HIGH-TECH ENTREPRENEURS
Definitions of High-Tech Entrepreneur
Characteristics of High-Technology
Entrepreneur
A Typology of High-Tech Organizations
Technologist-Entrepreneurs versus Non-
Entrepreneurial Technologists
Technology & Development
Technology Transfer & Technology
Transfer Risk
Technology Park
A Case Study of Entrepreneurial Software
Developing Companies in Bangladesh
Definition of High-Tech Entrepreneur
The US Bureau of Labor Statistics
– on similar criteria classifying firms of any industry with
twice the number of technical employees & double the
R&D outlays of the US average as high-technology firm
Mar, Newell & Saxberg’s (1985)
– the high-tech firms work in a turbulent environment
where technology is changing rapidly & to cope with
that situation the firms need technology oriented human
resource (humanware).
Other authors
– All or part of the products or services are based on
recent innovations or new technologies
– Short product life cycle due to rapid changes in
technology
– Scarcity of human resources familiar with the
technologies
– Turbulent environment characterized by realignment of
competitors, changing customers needs, changing
regulations, new competing products & so on
Definition of High-Tech Entrepreneur (Cont.)
McKenna (1985) pointed to the vulnerability of
product & market situation & emphasized criteria
such as
– complex products,
– large numbers of entrepreneurial competitors,
– customers confusion, &
– rapid change of technology in a high-tech firm.
Sanklin et al. (1985)
– A strong scientific/technical basis
– New technology can obsolete old technology rapidly
– Appearance of new technologies in the stream & their
applications create or revolutionize demand
Characteristics of High-Tech Firms or Entrepreneurs
Product & process sophistication
Research & Development (R & D)
Technical employees
Fast rate of growth
Other characteristics of high-tech firms:
Scarcity of human resources familiar with the
technologies
All or parts of the products which are based on the
recent innovations or new technologies
A worldwide product for its market
New technology that makes existing technology
obsolete very quickly
Turbulent environment characterized by
realignment of competitors, changing customers
needs, changing regulations, new competing
products, etc.
A Typology of High-Tech Organizations
Category Embryonic Startup Growth Mature/
Characteristics Multiline
Strategy Focus Focus Differentiation Cost Leader,
Market Breadth
Leadership Owner/Founder Owner/Founder Technical Professional
/Manager Experts Managers
Hierarchical Autonomous Linked Work Functional Divisional
Complexity Work Groups Groups Specialization Structure
Incentives Stock Stock Salary/Bonus Salary/Bonus
Type of R & D Product Product Product/ Product/
Process Process
Innovation High High Moderate Low
Formalization Informal Informal Formalized Formalized
Centralization Decentralized Decentralized Centralized Decentralized
Technologist-Entrepreneurs versus Non-
Entrepreneurial Technologists
Entrepreneurial motivations can be divided
Into four groups
Internal personal motivations
(Technologist-entrepreneurs)
Exploitation of environmental
opportunities (Non-entrepreneurial
technologists)
Technology push motivations (No
difference)
Market pull motivations (No difference)
Entrepreneurial Motivational Items
Perceived customer needs or deficiencies in existing products
Own professional skills, talents, & experience in the field
Desire to develop one’s own ideas
Good marketing opportunities for the product
Cutting edge technological know-how
New product idea
Desire to find a work which better meets personal demands
Attempt to raise one’s income level
Attempt to achieve a better working atmosphere
Personal achievement motivation
Good personal contacts established at work
Good contacts to establish the management team
Proximity of a university or a research institute
Technological idea developed in work
Desire to prove own ability to establish a new firm
Small financial risk
Frustration with previous work situation
Encouraging examples of successful new firms
Establishment of a science park close to the research institute
Suitable person available to act as president of the firm
General attitude becoming more favorable toward entrepreneurship
Personal contacts in home country & abroad
New production method
Encouragement received from a friend
Possibility to use the facilities of the university or research institute
Advice received from some external organization
Relatives or family members act as entrepreneurs
Available financing, for example, promises of loans
Difficulties in exploiting a patent in other ways
Good Availability of workforce
Available housing facilities for production
Campaigns aimed at encouraging entrepreneurship
Acquired rights for an invention developed at work
Unemployment or threat of becoming unemployed
Product idea from outside the management team
Preparing a business plan, for example, as study assignment
Access to raw materials
Technology Transfer
Economies Developed countries Developing countries
Developed No unique technology Mostly obsolete &
countries secondary technology
but important for
developing countries
to start.
Developing Brain drain, Rare Low level of
countries things (antique) technology, e.g.,
which are not Technology transfer
available in developed through TCDC, South-
countries, e.g., black South Cooperation,
& white television. etc.
How Technology is transferred?
Market-Oriented Non Market-Oriented
mechanisms mechanisms
Purchases of plant, equipment Books, academic journals,
& products business magazines, etc.
Direct foreign investment Sales literature
Joint ventures Technical information services
Technical collaboration (e.g., Industrial fairs & exhibitions
Licensing, Technical agreements, Informal personal contracts
Engineering & construction Participation in conferences,
agreements).
seminars & workshops
Subcontracting
Training
Turnkey contract
Product-in-hand contracts
Management contracts
Product sharing
Joint research ventures
Expert services
Technology Park
Technology park is a vehicle of technology
transfer & technological development.
Technology park is a particular space where the
various phases of the whole innovation process
are located.
Technology parks are transferring technology
through means, such as, innovation process,
technology advancement, education & training,
information gathering, patenting & licensing,
entrepreneurial services, commercial promotion,
financing, etc.
Technology park can enhance the diffusion of new
technologies, setting up of the companies &
upgrading the whole industrial structure through
technology transfer.
Technology Park (Cont.)
Various phases to commercialize the
innovation outputs
– Innovation process
– Services provided to carry out the innovation
process
– Locational advantages
The phases of innovation processes
– Basic research
– Industrial research
– Product and process development
– Early prototype or pilot plant
– Interim manufacture
– Full manufacture
– Commercialization
Technology Park (Cont.)
Services to carry out the innovative
activities
– Education & training
– Information
– Patent & licensing
– Entrepreneurial services
– Commercial promotion
– Financing & venture capital
Technology Park (Cont.)
The location criteria
– The scientific and technical infrastructure,
mainly universities and research centers
– The existing industrial or economic base and
the presence of some high-tech companies or
conventional companies which have a demand
for high-tech products and systems
– Quality of life, which is related to transport and
communication, networks, cultural activities,
education and health services, and
environmental integration.
– Labor skills and productivity level
– A financial structure ready to support venture-
capital operations and to finance start-up
companies
– Access to regional and international markets
Typology of Technology Parks
Research-oriented technology parks
Science parks
Technology parks/Technopoles
Innovation center
Research center
Innovation Plaza
Business-oriented technology parks
Business incubators
Business parks
Industrial parks
Linking Research to Business Development
Research Development
High Science park
Medium Innovation Center
Low Business Incubation
Business Development
Low Medium High
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Business To help (business support Employment/
Incubator services) small business to creation of jobs
start up in the most favorable Training
environment Clerical &
Business development is administrative help
priority Business assistance
Minimum entry capital is
Information
required
gathering
Is useful with the priority of
business development while
research applications are
secondary
Growing infant companies
are house here.
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Business Growing companies are Business support
Park housed here services
Focus is on good Interactions
environment of office, Information
light manufacturing and exchange
business support services
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Industrial Mature and declining Support services
Park companies are housed Information
here exchange and
Associated with interactions.
traditional production.
Service and distribution
system
Not well suited to a wide
range of high technology
activities
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Technopole Basic research Cross-fertilization:
/Technology Industrial research Education &
park Product and process Training
development Exchange
Early prototype or pilot information
plant Exchange of skills
Interim manufacture & competence
Full manufacture Patenting &
Commercialization licensing
Entrepreneurial
services
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Innovation Provide facilities to enable Job creation
Center start-up and small business to Interaction between
develop ideas. research and business
A dynamic relation is community
attempted with research Technology scans
results from universities or Information
government facilities exchange
matched with entrepreneurs
who may be able to
commercialize product, ideas
or process from this research
Does not provide
accommodation to those
business which once have
grown
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Research Concentrate on basic and Joint research
Park applied researches ventures
Extend research only Interactions
until the production of
prototypes
Prohibited manufacturing
activities
Activities of Technology Park and Means of
Technology Transfer
Technology Activities/Particulars Technology
parks Transfer Means
Innovation More flexible infrastructures Joint research
Plaza both as direct provides of Expert services
services and as coordinators U-I interactions
(system integrators) of
existing, specialized
infrastructures
Low level of fixed resources
and hence by a high capacity
to adapt to sudden changes in
the environmental context
Aim is promoting technology
transfer from universities and
other research centers to
small and medium enterprises
(SMEs).