Advanced Research Technologies

WHY ENTREPRENEURSHIP

Innovation-based entrepreneurial dynamics

conomies churn within an environment shaped by constant changes from technology development, global market impacts and innovation. In this setting, firms, large or small, new or old, compete successfully through innovation-based entrepreneurship - the ability to generate or adopt new innovations and to successfully bring them to market. Innovation-based entrepreneurship enhances the strategic and financial performance of companies and drives the growth and development of competitive industries and regions.

Leading research demonstrates an essential link between innovation, entrepreneurial activity and economic prosperity at all levels of analysis.

At the national level, entrepreneurial activity accounts for...

differences in the rate of economic growth between nations;

a significant proportion of all net new jobs created nationally; and

a significant proportion of new technological advances nationally.

At the region level, entrepreneurial activity accounts for...

the adaptability, reinvigoration and sustainability of regional economies over time;

differences in the rate of economic growth and development between regions; and

differences in the levels of productivity and standards of living between regions.

At the industry level, entrepreneurial activity accounts for...

the pace of technological advancement within certain industries;

the degree of competitive threat from new firm entries: and

the growth, financial stability and wealth created within certain industries.

At the company level, entrepreneurial activity accounts for...

the competitive advantage that distinguishes the most viable companies;

a significant proportion of a company's growth in sales and profits over time; and

differences in the level of financial stability between companies.

The level of entrepreneurial activity is one of the strongest indicators of a firm, industry or region's ability to benefit economically from innovation. And, the building blocks for innovation and entrepreneurship are indicative of the capacity to establish and sustain a competitive advantage in an innovation-driven economy.

Bridging the Innovation - Entrepreneurship Disconnect

Importantly, Innovation can lead to greater productivity and competitiveness, which, in turn, can yield increasing levels of prosperity. However, as regions that have narrowly pursued the development of innovation assets have learned, the development of new ideas with downstream commercial potential can have a strong local impact. Yet, often times they do not, because the processes for generating innovations are not the same as those required for their commercialization. Whether they are building new firms or reinventing existing ones, individuals, who create economic value through the application of new ideas to products and services, are capturing locally the economic benefits of innovation through their entrepreneurial activity.

The infrastructure and connectivity needed to stimulate and support innovation-driven entrepreneurship is shaped for better or worse by the independent and combined strategies, policies and practices of businesses, industries and regions. Knowing that collaboration is essential to fostering this type of environment, strategic leaders from individual firms, industries and regions work together to proactively foster an innovation-led, entrepreneurial-friendly environment that supports overall competitiveness.