Research on Sustainable Development Capacity of University Based Internet Industry Incubator Li ZHOU

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1 rd International Conference on Economics and Management (ICEM 2016) ISBN: Research on Sustainable Development Capacity of University Based Internet Industry Incubator Li ZHOU School of Economics and Management, Zhaoqing University City Zhaoqing, Guangdong Province, China Keywords: University-based, Internet industry, Incubator, Sustainable development. Abstract. Incubator must cultivate the ability of self-sustainable development. University-based internet industry incubator is designed to be a professional internet plus service provider, with pluralism of investors, diversification of construction modes and marketization of operation mechanism, to provide governments, enterprises and all traditional industries with internet plus technical service and thus build up an innovation and entrepreneurship biosphere. The mechanism of internet industry incubator in universities is to achieve interdisciplinary collaboration and provide industrial service, and finally explore the development route from scale incubation plus personnel training & transporting plus industrial upgrading one-stop service provider to incubator with sustainable development capacity of service integration and commercialization. Introduction As is put forward in the Recommendations for the 13th Five-Year Plan for Economic and Social Development, the strategy of strengthening the economy is implemented by the Internet, which means that the whole country will speed up the construction of a new generation of high-speed, mobile, safe and widespread information infrastructure, expand the economic space of the internet, and develop the technology and application of internet of Things (IOT). Based on infrastructure construction, further innovation is to develop the sharing economy, enhance the integrated development of the internet and economic society, and promote the innovation of industrial organization, business mode, supply chain and logistics chain. More resources will be allocated to support all kinds of innovation based on the internet. In the adjustment of industrial structure and development of service industry, the whole country keeps striving to develop internet economy towards the key direction of promoting fusion development among internet technology and modern financial sector, modern service sector, advanced manufacturing industry, and modern agriculture. Implementing the strategy of strengthening the country by the internet will increase the growth of internet industry and achieve the collaborative and innovative upgrade of both the internet and traditional industry. Making efforts to expand the application of internet technology has become one of the important ways of industrial innovation. University-based internet industry incubator plays a significant role in the progression of industrial transformation and upgrading. With the complete development strength, the ability of personnel training and transferring and teachers and students participation, internet industry incubator in university is the backbone to achieve the scale of traditional industry plus internet and boost the industry transformation and upgrading. Providing governments, enterprises and all industries with internet plus technical service is the core work and duty of internet industry incubator. To become professional internet plus service provider and build up an innovation and entrepreneurship biosphere are the final goals of its future development.

2 Literature Review Sustainable development has become a key issue of the researches on incubator, because at present, even the commonweal incubators mainly invested by government institutions stress the importance of enterprise management and market-oriented operation. [1] Thomas O Neal carried out a detailed analysis of all the resources and operations that incubator needs by using a successful incubator case. [2] In terms of improving the operating efficiency and resolving the sustainability of incubator, as a modern service sector, it is necessary to study its business mode, although it has the nature of public welfare. [3] After investigating and surveying 300 incubators all over the world, Christian Lenddner & Michael Dowling discovered that incubators are promoting the transformation of scientific and technological achievements, fostering high-tech enterprises and entrepreneurial science and technology services, which have become an important part of the national innovation system and an important core of regional innovation system. [4]External network tie has a great effect on promoting the development of start-up enterprises and is the key element of incubators operation. Anna Bergek and other scholars studied the operation of 16 incubators in Switzerland. They came up with an approach to achieve sustainable development of incubator with consideration of the purpose of incubator s operation and the service mode it provides for incubating enterprises. [5] From the perspective of commercial mode, Liang Yunzhi and Si Chunlin analyzed the operation characteristics, trying to state the commercial logic and incubator on venture of valuable resources. They made an empirical analysis with 30 cases in City Shanghai and pointed out that incubator sustainable development of ideal mode is to form innovation ecological system and fruitful venture promoting. [6] Using the production theory of value cooperation, Yin Qun explained the relationship between incubator and enterprises in incubator, how incubator properly allocates resources to enterprises, how enterprises use resources provided by incubator and made a conclusion that enterprises can achieve value-added goal by the incubation of incubator. [7] Liang Lin, Zhang Zhixiang analyzed the major problems existed in the development of incubators dominated by our government. According to the development and experience of incubator in America, they assumed that the key to successful operation of incubator is to set up modern enterprise system of multiple investors and to build an appropriate profit pattern. [8] Li Na analyzed many cases of Tianjin and pointed out that the constitute elements of incubator s business mode can be divided into three dimensions: value proposition, value creation and value realization. The key to sustainable and profitable operation of incubator is to set up an appropriate business mode based on its own characteristics. [9] Wang Hongwei and other scholars carried out a case analysis of incubator s operation pattern in They believed that the main investor has transformed from government to enterprise and the operation pattern has gradually changed from business to entrepreneurship and marketization operation. [10] Main Approaches to Realize the Sustainable Development 1. Technical service of the traditional industry Incubator is committed to building up an intelligent development of e-commerce as driver for new mode and new format of e-commerce. And the function also serves as a communication platform for both internet technology and traditional industries and a base for development and service of high-level talents in e-commerce. Meanwhile, incubator provides open environment for collaborative innovation since the types of its industrial technical service are varied. For example, with the growing integration of the global economy, supply chain management has become an international economic and trade activities in the required supporting links. And in recent years, the rapid development of technology also makes supply chain management efficiency greatly improved, since the supply chain 2

3 service providers using mobile computing, printing and global positioning system (GPS) technology can save time and energy to improve their service quality by a large margin. Another example is the collaborative work between online and offline parties, the docking work between both parties and the analysis and forecast of industry data provide all industries with processing service of big data (data cleaning, data statistics, data mining, potential business mining, potential customer mining, accurate delivery of commodity and data selling), which greatly increases the technical exchange. The crossover fusion of technologies such as 3D printing, healthy lighting, internet plus and super-computing application constantly improves the level and space for innovation and entrepreneurship. The internet industry incubator integrates the key technologies of IOT include application of IOT technologies in manufacturing sector, the specific content of radio frequency identification technology, sensors and machinery vision technology, data transmission and real-time location system applications in the manufacturing industry. The specific contents of IOT technology, network transmission technology, positioning technologies and internet of cloud computing are widely used and popularized. As shown in Figure 1. collaborative research and development emerging formats intelligent production smart city industrial output internet technology supply chain management cross-industry chain integration IOT core technology links vague industrial boundary industrial chain overlap industrial convergence new industries industrial innovation Figure 1. Schematic of the Technical Service of internet Industry Incubator in Universities. 2. Talent cultivation for internet industry Confronted with the large demand of internet plus talents, the other function of internet incubator is to adopt curriculum production plus talent training, implement the industrial talent training business pointedly, supply industrial talents with internet plus ability for all industries and provide external industrial talent training and output service for enterprises, commercial corporations and third-party service companies, according to the practical development and operation of industrial projects, in order to offer the service of deign and development and data operation of e-commerce solution and the service of talent training for traditional enterprises based on the scenario and supply chain theory. First, the innovation-driven and restructuring features of internet plus determine that the process of talent cultivation is the synergy process of industrial project and talents which depends on the industrial project of commercial corporation (all industries, new form of industries traditional

4 enterprises based on the internet upgrade and reform, the e-commerce platform, etc.) guides the talent cultivation (academic requirement, experience requirement in application field and requirement of knowledge structure are included) with the demand of all industrial projects as motivation. Second, entrepreneurship mentors refer to industry experts, successful people, academics as advisers to the entrepreneurs in the process of establishing and developing enterprises, they are people who really believe, care and help entrepreneurs. Entrepreneurship instructors provides one-on-one counseling, helping internet entrepreneurs to optimize the commercial mode, and analyze opponents in market competition, or like partners in venture road to face the risks together. These kind of venture mentors have a wealthy experience and extensive network of resources, unique perspective and insight, which is the guarantee for successful entrepreneurship. Third, training courses from internet service products development, users experience, the means of promotion and financing channel, again equipped with venture media, constitute for entrepreneurs one-stop service of venture ecological circle. Incubators also agglomerate Angel investors to invest in enterprises with team strength and correct entrepreneurial directions. As shown in Figure 2. Figure 2. Industrial Talent Cultivation and of Internet Industry Incubator in Universities. 3. Curriculum design and implementation for innovation of internet industry The internet plus curriculum design develops special course content and curriculum for both enterprise-learning and e-learning. The university-based incubator delivers professional development for internet technology-based programs. Teachers are instruction and curriculum development specialists who bring the very best in teaching, action learning, and technology application to internet-entrepreneurship students. The university-based incubator also helps educators and e-learning companies to improve the internet plus curriculum, create uniformity across the curriculum and practice, correlate to international and state learning standards, and make a significant impact in the field of action learning during the process of internet entrepreneurship. Open Ecosystem is a significant feature of internet plus curriculum since open is dynamic, and the curriculum design and implementation of internet industrialization center are dynamic too. To design the curriculum with on-demand innovation and progressive spiral increase, the curriculum innovation designers keep on revising and adjusting the plan accompanied by business experience accumulated from the industrial projects carried out by commercial corporations or implements the curriculum by taking part in practical industrial projects. For example, constructionist is widely used as a paradigm for teaching and learning, especially in micro-lectures design and implementation of internet industry incubator in universities, in which online learning and mobile learning are 4

5 commonly used as important means to develop, implement and evaluate teaching content. As shown in Figure 3. E Ideas Micro Lectures APP E Entrepreneurship E Learning Figure 3. Micro Lecture Design and Implementation of Internet Industry Incubator in Universities. 4. Capitalized operation of university-based internet industry incubator Internet industry incubator gathers the powerful financial support from the venture capital firms to invest directly in the construction of carriers for internet industry incubation, which realizes the whole layout of internet industrial development and the industrialization of series of research and development achievements surrounding the internet industrial chain. Meanwhile, internet industry incubator in the universities also offers supporting system of capital aggregation to accelerate the circulation in venture investment activities during the process of internet technology innovation and transformation. The capitalized operation of university-based internet industry incubator keeps on realizing the constant value increment of venture capital during the development of internet industry. Entry and withdrawal mechanism of capital market makes venture company gain financial support while the investors are rewarded. Venture investment institution invests or involves in internet industry development, which forms the development drive mode of deep integration of internet industry and finance and effectively reduces the difficulties and risks in internet entrepreneurship. Summary Incubator must form the ability of self-sustainable development. The successful operation of university-based internet industry incubators needs two premises: first, the reasonable structure to determine the incentive mechanism; second, an excellent operating team to determine the quality of service. Business mode determines the logic of sustainable development of an internet incubator. Incubator can provide clients with value and partner network and core capacity of the company, as well as the elements which help to realize this value and gain sustainable profits. If the internet incubator is supposed to provide start-up enterprise with perfect start-up incubator service, then a business mode which is suitable for survival and development of the enterprise with mutual match of all the elements should be chosen. The reason why sustainable problem is very crucial to the internet incubator research is that public-good incubator emphasizes the commercialized management and the marketability operation. There are also more and more internet incubators of commercialized operation. To offer better service for entrepreneurs and start-up internet enterprises, both for-profit and non-profit incubators have pressure to survive, especially the pressure to expand sources of income. Therefore, at this stage, to solve the sustainable problem of internet incubator, the management is no longer at operation level but rises to the level of whole business model. The support of government resources alone cannot cultivate the core competitiveness itself. internet incubator still goes to the market and has profitability ultimately. Only by making a combination of operation and profitability of the can internet incubator attract more investors and management personnel with high quality, arouse the initiative of investors and operators and deepen the incubation service for new internet ventures.

6 References [1] Yong feng, Shen Yuelin, Zhu Zhiqing, Development and Mode Discussion of Technology Business Mode, Focus on Technology Incubator in Hangzhou, 3 (2004) [2] Thomas O neal, Evolving a Successful University-based Incubator, Engineering Management Journal, 3 (2005) [3] Shi Quan, Zhao Liming, Improving the Profitability is the Only Way to Incubator Development in Technology Enterprise in China, Productivity Research, 12 (2006) [4] Christian Lenddner, Michael Dowling, the Organizational Structure of University Business Incubators and Their Impact on the Success of Starts-up, Entrepreneurship and Innovation Management, 7 (2007) 6-9. [5] Anna Bergek & Charlotte Norrman, Incubator best Practice: A frame- work, Technovation, 28 (2008) [6] Liang Yunzhi, Si Chunlin, Study on the Incubator Business Mode: Theory Structure and Empirical Analysis, Research and Development Management, 1 (2010) [7] Yin Qun, Business Incubator and Self-innovation, Science Press, Beijing, [8] Liang Lin, Zhang Zhixiang, Study on Profitability of Business Incubator, Science-Technology and Management, 4 (2010) [9] Li Na, Study on the Business Model of Incubator Based on Case Studies in Tianjing, Tianjing University of Finance and Economics, [10] Wang Hongwei, Lin Dechang, Yang Jiankang, A Study on the Innovation of Operational Model of Technology Business Model, Science and Technology Management Research, 16 (2012)

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