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Chapter

Introduction to
Technopreneurship

McGraw-Hill/Irwin
Entrepreneurship, 7/e

Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Development of Technopreneurship (1 of 2)

Earliest Period
Entrepreneurs would sign contracts with a money
person.
Example: Marco Polo established trade routes
Middle Ages
Entrepreneurs were actors and people who managed
large production projects. They did not take risks, but
managed the project with the resources provided.
17th Century
Entrepreneurs entered into business contract
arrangements with the government and any profits
or losses bear by the entrepreneur.
Example: Mississippi Company

Development of Technopreneurship
(2 of 2)
18th

Century

With

global industrialization taking place, technopreneurs


were distinguished from capital providers.
Inventions developed during this time were reactions to the
changing world.
Example: Thomas Edison
19th

and 20th Centuries

Technoreneurs

were not distinguished from managers.


They were viewed mostly from an economic perspective.
Concept

part.

of innovation and newness was an integral

Example:

Andrew Carnegie developed American steel


industry through competitiveness i.e. low cost, quality.

Definition of Technopreneurs Today


Technopreneurship

is the process of
creating something new and assuming
the risks and rewards.

Four

aspects of being an Technopreneur today:

Involves

creation process.
Requires devotion of time and effort.
Involves rewards of being an entrepreneur.
Requires assumption of necessary risks.

Technopreneurs Versus Inventors


Inventor:

Creates something for the first time; highly


driven and motivated by his or her own work and
personal ideas.
Differentiating characteristics of an inventor:
Highly Educated.
High level of experience.
Problem-solving skills.
Level of self-confidence.
Willingness to take risks.
Ability to tolerate ambiguity and uncertainty.
View of monetary benefits in measuring success.

The Technopreneurial Process


Four

distinct phases:

Identify

and evaluate the opportunity.

Window

of opportunity the time period


available for creating the new venture. Need
to determine the risks and rewards and fit
the personal skills and goals.

Develop

a business plan.
Determine the resource requirement.
Manage the resulting enterprise.

Aspects of the Technopreneurial Process

<<Insert Table 1.1>>

Table 1.1

Types of Start-Ups
Lifestyle
Privately

firm
held; usually achieves only modest growth.

Foundation

company

Created

from research and development.


Lays the foundation for a new business area.
High-potential
Receives

venture

the greatest investment interest and

publicity.
Starts out like a foundation company, but attains
rapid growth.
Also called gazelles, is integral to the economic
development of an area.

Role of Technopreneurship in
Economic Development

Innovation is depicted as a key to economic development.


Product-evolution process: Process through which
innovation is developed and commercialized.
Iterative synthesis (intersection of knowledge and
social need that start the product development
process): Critical point in the product-evolution
process.

Three types of innovation:


Ordinary innovation little uniqueness/technological change
Technological innovation new product with significant
technological advancement
Breakthrough new product that will set a new platform for
future advancement.

Product Evolution

Need Recognition

Initiate Innovation

Industrial

Development

Press to Invent

Government as an Innovator
One

channel for commercializing the results of the


synthesis of social need and technology.
Frequently called technology transfer.

Relatively

few innovations reach commercial markets.


Lacks business skills necessary for successful
commercialization.
Government bureaucracy and red tape act as
inhibitors.

Corporate Technopreneurship
Strengths

of an existing business:
Financial resources.
Business skills.
Marketing and distribution systems.

Factors

that inhibit (restrict) successful


commercialization:
Bureaucratic structure.
Emphasis on short-term profits.
A highly structured organization.

In

the current era of hypercompetition, strategic


business units (SBUs) - intrapreneurial are emerging .

Independent Technopreneurship
Factors

that inhibit commercialization:

Lacking

Managerial skills, Marketing capabilities,


Financial resources.
Unrealistic inventions.
Lack of awareness/negotiation skills on interfacing
with necessary entities (banks, suppliers,
customers, venture capitalists, distributors, and
advertising agencies).

Ethics and Social Responsibility


Technopreneurs

usually develop an internal

ethical code.
Personal

value systems tend to be influenced

by:
Peer

pressure.
General social norms in the community.
Pressures from their competitors.

Future
Technopreneurship

has gained
mileage through a number of
ways:
Entrepreneurial

education.
Increase in academic research.
Societal support (media coverage).
Corporate entrepreneurship.

Entrepreneurial Universities
Activities
Seminars
Consulting
Research
Case

Development
Technology
Development &
Transfer
Joint Ventures &
Strategic Alliances

Structures
Business Assistance Centers
Incubators
Innovation Centers
Industrial Parks
Enterprise Development
Centers
Venture Capital Exchanges

Inputs

Guest Lectures
Board of Advisors/Trustees
Internships
Student Projects
Source of Funds

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