Description
Within this brief paper in regard to converting the research base into commercial success contributing to the re invent abilene.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
1
CONVERTING THE RESEARCH BASE INTO COMMERCIAL SUCCESS:
CONTRIBUTING TO THE “RE-INVENT ABILENE” INITIATIVE
Fortune S Mhlanga
+
, Ian J Shepherd
++
and Phillip D Vardiman
++
+
School of Information Technology & Computing, [email protected]
++
Department of Management Sciences, [email protected], [email protected]
Abilene Christian University
Abilene, TX 79699 USA
Phone: (325) 674-2569
Fax: (325) 674-2507
Abstract
This paper is written within the context of the west Texas "Re-Invent Abilene" initiative
which seeks, in part, to foster an entrepreneurship culture in research institutions. With
about half a dozen education and training institutions, the city of Abilene has a strong
research base. This paper presents a transdisciplinary framework, of a strategic partnership
between computing and management sciences, towards conversion of research into economic
and social benefits. The framework is borne out of realization of how science and technology
underpins wealth creation. It seeks to link industry and academia, and to provide them with
opportunities for improving their undertakings on a sustainable basis. It explores how
partnerships between academia, industry, and business could enhance the exploitation of new
knowledge and technologies for commercial applications. The research will also help
revitalize and encourage local economic development within small urban areas. This will
enhance wealth creation, provision of employment, and continued support of further
scientific research. It ensures that research is strategically linked to commerce and industry
so that technology leads to commercial spin-offs.
1. Introduction
In September 2005, the economic development directors of the west Texas cities of Abilene,
Amarillo, Lubbock, Midland, Odessa, and San Angelo convened together with guidance of
Texas’ office, and posited the West Texas Coalition for Innovation and Commercialization
(WTCIC) [8] to promote innovation and entrepreneurship in the West Texas region. These
cities are now connected to the WTCIC through their Small Business Development Centers
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
2
(SBDC). The WTCIC is now one of seven regional centers of innovation and
commercialization across the state of Texas in the USA.
The city of Abilene has since launched an aggressive marketing campaign under the banner
“Re-Invent Abilene” to generate and increase awareness of the WTCIC initiative. Pursuant to
legislation, the city seeks to serve as a catalyst to (i) promote and provide research and
development (R&D) activities such as proof-of-concept feasibility; (ii) promote
commercialization of R&D results; (iii) promote and provide incubation for new businesses
and expansion of existing businesses related to R&D; (iv) provide workforce training through
its partners for businesses resulting from R&D; and (v) enhance development of and / or
access to pre-venture capital.
This paper is written within the context of the “Re-Invent Abilene” initiative and seeks to
explore how collaborative partnerships between academia and industry could enhance the
exploitation of new knowledge and technologies for commercial applications. The dynamics
of industry-academic links will result in wealth creation, employment provision, and
continued support of further scientific research.
The rest of the paper is organized as follows. In Section 2, we present our perspective of an
abstract model of collaborative partnerships between academic disciplines and local industry
and business. Section 3 presents a transdisciplinary framework, of a strategic partnership
between computing and management sciences, towards conversion of research into economic
and social benefits. In this section, we discuss a technology transfer mechanism to encourage
computing and management sciences students to become entrepreneurs. In Section 4, we
build on this technology transfer mechanism and discuss measures to create a business
environment which is amenable to commercial spin-offs, growth, and successful transfers of
businesses. Section 5 presents synergetic outcomes that stem from the academia-industry
partnerships. Finally, Section 5 concludes the paper with an outlook for future work.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
3
2. Abstract Model of Collaborative Partnerships
Collaborative partnerships between academic disciplines and local industry initiatives
provide an excellent opportunity for entrepreneurial development at both the university and
the local community level. The key to a successful partnership involves identifying the right
“fit” of players to support the entrepreneurial initiative and achieve the full synergy of the
effort. Within the academic setting, the core knowledge of entrepreneurial skills and
economic understanding combined with key access to technological support from students
and faculty provide an excellent foundation for innovation and new venture creation.
Communities that capitalize on this foundation by providing business support in the forms of
employment opportunities and funding programs to launch and grow new ventures are in
position to realize positive gain and future wealth creation opportunities. Each successful
new venture will in turn pay high dividends for future expansion and additional growth
within the community. As noted in Figure 1 below, academia and industry working together
can achieve a high degree of wealth creation by utilizing each of their core strengths and
unique partnerships.
Information
Technology
Economics Entrepreneurship
Funding Community Business
Wealth Creation
Industry
Academia
Figure 1: Abstract Model
3. Academia and the Transdisciplinary Encouragement of Technology Transfer to the
Community and Industry
With reference to Figure 1 the block Academia relates to a special-case partnership between
the disciplines of information technology and computing (ITC), entrepreneurship, and
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
4
economics.
1
These disciplines are a perfect fit for the conversion of the research base into
commercial success: (i) around the world, the marketplace has increased demand for
graduates with ITC skills; (ii) the drive to create any business comes from an understanding
of wealth creation through adventurous business projects; and (ii) fundamental to any
business plan are the economics of the proposal, which include a good understanding of
business fundamentals, management practices, market development, research and
development, cost accounting, and business plan creation.
The combination of skill sets and core academic requirements found in these disciplines are
fundamental to the success of any modern business venture. Faculty and select students from
senior level courses (Managerial Economics, Entrepreneurship, and Seminar in Information
Technology and Computing) can work on a collaborative project during a single school
semester, engaging with business angels, venture capitalists, and community entrepreneurs to
launch a commercially viable product (or service) from the research phase, to systems and
product design and testing, to business plan development, to venture capital funding, and
finally to business startup.
Skill sets developed through the academic core of the three disciplines will be enhanced by
application to real business situations. The students will enhance communication skills,
engage in time management, and plan project timelines as they face critical deadlines to
successfully complete the academic requirements for each course as well as meet real
business deadlines.
The dynamics of industry-academic links set the stage to support the creation of knowledge,
and to ensure that scientific and technological advances made possible by research
institutions find their way into the private sector. Figure 2 depicts an economic development
cycle model which illustrates the partnership between academia and industry with regards to
establishing a partnership for wealth creation. This partnership begins with the technical
focus of teaching students the skills of innovation, idea generation, and business model
1
The authors are drawn from these three disciplines. (Indeed, virtually all academic disciplines would be
applicable to foster an entrepreneurial culture.)
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
5
development in order to create new product/service initiatives with high potential for growth
and economic success. The academia support not only helps students gain the knowledge to
develop a successful business model but also prepares the students to gain funding from
various sources and take the necessary steps to launch their business venture within the
framework of support and guidance from mentors within university community. As part of
the educational process students will acquire entrepreneurial knowledge to take their business
model and deliver a presentation for possible funding based on the actual development of a
business plan that outlines the keys steps of management, operations, marketing, financial
management, and the organizational structure that will support the new venture launch.
Knowledge Base
Academic / Industry Support
Innovation
Small – Medium
“ enterprises”
Business Model / Plan
Funding/Launch Economic Impact
Knowledge Workers
Increased Spending &
Labor Demand
W
E
A
L
T
H
C
R
E
A
T
I
O
N
Idea Generation /
Opportunity Dev.
Educational
Requirement
Figure 2: Economic Development Cycle
Based on a successful launch of a small to medium size enterprise, the economic impact
takes shape by producing workers who have gained knowledge from the entrepreneurial
launch experience and also learned firsthand as both the management of the new venture and
also from employment opportunities provided by the new business needs. Within the local
community additional needs for talent and business support will arise based on the increase
employment demand and the requirements for an educated workforce that is equipped to
handle the rapidly changing technologies required for today’s new business markets. The
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
6
economic impact is completed by promoting additional growth within the community and the
overall industry sector by generating addition profits through an increase in local spending
and business growth. This in turn will require additional educational resources to keep in
step with the knowledge needs of a constantly changing workforce shaped by the
technological advances from new innovation and increased economic influences within the
local and expanding industries.
4. Industry and the Perpetual Growth of the Local Economy
The components involved in developing wealth creation identified in Figure 1 all play a key
role in promoting and fostering the long term success of each new business venture. The
combination of core competencies, resources and experience lays the foundation for re-
inventing ourselves within an entrepreneurial framework. At the heart of this initiative lies
the seed for collaboration and synergy by utilizing our strengths and available talent to train
and encourage new business ventures that will reside in and revitalize our local economy.
The entrepreneurial role in economic development involves initiating and constituting change
in the structure of business and society. It is much more than just increasing per capita
output and income [4]. We see this change as involving several partnerships within the
community and seeking ways to utilize the combined talents. Long term economic
development results from having a facilitated effort that pulls the experience, available
funding and capital combined with the guidance of local businesses and community leaders
to partner with academia resources to create wealth building opportunities. Within local
communities small entrepreneurial firms are responsible for 55 percent of all the innovation
in the United States. It is important to note that innovation is more than just a new and novel
idea. Innovation is about taking a new idea and developing it into customer value and
positive business impact [2].
While it is true that businesses depend on customers for their growth and sustainability, it is
also true that businesses depend on the success of other local businesses within the
community to create jobs and develop synergetic partnerships for supplies, raw materials and
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
7
educational resources in the forms of talent and critical skills. Having a strong healthy
economy leads to increased employment, higher compensation and a more vibrant
community. People flow to work where jobs are being created and the demand for labor is
high [6]. Creating a strong labor market provides an exciting growth opportunity for
communities who are seeking to expand and create a higher living standard.
Communities and local businesses also share the responsibility to some degree for providing
help with initial funding and professional resources for new innovation and start-up
operations. Understanding the needs for legal requirements, funding sources, financial
advice and professional services are generally not within the scope of expertise for most
entrepreneurs [1]. It is in these areas that academia and local industry partners can work
together to increase the odds for new venture success. Society as a whole involves the
combine efforts of all partners and we must understand the importance of utilizing these
efforts to create long-term prosperity. A definition of economics that supports this point,
states that it can be defined as the study of how society manages it scarce resources [3].
These resources not only include tangible resources but also the human element involving
intangible talents, education, innovation and the passion for creating new ideas and business
wealth creation processes.
As previously noted initial funding is critical to the long-term success of any new business
venture. Many new entrepreneurs see this as the first hurdle that must climb before they can
launch their business idea. The guidance provided by advisors and potential investors is key
to helping the entrepreneur move to the execution stage of their business venture.
5. Economic Development Realization
Research institutions and the community (including industry and business) are prime
beneficiaries of a research commercialization initiative. Research institutions continually
seek to retain and build on their educational and research strengths, while the community
strives to foster a knowledge-based economy.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
8
Research institutions stand to benefit in many ways. This initiative has the impetus to
develop a stable, high-quality student population. This is an essential ingredient towards the
overall goal of research institutions: that of strengthening the educational and research
capability. It helps smaller research institutions to strategically position themselves in
specialty areas and lever their relatively scarce resources for maximum impact. The funding
realized by research institutions can facilitate several activities aimed at harnessing
recruitment and retention of excellent students. These activities include fellowships and
assistantships for graduate students, development of research experiences for undergraduate
students, improvement of teaching and learning systems, updating and recovery of laboratory
facilities, and investment in student support mechanisms.
The initiative creates a business environment which is conducive to start-ups, growth and
successful transfers of businesses. The small-to-medium enterprises (SMEs) that emerge
from this will become a major source of employment, the foundation of local economies,
innovators in developing new products, and principal actors in the developing service sector.
It develops local capacity which is capable of unleashing the full potential of a community as
a source of competitive advantage.
For the community, this initiative churns out knowledge workers. The knowledge paradigm
of development focuses on enhancing the human ability in using information and knowledge
as the primary factors of change and value-creation [5]. Knowledge workers are fundamental
to organizational productivity, competitive advantage, and ability to adapt to changes in
markets and customers. They are instrumental in jobs that invent new products, translate
data and information into usable services, and manage businesses. These jobs include banks,
hospitals, manufacturing firms, distribution companies, high-tech establishments, law offices,
ad agencies, government and agriculture. Like certain industries that tend to lead economic
growth, these occupations are indicators of a state’s competitive advantage and economic
sustainability [7].
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
9
6. Concluding and Outlook for Future Work
This paper has presented a transdisciplinary framework, of a strategic academia-industry
partnership towards conversion of research into economic and social benefits. The
framework is borne out of realization of how science and technology underpins economic
development. It seeks to link industry and academia, and to provide them with opportunities
for improving their undertakings on a sustainable basis. It explores how partnerships
between academia, industry, and business could enhance the exploitation of new knowledge
and technologies for commercial applications.
6.1 Conclusion
In conclusion, the opportunities for new venture creation, development and growth require a
combined effort from all participants within the local community. Opening the door to new
opportunities and building a culture of collaboration within the academic and industry
settings is a must for communities looking to share in the technological advancements of the
future. We see the potential for wealth creation and sustained business development as an
exciting time as well as a determinant to societal health. It is within this context that we see
the possibilities generated when we combine the skills and resources from the community as
a whole to grow new talent and create new growth. We have the potential to shape our future
in a very positive way by working together.
Within the context of the “Re-Invent Abilene” initiative, it would be prudent to establish a
technology center (or centers) responsible for technology transfer to industry. The center(s)
would be equipped to provide technological expertise in the diverse areas in which Abilene
industrial enterprises operate. The main objectives of the center(s) would be to carry out
strategic R&D for the benefit of the industrial sector of Abilene as well as collaborating with
other local and international institutions and universities in strengthening local research and
developing capability for its application to industrial enterprises. The center(s) would also be
tasked with adapting technology to local needs, providing consultancy services to local and
regional enterprises, promoting partnerships and serving as a repository and disseminator of
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
10
technological information. The center(s) of excellence would cooperate with universities
toward mutual benefit, with theoverall intent of enhancing the growth of the institutions as
well as their contribution to local development. Thus cooperation between the center(s) of
excellence and universities would place education and research with relevance to the
practical world as a guiding principle. This would be an important step in fostering a
community heart, which provides opportunities for entrepreneurship, innovation and
employment within the local community. Accordingly, the collective cooperation would
promote creativity, both mentally and practically through the development of a quality
culture.
6.2 Outlook for Future Work
By way of realizing the ideas presented in this paper, we plan to conduct a case study that
combines select students from Information Technology and Computing, Entrepreneurship,
and Economics courses to work on a collaborative project during a single school semester.
The objective of this project is to research, design, plan, present, fund, and implement a
community based business. The students will engage with faculty, venture capitalists, and
community entrepreneurs to launch a product or service from the research phase, to systems
and product design and testing, to business plan development, to venture capital funding, and
finally to business startup. The student’s performance will be measured based on the
combined effort from the three classes. As part of the grading process, feedback from all
involved principles and venture capitalists will be used to guide the instructors in their
assessment of student outcomes. Student involvement will be encouraged to continue post
class completion.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
11
References:
[1] Allen, K.R. 2007. Growing and managing a small business: An entrepreneurial
perspective. 2
nd
edition. Boston, MA: Houghton Mifflin Company.
[2] Barringer, B.R., Ireland, R.D. 2006. Entrepreneurship: Successfully launching new
ventures. Upper Saddle River, New J ersey: Pearson Prentice Hall
[3] Dorf, R.C., Byers, T.H. 2005. Technology ventures: From idea to enterprise. New York,
NY: McGraw-Hill Companies, Inc.
[4] Hisrich, R. D., Peters, P. M., & Shepherd, D. A. 2005. Entrepreneurship. 6
th
edition.
New York, NY: McGraw-Hill/Irwin.
[5] FS Mhlanga. Progress Towards Knowledge Societies Strategies in a Developing Nation
– The Zimbabwe Experience. The International Conference on Technology &
Knowledge in an Open Society, University of California at Berkeley, February 18 – 20,
2005. www.t05.cgpublisher.com/session_descriptions.html
[6] Milkovich, G.T., Newman, J .M. 2008. Compensation. 9
th
edition. New York, NY:
McGraw-Hill/Irwin.
[7] Oregon Council for Knowledge and Economic Development (OCKED) Report, Nov.
2002,http://www.ous.edu/cpa/OCKED/
[8] West Texas Coalition for Innovation and Commercialization, www.wtcic.org
doc_386554827.pdf
Within this brief paper in regard to converting the research base into commercial success contributing to the re invent abilene.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
1
CONVERTING THE RESEARCH BASE INTO COMMERCIAL SUCCESS:
CONTRIBUTING TO THE “RE-INVENT ABILENE” INITIATIVE
Fortune S Mhlanga
+
, Ian J Shepherd
++
and Phillip D Vardiman
++
+
School of Information Technology & Computing, [email protected]
++
Department of Management Sciences, [email protected], [email protected]
Abilene Christian University
Abilene, TX 79699 USA
Phone: (325) 674-2569
Fax: (325) 674-2507
Abstract
This paper is written within the context of the west Texas "Re-Invent Abilene" initiative
which seeks, in part, to foster an entrepreneurship culture in research institutions. With
about half a dozen education and training institutions, the city of Abilene has a strong
research base. This paper presents a transdisciplinary framework, of a strategic partnership
between computing and management sciences, towards conversion of research into economic
and social benefits. The framework is borne out of realization of how science and technology
underpins wealth creation. It seeks to link industry and academia, and to provide them with
opportunities for improving their undertakings on a sustainable basis. It explores how
partnerships between academia, industry, and business could enhance the exploitation of new
knowledge and technologies for commercial applications. The research will also help
revitalize and encourage local economic development within small urban areas. This will
enhance wealth creation, provision of employment, and continued support of further
scientific research. It ensures that research is strategically linked to commerce and industry
so that technology leads to commercial spin-offs.
1. Introduction
In September 2005, the economic development directors of the west Texas cities of Abilene,
Amarillo, Lubbock, Midland, Odessa, and San Angelo convened together with guidance of
Texas’ office, and posited the West Texas Coalition for Innovation and Commercialization
(WTCIC) [8] to promote innovation and entrepreneurship in the West Texas region. These
cities are now connected to the WTCIC through their Small Business Development Centers
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
2
(SBDC). The WTCIC is now one of seven regional centers of innovation and
commercialization across the state of Texas in the USA.
The city of Abilene has since launched an aggressive marketing campaign under the banner
“Re-Invent Abilene” to generate and increase awareness of the WTCIC initiative. Pursuant to
legislation, the city seeks to serve as a catalyst to (i) promote and provide research and
development (R&D) activities such as proof-of-concept feasibility; (ii) promote
commercialization of R&D results; (iii) promote and provide incubation for new businesses
and expansion of existing businesses related to R&D; (iv) provide workforce training through
its partners for businesses resulting from R&D; and (v) enhance development of and / or
access to pre-venture capital.
This paper is written within the context of the “Re-Invent Abilene” initiative and seeks to
explore how collaborative partnerships between academia and industry could enhance the
exploitation of new knowledge and technologies for commercial applications. The dynamics
of industry-academic links will result in wealth creation, employment provision, and
continued support of further scientific research.
The rest of the paper is organized as follows. In Section 2, we present our perspective of an
abstract model of collaborative partnerships between academic disciplines and local industry
and business. Section 3 presents a transdisciplinary framework, of a strategic partnership
between computing and management sciences, towards conversion of research into economic
and social benefits. In this section, we discuss a technology transfer mechanism to encourage
computing and management sciences students to become entrepreneurs. In Section 4, we
build on this technology transfer mechanism and discuss measures to create a business
environment which is amenable to commercial spin-offs, growth, and successful transfers of
businesses. Section 5 presents synergetic outcomes that stem from the academia-industry
partnerships. Finally, Section 5 concludes the paper with an outlook for future work.
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
3
2. Abstract Model of Collaborative Partnerships
Collaborative partnerships between academic disciplines and local industry initiatives
provide an excellent opportunity for entrepreneurial development at both the university and
the local community level. The key to a successful partnership involves identifying the right
“fit” of players to support the entrepreneurial initiative and achieve the full synergy of the
effort. Within the academic setting, the core knowledge of entrepreneurial skills and
economic understanding combined with key access to technological support from students
and faculty provide an excellent foundation for innovation and new venture creation.
Communities that capitalize on this foundation by providing business support in the forms of
employment opportunities and funding programs to launch and grow new ventures are in
position to realize positive gain and future wealth creation opportunities. Each successful
new venture will in turn pay high dividends for future expansion and additional growth
within the community. As noted in Figure 1 below, academia and industry working together
can achieve a high degree of wealth creation by utilizing each of their core strengths and
unique partnerships.
Information
Technology
Economics Entrepreneurship
Funding Community Business
Wealth Creation
Industry
Academia
Figure 1: Abstract Model
3. Academia and the Transdisciplinary Encouragement of Technology Transfer to the
Community and Industry
With reference to Figure 1 the block Academia relates to a special-case partnership between
the disciplines of information technology and computing (ITC), entrepreneurship, and
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
4
economics.
1
These disciplines are a perfect fit for the conversion of the research base into
commercial success: (i) around the world, the marketplace has increased demand for
graduates with ITC skills; (ii) the drive to create any business comes from an understanding
of wealth creation through adventurous business projects; and (ii) fundamental to any
business plan are the economics of the proposal, which include a good understanding of
business fundamentals, management practices, market development, research and
development, cost accounting, and business plan creation.
The combination of skill sets and core academic requirements found in these disciplines are
fundamental to the success of any modern business venture. Faculty and select students from
senior level courses (Managerial Economics, Entrepreneurship, and Seminar in Information
Technology and Computing) can work on a collaborative project during a single school
semester, engaging with business angels, venture capitalists, and community entrepreneurs to
launch a commercially viable product (or service) from the research phase, to systems and
product design and testing, to business plan development, to venture capital funding, and
finally to business startup.
Skill sets developed through the academic core of the three disciplines will be enhanced by
application to real business situations. The students will enhance communication skills,
engage in time management, and plan project timelines as they face critical deadlines to
successfully complete the academic requirements for each course as well as meet real
business deadlines.
The dynamics of industry-academic links set the stage to support the creation of knowledge,
and to ensure that scientific and technological advances made possible by research
institutions find their way into the private sector. Figure 2 depicts an economic development
cycle model which illustrates the partnership between academia and industry with regards to
establishing a partnership for wealth creation. This partnership begins with the technical
focus of teaching students the skills of innovation, idea generation, and business model
1
The authors are drawn from these three disciplines. (Indeed, virtually all academic disciplines would be
applicable to foster an entrepreneurial culture.)
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
5
development in order to create new product/service initiatives with high potential for growth
and economic success. The academia support not only helps students gain the knowledge to
develop a successful business model but also prepares the students to gain funding from
various sources and take the necessary steps to launch their business venture within the
framework of support and guidance from mentors within university community. As part of
the educational process students will acquire entrepreneurial knowledge to take their business
model and deliver a presentation for possible funding based on the actual development of a
business plan that outlines the keys steps of management, operations, marketing, financial
management, and the organizational structure that will support the new venture launch.
Knowledge Base
Academic / Industry Support
Innovation
Small – Medium
“ enterprises”
Business Model / Plan
Funding/Launch Economic Impact
Knowledge Workers
Increased Spending &
Labor Demand
W
E
A
L
T
H
C
R
E
A
T
I
O
N
Idea Generation /
Opportunity Dev.
Educational
Requirement
Figure 2: Economic Development Cycle
Based on a successful launch of a small to medium size enterprise, the economic impact
takes shape by producing workers who have gained knowledge from the entrepreneurial
launch experience and also learned firsthand as both the management of the new venture and
also from employment opportunities provided by the new business needs. Within the local
community additional needs for talent and business support will arise based on the increase
employment demand and the requirements for an educated workforce that is equipped to
handle the rapidly changing technologies required for today’s new business markets. The
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
6
economic impact is completed by promoting additional growth within the community and the
overall industry sector by generating addition profits through an increase in local spending
and business growth. This in turn will require additional educational resources to keep in
step with the knowledge needs of a constantly changing workforce shaped by the
technological advances from new innovation and increased economic influences within the
local and expanding industries.
4. Industry and the Perpetual Growth of the Local Economy
The components involved in developing wealth creation identified in Figure 1 all play a key
role in promoting and fostering the long term success of each new business venture. The
combination of core competencies, resources and experience lays the foundation for re-
inventing ourselves within an entrepreneurial framework. At the heart of this initiative lies
the seed for collaboration and synergy by utilizing our strengths and available talent to train
and encourage new business ventures that will reside in and revitalize our local economy.
The entrepreneurial role in economic development involves initiating and constituting change
in the structure of business and society. It is much more than just increasing per capita
output and income [4]. We see this change as involving several partnerships within the
community and seeking ways to utilize the combined talents. Long term economic
development results from having a facilitated effort that pulls the experience, available
funding and capital combined with the guidance of local businesses and community leaders
to partner with academia resources to create wealth building opportunities. Within local
communities small entrepreneurial firms are responsible for 55 percent of all the innovation
in the United States. It is important to note that innovation is more than just a new and novel
idea. Innovation is about taking a new idea and developing it into customer value and
positive business impact [2].
While it is true that businesses depend on customers for their growth and sustainability, it is
also true that businesses depend on the success of other local businesses within the
community to create jobs and develop synergetic partnerships for supplies, raw materials and
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
7
educational resources in the forms of talent and critical skills. Having a strong healthy
economy leads to increased employment, higher compensation and a more vibrant
community. People flow to work where jobs are being created and the demand for labor is
high [6]. Creating a strong labor market provides an exciting growth opportunity for
communities who are seeking to expand and create a higher living standard.
Communities and local businesses also share the responsibility to some degree for providing
help with initial funding and professional resources for new innovation and start-up
operations. Understanding the needs for legal requirements, funding sources, financial
advice and professional services are generally not within the scope of expertise for most
entrepreneurs [1]. It is in these areas that academia and local industry partners can work
together to increase the odds for new venture success. Society as a whole involves the
combine efforts of all partners and we must understand the importance of utilizing these
efforts to create long-term prosperity. A definition of economics that supports this point,
states that it can be defined as the study of how society manages it scarce resources [3].
These resources not only include tangible resources but also the human element involving
intangible talents, education, innovation and the passion for creating new ideas and business
wealth creation processes.
As previously noted initial funding is critical to the long-term success of any new business
venture. Many new entrepreneurs see this as the first hurdle that must climb before they can
launch their business idea. The guidance provided by advisors and potential investors is key
to helping the entrepreneur move to the execution stage of their business venture.
5. Economic Development Realization
Research institutions and the community (including industry and business) are prime
beneficiaries of a research commercialization initiative. Research institutions continually
seek to retain and build on their educational and research strengths, while the community
strives to foster a knowledge-based economy.
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Research institutions stand to benefit in many ways. This initiative has the impetus to
develop a stable, high-quality student population. This is an essential ingredient towards the
overall goal of research institutions: that of strengthening the educational and research
capability. It helps smaller research institutions to strategically position themselves in
specialty areas and lever their relatively scarce resources for maximum impact. The funding
realized by research institutions can facilitate several activities aimed at harnessing
recruitment and retention of excellent students. These activities include fellowships and
assistantships for graduate students, development of research experiences for undergraduate
students, improvement of teaching and learning systems, updating and recovery of laboratory
facilities, and investment in student support mechanisms.
The initiative creates a business environment which is conducive to start-ups, growth and
successful transfers of businesses. The small-to-medium enterprises (SMEs) that emerge
from this will become a major source of employment, the foundation of local economies,
innovators in developing new products, and principal actors in the developing service sector.
It develops local capacity which is capable of unleashing the full potential of a community as
a source of competitive advantage.
For the community, this initiative churns out knowledge workers. The knowledge paradigm
of development focuses on enhancing the human ability in using information and knowledge
as the primary factors of change and value-creation [5]. Knowledge workers are fundamental
to organizational productivity, competitive advantage, and ability to adapt to changes in
markets and customers. They are instrumental in jobs that invent new products, translate
data and information into usable services, and manage businesses. These jobs include banks,
hospitals, manufacturing firms, distribution companies, high-tech establishments, law offices,
ad agencies, government and agriculture. Like certain industries that tend to lead economic
growth, these occupations are indicators of a state’s competitive advantage and economic
sustainability [7].
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
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6. Concluding and Outlook for Future Work
This paper has presented a transdisciplinary framework, of a strategic academia-industry
partnership towards conversion of research into economic and social benefits. The
framework is borne out of realization of how science and technology underpins economic
development. It seeks to link industry and academia, and to provide them with opportunities
for improving their undertakings on a sustainable basis. It explores how partnerships
between academia, industry, and business could enhance the exploitation of new knowledge
and technologies for commercial applications.
6.1 Conclusion
In conclusion, the opportunities for new venture creation, development and growth require a
combined effort from all participants within the local community. Opening the door to new
opportunities and building a culture of collaboration within the academic and industry
settings is a must for communities looking to share in the technological advancements of the
future. We see the potential for wealth creation and sustained business development as an
exciting time as well as a determinant to societal health. It is within this context that we see
the possibilities generated when we combine the skills and resources from the community as
a whole to grow new talent and create new growth. We have the potential to shape our future
in a very positive way by working together.
Within the context of the “Re-Invent Abilene” initiative, it would be prudent to establish a
technology center (or centers) responsible for technology transfer to industry. The center(s)
would be equipped to provide technological expertise in the diverse areas in which Abilene
industrial enterprises operate. The main objectives of the center(s) would be to carry out
strategic R&D for the benefit of the industrial sector of Abilene as well as collaborating with
other local and international institutions and universities in strengthening local research and
developing capability for its application to industrial enterprises. The center(s) would also be
tasked with adapting technology to local needs, providing consultancy services to local and
regional enterprises, promoting partnerships and serving as a repository and disseminator of
International Conference on Systems Integration, ICSI’07
Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
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technological information. The center(s) of excellence would cooperate with universities
toward mutual benefit, with theoverall intent of enhancing the growth of the institutions as
well as their contribution to local development. Thus cooperation between the center(s) of
excellence and universities would place education and research with relevance to the
practical world as a guiding principle. This would be an important step in fostering a
community heart, which provides opportunities for entrepreneurship, innovation and
employment within the local community. Accordingly, the collective cooperation would
promote creativity, both mentally and practically through the development of a quality
culture.
6.2 Outlook for Future Work
By way of realizing the ideas presented in this paper, we plan to conduct a case study that
combines select students from Information Technology and Computing, Entrepreneurship,
and Economics courses to work on a collaborative project during a single school semester.
The objective of this project is to research, design, plan, present, fund, and implement a
community based business. The students will engage with faculty, venture capitalists, and
community entrepreneurs to launch a product or service from the research phase, to systems
and product design and testing, to business plan development, to venture capital funding, and
finally to business startup. The student’s performance will be measured based on the
combined effort from the three classes. As part of the grading process, feedback from all
involved principles and venture capitalists will be used to guide the instructors in their
assessment of student outcomes. Student involvement will be encouraged to continue post
class completion.
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Brazil, Brasília - DF, 2 - 5 de Dezembro, 2007
© 2007 Celler / International Institute of Systems Integration
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[8] West Texas Coalition for Innovation and Commercialization, www.wtcic.org
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