Board Composition

Incubator Graduate

Technology Transfer Expert

IP, General Legal Expertise

Government and Economic Development Agency Representatives

Local Government and Economic Development Agency Representative(s)

None so far. Time to introduce?

Most of the members of the Board

I. Drozdov (regularly invited to the Board)

A. Ivanov, O. Fomichev, A. Povalko

None so far. Time to invite?

6

• On average, 50% of funding of the most successful US incubators comes from various levels of the Government

Government Funding

7

• Overall, Skolkovo practices are very close to the best, which explains the successes we had in attracting and developing participant companies

• Possible areas for further improvement:– Introduce CEO of a successful participant (probably on a rotation basis), and a

representative of the Moscow Government in to the Board of the Foundation– Develop a “robust payment plan” for rents and service fees.

Conclusions