Cases in Technological Entrepreneurship
Show Less

Cases in Technological Entrepreneurship

Converting Ideas into Value

Edited by Claudio Petti

The book examines from different perspectives a number of fundamental issues in the process of transforming technological innovations into profits. Key cases and field insights from distinguished contributors show the role and the practices of government bodies, universities, private investors and companies within the transformation of new ideas into value, in start-ups as well as in incumbents. The book takes a systemic view of technological entrepreneurship, positioning the topic at the interface between entrepreneurial and strategic perspectives within the emergent strategic entrepreneurship field.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 7: Using Innovation, Research and Finance to Build a Company with a Multi-Option Strategy

Roberto Siagri, Andrea Barbaro and Nicola Buttolo


Roberto Siagri, Andrea Barbaro and Nicola Buttolo BUSINESS IS A RISKY BUSINESS Giving birth to a firm is a hard enterprise. Transforming an idea into a business is a risky job. As Arie de Geus points out in his book The Living Company (1997), if we take a look at a firm’s average life expectancy we find that it is around 12.5 years, regardless of its geographical location.1 If we focus on multinational corporations, the average life expectancy goes up to about 45 years: this can give us an idea of how a company’s life can be extended by expanding the company itself outside the national borders; as we would say today, by globalizing it. Furthermore, Christensen and Raynor (2003) remind us that 75 per cent of new products launched by existing firms, including the best established, does not succeed on the market; with reference to investments, 80 per cent of the ones made by venture capitalists give no return; and if we look at how many firms are able to sustain an above-average growth rate for more than a few years, we count just one out of ten. The challenge is then to find a development model able to create growth and sustain the company in the medium and long term. There is no need for companies to grow to be big come hell or high water, but there is the need to create a sort of ecosystem able to sustain both small and big companies, an ecosystem in...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.