Entrepreneurial Innovation and Leadership (eBook)

Nancy Richter is an Associate Researcher in Innovation and Entrepreneurship at the Alexander von Humboldt Institute for Internet and Society, Germany. Paul Jackson is a Senior Lecturer in the School of Business and Law at Edith Cowan University, Australia, and Associate Researcher at the Alexander von Humboldt Institute for Internet and Society, Germany.Thomas Schildhauer is an Executive Director of the Alexander von Humboldt Institute for Internet and Society, Germany. 

Preface 5
Contents 9
Notes on Contributors 11
List of Figures 13
List of Tables 14
Chapter 1: Entrepreneurial Behaviour and Startups: The Case of Germany and the USA 15
Entrepreneurship and Innovation at the National Level 16
Startups and Their Importance for Radical Innovation 17
Case Study: The Situation of Entrepreneurship and Innovation in Germany 19
Incremental Innovation: A Particular German Strength 20
The Support Infrastructure for Entrepreneurship Varies Considerably 21
Startup Finance in Germany 21
Labour Market and Education 22
Culture and Climate Discourage Entrepreneurial Behaviour 23
The German Model: Analysis of Reasons for Low Performance in Entrepreneurship 23
An Illustrative Comparison with the USA 24
Support Infrastructure 24
Financing 25
Labour Market 25
Culture 25
The American Model 25
Summary and Recommendations for Policymakers 26
References 27
Chapter 2: What Drives Internet Startups in Berlin? A Qualitative Analysis of the Facilitating and Inhibiting Factors 29
Berlin: A Hub for Internet-Enabled Startups 30
Success Factors and Ecosystems for High-Tech and Digital Entrepreneurship: The Current State of Research 30
Facilitators and Inhibitors for Berlin Internet-­Enabled Startups 31
Make or Break: The Critical Success Factors 31
Setting the Scene: Inhibiting Factors 34
Make a Business Fly: Facilitating Factors 34
Conclusion and Recommendations for Policymakers 35
Appendix 37
References 40
Chapter 3: Startup Clinics: Applied Research and ‘First Aid’ for Early Stage Startups 42
Experimenting with Uncertainty: The Context of Early-Stage Startups 43
How a ‘Clinics-System’ Supports Startups in the Early Stages of the Startup Process 45
Startup Clinics in Berlin 46
The Startup Clinic Process 46
Law Clinic 47
Finance Clinic 49
Sales and Marketing Clinic 50
HR Clinic 50
Business Model Clinic 51
Conclusion 52
References 52
Chapter 4: Regulation as a Facilitator of Startup Innovation: The Purpose Limitation Principle and Data Privacy 54
The Purpose Limitation Principle: Between Innovation and Legal Certainty 55
Intended Purpose and the Purpose Agreement in Data Processing 56
Missing Measures for Purpose Limitation 57
The Right to Personal Privacy, Liberty and Equality as Standards for Data Protection Mechanisms 58
Standardisation of Data Use Purposes: A Prerequisite for Designing Privacy by Design 59
Advantages of Standards: The Case of Certificates 60
Open Questions for Purpose Standardisation 61
References 62
Chapter 5: Do You Have What It Takes to Become an Internet Entrepreneur? The Key Competencies of Successful Founders 63
Background 63
What Competencies Are Necessary in Marketing and Sales to Ensure a Startup’s Growth? 65
Credibility 67
Willingness to Learn 67
Communication Skills 68
Customer Orientation 69
Perseverance 70
Resilience 70
Results Orientation 71
Analytical Capacity 72
Next Steps for Startups: How to Develop Competencies 73
References 75
Chapter 6: Startup Financing in Berlin 76
Introduction 76
Startup Funding Versus SME Funding 77
Where Founders Think Funding Comes From—and Where it Really Comes From 78
Practical Implications for Entrepreneurs 80
No Business Case? No Money! 80
SME Mindsets Dominate 81
Liquidity Is Key 81
Plan Ahead and Consider Lead Times 82
Social Capital Leads to Venture Capital 83
The Berlin Case: Hype Versus Reality 83
The Ecosystem Relies on Public Funding 84
The Road Ahead 84
Conclusion 85
References 85
Chapter 7: Why Business Model Innovation Matters to Startups 87
History and Background 88
How Startups Find and Create Their Business Models: Theoretical Background 88
Business Model Research 90
Findings 91
Implications for Startups 94
References 95
Chapter 8: How Established Firms Can Profit from Working with Startups 96
Background 97
Differences Between Startups and Established Firms 98
Pathways to Successful Collaboration 100
Step 1: Develop Your Innovation Strategy 100
Step 2: Assess Your Innovation Maturity 102
Step 3: Find Startup Partners 103
Step 4: Develop and Refine Your Innovation Processes and Structures 104
Step 5: Measure Your Progress 105
Conclusion 105
References 106
Chapter 9: Radical Innovation Using Corporate Accelerators: A Program Approach 107
Background 107
How Can Managers Implement Corporate Accelerator Programs within Their Own Organization? 109
Program Theory as an Aid to Improving Design and Implementation of Innovation Strategy 110
Corporate Accelerator Programs 111
Conclusion 115
References 116
Chapter 10: Meeting the Innovation Challenge: Agile Processes for Established Organisations 117
Introduction: Agile Processes and Innovation 118
Innovation Process: Lean Startup 118
Case Study: Dropbox and Lean Startup 119
Advantages and Challenges 120
Innovation Process: Google Design Sprint 120
Case Study: Headspace 122
Advantages and Challenges 122
Innovation Process: The Hackathon 123
Case Study: Deutsche Bahn 123
Advantages and Challenges 124
Innovation Process from Software Development: Scrum 125
Case Study: Scout 24 126
Advantages and Challenges 127
Conclusion 127
References 128
Index 130