NORTHERN EUROPE CASE STUDY TITLE HEI / ORGANISATION NAME COUNTRY DATE NATURE OF INTERACTION WITH BUSINESS NATURE OF GOOD PRACTISE/PROJECT

CASE 6 CSE SWEDEN CHALMERS SCHOOL OF ENTREPRENEURSHIP (CSE) CHALMERS UNIVERSITY OF TECHNOLOGY SWEDEN APRIL 2011 CURRICULUM DEVELOPMENT AND DELIVERY ENTREPRENEURSHIP OPERATIONAL ACTIVITY

PROFILE SHORT DESCRIPTION THE ENTREPRENEURIAL VENTURE CREATION AND START-UP FACTORY

Established in 1997, Chalmers School of Entrepeneurship (CSE) provides for the development of entrepreneurs through a two-year master’s programme that incorporates the development of new technology companies by 'matching' student teams (teams of 2-3 students) with a scientist or innovator to take forward a business idea into a business. The programme integrates entrepreneurial education with real-world incubation through a venture-creation approach, where at the end of the process, business ideas have the potential to be incorporated, with students (and the scientist/ innovator) taking ownership shares in the newly formed business. CSE provides an important case study, established over more than a decade, on the integration of entrepreneurship within an academic structure, particularly technology transfer, the development of students as professional entrepreneurs, and the promotion of an entrepreneurial culture and spirit within a university environment.

BACKGROUND

Mats Lundqvist and Sören Sjölander from the department of Innovation Engineering and Management at CSE decided to establish the School in 1995 based on reflection that there was a gap between university research and the marketplace. This gap could be filled by individuals willing to take package-able ideas, develop business strategies, etc. and take them to the market. The programme, initially called Entre, was launched in January 1997. Initially, the programme was a one year ‘final-year’ master for students in the department (IEM). In 2001, the programme was opened to students outside CSE, and became a one and half year masters-level programme. This was also the year in which the incubation activities through collaboration with ‘Encubator’ were integrated into the programme. Encubator links business ideas with student teams to create new business start-ups in an incubation environment. In 2007, the programme was opened internationally and then, in line with the Bologna process, became a two year international master’s programme.

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CASE 6 CSE SWEDEN The context for the development and launch of CSE is particularly important. Jacob, Lundqvist and Hellsmark (2003) highlight in their paper on Entrepreneurial transformations in the Swedish University System, the transformation of the Swedish Research and Technology Development approach from a science system to an innovation system and the adoption of a third (impact on society) mission of universities that took place in the early 1990s. This transformation was driven by economic downturn, a change of government and the preparations for Swedish entry into the EU. In addition, the privatisation of CSE in 1994 provided the university with an opportunity to enhance its entrepreneurial activities. This enabled the university to have a higher degree of autonomy and, important within the context of the CSE case study, to develop an infrastructure for commercialisation of knowledge.

AIM AND TARGET

The aim of CSE is to develop new entrepreneurs and to develop new technology-based companies. It provides for educational learning through its master’s programme and for the preincubation of technology based start-ups commercialising technology that would otherwise remain undeveloped. A key aim for establishing CSE and subsequently Gothenburg International Bioscience Business School (GIBBS) was also to increase the degree of commercialisation from R&D undertaken at Chalmers and across the university and across industrial sectors

OTHER REFERENCES

The establishment of CSE and its subsequent development is in line with national policy and strategy, defined by the Swedish agency NUTEK. Its activities are now incorporated into Tillväxtverket, the Swedish agency for economic and regional growth. It has as its core aim the creation of new enterprises, enterprise growth and a sustainable and competitive business and industry in Sweden. In addition, the development of CSE is in line with the policies of VINNOVA, the Swedish governmental agency for Innovation Systems, which was established in 2001 as part of a major restructuring of the public research funding system in Sweden. It was one of the first national agencies in the world to base its operations explicitly on an innovation system approach. The pronounced strategy to fund needs-driven research and support the formation of efficient innovation systems highlighted the need for a strong national research base in the field of innovation systems research.

FUNDING

As a master’s programme entitled ‘Entrepreneurship and Business Design’ CSE receives funding for each enrolled student. However, this amount does not cover the cost of running the programme and there is a need for additional funding from other sources. Additional funding has come from various sources in association with projects. Funding organisations have included the region (Västra Götelandsregionen – VGR), BRG (Business Region Gothenburg), HSV (Ministry of Higher Education), and others mentioned in relation to Encubator. In general, facilitation of the education has required high levels of engagement from those involved, and has also built upon volunteer activities of for

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CASE 6 CSE SWEDEN example, alumni. The development of Encubator has been funded by Teknikbrostiftstelsen (now called Innovationsbron – ‘innovation bridge’), Chalmers Invest (from the second year until 2005), Regional Funding from Västra Götalandsregionen (from 2003), and funding support from NUTEK/VINNOVA. Funding is provided for the companies to facilitate initial developments and customer relationships, for example through attending conferences. Encubator then matches additional funding brought in by the student team up to a certain amount; the main kick-off funding that the projects/ teams receive during the incubation period is funding they are able to attract from actors like VINNOVA, specific research or innovation agencies or partner investments, as well as award money from business plan competitions.

IMPLEMENTATION STRATEGY AND ACTIONS

Ideas for development by master’s students are sought from academics, existing businesses and innovators. Until 2001, the idea recruitment process was undertaken by CSE. Since 2001, it has been managed by Encubator, an entity established by CSE to manage the project and company portfolio. Ideas are submitted to Encubator, where projects are evaluated by business developers who evaluate the technology, cost, time, IPR, and market potential of the idea. Following the selection of student teams and the matching of teams and ideas, a co-operation agreement is established between the idea generator and Encubator. The student teams subsequently lead the business development process with the support of Encubator with mentoring support, access to incubation space and support from a Board of Directors and the CSE.

MONITORING AND EVALUATION

Encubator is monitored as an incorporated company, wholly owned by CSE, and also has a board of directors. CSE is monitored through a system involving both the director of the master’s programme, and the head of the department. Each of the courses in the masters programme are evaluated by the students each year, and these evaluations are reviewed by both programme faculty and the division as a whole, together with the other masters programmes. Alumni also evaluate CSE as a whole, particularly those still involved in the portfolio of graduated companies. In addition, there have been three external peer reviews of CSE over the years (one of them also including GIBBS), by organisations such as the Ministry of Higher Education. 48 © Science-to-Business Marketing Research Centre

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SUSTAINABILITY

CASE 6 CSE SWEDEN

In 2001, after four years of operating CSE, Chalmers established Encubator as a mechanism to manage the project and company portfolio established by CSE (and subsequently GIBBS). Encubator is involved in the identification of business ideas and the matching of students and student teams to ideas. It provides a professional mechanism to enhance financial support and investment. Encubator supports the development of an idea in its preincubation phase through the provision of incubation space and support including mentoring, capital and networking. After one year, the business graduates the incubator, with the students remaining with the business, seeking other new business ventures or gaining employment.

IMPACT|RESULTS|OUTCOMES ACHIEVEMENTS

Since its establishment in 1997, CSE has educated over 200 students. These students have established over 27 companies, which have a combined market value in excess of €56m with an annual turnover of more than €14m.

SUCCESS FACTORS

The three key factors that have led to the success of CSE include: 1. the benefits to the CSE brand and its engaged alumni, 2. the overall approach of having separate project recruitment and student recruitment processes, the results of which are then integrated into teams and supported by a core team of coaches (including but not limited to faculty), 3. the incremental development over time (i.e. continuous revision and evolution). The factors that inhibited the success of CSE include: • the inability of traditional incentive structures and organisational leadership to adapt. Specifically leadership wanting to provide input for an initiative they were keen to support but did not fully know how to assist, • the lack of sustainable financing (the first 14 years were built on a series of short-term financing).

IMPACTS

A number of technology ventures are highly interrelated with the building of clusters and innovative research areas. As a result, there is a need to consider the transformation of university incentives and leadership behaviours. To secure the on-going sustainability of CSE (and GIBBS and Encubator) has required the investment of significant (50% plus) Programme Director time which could have been more appropriately invested into the development of the operation.

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The Chalmers CSE case study highlights the fact that successful and sustainable actions are a long-term endeavour. The development

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CASE 6 CSE SWEDEN and expansion of CSE into GIBBS, recognising the need to have a separate bio-science based programme, and evolution of the CSE concept into Encubator highlight the commitment to the approach. The establishment of CSE in a period where Entrepreneurship was barely on the radar of most universities makes this an interesting and valuable case study. The integration of the master’s education programme and entrepreneurial idea development represents a classic combination of University-Business Collaboration. One of the key strengths of the case study is the commitment to the ongoing sustainability of CSE, the delivery environment and the commitment of its staff to ensuring the successful education of students and the development of their business potential.

TRANSFERABILITY

There has been a significant development of entrepreneurial education programmes in the EU since the launch of CSE in 1997. In itself, the master’s programme is transferable; however CSE operates within an established innovation support system in Göteborg that supports the incubation and growth of businesses which may not be established within other contexts. In addition the approach of developing entrepreneurial students that work on ideas from an ‘idea provider’ rather than commercialising their own ideas is also a core component in the transferability of the programme.

THEMES INFORMATION SOURCES

Entrepreneurial Education, Pre-Incubation, Entrepreneurship CSE Website www.entrepreneur.chalmers.se/cse/ Encubator Website http://encubator.com/ (all accessed 31st May 2011)

INFORMATION SOURCES

Karen Williams Middleton, PhD Post-doc - Chalmers University of Technology Management of Organisational Renewal and Entrepreneurship (MORE) Division Course Leader - CSE and GIBBS Vera Sandbergs Allé 8A 412 96 Göteborg Sweden Phone: +46-(0)31-772 1913 Email: [email protected] Acknowledgement: The support and input of Karen Williams Middleton and Mats Lundqvist of CSE in the construction of the case study were greatly appreciated.

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CASE 6 CSE SWEDEN

RESOURCES DOCUMENTS AND PUBLICATIONS

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Jacob, Lundqvist and Hellsmark (2003), Entrepreneurial transformations in the Swedish university System, Research Policy, Elsevier B.V. ISSN: 0048-7333