Technology entrepreneurship : taking innovation to the marketplace

367 Pages·2015·10.01 MB·English

by  Thomas N Duening, Robert A Hisrich, Michael A Lechter

Technology Entrepreneurship
Technology
Entrepreneurship
Taking Innovation to the Marketplace
Second Edition
Thomas N. Duening, Ph.D
El Pomar Chair of Business and Entrepreneurship
Director, Center for Entrepreneurship
College of Business
University of Colorado at Colorado Springs
Robert D. Hisrich, Ph.D
Garvin Professor of Entrepreneurship
Director, Walker Center for Global Entrepreneurship,
Thunderbird School of Global Management
Michael A. Lechter, Esq., CLP
CEO, Michael Lechter, PC
CEO, TechPress Inc.
Adjunct Professor, Fulton School of Engineering,
Arizona State University
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Second edition 2015
Copyright © 2015, 2010 Thomas N. Duening, Robert D. Hisrich, Michael A. Lechter.
Published by Elsevier Inc. All rights reserved.
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Dedication
To my mentor, John M. Ivancevich, and to my wife, Charlene.
Thomas N. Duening
To my wife, Tina Hisrich; daughters, Kary, Katy, and Kelly; son-in-law, Rich; and
grandchildren, Rachel, Andrew, and Sarah.
Robert D. Hisrich
To my wife, Sharon L. Lechter, and children and grandchildren, Phillip, Angela,
Kristian, and Dylan; Shelly, Jeff, and Emma; and William Eric, ever the Marine,
may he rest in peace.
Michael A. Lechter
Acknowledgments
We are grateful for the support, encouragement, and feedback we received
during the production of this text. Several people deserve special mention for
their unwavering and tireless support of this project. Carol Pacelli assisted in
the preparation of many of the chapters. Jonathan Beckley and Jason Babbel
provided substantial research support and assistance in developing some of
the chapters. Of course, any remaining errors, either of omission or commission,
remain the sole responsibility of the authors.
In addition, a number of teachers and scholars participated in reviewing this
text during its development. In addition to the ones who wish to remain anon-
ymous, these reviewers include:
n Frank Hoy, Worcester Polytechnic Institute
n Thomas E. Kaplan, Wittenberg University
xvii
About the Authors
Dr. Thomas N. Duening is the El Pomar Chair of Business & Entrepreneur­
ship and Director of the Center for Entrepreneurship in the College of
Business at the University of Colorado, Colorado Springs. He is a 1991
graduate of the University of Minnesota with a PhD in Higher Education
Administration and an MA in Philosophy of Science. He began his aca­
demic career as the Assistant Dean for the University of Houston’s
College of Business Administration. There, he was also a visiting faculty
member in the Marketing Department and a co­founder of its Center
for Entrepreneurship & Innovation.
Dr. Duening launched his first venture while a graduate student. His
international consulting firm served the electric utility industry with
information products centered on the issue of health effects associated
with electric and magnetic fields from high­voltage power lines. Duening
and his partner launched the venture in 1984. He left in 1991 upon com­
pletion of his doctorate to assume the Assistant Dean position in Houston.
After his 9­year stint as Assistant Dean, Dr. Duening founded several more
companies. With a partner, he co­founded US Learning Systems in 1998. The
firm provided e­learning content to providers around the country. US Learning
Systems was acquired in December 1999 by Aegis Learning. Aegis provided
e­learning services to corporations around the world. Dr. Duening left Aegis in
2002 to launch the Applied Management Sciences Institute (AMSI). The orga­
nization was created to develop educational products for business students. As
part of this firm, Professor Duening co­wrote three business textbooks, which
now enjoy wide circulation around the world.
Dr. Duening next founded INSYTE Business Services Group and launched a
project to study best practices in business process outsourcing. The result of
this effort was two trade books: Business Process Outsourcing: The Competitive
Advantage and The Essentials of Business Process Outsourcing. Both books were
published by John Wiley & Sons in 2004 and 2005, respectively. As he was
xix
xx About the Authors
conducting the research for these books, Dr. Duening co­founded INSYTE
InfoLabs India, Pvt. Ltd., a business process outsourcing firm based in
Bangalore, India. The firm provides outsourcing services to a wide range of
companies, enabling them to reduce their cost structure. Infolabs was acquired
by ANSRSource in 2004.
In 2004, Dr. Duening accepted a position as Director of its Entrepreneurial
Programs Office with Arizona State University’s Ira A. Fulton School
of Engineering. In that role, Dr. Duening taught courses in Technology
Entrepreneurship to engineers at the graduate and undergraduate levels.
He also co­authored a textbook titled Technology Entrepreneurship: Creating,
Capturing, and Protecting Value published by Elsevier.
He is currently a senior advisor to ANSRSource (www.ansrsource.com) and a
founding partner in a Bangalore, India­based global accelerator called Kyron
(www.kyron.me).
Dr. Robert D. Hisrich is the Garvin Professor of Global Entrepreneurship
and Director of the Walker Center for Global Entrepreneurship at
Thunderbird School of Global Management. Dr. Hisrich received
his BA from DePauw University, his MBA and PhD degrees from the
University of Cincinnati, and honorary doctorate degrees from Chuvash
State University (Russia) and the University of Miskolc (Hungary). He
was a Fulbright Professor at the International Management Center in
1989 and a Fulbright Professor at the Foundation for Small Enterprise
Economic Development in Budapest, Hungary, from 1990 to 1991.
He has held or now holds visiting professorships at the University of
Ljubljana (Slovenia), the Technical University of Vienna (Austria),
Donau University (Austria), Queensland University of Technology
(Australia), and Jilin University (China).
Dr. Hisrich has authored or co­authored 34 books, including: Marketing
for Entrepreneurs and SMEs: A Global Perspective (2014), Managing Innovation
and Entrepreneurship (2014), Entrepreneurship: Starting, Developing, and
Managing a New Enterprise, 9th edition (2013—translated into 13 languages),
Governpreneurship: Establishing a Thriving Entrepreneurial Spirit in Government
(2013), Corporate Entrepreneurship (2012), International Entrepreneurship:
Starting, Developing, and Managing a Global Venture, 2nd edition (2012),
Technology Entrepreneurship: Value Creation, Protection, and Capture (2010), and
The 13 Biggest Mistakes That Derail Small Businesses and How to Avoid Them, and
over 300 articles on entrepreneurship, international business management,
and venture capital.
About the Authors ix
Dr. Hisrich has been involved in the creation of numerous ventures including:
H&B Associates (consulting), Illuminations (rainbow stickers and ornaments),
Jameson Inns (hotels), La Bella Terre (organic sugars), Noteworthy Medical
Systems (medical software), Polymer Technology (Boston Lens) and Xeta
Technologies (telecommunications).
Michael A. Lechter is an attorney, certified licensing professional
and entrepreneur, CEO of TechPress Inc., a publishing and liter­
ary agency company, CEO of Michael Lechter PC, and Adjunct
Professor in the Entrepreneurial Program in the Ira A. Fulton School
of Engineering at Arizona State University. Lechter is also the best­
selling author of OPM, Other People's Money, How to Attract Other
People's Money for Your Investments—The Ultimate Leverage (2005,
2nd edition 2010) and Protecting Your #1 Asset, Creating Fortunes
from Your Ideas (2001, 2nd edition 2014).
An internationally known expert in the field of intellectual property,
his clients have included breweries, fast food companies, casinos,
professional sports teams, major software companies, semiconduc­
tor and medical device manufacturers, start­ups, venture capitalists,
and Fortune 100 companies. When asked what he does for a living, he typically
replies, “I build forts and fight pirates.”
Michael has been the architect of strategies for building businesses, using
both conventional and unconventional forms and sources of “Other People’s
Money and Resources.” His experience in representing both venture capital­
ists and start­up and emerging businesses, and experience as an angel investor
himself, provides a unique perspective to the subject of building a business.
Michael is also the author of The Intellectual Property Handbook, TechPress
(1994), coordinating editor of Successful Patents and Patenting for Engineers and
Scientists, IEEE Press (1995), and contributing author to the Encyclopedia of
Electrical and Electronics Engineering, Wiley (1999), and Licensing Best Practices:
The LESI Guide to Strategic Issues and Contemporary Realities, Wiley (2002). Over
the years, he has also written monthly columns for INC.com, IEEE­USA Today’s
Engineer, and Washington Technology.
Michael has been an active member of the Licensing Executives Society
(LES) USA/Canada, serving as a trustee (1996­2000), and as Computer and
Electronics Industry Sector Chair (1992­1996). He has been a LES USA/
Canada delegate to LES International since 2001 and has served as Chair or
Vice Chair of a number of LESI committees. Since 2013, he has been counsel
to the LESI board.
xxii About the Authors
He has lectured extensively throughout the world on intellectual property law
and entrepreneurship. Upon request of the House Judiciary Committee he has
submitted testimony to the Congress of the United States and has participated
in various United Nations and foreign government proceedings on intellectual
property law and technology transfer.
Michael is also the owner of Cherry Creek Lodge LLC, a resort/guest ranch
in the Tonto National Forest of Northern Arizona (www.CherryCreekLodge.
com), a study in rustic elegance where modern comfort meets The Old West.
The Cherry Creek Lodge specializes in corporate and family retreats.
Preface
In this book, we chart a course for technology entrepreneurs interested in
bringing products to the global marketplace. The book provides a compre-
hensive perspective to the challenge of launching, growing, and exiting a tech-
nology venture. Our unique collaboration has resulted in a book that will be
useful to anyone starting and/or growing a technology venture.
The technology venture landscape has changed radically in the last decade and
will continue to change in the years ahead. Not only are new technologies
emerging to enable interconnectivity on an unprecedented scale, but new mar-
kets are also emerging. Today’s technology entrepreneur must be nimble, fast,
and creative in product design and development, marketing and selling, and
in protecting the all-important intellectual property that makes the product
unique.
Each author of this book has incorporated his own perspectives and those of
leading scholars and practitioners in technology entrepreneurship. As such,
you will find our voices mixed with the voices of those whom we believe
to be generating important new insights into the secrets of venture success.
Where appropriate, we have cited these other scholars and practitioners, and
we encourage you to follow the links we provide at the end of each chapter to
further readings and websites that may be useful.
We organized this book to represent the flow of challenges that confront a
technology entrepreneur. Our first section is “You Are Here: X.” This section
attempts to convey a sense of place, similar to when you consult a directory
in a complex shopping mall that you’re visiting for the first time. “X” denotes
where you are currently standing and helps you determine the best path to get
to where you want to go. Our first section is intended to give you that same
sense of determining where you currently are so you can determine your most
likely path to entrepreneurial success.
Section 2 is titled “Countdown to Launch.” Here, the topics of product devel-
opment, intellectual property, legal structure of the venture, and the business
plan are covered. Each of these is a vital consideration for the technology xxiii