Peter Holmstedt Dramatically improving entrepreneurship at university While a small number of start-ups originate from KTH every year, historically the university has been more oriented toward the interests of large corporations. When KTH changed its management three years ago, I was assigned to build a system that could radically improve entrepreneurship at the university. Rather than focusing on commercialization through company projects or technology licensing, KTH decided to focus on creating start-ups. Over the past two years, I have worked together with the university's management to set up two units to improve commercialization at campus: Teknikh jden Innovation and the Teknikh jden Incubator. Teknikh jden Innovation, a service center for KTH students planning to start up their own companies, was located on the university campus, while the incubator was located off campus, just outside the center of Stockholm. Two managers were recruited from outside KTH to lead the two units under my supervision. Teknikh jden's aim is that 10% of KTH students should be active in their own companies. Good professors are also good at commercialization The ambitious goal of commercialization of research on campus implied confronting a traditional culture with entirely new concepts. Appropriate leadership needed to be installed on different levels within the university environment. Given the university's traditional emphasis on research and education, its best professors would typically pursue their careers in these fields. However, since the third task became national policy, this type of career would only be supported if society came to benefit from the commercialization of research. The best professors all over the world are typically also very good at commercialization. KTH management simply took the very best professors it had and put them in charge of realizing the third task for the university. This top-down, role-model “based approach proved successful at generating acceptance and internal support for the institution's new mission. The third task was also built into the university's merit system. Each of the 34 KTH divisions today has a person responsible for the collaboration with Teknikh jden. They are selected based on their personal affinity and experience with technology transfer and new business creation. All professors at KTH are required to report to Anders Flodstr m, the university's president, on their commercialization results. When professors request an academic appointment, they need to prove that they are promoting the third task. KTH is measured by the government on the number of start-ups it creates, and on how it enhances the start-ups' performance. The four-step technology transfer program The Teknikh jden model for technology transfer is based on a four-step program, beginning with the innovation park on campus. There is an office that acts as a one-stop shop for questions and answers. If someone has a good idea, free advice is given by patent lawyers at a very early stage. The next step is the "start-house" a pre-incubator. A space on campus provides a process advisor and a work environment free of charge for six to 12 months. In return, the preliminary business plan has to be ready after six months, and a mature version must be available after 12 months. The third step is the incubator. There is a screening process and the incubatees have to pay rent. The rent is fixed during the first three years at 80% of market prices. The last two years are at market level. For the 20% in savings, the business plan must be continually improved, monitored by the incubator's management. Incubation time is usually five years for biotech companies and one to two years for IT companies. The fourth and final step is the fully commercial Technology Park. The only thing special about the park is the proximity to the university and the services that entrepreneurs can buy, which are also available to the pre-incubatee and the incubatee companies. The Teknikh jden strategy is "seed, network, and trademark." Even though KTH, the holding organization, takes small equity stakes in the start-up companies in return for seed financing, Teknikh jden prefers to see itself as an initiator. The main value added comes from the comprehensive network and the strong brand name of KTH. Many of the big company leaders in Sweden have been to KTH and when Teknikh jden believes in a company, the venture capital people come. If we want to help companies become commercially competitive, we must act commercially. We cannot be university people. We must be business people. | 