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GENERAL INFORMATION
chapter 1, Some Suggestions from an Economist to a New High-Tech Starter
Table of Contents
- Part I: Reflections, Motives, and Money
- 1. Some Suggestions from an Economist to a New High-Tech Starter
- 3. Money
- Part II: Some Case Studies
- 6. Mirada Solutions: The Case Study of a University Spin-Off
- 11. Wacko WYKO
- Part III: Supporting the Entrepreneur
- 21. Developing High-Tech Companies in Spain and Portugal
- Part IV: The Universities
- 24. Strategic Support: The Case of the Technical University of Madrid
Excerpt
In this chapter, the author looks at the factors that determine success in high-tech organizations around the world. From the analysis of the three main forms to achieve economic growth and the factors of success in developing high-tech companies, some key lessons are addressed and discussed. They include learning how to start, how to live in the new world of increasing returns, and how to finance a high-tech business.
1.1 On Learning How to Start a High-Tech Company
In any local economy or any business within the global economy, there are three main forms to achieve economic growth. One is through the accumulation and improvement of factor inputs such as labor and capital. Another is through developing trade and comparative advantage, and the third is through knowledge, innovation, and entrepreneurship. These three forms are not mutually exclusive and reinforce each other, but most advanced economies are increasingly specializing in promoting the last two, while most developing economies are mainly trying to develop and use the first two.
Knowledge, ideas, inventions, and entrepreneurs mostly tend to come out of universities and research centers. For instance, MIT faculty and students produce, on average, two new inventions every day, and there are close to 5,000 companies created worldwide by MIT alumni.
What are the factors of success in developing high-tech companies? Experience shows that attitudes, talent management, patents, compensation, quality investors, speed, and location are the main factors.
Attitudes to innovation are essential, and that is what distinguishes the behavior of small companies compared to large companies. Radical innovations never originate with the market leader. Even when the market leader developed the radical innovation, most times they will not pioneer it, often fearing that it would cannibalize sales of their existing products.
©2008 Society of Photo-Optical Instrumentation Engineers
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