Venture capital firms Tech blogs and mag -azines Decentralized Cluster governance High entry barriers (technological skills
messages about marketing (such as Startup Marketing53-),venture capital (such as The Startup Lawyer54), or technology news (such as The next Web55), to name a few examples
Finally, venture capital can also be considered as an enabler in relation to the community of developers and entrepreneurs.
The venture capital fund earns money by owning equity in the companies it invests in. There are
many venture capital firms, many of which usually invest in technology start-ups. Accel Partners64, Founders Fund65, and Greylock Partners66 are only a few examples in the United states
according to CB Insights (2014), 2013 was a big year of venture investments at the seed stage.
prototyping, intensive handholding by venture capital companies, and the use of rigorous milestones against which funds are released.
-sidy of technology and private investment in incubators, venture capital, and start -ups. The equivalent potential supports for
venture units (like Nokia; some grow through acquisition of other innovative companies as well as their own innovation (Cisco for example;
ï oe) more visible performance to the relevant audience (peers, labour market, and venture capital community 2) higher impact of eï €ort on performance
benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business
based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business
benchmarks each economy†s performance on the indicators against that of all other economies in the Doing
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator.
benchmarks for assessing the efficiency of contract enforcement in Spain Figure 10.1 How Spain and comparator economies rank on the ease of enforcing contracts
benchmarks for assessing the efficiency of insolvency proceedings in Spain Figure 11.1 How Spain and comparator economies rank on the ease of resolving insolvency
the distance to frontier score benchmarks economies with respect to regulatory best practice showing the absolute distance to the best performance
Bethnal Green Ventures and Waag Society in Amsterdam work on setting up and hosting one of Europe†s
Bethnal Green Ventures Hosting and managing maker spaces and hacker spaces Fablab Amsterdam (hosted by Waag Society
and grow their venture. To address this, a number of incubators and accelerators have emerged, who invest in †tech for good†projects, typically in exchange for
Bethnal Green Ventures in the UK, who support early stage technology start-ups who are tackling a social or environmental problem with £15, 000 and 3 months intensive support
the Nominet Trust†s (UK) work Digital Edge, a programme which funds ventures that demonstrate how
-cial good, are able to spread their innovations throughout society due to the flexibility of venture capital in
venture into healthcare Fablab Amsterdam identified a lack of skills as a barrier to growing the Fablab approach.
from Bethnal Green Ventures to participate in a startup Bootcamp and set up its business proposition in London and later about 400,000 euro
venture capital firm, Andreessen Horowitz, invested $100 million in the company during its Series A Funding.
a commercial venture with global production processes, with the risk of subcontracting critical tasks to global sweatshop factories
This included looking at new models for financing ventures such as the micro credit site Kiva, P2pâ lending models and emerging crowdfunding
Bethnal Green Ventures and Waag Society in Amsterdam work on setting up and hosting one of Europe†s
Bethnal Green Ventures Hosting and managing maker spaces and hacker spaces Fablab Amsterdam (hosted by Waag Society
and grow their venture. To address this, a number of incubators and accelerators have emerged, who invest in †tech for good†projects, typically in exchange for
Bethnal Green Ventures in the UK, who support early stage technology start-ups who are tackling a social or environmental problem with £15, 000 and 3 months intensive support
the Nominet Trust†s (UK) work Digital Edge, a programme which funds ventures that demonstrate how
-cial good, are able to spread their innovations throughout society due to the flexibility of venture capital in
venture into healthcare Fablab Amsterdam identified a lack of skills as a barrier to growing the Fablab approach.
from Bethnal Green Ventures to participate in a startup Bootcamp and set up its business proposition in London and later about 400,000 euro
venture capital firm, Andreessen Horowitz, invested $100 million in the company during its Series A Funding.
a commercial venture with global production processes, with the risk of subcontracting critical tasks to global sweatshop factories
This included looking at new models for financing ventures such as the micro credit site Kiva, P2pâ lending models and emerging crowdfunding
technical venture. The overall goal of the project is to develop a strategy for research
•Smartgrids will not be a purely technical venture. It is recognised that commercial and regulatory issues must
Conduct benchmarks and consider what is †¢being done externally in the field Map Resources Design a supply chain map:
Benchmark your product (s) against com-†¢petitors on environmental aspects, along -side function, cost, pricing, etc
venture capital; â€oeangel investorsâ€; share ownership; and â€oecrowd funding†What are associated the risks with each â€
enablers such as skills, R&d and access to venture capital. Our research suggests that countries that have
venture capital; and, more contentiously, the creation of open and competitive markets. In most of these
embark on new ventures. According to Tarek Ghouri director of government practice for Nokia Enterprise Solutions, â€oethe technology is available today to create
entrepreneurial ventures. The Commission, OECD and others also worry that new European ventures grow too slowly
Innovation often stems from entrepreneurship and a willingness to take risks. Empirical research indicates that new firms tend to be the most innovative in their
and new ventures 32 35 25 5 3 4. Robust legal framework and law enforcement to protect online trade 39 24 27 6 4
Innovative ventures need venture capital In the US, venture capital provides a valuable catalyst for the emergence of new, innovative businesses.
By contrast, Europe†s venture-capital industry remains small and underdeveloped. Although overall private equity investment levels in Europe approach those
across the Atlantic, the amount channelled into early -stage financing is substantially less in Europe than in
The lack of venture capital is a strong disincentive to innovation and enterprise. Germany, for example boasts some of Europe†s more prolific R&d
but limited access to venture capital can make it difficult for technology start-ups to find funding. Eike
shortage of venture capital as one of the key barriers to innovation in his country Funding for university and research institute spin
the European Venture capital Association ranks the UK and Ireland as boasting the most conducive tax and legal system for private equity
early-stage ventures in Europe is beginning to increase and, according to the European Venture Capital Association, expectations for 2004 are more
optimistic than has been the case over the past two years. Still, fundraising for venture capital remains
difficult in Europe. Industry veterans point out that European venture-capital firms are extremely selective in their investments, partly because they had their
including venture capital, secure networks and skills training†in powerful demonstrations of the role that ICT can play in business and society.
and new ventures 32 35 25 5 3 4. Robust legal framework and law enforcement to protect online trade 39 24 27 6 4
the total SME population, the most important goals are to promote the development of the private venture capital
up much excitement over such small fish, nor can they accommodate small ventures easily into their
relations and venture capital firms †provide technical, financial, and networking services which the region†s enterprises often cannot afford individually.
venture capital creation, and the rapid establishment of start-up firms. In many OECD countries improvements can be made to the financial sector
venture capital. Thus the government has a strong impact on innovative SMES. Significantly, the SBIR and
most public programmes fund early stage research, a stage which is ignored generally by private venture
1. Closer collaboration with the Venture capital industry. In those countries such as Belgium France, and Germany where venture capital markets are booming,
there should be better collaboration between the R&d granting institutions and the private or semipublic VC
in The netherlands) are indeed cooperating with the local venture capital industry, and they do so for two main reasons.
development, venture coaching--rather than simply public financing (Chiesa & Piccaluga 2000). ) Public bodies might provide support for such nontechnical aspects of the innovation
innovative ventures. Uncertainties about the technical feasibility, the time period of development, the total financing needed,
institutions hesitate before funding venture projects To overcome the information gap between entrepreneurs and financing bodies †and thus increase the
Venture capital Finance & accounting Exports Sales & marketing General business advice Information technology Grant advice Direct access
new venture performance: An empirical examination. Journal of Business Venturing 23 (4), 405-422 Gilsing, V.,Nooteboom, B.,Vanhaverbeke, W.,Duysters, G,
ventures through external knowledge. Journal of Business Venturing, 27 (4), 401-413 Lee, C.,Lee, K,
a study on technology-based ventures. Strategic Management Journal 22 (6-7), 615-640. doi:
-technology ventures: The moderating role of intra-and extraindustry social capital Academy of Management Journal, 51 (1), 97-111
Andalusia incubators against EU current benchmarks ï Think of promoting corporate spin-offs as an alternative to university spinoffs with stronger industry and
in high and low-risk ventures, and in pretty much all sectors and sub-sectors of the economy (OECD, 2001.
the more likely the new ventures will be initiated and expanded Team experience is particularly important to the long-term performance of high-tech start-ups
and venture capital attraction, to actual firm setup. Local business entrepreneurs serve on the start-up firm†s board of directors.
Public/Private Ventures Florida, R. 2002. The rise of the creative class: and how it's transforming work, leisure, community
Evidence From Technology-Based New Ventures. Entrepreneurship: Theory & Practice 31,6: 936-950 Singh, N & Pereira, A. 2005.
Andalusia universities by providing them with loans of up to EUR 100 000 through the public venture
more recent study by Niosi (2008), comparing the effectiveness of IRAP with venture capital funding found that the receipt of IRAP funding was correlated more often with an increase in the rate of the
firm†s growth than the receipt of venture capital funding. He strongly favoured an increase in the
Program, which enables students to start their own venture in lieu of doing a co-op placement with an
in high and low-risk ventures; and in pretty much all sectors and sub-sectors of the economy (OECD, 2001, p. 35.
Set out clear incubation principles and benchmarks A significant part of the current support for start-ups in the region relates to business incubation
devices, whereas the European benchmark for incubated businesses is 85%.%Thirdly, it may actually hamper rapid growth and development of the very firms being assisted as the high and continuing
evaluation of its business incubation model and benchmark it with international best practices. The introduction of a monitoring and evaluation system to assess the impact of this form of support would
prepare benchmarks for what constitutes successful incubators (see table below). It is important for Andalusia, having invested a large amount of time and funding,
performing according to these benchmarks and, if it falls short of those standards, to consider what needs to be done to maximise efficiency in future
Table 6. Summary of key EU business incubator benchmarks Setting Up and Operating Average Range Benchmark
Average capital investment cost â 3. 7 million â 1. 5 to â 22 m NA
Incubator Functions Average Range Benchmark Incubator occupancy rates 85%9%†100%85 %Length of tenancy 35 months 6 months-no max 3 years
%Evaluating Services and Impacts Average Range Benchmark Survival rates of tenant firms 85%65%†100%85
ï Business incubators should be encouraged to benchmark themselves against best practice standards and to take the steps required to achieve them
quantitative benchmarks would enable the region to assess the current incubator policy and whether there is a need for refinement,
) The EC benchmark for the survival rate amongst tenant firms is set at 80-90%.
and support, business start-up and venture capital for the more dynamic SMES In particular, there is a considerable level of public support, at different levels (EU, national, and
availability of venture capital, which is limited in Scotland: in the UK the south east of England tends
of this tool against current EU benchmarks; iii) an unexplored area by the Andalusia government
The attractiveness of such ventures has to be measured by the level and capability of SME participation in international activity.
Andalusia incubators against EU current benchmarks ï Think of promoting corporate spin-offs as an alternative to university spinoffs with stronger industry and
venture context In turn, entrepreneurial strategic orientation (Covin and Slevin, 1989) is a well-defined concept (Miller, 1983) and is studied widely (Rauch et al.
between growing and non-growing firms in a sample of new ventures. In the same way
Ostgaard and Birley (1996) tried to associate new venture growth and networking characteristics of the entrepreneur,
venture creation speed. Entrepreneurship and Regional Development: An International Journal, 2008,20, 317-343 Capelleras, J. L. and Rabetino, R. 2008.
new ventures and small business. In Strategic Management: a new view of business policy and planning, Schendel, D
effects on new venture performance: the moderating role of venture age. Academy of Management Best Conference Paper 2006, ENT:
N1-N7 Madsen, E. L. 2007. The significance of sustained entrepreneurial orientation on performance of firms †A longitudinal analysis. Entrepreneurship & Regional
New venture growth and personal networks Journal of Business Research, 36,37-50 Pan, Y. and Chi, P. S. K. 1999.
orientation in new ventures. The International Journal of Entrepreneurship and Innovation, 6, 239-248 Ripollã S m. and Blesa, A. 2006.
Chinese ventures. Entrepreneurship Theory and Practice, 32,219-239 Tang, J.,Tang, Z.,Zhang, Y. and Li, Q. 2007.
venture firms: international diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43,925-950
benchmark those sales is going to continue to be important to all online players In the end, the ability to increase conversion
practical e-commerce research and benchmark services Peter van den Brink, Trainee Research & Advice Peter van den Brink (1992) has worked for Ecommerce Europe since 2014.
3. 3. 3. Conclusion on nanotechnology cluster benchmark between Germany and Japan...88 3. 3. 4. Factors influencing the future development of nanotechnology...
4. 3. 3. Conclusion on microelectronics cluster benchmark between France and Canada...139 4. 3. 4. Factors influencing the future development of microelectronics...
and venture capital backed firms will be able to go this way. Consequently, direct economic impacts of KETS in their early stages tend to be low.
to cluster initiatives, public awareness measures, standardisation, promotion of venture capital supply, and education and training activities (see OECD, 2009c).
involvement and venture capital and a strong focus on a limited number of knowledge domains European Competitiveness in KETS ZEW and TNO
while R&d in Japan is to 2/3 financed through venture capital (see Figure 3-20
venture capital. 16 Regarding R&d investment from the government, Germany is the number one concerning public funding of nanotechnology in Europe, followed by France and the United kingdom. 17
Venture capital: Venture capital is not easily available in Germany for nanotechnology research and development. In Germany, only one third of the total research funding stems
from private sources, compared to 54 percent in the US and almost two thirds in Japan
But the lack of business angels and venture capital makes it difficult to create academic spin-offs to commercialise scientific results
In addition to this, six different networks and one venture capital firm accompany cluster activities. The cluster is highly research-oriented with an excellence
and 43 industrial and venture companies. The core organisation of the cluster is ASTEMRI Advanced Software Technology & Mechatronics Research Institute of Kyoto.
Venture capital: In Japan, R&d in nanotechnology is supported also largely by private funding. Venture capital funding accounted for $2. 8 billion in 2004.
Overall, Japan has an advantage over Europe and US regarding private funding. Almost two thirds of the total
orientation. 36 Venture capital was not always available in the past. In the early 2000s, the Japanese government started to create programmes
Finally, the growth of venture capital in the US also influenced the development of VC investment in Japan. 37
knowledge and creating spin-off venture business. 38 In addition to this, there are many informal links to other high-tech clusters, public sector programmes, and private sector
Because large amounts of venture capital are available, new nanotechnology start-ups can easily be established. In this way, entrepreneurs do not face the obstacle of finding sufficient
venture capital to support academic spin-offs and nanotech start-ups. The combination of strong government support with large private funding is the second success factor of the
3. 3. 3. Conclusion on nanotechnology cluster benchmark between Germany and Japan Strengths and weaknesses
there is a lack of venture capital, business angels, etc There is a strong focus on basic research and a lack of commercialisation activity
industrial and venture firms Classification Developing Developing Infrastructure Strong knowledge infrastructure: mainly publicly funded Good mix between large firms and academia
of venture capital scarcity Germany nr. 1 for public funding of nanotech Harmonised funding schemes for
Lack of business angels and venture capital Government has stimulated actively development of VC market Nanotechnology top-priority in national
report a lack of public funding and a lack of venture capital as main barriers to
funding as well as a viable venture capital industry is critical to overcome financial barriers Another critical factor is to successfully link technological opportunities with user demand
dynamic sector of nanotechnology companies, venture capital funding as well as public support to R&d conducted by these firms is essential.
One reason is certainly the reluctance of the private venture capital business in recent years to provide large amounts of risk capital for these firms.
start-ups could profit from a generous venture capital industry in the 1990s, the situation has changed.
Today private venture capital companies very carefully evaluate the business prospects of young firms and most often provide only limited funding,
venture capital business. A promising starting point for public policy in Europe can be start -ups form public research.
Venture capital While availability of capital for start-ups is an issue in Canada generally, the Ottawa
U s. venture capital investment in Canada goes to Ottawa tech firms. This is also supported with examples from Wolfe (2002) who describes the takeover of Skystone System by Cisco
One particularly important actor in the context of venture capital is the Ontario Centre of Excellence for Communications that has spun off about 25 companies in the period 2002
However, despite the comparatively good access to venture capital there are other barriers for start-ups perceived. Scott (2007) reports that the loss of the LSIP programme in Ontario left a
take the risk to start own commercial ventures. Secondly, the culture of the people in the
4. 3. 3. Conclusion on microelectronics cluster benchmark between France and Canada Strengths and weaknesses
new MNES and venture capital Strong concentration of large MNES e g Nortel hires 1/3 of all masters and Phds in
during this period as well as a rapidly growing global economy investing venture capital in high-tech industries have spurred the cluster†s growth.
Venture capital: The cluster has also access to financial resources at all investment stages which has shown to be critical for growth.
Fund†in pursuing venture capital. Furthermore, venture capital is also available through the proximity to the large financial market in London.
For example, the Barclays bank dedicated large sums to the promising high-tech industry, with many smaller venture capitalists
successful growth on new and emerging ventures, and makes sure that the infrastructure enables a steady growth of the biotechnology community (Chiesa and Chiaroni, 2005
venture capital. This could result in a twin obstacle of market failure and absence of public
accessibility of venture capital. Genentech, founded 1976 in San francisco, was the first biotechnology company in the world.
and 64 venture capital firms), connected by 243 local contractual ties. It is important to notice that no public intervention or any centralised
venture capital and other supportive institutional infrastructure which made the cluster successful in its early days. Nowadays, the combination of public funding and venture capital
nurtures the cluster development. In absolute figures, the biotechnology cluster raised more than $4 billion in capital, including $600 million in venture financing (2006). 59
Institutions Rules and regulations: The activities in the Bay Area are supported also by US specific laws
Is assumption is bases on the relatively high rates of IPOS and new venture creation in this region
Venture capital: Venture capital is available to support the commercialisation of scientific research and the transition of knowledge to the market.
There is a large number of local venture capitalists investing in biotechnology start-ups, accounting for 34 percent of all active
venture capital firms in the United states (see Su and Hung, 2009. Finally, there is one federal programme to support the foundation of biotechnology start-ups.
venture capital became increasingly important, while at the same time the involvement of public research organisations (PROS) was shrinking.
two types of ties (venture capital, PROS)( Owen-Smith and Powell, 2006. These collaborative partnerships create strong network ties
DBF=dedicated biotechnology firm, VC=venture capital, PRO=public research institutes Source: Owen-Smith and Powell (2004: 33
To support the interaction between biotechnology companies, research institutes, venture capitalist, etc. the Baybio bioscience association was found.
The cluster originated from a tight social network among biotechnology firms, venture capital and research institutions. Now, the direct links between DBFS are building the main network
Venture capital & commercialisation important to reach maturity Size 280 firms 25,000 people (incl. academics and
Good availability of venture capital ï commercialisation Availability of start-up support Tax-breaks/incentives: biotechnology firms are exempt from paying payroll taxes for up
In order to establish a dynamic sector of industrial biotechnology companies, venture capital funding as well as public support to R&d conducted by these firms is essential.
While in the 1990s a generous venture capital industry supported a variety of start-ups, today there is a shortfall in venture capital market.
Private venture capital companies very carefully evaluate the business prospects of young firms and most often provide only limited funding,
focussing on close to-market-introduction projects and not on early stage projects of biotechnology start-ups.
Venture capital: No coordinated venture capital activities are known to exist at the Optecbb cluster. However, Sydow et al.
2007) also report no start-up support at comparable international clusters Interactions Interactions play a critical role in cluster success. The Optecbb initiative is primarily a
Also no venture capital activity is reported in at the 78 Even the limited number of cases engaged within this study is sufficient to demonstrate that, within one (high-tech
Venture capital: Quebec has access to the highest concentration of venture capital in Canada QPN, 2010. Innovatech Quã bec-Chaudiã re-Appalaches is particularly active in the
optics/photonics industry. Also the National Optics institutes plays an important role in this context having generated 20 spin-offs over the last years.
the region suffers from the lack of venture capital firms with the level of capital required to
Also no venture capital activity is reported in at the Optecbb cluster Public policy, funding and tax incentives
Also the Quebec region attracts the highest concentration of US venture capital in Canada. At the Optecbb no venture capital activities are reported
Next to the provision of a strong public research infrastructure, specific policy tools differ Canada uses predominantly R&d tax incentives to attract
No venture capital scheme in place Strong role through Tax legislation Support from regional development agency Availability of public knowledge infra
High level of Venture capital (lack though for firm growth Interactions High level of interaction: formal and
Europe has invested under (in terms of venture capital) compared to mainstream innovation areas (e g. energy generation and infrastructure)( Europe Innova, 2010
collaborative high tech ventures. In addition, there are a number of local investment companies and there are several sources of private funding, loans and seed capital specially
aimed at SMES. 93 There is a considerable presence of well established angel and venture investors and holding groups in the Walloon region.
Walloon and Belgium venture capital firms are represented by the Belgian Venturing Association (BVA. Recent federal legislation
which encourages private investors to invest in non-traded venture capital, while benefiting from a tax-free status. Business angels provide start-ups with risk capital and coaching, and
and venture capital to prove the commercial viability of carbon nanotubes and nanopowders for flat screens applications (Eco-innovation Futures TNO, 2010.
and at the local level there are also Venture capital providers Large leading machinery firms had no finance difficulties for its continuous development
Finally, there is a considerable presence of well established angel and venture investors in both locations
either through grants for R&d projects or venture capital is critical for a vital small business sector in this KET.
nanotechnology, funding (particularly availabiltiy of venture capital) is an important driver, as well as health, environment and safety concerns.
benchmark has given us some more specific insight about how KETS develop and flourish in certain regions.
-and venture capital often helps early start-up, and the market will pick up the technologies that have (partly
They for example set up venture capital schemes or make sure private actors provide seed capital. They do not shy away from interfering into the
with incubator firms, business angels, seed-and venture capital. Some clusters also provide business parks and incubator centres to support these activities.
attractive to technology driven firms, they also encourage funding actors (like venture capitalists) to come
The presence of funding for entrepreneurial ventures forms the material appreciation of this Marketing capabilities
developed private funding structures are underdeveloped (e g. venture capital, business angels Asian countries combine research and development funding with clear policy guidance in
role of regulation, funding of innovation through venture capital, and the urgent need of high qualified personnel
venture capital are important sources to complement (limited) internal funds of actors engaged in KET-related R&d.
-A vital venture capital market is important for commercialising research results in KETS through university spin-offs and other types of start-ups.
Above all, venture capital needs a supportive regulatory environment. When private venture capital markets in Europe are not fully capable of providing sufficient funds for start-up and early stage financing
public programmes may have to fill these gaps -Addressing barriers in adopting new technologies is another important policy task
materials ventures, Research Policy 35,375-393 Malmberg, A d. Power (2006), True clusters: A severe case of conceptual headache, in:
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