{"id":7977,"date":"2017-10-10T14:24:31","date_gmt":"2017-10-10T12:24:31","guid":{"rendered":"http:\/\/www.munich-business-school.de\/insights\/?p=7977"},"modified":"2017-10-10T14:34:18","modified_gmt":"2017-10-10T12:34:18","slug":"innovation-entrepreneurship-boston-2","status":"publish","type":"post","link":"https:\/\/www.munich-business-school.de\/insights\/en\/2017\/innovation-entrepreneurship-boston-2\/","title":{"rendered":"\u201cInnovation & Entrepreneurship\u201d: Research Trip to Boston"},"content":{"rendered":"

In the spring of 2017, I participated in a research trip to Boston in the context of the cooperation between MBS and the Fraunhofer-Institut. The trip was organized by the German American Chamber of Commerce and aimed to identify the current success factors of the approaches to entrepreneurship in the American economic system and to extend the research network. Internationalization and digitization\/technology are currently declared to be decisive areas of activity in the field of entrepreneurship (see Schwens, C., Zapkau, F. B., Bierwerth, M., Isidor, R., Knight, G., & Kabst, R. (2017). International Entrepreneurship: A Meta-Analysis of the Internationalization and Performance Relationship. Entrepreneurship Theory and Practice<\/em>).<\/p>\n

In order to identify current success factors of the approaches to entrepreneurship of the American economic system, I participated in five events in the field of \u201cInnovation & Entrepreneurship\u201d and thereby visited five venture capital companies and five successful startups. Thus I was able to conduct field research with selected players from the entrepreneurship field in the broadest sense of term. The method selected was that of passive participating observation. That is, the observer participates in what is happening (conferences, discussions, visits) without actively intervening. He is unobtrusive, somewhat like a visitor. But he keeps a record of his observations (see L\u00fcders, C. (2008). 5.5 Beobachten im Feld und Ethnographie. Qualitative Forschung. Ein Handbuch<\/em>, 384-401).<\/p>\n

Observation 1: Innovation Culture & Infrastructure<\/h3>\n

The Greater Boston Area, which counts as one of the world\u2019s leading innovation hotspots<\/a>, is home to Harvard University, the Massachusetts Institute of Technology (MIT), the Boston Innovation District, and, not least of all, our partner institution Boston University, not to mention numerous technology-based global market leaders. The Boston area has a unique ecosystem in which the players inspire one another and are thus able to come up with disruptive innovations time and again. There is a vital innovation community which has made innovation a part of daily business. Several events in the area of Innovation & Entrepreneurship are held every day and even the locals participate actively. The current schedule of events is published here<\/a>.<\/p>\n

Networking is an important part of the innovation culture. Contacts and networks are contributed as currency. One speaks here of \u201crelationship equity\u201d. That is why successful entrepreneurs surround themselves with interesting personalities. The ability of entrepreneurs to get along well with other people is often said to be very important. Their willingness to help one another, which is frequently able to supplement a business idea, leads to a venture\u2019s progress through new contacts and know-how. This plays an important role even in the relationship between a company and its investors. Entrepreneurs frequently ask, \u201cWhat will you, as an investor, do if the startup does not happen to be doing so well?\u201d<\/p>\n

All in all, Boston leaves one with the impression of the continual optimism of tinkerers and explorers who, like Christopher Columbus before them, keep looking for something new.<\/p>\n

\"MBS<\/a>
View of the Boston skyline from the Innovation District point of view.<\/figcaption><\/figure>\n

Observation 2: Focus on Speed<\/h3>\n

The factor of time is regarded as one\u2019s worst enemy. He who loses time loses in competition. Bootstrapping is not an option anymore. Time plays the most important role in the tension of the magic triangle of time, costs and quality. Looking back on ventures that were truly successful, one sees that capital, as a resource, was not the bottleneck. Quality, in the sense of 100 % functionality as a checkpoint before product launch, is rejected by the American approach because, first of all, one does not get customer feedback from the market in time, and secondly, one loses the competition in the market against those who are faster. From the German point of view one can say: speed before perfectionism, no optimizations of products and services until after they have been launched, at which point this is frequently done together with customers (see Wenzel, F. (2017). Sustainable Digital Business: Crucial Success Factor for Small and Medium-Sized Enterprises and Start-Ups. In: Sustainability in a Digital World (pp. 131-143). Springer International Publishing).<\/p>\n

Observation 3: Solve Big Problems<\/h3>\n

It is important for a startup to pursue its own vision. A startup should not take dictation from narrowly formulated customer requirements, for this restricts the solution space. The following pattern recurs in all successful startups: enormous faith that a great business idea will work, connected with an unrestrained will to realize the underlying concept. This is attended by the personality development of entrepreneurs, whose success makes them charismatic personalities. (see Gerpott, F. H., & Kieser, A. (2017). It\u2019s not charisma that makes extraordinarily successful entrepreneurs, but extraordinary success that makes entrepreneurs charismatic. Managementforschung<\/em>, 1-20.). But entrepreneurs must also recognize when it\u2019s time to give up!<\/p>\n

Mature entrepreneur personalities frequently follow the path of \u201cLearn, Earn, Return\u201d, meaning:<\/p>\n