Innovation: Off the Beaten Path

By Guest Author Jordan Cole

Innovation is the intersection of invention and insight, leading to the creation of economic value. The university has long been regarded as the most efficient innovation engine but, as this essay will argue, this is a misguided and even false impression. The most recent economic boom brought a constant flow of new companies introducing progressive products to the market. As the economy attempts to emerge from the recession, radical new products will be the impetus behind the turnaround as not only will it capture new revenue streams but will also create jobs. But innovation, like the economy, is in dire need of a stimulus. With a little teamwork, entrepreneurs and professors can revitalize the economy.

The traditional role of the university is to question conventional wisdom and create research, knowledge, and results to be disseminated for the greater good. Professors conduct and analyze raw research, and study the results and draw conclusions from them. The results of this research are then published in journals to convey what has been learned to the world. The intellectual assets that are created from research are not necessarily transposed to the market for consumption. In fact, universities do an exceptionally poor job at turning their intellectual assets into consumable goods and services. Universities have often done a poor job at commercializing innovation.

The biggest pitfall of the university entrepreneurial system is the metrics by which it measures itself. The most obvious comparisons to use as benchmarks are Silicon Valley in California and Route 128 in Boston. The successes of these two regions, in fact, have become more of a hindrance than an asset. These hubs of innovation in technology and biotech are the outliers, not the norm. The concentration of bright people, experience, and support teams found in each place, and the atmosphere it creates, is extremely difficult to replicate. Nevertheless, other areas attempt to replicate it and focus too much on doing so. If you are a golfer, you would not immediately compare yourself to Tiger Woods – it is clear that his resources are far superior to yours. As hard as you try, you will never be able to match the resources and environment that have contributed to his success.

The first hurdle to overcome is for all other places that are not Silicon Valley and Boston is to realize they must create success with the environment of their given area. Universities’ managerial and financial resources are generally strained. An important lesson to be learned and to accept is that universities must strive to be successful using the resources available to them. The underlying success in fostering a culture of innovation depends largely on context. Every university should have its own model to cultivate great advances and a plan to commercialize these advances. The model should reflect the resources available, the culture, and the environment.

Silicon Valley is a unique mix of technological experts, proven managers, and experienced investors. Exceptionally talented people in all three categories are drawn to the area with the same goal – to be a part of the next company that transcends market expectations. A research university is filled with technological experts but often lacks the experienced managers and the capital that is required to transform an idea from a concept to a product or service that others consider to have value. University professors are engrossed in their research the majority of the time, leaving them out of touch with human needs in the market. No matter how technologically strong an idea may be, more start-up companies fail because they do not take the time to identify a strong potential market. Innovations must address consumer needs in way that consumers are convinced a product or services will improve the quality of their lives, or else the idea will fail.

A great idea will remain just that unless managerial and financial concerns are addressed. Experienced management teams are vital to the success of any venture. They provide a solid understanding of the market and operational best practices, allowing the technology expert to focus on perfecting the idea without handling the stresses of running a business. The value added to the venture is significant, as these managers are able to perform many tasks in little time, and are adept at functioning in an environment with a lack of structure, and in creating the maximum benefit from minimal funds. Stellar managers running start-up companies possess a different set of skills than those who are adept at running established businesses. This unique skill set is hard to find on campuses; it is important that the issue is be addressed by identifying ways to attract those who do have them and offer opportunities for others to or develop them.

Universities have the ability to create networks of both experience and monetary funds to support their innovators and entrepreneurs through their vast alumni networks. Entrepreneurship offices must focus on matching experienced entrepreneurs with professors. Very few people possess the qualities needed to excel in both the business and technological aspects — Bill Gates and Steve Jobs are two exceptions that come to mind. Most other innovators need to form partnerships to ensure that all the bases are covered. An artificial environment can be created in an attempt to recreate an atmosphere similar to the big two, Silicon Valley and Boston, to facilitate the union experts and entrepreneurs by exposing them to one another.

Creating successful ventures is a learning process; lessons from past successes and failures are important as they contribute to the future successes. A culture of innovation is not going to arise overnight. The decision-makers at the university must realize that due to the unique environment at of each institution, success at one campus will not always translate to success at another. Success will come only with time and tinkering to determine the correct process followed by unlimited prosperity. Markets off the beaten path do not have networks of angels with money to fund ideas. Once all involved understand the previous two drivers, the third will develop over time. An iterative process is needed to allow the results of one innovative success to be easily replicated. This series investigates successful innovation stories with an aim to identify a framework to improve the university’s position to commercialize innovation.

This segment is a part in the series : Innovation