Entrepreneurial ecosystem and business opportunities: some reflections about the Spanish Case

Entrepreneurial ecosystem and business opportunities: some

reflections about the Spanish Case

Dr. Sergio Ramos COST Action IS1202 – Dynamics of Virtual Work

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Research colloquium of the Institute of Management and Regional Economics at HSLU - Lucerne University of Applied Sciences and Art

Luzern (Switzerland), 19 August 2014

The present document contents a summary of main ideas and findings from a research work in progress conducted by Dr. Sergio Ramos (Spanish University of Distance Learning) and Professor Claudio Feijóo (Technical University of Madrid). Given the outcomes would be part of different research papers, we kindly ask you to treat them with the necessary confidentiality. In addition, the Authors kindly ask you to cite the present document when appropriate. Therefore, any use, disclosure, distribution and / or reproduction of the document and its contents outside the framework of collaboration between the Authors and the HSLU needs specific permission from the Authors. If you have received this document by mistake, please notify us at the following email addresses: [email protected]; [email protected]

2 Entrepreneurial ecosystem and business opportunities: some reflections about the Spanish Case

Disclaimer

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Domains of the Entrepreneurship Ecosystem

Entrepreneurial ecosystem and business opportunities: some reflections about the Spanish Case

Source: Daniel Isenberg at Babson College. See more detailed explana8on at h:p://www.forbes.com/sites/danisenberg/2011/05/25/introducing-‐the-‐entrepreneurship-‐ecosystem-‐four-‐defining-‐characteris8cs/

Reflections on entrepreneurial ecosystem creation

Policy Finance Culture Support Human Capital Markets

ICT entrepreneurial potential in Spain

Situation Analysis Opportunities

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Domains of the Entrepreneurship Ecosystem (II)


Policy

•  Despite the difficulties and financial constraints, the scientific production grows, and Spain enjoys a real potential in its technology-based human capital.

•  The economic weight that Spain has in the whole EU-27 and OECD is not matched by a similar weight in its R & D spending, much less the weight of the results of this R & D.

•  There is space to create the necessary conditions to favor all parts of the entrepreneurial ecosystem able to extract the potential of human capital in Spain.

Situation Analysis

Opportunities

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-1,4%

2011 2012

Spain GDP at current prices

•  Spain: R+D public funds à 1,39% PIB •  South Korea: 3,74% •  Japan: 3,26% •  USA: 2,83% •  … OECD: 2,38%

2010 2011

R+D workers in Spain

•  Talent leaving the country -3,1%

2010 2011

Scientific articles

•  Leading country in terms of scientific output in form of articles

+7,3%

2000 2010

% triadic patents (compared to World total)

•  Germany, France and UK amount 19,4% of total number of patents

Spain- IMD Ranking 2012

39

Funding for technology development

47

Technological co-operation

44

University-Firms knowledge transference

44

Education system competitiveness

6

Availability of Qualified engineers

1,64k 1,05k

222k 215k

66k 71k

0,32 0,49 +53%


•  The ecosystem of funding for entrepreneurs is consolidated in Spain and has agents in all stages of development of a startup.

•  The presence of the public sector has been growing in recent years, seeking alternative means to market themselves (ex. Co-funding)

•  Almost no investment in idea and pre-seed stage projects à very high risk

•  Limited number of transactions per year à Are there enough projects?

•  Addressing the needs in the pre-seed stage is critical to increase the number of projects.

•  Reinventing FFF could : crowd funding partners. •  Need to develop the concept of startup

accountability to support investment

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Finance

-17%

2011 2012

New raised funds

•  VCs: 239 M€ •  Public institutions: 209 M€ •  CDTI: 100 M€ •  International: 1.576 M€

2.438 M€

2.024M€

•  Transactions under control of 188 VCs operating in Spain in 2012 (181 in 2011).

•  17 Public VCs + CDTI + ENISA •  88% transaction less than 1M€. •  4,8% investment in early stagesà 0,5%

seed

55% transactions in early stage tech

copmanies

2012

•  230 M€ inversión en etapas iniciales (semilla, startup, otras) à VC+aceleradoras+BA+ENISA

•  99 proyectos financiados en fase inicial (88 seed).

•  Concentración de las operaciones (Cabiedes, SC Bizkaia)

Situation Analysis

Opportunities


•  There are great examples of Spanish entrepreneurs and startups in recent years.

•  Interest for this activity is rapidly growing, and has extensive broadcast media coverage.

•  It is part of the political agenda (still timidly).

•  Failure is not perceived as an asset. •  Entrepreneurship is a luxury for many,

inaccessible to other •  Social hype?

•  The need for reinvention for certain groups (ex. creative industries professionals) can support talent attraction towards entrepreneurship.

•  Education, communication, promotion Awareness

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Culture

Situation Analysis

Opportunities


•  Rise of programs and initiatives in the last 3 years.

•  Increasing number of firms committed to entrepreneurial activities as part of their business strategy.

•  Direct involvement of top business schools, able to create entrepreneurial ecosystems

•  Only a minority can access to these opportunities (ex. business school circuit or accelerator to incubator).

•  Low presence in public universities. •  Lack of sectoral specialization. •  Copy without adapting good practices Silicon

Valley is not the way.

•  Specialization in sectors, to create specific ecosystems (ex. Repsol)

•  Connection with the university system and postgraduate education programs.

•  Betting on the technical and creative profiles.

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Supports

Number of accelerators/incubators in Spain

38

Situation Analysis

Opportunities


•  University graduates have better job prospects than non-graduates.

•  Technical profiles formed in public Universities are recognized internationally.

•  International centers of excellence in business education.

•  We produce many scientific publications, but there is little technology transfer.

•  Talent is not used by the productive sector. Not all Universities are equal.

•  Lack of training in entrepreneurship in the University system.

•  Investing in creating the conditions for awakening the hidden talent of our graduates and postgraduates (25-55 years).

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Human Capital

Unemployment rate postgraduates (2012)

12% 5%

EU

5%

Spain OECD

50% Scientific production leaded by 18 Universities, that amount 36% of total students in Spain

75% Scientific production comes from Universities

13% Patents come from Universities

Situation Analysis

Opportunities


•  The focus on results, market testing and metrics is becoming the norm.

•  Risk of a new bubble and overvalued expectations.

•  Startup accountability and transparency as core values.

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Markets

Situation Analysis

Opportunities


11 Entrepreneurial ecosystem and business opportunities: some reflections about the Spanish Case

Identified opportunity:

Idea transformation from scratch to

prototype

§  Concentrating efforts and resources on increasing the number of potential entrepreneurs (HUMAN CAPITAL) through education, mentoring and bootstrapping.

§  Defining an acceleration program that guides new entrepreneurs to the next stage.

§  Connecting (gradually) the Human Capital with the rest of elements of the ecosystem

How?

Reflections on opportunities in Spain

Entrepreneurial ecosystem and business opportunities: some reflections about the Spanish Case

Documents

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