Internet Innovation

Hub

Build-up Guide

A way to build innovation hubsOnly the idea that it is perfectly possible to design, create and build an innovation hub is a far leap.

CREATING HUBS AS AN INPUT ACTIVITYIn most real cases, you do some actions and assume that the outcome will match the definition of an innovation hub, namely a physical hotspot that brings together web entrepreneurs, mentors, investors, students, academia, public sector innovators and industry representatives.

CONNECTEDNESSA hub also needs to be connected to an incubator that provides business development and backend services as well as offers work spaces. Depending on the thematic domain, the hub should connect to relevant infrastructures (for energy, city, mobility, health, education, etc.).

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Next to this, an Innovation Hub should also be sensitive to grassroots movements: avantgarde, see where pushing the boundaries takes place.

“An iHub (Internet innovation hub) is

a small entity within an existing Internet innovation ecosystem.*

*Definition of Innovation Hub as agreed on by the I3H project.

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A way to build innovation hubsOr in other words: an Internet innovation hub is a small entity within an existing internet innovation ecosystem.

IT NEEDS TO BE ABLE TO MAKE A SUSTAINABLE SYSTEMIC CHANGE in the innovation and value creating processes in the ecosystem.

One can definitely have a say in the success of your innovation hub, because looking at existing areas of high innovation activity shows a range of conditions that are common. This Internet Innovation Hub Buildup Guide is using these common factors as baseline.

This guide is for everyone looking at the possibility of setting up an internet innovation hub and become part of the iHub.eu network. Next to this, it can also be used as a separate guide for building an innovation hotspot.

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1.The Hub

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The InternetInnovation Network

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“iHub.eu builds bridges to help regional and local actors to become global. We need to believe that Europe can be a place for business as good as any other continent

in the world”.

GROW SHARE

The Internet Innovation Network iHub.eu Values

INNOVATE

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1. About iHub.euiHub.eu is a network of incubators and accelerators, carefully selected out of the whole of Europe, who are dealing with future Internet technology.

We believe that the real value of such a pan-European network lies in the power of its community, which can only be achieved through sharing resources & good practices to help companies grow.

THE FUTURE INTERNET TECHNOLOGYiHub.eu is one of the projects in third phase of the Future Internet PPP program.* This phase is where 16 accelerators encourage SMEs, startups and web entrepreneurs to develop highly innovative services and applications, based on the Future Internet technology, called FIWARE.

iHub.eu is in charge of creating this network of innovation hubs, that help the existing accelerator program in ensuring the sustainability of the whole initiative.

*FI-PPP is a 5-year FP7 initiative with a global budget of >600M€. The programme outcome is called

FIWARE.Copyright @iHub.eu

What makes you an iHub:

◎ you are a physical hotspot◎ you bring together: web entrepreneurs, mentors, investors,

technology, developers & experts, public sector innovators and large industry representatives

◎ you are an accelerator: providing business development and backend services, as well as workspaces

◎ you are FIWARE savvy◎ you are connected: to special infrastructures like energy, smart city,

mobility, education, open data, 3D printing, testing, etc.◎ you are sensitive to grass-root movements◎ you have a legal entity for your iHub activities◎ you are willing to grow European and global.

We stress the value of the iHub.eu network being built primarily on quality, the incentive for hubs to join their forces in this network is to improve the quality. Therefore, a quality monitoring and audit system, was setup, called the stage gate process.

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1.1. The Stage Gate Process

Identify In order to be able to guarantee the fit with the iHub.eu network, new candidates go through an incubation stage gate process for identifying candidate hubs.

PlanThe incubation stage gate process has its inspiration in IEEE Future Directions Committee’s 3-year incubation plan for new themes aiming to be included as IEEE themes.

BudgetOur IIH stage gate cycle has budgeted only 18 months, but aims equally at the sustainable network of organically growing Internet Innovation Hubs.

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Stages of becoming a full-blowniHub.eu member

establish connections with the FI PPP

technology community

take actions to reach your community of

startups regarding the FI PPP program

build a new app/service into a prototype and presentable

business plan

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1.1. The Stage Gate ProcessAs iHub.eu is using this model to allow new hubs to become part of the network, it makes sense to adopt this approach to allow startups to be incubated at your local hub.

SELECTING THE BEST STARTUPS & SETTING CONCRETE MILESTONES to make it to the next stage, is definitely worth considering.

This way, you set a clear scene for your startups what the concrete objectives are to make it to the next point, which can be (further) investment, (further) coaching, participating in a demo day and so on.

It is important to set clear requirements and a clear timing. It is even more important to support the startups in achieving the objectives and meeting the required timeframe, by offering them the means to reach the objectives.

You can do this by providing dedicated mentorship and professional trainings. Copyright @iHub.eu

2.The Resources

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Open APIs for open-minds

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2.1. About FIWAREiHub.eu is a community which shares and supports hubs all across Europe to push technology into profitable services.

FIWARE IS HERE TO FACILITATE THE MOVE FORWARD.

FIWARE is an open software platform for the creation of innovative cloud-based applications and services. It provides both powerful and easy to use modules that allow developers to quickly and cost-effectively build their applications.

Development of context-aware applications, which connect to the Internet of Things, carry out real-time processing of data and content, perform Big Data analysis or incorporate advanced user interface capabilities has never been so easy, saving developers time and effort. FIWARE components provide APIs that are public and royalty free, supported by open-source reference implementations.

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“FIWARE is an open initiative aiming to create a

sustainable ecosystem to grasp the opportunities that will emerge with the new

wave of digitalization caused by the integration of recent Internet technologies.

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How to integrate FIWARE

In order to become part of the iHub.eu network, it is important to facilitate the adoption of FIWARE technology in your community.

FIWARE technology can namely help your startups prototype faster and scale their business because of (amongst others):◎ a single API to access all kinds of data sources◎ standardization of interoperability, for example in IOT◎ the prevention of vendor lock in, because it is a completely open and

standard based infrastructure that easily allows you to switch from one provider to another

◎ technology that is supported by large industry players and the European Union.

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“The Innovation Hubs play a key role in maintaining and ensuring the sustainability of the FIWARE initiative”.

FIWARE technology integrationStartups for example in the smart city industry, can reduce time to market and cost of acquisition because of the high adoption rate of fiware technology, since already 31 cities joined the protocol. It’s obvious that using the same protocol and standards, gives numerous benefits to startups looking at selling their solution to cities, if this solution is powered by fiware technology.

An Internet innovation hub can not be part of the iHub.eu network until it is willing to adopt FIWARE technology. Of course, iHub will support you in several ways and by all means, get you introduced in the FIWARE community.

We provide targeted and tailored trainings about FIWARE, the technologies (generic and specific enablers, APIs), use of open-source software, how to provide FIWARE locally, possibilities for the Hubs' SMEs and Start-Ups interested in creating their applications on the platform. Next to this, there is also access to infrastructure and platform, where these elements are available with known service level characteristics.

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FIWARE technology integration

Access

The iHub.eu network provides easy access to platforms and tools for testing and validating the business idea, prototype and the final product/service.

Community

These open infrastructures and platforms are available as part of FIWARE ecosystem across Europe.

Network

A number of A16 accelerators are part of the network. They know firsthand how to incubate and accelerate startups, that are using FIWARE technology as part of their solution.

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“I would learn about FIWARE because it’s an open solution, it’s open source, and it’s supported by main players in the industry

and the European Commission”.

2.2. Pan-European AcceleratorThe concept of a Pan European Accelerator is to not only help startups gain market traction locally, but introduce them to a European market, with the help of all the iHub members involved.

TOGETHER WE ARE STRONGER, which definitely counts if we want to incubate startups on future Internet technology. A startup is per definition born global. When a startup, incubated at a regional help, needs support in setting up there business on the other side of Europe, there is definitely another hub in the network, that can share additional support.

And this does not only count for incubation support, but also forSHARING BEST PRACTICES, SHARING MENTORS, SETTING UP JOINT ACTIVITIES and others.

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2.2. Pan-European AcceleratorThe existing network of iHub.eu consists of several members that scored high on the UBI Index in 2014. This gives an overview of the best university business incubators in the world. Needless to say that a lot can be learned from the hubs regarding their best practices.

Joining forces to set-up a European Accelerator program, is a next step is in this intensive collaboration. This accelerator exchange program, called STARGATE, will be the gateway for startups incubated at a local iHub.eu member to scale globally.

In an intensive 3 month program, focus will be on generating that extra mile of sales, pitching to large corporations and getting a touch and feel of other flourishing startup ecosystems in Europe, such as Berlin and London.

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“ We have one common goal, this goal is to identify, support, and especially grow the pioneers of the digital

economy in Europe”.

3.The Activities

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3.1. Physical locationStarting from scratch: CHOOSE A GOOD SPOT. This is, preferably, a natural crossing point for the targeted players in the ecosystem. Second best option is to be close to the most scarce domain in the ecosystem.

An absolute freedom in geographically positioning a new innovation hub is the best road to success. By nesting the hub in the middle of a thriving innovation ecosystem.

Without limitations like budget and availability, the physical location could be an impressive building. Easy to access and perfectly fit for the job as coworking and networking area.

In most cases, the freedom to choose a location is limited and tied together with the initiating entities. Within the available space, the optimal location should be targeted.

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3.1. Physical locationThe main goal in choosing the location is being on A NATURAL CROSSING FOR SEVERAL PARTS OF THE ECOSYSTEM.

If this is not possible, or still offers multiple options, another approach would be to be as close as possible to the most scarce part of the ecosystem.

The building has to allow all the relevant activities to be ran. Again, when total freedom is available, the building offers an open invitation to join different type of activities, ranging from networking to education and workshops. There should be room for incubation, hosting, different types of meetings and others.

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3.2. Organizational settingIt is in their best interest for a hub to have a SUSTAINABLE BUSINESS MODEL. But when reality comes in, we have to admit that only a small number of hubs actually manages in doing so.

The current status is that most initiatives are highly dependent on governmental funding. This is not something to worry about as it is crucial to have a government on board who actively supports these types of initiatives.

But after the set-up phase, one needs to look at more stable and long term cash flows. A number of options in doing so, are raising funds with investors or corporates, ask for startup equity, offer acceleration as a service or monitise the physical space.

It all comes down to FINDING A RECURRING REVENUE STREAM and most probably, the answer lies in a combination of the above.

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“The real value of the network is about the community itself. Every accelerator has itself a community around them, from mentors, business angels, start-ups, and other public-private initiatives. What we are doing is building up another

layer on top, so the real thing is about sharing”

3.3. ServicesIn order to make the innovation hub an inspiring pace, it needs a set of services to attract new startups but in the meantime, also maintain the established community.

A good way to start, is to make a list of services that you want to run. Then you can work towards two criteria:

◎ is this service a priority? Does it fill a certain need or is it a ‘nice to have’?

◎ are there enough resources to setup this service? And if no, is it easy to find them (for example through sponsors are co-organisation with partners)?

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3.3. ServicesA list of services can include:

◎ (free) office space

◎ monthly community meetups

◎ dedicated training programs

◎ internationalisation

◎ technological support

◎ dealflow

◎ legal advice

◎ marketing & communication services and the list can go on.

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3.3. ServicesKeep in mind that you can’t possible offer all the services you want, because of lack of resources or knowledge. It is therefore highly recommend to surround your hub with relevant partners, who can provide the support that your startups need.

Close partnership agreements with corporate partners, who offer additional support for startups. PARTNERSHIPS are really the most efficient way to build an interesting package of services for your startups.

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"Fiware provides access to a rich library of APIs, which means startups get access to free

technology that is easy to use. It's allows them to focus more on the business models and

business logic of the applications.”

What we offer:FIWARE ACCELERATION AS A SERVICE

◎ FIWARE technical support

◎ I&E coaching◎ Legal consultancy◎ Market research◎ Access to finance◎ Prototyping & Testing

FIWARE DATA

◎ FIWARE fosters open-data sharing

◎ Data collected, secured, anonymised and cleaned

◎ Static & dynamic use of FIWARE data

START-UP EXCHANGE

SOFT LANDING IN NEW MARKETS

CORPORATE/ SMART CITIES PARTNERSHIPS

IHUB COMMUNITY

◎ interactive platform

◎ events◎ hackathons

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Benefits for iHubs:◎ FIWAREness◎ Quality label◎ Expertise Exchange◎ International scalability◎ Access to tech-scouting◎ Access to funds◎ Partnerships◎ iHub Community

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4.The Network

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“An internet innovation hub can not be a single

entity in a landscape of innovation. On the contrary, it is crucial to establish a broadly

covered network of relevant players. Having an exceptional network, can make you an

exceptional incubator. Developing that network, starts with a good

look at the readily available players in the ecosystem.

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4.1. EIT DigitalThe starting point of the iHub.EU is the initial network of EIT Digital hubs in Budapest, Eindhoven, Helsinki, Madrid, Paris and Trento coinciding with the Nodes of EIT Digital, the Knowledge and Innovation Community (KIC) on information society of the European Institute of Innovations and Technology (EIT).

One of the main goals of the iHub.eu project is namely to foster deeper relations between the FIWARE initiative and EIT Digital.

EIT Digital is THE MAIN BODY FOR DRIVING IT INNOVATION IN EUROPE.

An important part of setting up your own internet innovation hubs ecosystem your relation with regional and international government. It is clearly shown that governments play a crucial role in setting up a strong and innovation driven economy. The impact of governmental policies are enabling the innovation opportunities in the long run.

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4.1. EIT DigitalGood contacts and working relations with, are an important part of the innovation hub. Governments are present on a wide range of levels. The differentiated approach to every specific level is needed., but not all levels will be as relevant for the local innovation ecosystem.

On a European level, contacts and involvement with governments and public institutions offer insights in the complex web of funding, support and project calls. The setting of an internet innovation hub is not an isolated entity. It's about reaching out to other hubs and actors around Europe.

Hubs that are part of the iHub.eu network, can benefit from the existing relations with the EIT Digital nodes. EIT Digital namely offers, in correspondence with their action lines, support to startups that are active in various domains.

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4.2. The ecosystemThere are a lot of answers to the question on how to segment an innovation ecosystem.

These guidelines use the same method as a the big ICT institutions within the European Commision: THE KNOWLEDGE TRIANGLE THAT CONJOINTS EDUCATION, RESEARCH AND BUSINESS.

This is in line with the European Institute of Innovation and Technology (EIT) and the Knowledge and Innovation Communities (KIC's) that operate under the mandate of this institute.

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EDUCATION BUSINESS

4.2. The ecosystem components

RESEARCH

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ALUMNI

Education is on the forefront of building the mindset of the next generation of people.

Research and early stage technological innovation, comes out of universities and their students.

4.2.1. Education

Contacts with educational institutions in the iHub’s region, are therefore crucial.

It makes sure it has access to the leaders of tomorrow and an introduction to entrepreneurship will help these young minds to have a closer look on what it means to be an entrepreneur.

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4.2.1. EducationOrganise events where different stakeholders can meet each other in order to guarantee a maximum exchange of experiences.Next to this, offering students the opportunity to do an internship in one of the startups, might even be a life changing experience.

As a successful incubator, you can also DRAW THE LINES FOR THE FUTURE OF EDUCATION. By framework agreements with schools and universities, the internet innovation hub can build yearly repeatable programmes or courses around entre- and intrapreneurship.

All activities that improve the cooperation between the educational ecosystem and the other domains are interesting.

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4.2.2. ResearchEstablishing good relations with the main research actors in your ecosystem, will definitely pay off in the long run. Not only your incubator will stay up to date, but more important, your startups can benefit from adding state of the art technology to their offering.

TECHNOLOGY TRANSFEROne way of transferring technology from research to the market, is the common way, namely establishing a spin-off and take your solution to the market. Another way is to reinforce existing startups with research outcomes.

Startups are major engines of economic development, yet they often lack research capacity to solve their key technical innovation challenges. A flipped tech transfer model, you can say.

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4.2.2. ResearchFor instance, universities cover all the stages, from in depth fundamental hypotheses to contract research with globally competing corporates.

The universities are also very close to the market and in particular through the people of which they helped developing their skill- and mindset. The transfer of people that are really skilled in research into the innovation ecosystem is a strong way to enforce the innovation capabilities.

THE COOPERATION BETWEEN THE BUSINESS SECTOR AND THE UNIVERSITY OFFERS STRONG LEARNING OPPORTUNITIES.

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4.2.3. BusinessA close collaboration with businesses is also one of the success drivers for innovation ecosystems. Success breathes success and young startups can learn a lot from former startups that managed to valorise their offer into a stable or fast growing business. Not only large large corporations bring added value, also SMEs are crucial for the establishment of a strong network.

It is crucial to FIND A WIN-WIN SITUATION WITH THE ENTERPRISES IN YOUR NETWORK. You can involve them as a sponsor, so this party gets first-hand knowledge about the startups in your portfolio, in order to offer them their services, preferably at a reduced cost.

Another way is to engage them in your ecosystem, is as a preferred partner, meaning they support your incubator and your startups with financial resources, advice, etc. while you provide them with the opportunity to co-invest in the technology of the future. Instead of building their own corporate incubator, they TRUST YOUR EXPERIENCE AND INVEST IN YOUR BEST PRACTICES.

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4.2.3. BusinessBeing able to count on good relationships with the business actors in your environment, significantly increases the opportunity to sell solutions from startups to (large) enterprises.

Another type of business worth mentioning, is the investment scene. The Internet innovation hub needs well developed contacts with actors in all the phases of entrepreneurial growth. This starts with pre-seed funding, seed funding and incubation resources. After those steps, the fueling of growth and acceleration needs specific funding systems.

Most venturing or investment funds operate in a small segment of the company lifecycle. The creation of a network across the chain, ensures an optimal situation when it comes to evolving from one phase to the next.

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The pay it forward mentality is strong on this one. Having a solid approach to keep on engaging your graduated companies, will definitely benefit you in the long run.

4.2.4. Alumni

They are your evangelists, for bringing new startups to your program, and your mentors for advising the current batch of startups.

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Final thoughts

With this handbook, iHub.eu wants to shed a light on how to start building an innovation hub in your area.

We hope it can serve as your guide and first aid, during the setup of the whole process.

The iHub.eu network currently consists of 24 members, who all went through the same phases, as you are about to do.

Consider this as a warm welcome to reach out to us to address all your questions.

WE ARE LOOKING FORWARD TO HEARING FROM YOU!

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Glossary of terms

A16: The 16 Accelerators in the FIWARE programCLC: Co-Location CenterDG Connect: European Commission Directorate General for Communications Networks,

Content & TechnologyEC: European CommissionEEIG: European Economic Interest GroupingEIT: European Institute of Innovation and TechnologyFI PPP: Future Internet Public Private PartnershipFP: Framework ProgrammeH2020: Horizon 2020 programmeKIC: Knowledge and Innovation CommunityUBI: University Business Incubator

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Sources

http://www.i3h.eu/https://www.eitdigital.eu/https://www.fiware.org/http://www.inits.at/en/inits-exceptional-business-incubator/https://www.iminds.be/en/gain-insights/iminds-insights/flipped-knowledge-transfer

“Accelerate now” Whitepaper by NUMAhttp://www.slideshare.net/NUMA_Share/numa-livre-blancforpresssinglepages-47763581?ref=http://europeanacceleratorsummit.numa.paris/

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