Encouraging and Advancing Innovation Health Research Alliance Meeting Alexandria, Virginia Sandra Miller, Kauffman Foundation, Kauffman Labs Every individual that we can inspire, that we can guide, that we can help to start a new company is vital to the future of our economic welfare. Ewing Kauffman Mission To help individuals attain economic independence by advancing educational achievement and entrepreneurial success. www.kauffman.org
Innovation Defined Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value. National Innovation Institute 3 Innovation an early definition Innovations are changes in production functions which cannot be decomposed into infinitesimal steps. Add as many mailcoaches as you please; you will never get a railroad by so doing. Economist Joseph Schumpeter From Innovation Measurement: Tracking the State of Innovation in the American Economy. A report to the Secretary of Commerce. January, 2008
Definition of a Startup an organization dedicated to creating something new under conditions of extreme uncertainty. Eric Ries From The Lean Startup 2011 Nothing Happens Without Founders an innovation, in and of itself, has little value without implementation Thomas J. Fogarty, MD Inductee, National Inventor s Hall of Fame, 2000 2007 by the Ewing Marion Kauffman Foundation. All rights reserved.
Where do new jobs come from? Where do new jobs come from? Business Dynamics Statistics Briefing. Jobs Created from Business Startups in the United States. January, 2009
New Firms and U.S. Economic Growth 600,000 new firms per year Of which 1,000 are high-growth Equaling 1/3 of total economic growth Or 1% growth each year $ 2007 by the Ewing Marion Kauffman Foundation. All rights reserved. Entrepreneurship and Risk 2007 by the Ewing Marion Kauffman Foundation. All rights reserved.
At the beginning, the risk of failure overwhelms all else. Can I afford to take this risk? What will happen if I fail? What will I lose? Many entrepreneurs see only the upside. I want to build something! Carl J. Schramm, The Entrepreneurial Imperative 2006 2007 by the Ewing Marion Kauffman Foundation. All rights reserved. Hiring people, firing people, understanding our business model, getting customers, servicing the customers, finding office space, scaling the company, staring down competitors, raising money, satisfying shareholders...that s all in the first six months. Jay Watkins, De Novo Ventures. The Hidden Legacy of a Founder s Early Decisions Kauffman Postdoc Workshop, October 2009
Decision Making as a Founder No baseline values or norms Conflicting constituencies Large number of decisions that need triage in a fast and dynamic environment Few interim measures of success or failure Exaggerated impact and power Poverty and high stakes Jay Watkins, De Novo Ventures. The Hidden Legacy of a Founder s Early Decisions Kauffman Postdoc Workshop, October 2009 A new model to catalyze founders of high-growth, scalable companies A School for Founders
Why is Kauffman Focusing on Postdocs? The critical role that scientists play in our economy is compromised because faculty, graduate students and postdocs do not have a base level understanding of commercialization to empower them to recognize and advance their own innovations. Lesa Mitchell, VP, Kauffman Advancing Innovation Postdoctoral Researchers a Quandary The Promise The Challenge
Innovation Ecosystem Open Collaborations Faculty-Firm-Not for Profit Consulting/ Sponsored Research Kauffman Entrepreneur Postdoctoral Fellowship Year full support Hours/week release time from bench Objective: train tomorrow s scientific founders
Networking Groups/Events Entrepreneurs Service Providers Kauffman Entrepreneur Postdoctoral Fellows Brigham & Women s Hospital Brown University Carnegie Mellon Duke Georgia Tech MIT Stanford UC Davis UC Irvine Univ of Florida Univ of Louisville Univ of Michigan * Univ Wisconsin-Madison * Funded by New Economy Initiative (Michigan) Kauffman Entrepreneur Postdoctoral Fellowship Program Fall 2009 Workshop
Reflexion Medical Sam Mazin (Stanford) & Akshay Nanduri, co-founders Using PET, delivers a high dose for better tumor control while sparing healthy tissue damage Clever seed financing model Kauffman Entrepreneur Postdoctoral Fellowship Program Fall 2009 Workshop Backyard Brains Tim Marzullo (U Michigan) & Greg Gage, co-founders Kits to teach neuroscience in school, DIY Bootstrapped to $500K SBIR 4+ new jobs created in Michigan! * Funded by New Economy Initiative (Michigan) Kauffman Entrepreneur Postdoctoral Fellowship Program Fall 2009 Workshop
Kauffman Postdoctoral Entrepreneur Fellowship Outcomes To Date 4 postdocs left companies (founder issues)
Kauffman Entrepreneur Postdoctoral Fellowship $
Kauffman Entrepreneur Postdoctoral Fellowship 2012 Postdocs 2.0 New approach to selection Mixed disciplines (business, design, etc.) Team-based Stage Gates Required engagement of faculty coinventors Kauffman Entrepreneur Postdoctoral Fellowship 2012 Postdocs 2.0 Seeking Partners - Get the word out - Strategic follow-on funding Interested? Please contact me.
New Models UNIVERSITY-BASED Proof of Concept Centers UNC Express License Model Increased Education & Awareness ESHIP ENGINES Incubators w/sustainability model TechStars & Y-Combinator > ImagineK12.org Co-Work Facilities RocketSpace, Hacker s Dojo, Dogpatch, The Hub StartUp Weekend.org Kauffman Resources www.entrepreneurship.org www.ibridgenetwork.org www.kauffman.org www.fasttrac.org
Mr. Kauffman s Principles: Treat others as you want to be treated, Share life's rewards with those who make them possible Give back to society Growing Economies, Expanding Human Welfare
BACK UP SLIDES, MISC. Which companies create the most value?
University Research and Economic Growth Entrepreneurship Innovation Productivity Growth Growth transforms yesterday's luxuries into better, cheaper, and more efficient goods and services Lead to longer, healthier lives University research is a key component for innovation The institutional infrastructure is inefficient Convoluted procedures and insufficient guidance Angel investors and venture capitalists increasingly invest in laterstage enterprises Researchers face difficulty finding early-stage funding Source: Audretsch, David, and Christine Gulbranson. Jan 2008. Proof of Concept Centers: Accelerating the Commercialization of University Innovation. The Kauffman Foundation (hereafter cited as Proof of Concept Centers)