Batten Institute Annual Report 2010-11

BATTEN INSTITUTE Transforming Society Through Entrepreneurship and Innovation

ANNUAL REPORT 2010-2011

10/11

ANNUAL REPORT

TABLE OF CONTENTS 2

MISSION

3

HISTORY

4

FROM THE EXECUTIVE DIRECTOR

6

ACADEMIC YEAR HIGHLIGHTS

8

10TH ANNIVERSARY

10

TRANSFORMATIVE RESEARCH Initiatives Batten Fellows Research Grant Program Publications

14

CONSEQUENTIAL VOICE Events Communications & Public Relations

20

INSPIRED EDUCATION Curricular Initiatives Experiential Programs Batten Scholarships

24

ENERGETIC COMMUNITY University Partners Batten Affiliates Leadership Team

28

FINANCIAL STATEMENT

BATTE YEARS

MISSION The Batten Institute seeks to improve society by creating knowledge about the transformative power of entrepreneurship and innovation and by cultivating principled, entrepreneurial leaders.

To fulfill its mission, the Institute has adopted a four-pronged strategy.

FRANK BATTEN, SR. 1927-2009

TRANSFORMATIVE RESEARCH Create thought leadership through a diverse portfolio of research projects of consequence to business and society.

CONSEQUENTIAL VOICE Engage leaders through a broad array of channels to directly influence the world of practice.

INSPIRED EDUCATION Cultivate the next generation of entrepreneurial leaders through rigorous academic and experiential programs.

ENERGETIC COMMUNITY Foster a diverse and collaborative community of scholars, students, alumni, and practitioners.

2 | ANNUAL REPORT 2010-2011

HISTORY In 1996, University of Virginia alumnus Frank Batten Sr., and his family gave

EXECUTIVE DIRECTORS

the Darden School a generous gift to be used for the establishment of a community of scholars and practitioners who would pursue leading edge research and develop educational programs in entrepreneurship and innovation. In 2000, after a subsequent gift from Frank Batten Sr., the former Chairman and CEO of Landmark Communications and founder of the Weather Channel, the initial community formally became the Batten Institute. Charged with a mission to become a preeminent institution for thought leadership and educational excellence, and to help create and disseminate knowledge in the fields of entrepreneurship and innovation, the Institute set about forging ties with a wide range of organizations and individuals in the national and international business community.

ROBERT F. BRUNER 2000–2004 Dean and Charles C. Abbott Professor of Business Administration

The defining of terms was an essential task early on. “Entrepreneurship,” the Institute’s major stakeholders decided, would mean not just the act of starting a new business venture but would be expanded to include the sort of opportunity-seizing and action-oriented behavior that is essential for sustained growth in companies both large and small. “Innovation” would not be just of the sort reflected in new products and services but would also include new business models and processes, and new ways of thinking about value creation.

During these early years, the Institute launched the Batten Fellows program, expanded its portfolio of research projects, supported the development of numerous case studies and educational materials, published books and a research-based newsletter, launched the Darden Incubator, and supported business plan competitions and other educational offerings for students.

JEANNE M. LIEDTKA 2004–2008 United Technologies Corporation Professor of Business Administration

Today, the Batten Institute is organized in two operating units, a research center focused on academic scholarship and Darden’s Center for Entrepreneurial Leadership, focused on student activities. The extensive programs and initiatives supported by these units bring together scholars, students, alumni, and business leaders, fostering a diverse and energetic collaborative community in support of the Institute’s mission to create knowledge and improve society.

The important work of the Batten Institute has been made possible by the vision and support of the Institute’s benefactor, Frank Batten Sr., who passed away on September 10, 2009. The Institute celebrates and honors the legacy of Mr. Batten, a media pioneer and philanthropist, who is remembered for his extraordinary generosity, his abiding commitment to education, and his unpar-

MICHAEL J. LENOX 2008–present Associate Dean and Samuel L. Slover Research Professor of Business Administration

alleled entrepreneurial energy and vision.

3

FROM THE EXECUTIVE DIRECTOR This past year has been one to both reflect on our past accomplishments and look forward to our future possibilities. In April, we celebrated the 10th Anniversary of the Batten Institute in a gala affair attended by 150 students, faculty, staff, alumni, and friends (see p. 8 for highlights). While a number of the decade’s remarkable achievements were celebrated, far more important is what they represent: the lives that have been impacted, the ideas that have been generated, the ventures that have been spawned, and the conversations that have been fostered.

In 2010-11 alone, thousands of students, faculty, alumni, scholars, and community members participated in Batten Institute programs. In November, we hosted our 2nd annual Entrepreneurship Conference, focusing on the “Life Cycle of a Startup,” where 250 students, alumni, and community members

“

... THE LIVES THAT HAVE BEEN IMPACTED, THE IDEAS THAT HAVE BEEN GENERATED, THE VENTURES THAT HAVE BEEN SPAWNED, AND THE CONVERSATIONS THAT HAVE BEEN FOSTERED.”

participated in a series of panels, discussion, and workshops. In March, we hosted a dozen Chief Innovation Officers from leading corporations such as Corning, Siemens, ATT, and Bank of America as part of our Innovators’ Roundtable. Throughout the year, we continued our Ideas to Action tour, holding packed events in London, Frankfurt, Zurich, New York, San Francisco, Minneapolis, and Houston.

The Batten Institute’s Center for Entrepreneurial Leadership, under the direction of Philippe Sommer, continued its efforts to provide rich educational opportunities. We had 139 entries into the U.Va. Entrepreneurship Cup anointing the best venture concept at the University. Eighteen ventures founded by MBA students participated in the Darden Business Incubator. Twenty students received a full Batten scholarships. More than 30 students interned at entrepreneurial ventures as part of the Batten Venture Internship program.

Under the leadership of Sean Carr, director of intellectual capital, we expanded our Batten Grant program—opening it up for the first time to faculty throughout the University of Virginia and attracting proposals from five other schools. We published a series of Batten Briefings on the venture capital industry that was featured at U.Va.’s Venture Summit in March. In May, we hosted our 2nd annual Darden Entrepreneurship and Innovation Research Conference joint with the Carey-Darden Scholars Retreat, attracting over 70 academics from leading universities around the world to discuss cutting-edge research.

4 | ANNUAL REPORT 2010-2011

Moving forward, we will continue to deepen and expand our efforts to further enrich the opportunities and experiences of entrepreneurial leaders. In the next year, we are working to expand our i.Lab and create an innovation hub to support student entrepreneurs not only while at Darden but afterwards. We will convene important gatherings such as the Jefferson Innovation Summit in October 2011, which will bring together 60 luminaries from business, government, media, and academia to discuss how to build a society of entrepreneurs and innovators in the U.S. and internationally. We will publish impactful research to help guide business practice and public policy on important topics.

Finally, we will continue our efforts to build bridges to the University community to help foster the broader entrepreneurial ecosystem in Virginia.

As we look to the future, we continue to be inspired by Frank Batten’s challenge to become “the preeminent thought leader and educator in entrepre-

“

WE HOSTED A DOZEN CHIEF INNOVATION OFFICERS FROM LEADING CORPORATIONS SUCH AS CORNING, SIEMENS, ATT, AND BANK OF AMERICA AS PART OF OUR INNOVATORS’ ROUNDTABLE.”

neurship and innovation.” The generous gift from the Batten family ten years ago continues to be a catalyst at the University. It has allowed us to build an entrepreneurial ecosystem of students, alumni, and faculty at Darden, U.Va., and beyond, in our pursuit to create the next generation of entrepreneurial leaders who will transform the world.

Michael J. Lenox Associate Dean and Executive Director, Batten Institute Samuel L. Slover Professor of Business Administration Darden School of Business

BATTEN INSTITUTE

“AS WE LOOK TO THE FUTURE, WE CONTINUE TO BE INSPIRED BY FRANK BATTEN’S CHALLENGE TO BECOME THE PREEMINENT THOUGHT LEADER AND EDUCATOR IN ENTREPRENEURSHIP AND INNOVATION.

” 5

2010–2011 ACADEMIC YEAR HIGHLIGHTS

ENTREPRENEURSHIP IN ISRAEL CONFERENCE The Batten Institute held an engaging conversation chaired by Professor Gal Raz with business leaders, policy experts, and Israeli entrepreneurs to

UVA ENTREPRENEURSHIP CUP

discover how U.S. entrepreneurs can benefit from Israel’s successes.

The second annual Entrepreneurial Concept Competition, the U.Va. Cup, included entries from multiple schools at the University and awarded more than $35,000 in non-dilutive funds. The competition is sponsored by Third Security.

OCT

10

NOV

11

NOV

MAR

19

03

E-CONFERENCE: THE LIFE CYCLE OF A STARTUP

UNIVERSITY OF VIRGINIA VENTURE SUMMIT

Approximately 250 Darden alumni

In the spirit of Thomas

and students, as well as students

Jefferson, venture capitalists

from other U.Va. schools, gathered

and alumni from top investment

for a concept competition followed

firms across the nation gather

by a full day of alumni panels mod-

annually with innovative

erated by Darden faculty.

researchers, academics, and students at U.Va.’s Venture Summit, sponsored by the Batten Institute.

6 | ANNUAL REPORT 2010-2011

INNOVATORS’ ROUNDTABLE Approximately a dozen innovation officers representing top U.S. corporations gathered with Darden faculty members in the University of Virginia’s Rotunda for a day-long Socratic dialogue facilitated by the Batten Institute.

IDEAS TO ACTION TOUR Events held throughout the year in Boston, Houston, Minneapolis, San Francisco, London, Frankfurt and Zurich.

MAR

MAY

11

06

DARDEN ENTREPRENEURSHIP AND INNOVATION RESEARCH CONFERENCE Nearly 70 researchers from around the world gathered for the second annual Darden Entrepreneurship and Innovation Conference. Hosted by the Batten Institute, the conference brought together the two strands of scholarship for an engaging series of paper presentations and discussions.

BATTEN INSTITUTE

7

A LEGACY OF ENTREPRENEURSHIP FRANK BATTEN SR.

HIGHLIGHTS FROM THE INSTITUTE’S FIRST DECADE OVER 70% OF DARDEN STUDENTS TAKE ENTREPRENEURSHIP COURSES

OVER $80,000

OVER 60 LEADING SCHOLARS AND THOUGHT LEADERS HAVE CONDUCTED ENTREPRENEURSHIP AND INNOVATION RESEARCH AS BATTEN FELLOWS

BOOT CAMPS IN VENTURE CAPITAL, ENTREPRENEURSHIP, AND HEALTH CARE

46% OF INCUBATOR

GRANTED AT UVAWIDE COMPETITIONS ANNUALLY

COMPANIES REMAIN ACTIVE AFTER 5 YEARS SINCE 2000,

40 BATTEN VENTURE INTERNSHIPS FUNDED ANNUALLY

8 | ANNUAL REPORT 2010-2011

OVER 150 GRANT-FUNDED PROJECTS UNDERTAKEN BY APPROXIMATELY 75 SCHOLARS

OVER $1 MILLION AWARDED ANNUALLY IN SCHOLARSHIPS

CELEBRATING BATTEN’S 10 YEAR ANNIVERSARY

top: Members of the Darden community enjoy dinner and conversation at the Batten Institute’s 10th Anniversary Celebration in April. below left: Frank Batten Jr. addresses the celebration upon the unveiling of a plaque honoring his father’s contributions to the creation of Darden’s i.Lab.

BATTEN INSTITUTE

below right: Elizabeth O’Halloran, former Managing Director of the Batten Institute, accepts a gift of appreciation from Mike Lenox, Executive Director, in recognition of her pivotal role in the establishment of the Institute and her decade of service.

9

TRANSFORMATIVE RESEARCH The Batten Institute cultivates research that addresses questions central to entrepreneurship and innovation. Institute-supported research is practical, rigorous, and informs business practice and/or public policy. The Batten Research Grant Program provides financial support to Darden and University of Virginia faculty. The Batten Research Fellows program engages scholars and thought leaders through Institute residencies and other offerings. Finally, the Institute supports a team of staff researchers who lend their talents to a range of projects.

10 | ANNUAL REPORT 2010-2011

INITIATIVES The Institute pursues a diverse portfolio of projects but has adopted a number of focused initiatives of critical importance to society where Institute-supported scholars hold substantial expertise. Current initiatives center on six areas of public interest:

EFFECTUAL ENTREPRENEURSHIP

INNOVATION AND SUSTAINABILITY

The Society for Effectual Action is a group

There is growing acceptance that business

of academic researchers and entrepreneurs

must play a constructive role in addressing

gathered for a single purpose: to fundamen-

global issues of sustainability. The Institute’s

tally change the way entrepreneurship is

Innovation and Sustainability initiative focuses

taught and learned around the world.

on the mechanisms by which entrepreneurship and innovation can simultaneously drive

INNOVATION AND ORGANIC GROWTH

a firm’s market success and discover sustain-

Shrinking markets, unrelenting competition, the vitality of every business enterprise,

INNOVATION AND HEALTH CARE

large and small. The Institute’s Innovation

Although U.S. policymakers, medical profes-

and Organic Growth initiative examines how

sionals, and health care consumers may not

innovation can be the engine for sustained,

agree on a single solution, all agree that the

internally generated business growth.

country’s health care system is not working.

and swiftly evolving technologies challenge

able solutions to societal challenges.

The Health Care Innovation initiative sup-

ENTREPRENEURSHIP IN EMERGING MARKETS New businesses are crucial for the sustained economic development of the world’s emerging regions. The Entrepreneurship in Emerg-

ports research that reflects the need for novel approaches to this seemingly intractable problem.

DESIGN@DARDEN

ing Markets initiative supports research

Design thinking is a key competency asso-

projects focused on entrepreneurs and the

ciated with innovation but not traditionally

ingredients of entrepreneurship in emerging

taught in higher learning or understood in the

regions around the world: seed-stage capital,

business world. Design@Darden is an online

mentors, sound social institutions, and a

community of educators sharing a broad array

culture that welcomes new ideas by educating

of design-related resources.

and supporting those who pursue them. transformative research | 11

BATTEN FELLOWS BATTEN FELLOWS 2000-2010

Since its inception, the Batten Institute has welcomed more than 60 academics, policymakers, and business leaders from around the world as Batten Fellows, whose time in residence at the University of Virginia has ranged from one week to one year. These appointments have offered researchers the time

JOEL BROCKNER

and space to think creatively about how entrepreneurship and innovation ad-

The Implications of Crisis

dress society’s most serious challenges. Fellows have opportunities to build

Management for Corporate

associations with academic areas within the University and are encouraged to

Innovation, Creativity, and

generate high-impact intellectual capital.

Change

CLAIR BROWN Innovation Dynamics in the Electronics Sector

JOHN SEELY BROWN Learning in the Innovation Process

GERD GIGERENZER Consumer Responses to Product Innovation

Batten Fellows span a variety of disciplines and scholarly interests. A full list of Fellows and detailed descriptions of their research are available at

www.batteninstitute.org.

RESEARCH GRANT PROGRAM The Batten Institute solicits grant proposals from faculty members of the University of Virginia and other universities who are conducting rigorous and relevant research about entrepreneurship and innovation that results in highimpact intellectual outputs consistent with the missions of the Darden School

ROGER GORDON

and the University.

Corporate Taxation

Proposals for the Batten Institute research grant program are reviewed by a LUTZ HILDEBRANDT Driving Innovation Through Marketing and R&D Synergies

committee that includes members of Darden’s Research and Course Development Committee and the Batten Institute’s leadership. Researchers may use the grants—$10,000, on average—to cover research-related expenses such as

MICHAEL JENSEN

data collection, research assistance, and travel. Grant recipients are expected

The Agency Costs of Overvalued

to produce papers for publication in peer-reviewed journals as well as confer-

Equity

ence presentations and books for both scholarly and business practitioner

HENRY MINTZBERG

audiences.

Designing Strategy, Designing Global Management Education

HOWARD STEVENSON

JOURNAL OF BUSINESS VENTURING

Insights on Global Entrepreneurship:

The Institute has long served as the underwriter of the Journal of Busi-

Education, Policy, and Practice

ness Venturing (JBV), the premier scholarly journal devoted to entrepreneurship and innovation. JBV is ranked by the Social Science Citation Index as one of the most influential management journals. From 1995 to 2009, Darden Professor S. Venkataraman served as editor-in-chief. Darden faculty Michael Lenox and Saras Sarasvathy currently serve as field editors.

12 | ANNUAL REPORT 2010-2011

PUBLICATIONS BOOKS

York, J. and Venkatamaran, “The Entrepreneur-Environ-

Growing an Entrepreneurial Business: Concepts and Cases Edward D. Hess Stanford University Press, 2011

Designing for Growth: A Design Thinking Designing for

Tool Kit for Managers Jeanne Liedtka and Tim Ogilvie

a design thinking tool kit for managers J e a n n e L i e d t k a a n d t i m O g i Lv i e

Columbia Business School, 2011

Effectual Entrepreneurship Stuart Read, Saras Sarasvathy, Nick Dew, Robert Wiltbank, and

ment Nexus: Uncertainty, Innovation and Allocation,”

Journal of Business Venturing, 2010.

WORKING PAPERS Pacheco, D., York, J., Dean, T., and Sarasvathy, S., “The Co-Evolution of Institutional Entrepreneurship: A Tale of Two Theories,” Batten Institute Research Paper No. 2010 P1.

Raz G., Druehl C., and Doctori-Blass V.,“Design for the Environment – Life Cycle Approach Using a Newsvendor Model,” 2011.

Anne-Valérie Ohlsson

Ovchinnikov A., Raz G. and Doctori-Blass V., “Environ-

Routledge, 2011

mental and economic Assessment of Remanufacturing

Sustainability, Innovation, and Entrepreneurship

Strategies for Product-Service Bundles,” 2011.

Hughes, J., “Napsterizing Pharaceuticals,” 2011.

Andrea Larson Flat World Knowledge, 2011

Hutchison-Krupat, J., and Chao, R., “Tolerance for Failure and Incentives for Collaborative Innovation” Darden

ACADEMIC ARTICLES Lenox, M., Hall, J., Daneke, G., “Sustainable Development and Entrepreneurship: Past Contributions and Future Directions,” Journal of Business Venturing, 2010.

Business School Working Paper No. 1921550, 2011.

CASES AND TECHNICAL NOTES “VIPE Financing: Venture (Capital) Investments in Public Equity,” Susan Chaplinsky and David Haushalter. The

Lenox, M., and Eesley, C., “Firm Responses to Sec-

Handbook of Venture Capital (Oxford University Press),

ondary Stakeholder Action,” Strategic Management

2010.

Journal, 2010.

Laseter T., Ovchinnikov A., and Raz. G., “Reduce, Reuse, Recycle…or Rethink,” Strategy + Business, 2010.

BATTEN BRIEFINGS In Fall 2010, a re-envisioned Batten Briefings was launched, providing a regular series of executive

Lenox, M., Rockart, S., and Lewin, A., “Does Interdepen-

briefings that address important and timely topics in

dency Affect Industry Profitability? An Empirical Test.”

entrepreneurship and innovation. Intended for a wide

Strategic Management Journal. 31(2): 121-139, 2010.

but knowledgeable audience, the Briefings will provide

Sarasvathy, S., and Venkataraman, S., “Entrepreneurship as Method: Open Questions for an Entrepreneurial Future,” Entrepreneurship Theory and Practice, 2011.

relevant analysis and objective insight for managers, business educators, researchers, policymakers, and other decision makers concerned with the transformative role of entrepreneurship and innovation in business and society.

BATTEN INSTITUTE

transformative research | 13

CONSEQUENTIAL VOICE The Batten Institute invests in a variety of outreach activities to share its research and findings with key constituencies and to create an informed, rigorous dialog on the topics of entrepreneurship and innovation. The Institute reaches its audiences through numerous channels including mainstream media, high-visibility reports, non-academic articles, books, pioneering teaching cases, executive education, thought-provoking conferences, workshops, and guest speakers. The Institute’s outreach program targets a broad audience, including students, alumni, academics, policymakers, business leaders, and the general public interested in the critical role that entrepreneurship and innovation play in economic and social advancement.

14 | ANNUAL REPORT 2010-2011

EVENTS Conferences, workshops, and speaking events provide the Institute with a platform to foster critical conversations with key stakeholders throughout the year.

IDEAS TO ACTION TOUR 2010-2011

LONDON

JUN ‘10 Michael Lenox

FRANKFURT

JUN ‘11 Peter Rodriguez

MINNEAPOLIS

MAY ‘11 Michael Lenox

SAN FRANCISCO

ZURICH

APR ‘11 Greg Fairchild

JUN ‘11 Peter Rodriguez

BOSTON

APR ‘11 Ed Hess

AUG ‘11 Michael Lenox

HOUSTON

MAY ‘11 Michael Lenox

Expanding the Institute’s reach and impact nationally and globally.

IDEAS TO ACTION TOUR

2010-2011 LOCATIONS

Since 2009, Batten-affiliated faculty have traveled to

SAN FRANCISCO

MINNEAPOLIS

major cities to discuss their research with alumni,

Professor Michael Lenox

Professor Michael Lenox

ZURICH, SWITZERLAND

SAN FRANCISCO

Professor Peter Rodriguez

Professor Greg Fairchild

Boston, Houston, Minneapolis, San Francisco, London,

FRANKFURT, GERMANY

BOSTON

Frankfurt and Zurich featuring Professors Edward Hess,

Professor Peter Rodriguez

Professor Ed Hess

HOUSTON

LONDON, UK

Professor Michael Lenox

Professor Michael Lenox

prospective students, and community members. Over the course of the 2010-11 academic year, hundreds of alumni and their guests participated in events in

Greg Fairchild, Michael Lenox, and Peter Rodriguez as well as Erika Herz, Manager of Sustainability Programs.

BATTEN INSTITUTE

Consequential Voice | 15

ENTREPRENEURSHIP IN ISRAEL CONFERENCE BATTEN DISTINGUISHED LECTURERS

On October 27, The Batten Institute held an engaging conversation chaired by

Thought leaders directly

successes. The conference’s panel discussions and workshops explored two

engage with the Darden

themes: What has driven Israel’s success as a breeding ground for entrepre-

community.

neurship and innovation? How can innovation and technology cooperation

Professor Gal Raz with business leaders, policy experts, and Israeli entrepreneurs to discover how American entrepreneurs can benefit from Israel’s

between the United States and Israel benefit both countries, and particularly how can the U.S. learn from Israel’s success? In the afternoon, attendees CARL SCHRAMM

heard company briefings from three Israeli firms and attended a networking

November 2003

reception.

REINHARD SELTEN March 2004

DARDEN ENTREPRENEURSHIP CONFERENCE

MALCOLM GLADWELL

The Life Cycle of a Startup began with the annual Concept Competition on

March 2005

November 11 followed by a full day of alumni panels moderated by Darden

JIM COLLINS March 2008

faculty on November 12 exploring such themes as: “What Do You Need to Start a Business?,” “Funding,” and “Managing Growth.” Afternoon workshops for those who sought assistance with entrepreneurial ideas were held on “What’s

DANIEL PINK

Your Idea?” and “Pitch Development and De-Risking” followed by an informal

April 2010

pitch session. In only its second year, the conference was attended by approximately 250 Darden alumni and students, as well as students from other U.Va. schools and other universities.

UVA ENTREPRENEURSHIP CUP On November 19th, The Office of the Vice President for Research and Batten’s Center for Entrepreneurial Leadership hosted the second annual Entrepreneurial Concept Competition. The “U.Va. Cup” boasts entries from multiple schools and awards more than $35,000 in non-dilutive funds to four finalists. The 2010 winning team hailed from the schools of medicine and nursing and was awarded $20,000 for their invention: a hand-held retina camera that screens for diabetes-related eye disease.

UVA VENTURE SUMMIT On March 3rd and 4th, The University of Virginia’s annual Venture Summit brought together venture capitalists and alumni from top investment firms across the nation with innovative researchers, academics, and students from U.Va. to discuss developments in science, technology, and the future of the venture capital industry. The 2011 summit included a presentation by Sean Carr, the Batten Institute’s Director of Intellectual Capital, entitled “Venture Capital’s Sputnik Moment.” Since its inception in 2009, the Batten Institute has worked closely with the University’s Office of the Vice President for Research to convene this special event.

16 | ANNUAL REPORT 2010-2011

INNOVATORS’ ROUNDTABLE On March 11th, nine innovation officers representing top U.S. corporations gathered with Darden faculty members in the University of Virginia’s Rotunda for a day-long Socratic dialogue facilitated by the Batten Institute. Roundtable participants, coming from such diverse industries as telecommunications, global security, and biotechnology, found that as the innovation leaders in their respective companies (a role virtually unheard of 15 years ago) they face many similar challenges and opportunities. Darden faculty members Michael Lenox, Jeanne Liedtka, Ed Hess and Raul Chao led discussions of the challenges facing today’s innovation officers, such as deciding how to optimally allocate funding between short—and long-term projects, how to create a corporate culture that nurtures innovation and how to innovate amidst changing patent and intellectual property laws.

DARDEN ENTREPRENEURSHIP AND INNOVATION RESEARCH CONFERENCE AND THE CAREY-DARDEN RETREAT On May 5th and 6th, nearly 70 researchers from around the world gathered for the second annual Darden Entrepreneurship and Innovation Conference.

Hosted by the Batten Institute, the conference brought together the two strands of scholarship for a lively mix of paper presentations and discussions. The two-day event included a demonstration led by Saras Sarasvathy of the differences between risk, uncertainty, and Knightian uncertainty, and a brainstorming activity in which participants used randomly selected objects to come up with ideas for an academic journal.

Following the conference, 30 entrepreneurship scholars convened for the Carey-Darden Retreat, an event held in partnership with the Carey Business School at Johns Hopkins University. Participants discussed the state of entrepreneurship research and attended rich multidisciplinary sessions devoted to the financing of human capital, the creation of resources for entrepreneurs of the future, the role of entrepreneurs in light of changing ideas about capitalism, entrepreneurship in different institutional contexts, and neurochemical bases for entrepreneurial behavior.

BATTEN INSTITUTE

Consequential Voice | 17

COMMUNICATIONS & PUBLIC RELATIONS The Institute’s website, www.batteninstitute.org, provides an important connection to members of the Batten community and beyond. Site features include news, information about the Institute’s major initiatives, brief articles on supported projects, profiles of Batten-affiliated researchers and professionals, links to academic articles and teaching cases, and events listings.

E-NEWSLETTER Several times a year, the Batten Institute issues an online newsletter highlighting its research and activities to approximately 7,500 individuals. Articles

As of July 2011, @BattenInstitute had over

375

followers

(an increase of 50% from the previous year), and @DardenEShip had more than

1,100

followers.

18 | ANNUAL REPORT 2010-2011

can be accessed via an online archive. Examples of the topics addressed in 2010-11 include: “Private Action for the Public Good,” “Thinking Like a Designer,” and “How Venture Capitalists Adjust to Falling Returns,” among others.

BATTEN BRIEFINGS In February, 2011, a new Batten Briefings series was launched, providing a regular series of executive briefings that address important and timely topics in entrepreneurship and innovation. Intended for a wide but knowledgeable audience, the Briefings provide relevant analysis and objective insight for managers, business educators, researchers, policymakers, and other decision makers concerned with the transformative role of entrepreneurship and innovation in business and society. Briefings include research summaries, policy briefings, and interviews.

During the 2010-11 academic year, the Batten Institute’s programs and faculty affiliates appeared more than 70 times in national and international media.

“If not for the emergence of design thinking, some of the world’s most innovative companies might not have the edge they do now. There are 10 tools that I teach my students to expand their thinking about corporate design beyond the development of new products. They are aimed at better identifying customer needs, just as some of the most successful people in business do today.”

“Saras Sarasvathy, a professor at the University of Virginia business school, interviewed 245 entrepreneurs. Instead of doing market research, many of them just went out and tried to sell something, immersing themselves in the field and then adjusting to whatever they learned… She also found that entrepreneurs don’t often think about their competitors. That’s because they see themselves not in the middle of a competitive market, but on the fringes doing something nobody else is doing.”

– David Brooks, “Opinion,” The New York Times, March 21, 2011

“To innovate, you don’t need big, abstract ideas, just a fresh approach and some tools to help plot your successful execution. That’s what you’ll get in a superb new book called Designing for Growth: A Design Thinking Tool Kit for Managers, by Jeanne Liedtka and Tim Ogilvie.”

- Herb Schaf, BNET, June 29, 2011

– Jeanne Liedtka, contributor of “Today’s Tip,” in Bloomberg Businessweek, July 11, 2011.

“Saras Sarasvathy, a professor at Darden School of Business at the University of Virginia, uses the Starting New Ventures course to simulate the life of an entrepreneur. Participants are encouraged to involve spouses and partners. Students need to learn to launch a business alongside other distractions just as they would during a full-time job, says Prof Sarasvathy.”

“Corporations operate in a broader sociopolitical context. The greatest value of the alternative energy business to BP, in the short run, may very well be that it enhances BP’s ‘license to operate,’ allowing BP to signal to critical stakeholders such as government and the general public that it is a decent corporate citizen. Simultaneously, BP is building capabilities, in the long run, for a future in which alternative energy will be more central.”

– Michael Lenox for the series, “Case in Point,”

Washington Post, May 1, 2011

- Financial Times, May 30, 2011

“Back in the United States, their colleagues Sinha and Ransler, who were pursuing M.B.A.s at the University of Virginia’s Darden School of Business, put together a business plan and set out to raise money. They came first in two student competitions, garnering prizes of $10,000 and $50,000.”

– David Bornstein, The New York Times, January 10, 2011

“Budding entrepreneurs at the University of Virginia’s business incubator, for example, are given a $13,000 stipend and coaching and feedback on their business plans. Participants can also attend lectures and workshops on topics like intellectual property and accounting.”

“Financialism’s rise in the U.S. has fueled the growth of the financial services sector in the economy. With that growth has come economic and political power. As a result, it is not out of the question to hypothesize that Wall Street’s views control U.S. business and economic policy.”

–BATTEN Ed Hess INSTITUTE for Forbes.com, February 24, 2011

– Darren Dahl, “Business Day,” The New York Times, January 27, 2011

19

INSPIRED EDUCATION The Batten Institute’s Center for Entrepreneurial Leadership provides educational opportunities to Darden MBA students and alumni as well as to the broader U.Va. community. Darden’s entrepreneurship program, which includes a rigorous academic offering and a range of experiencebased educational opportunities, is led and funded by the Center.

20 | ANNUAL REPORT 2010-2011

CENTER FOR ENTREPRENEURIAL LEADERSHIP At a Glance PROGRAM

#3 IN THE U.S. FOR ENTREPRENEURSHIP, Princeton Review for Entrepreneur magazine, 2011 CURRICULAR INITIATIVES

25 ENTREPRENEURSHIP COURSES 70% OF DARDEN STUDENTS enroll in entrepreneurship and innovation electives #1 RANKED FACULTY by Princeton Review for Entrepreneur magazine, 2008 and 2011 SCHOLARSHIPS

10 FULL SCHOLARSHIPS awarded annually, valued at $810,501 for the 2010-2011 academic year

EXPERIENTIAL PROGRAMS

101 unique ventures and 270 entrepreneurs/participants hosted in the DARDEN BUSINESS INCUBATOR since 2000 $85,000 awarded in CONCEPT AND BUSINESS PLAN COMPETITIONS in the academic year (funding provided by the Institute, Third Security, and participating schools UVA-wide) 32 SUMMER VENTURE INTERNSHIPS funded in 2011 VENTURE FAIR FOR DARDEN ALUMNI AT REUNION LAW CLINIC WITH UVA LAW SCHOOL STUDENTS E*TECH MASH-UP INTERNET START-UP WORKSHOP

BATTEN INSTITUTE

Inspired Education | 21

INSTITUTE-SUPPORTED COURSES SOLVING BUSINESS CHALLENGES IN REAL-LIFE SETTINGS

CURRICULAR INITIATIVES The Institute’s research arm supports scholarship that advances the fields of entrepreneurship and innovation, and this research often manifests itself in novel, forward-thinking new courses, such as Corporate Innovation & the Design Experience, New Product Development, and Starting New Ventures.

Research supported by the Institute also takes the shape of groundbreaking

ENTREPRENEURS TAKING ACTION Students interact with experienced entrepreneurs and learn from their suc-

initiatives, such as Darden’s i.Lab, a non-traditional, flat-classroom teaching environment that includes a design-build studio where students can transform their ideas into physical prototypes. A number of Darden’s new entrepreneurship and innovation courses are steeped in design and multidisciplinary thinking and are taught in Darden’s i.Lab.

cesses and failures as they

In 2010, an entrepreneurship concentration was launched as part of Darden’s

examine a diverse set of

MBA curriculum. The concentration lays the foundation for a deeper under-

management challenges

standing of corporate and entrepreneurial success, covering topics such as

faced at different stages of

how to create value not only through new products or services, but with novel

a company’s development.

technologies, business concepts, organizing structures, transaction/financing mechanisms, distribution channels, and market segmentation.

EXPERIENTIAL PROGRAMS THE TECHNOLOGY ACCELERATOR

The Center builds on Darden’s academic offerings with a range of experiencebased programs and initiatives, providing students the critical skills they need to create successful real-life businesses upon graduation.

Students master the process of adapting technology

The Center’s experiential programs include a business Incubator, numerous

to the needs of the market,

competitions (including support for national and global competitions), funded

creating an actionable

internships, workshops, boot camps, and mentorship opportunities.

strategy, and developing the skills necessary to launch a start-up.

The Center’s experiential programs enjoy a broad level of student participation and interest. In the summer of 2011, the Center hosted 12 companies in the Darden Business Incubator. To date, 46% of Incubator-launched or supported companies remain active enterprises after five years.

The Center also sponsors three major competitions each academic year: the Darden Concept Competition, U.Va. Entrepreneurship Cup, and the Darden/U.Va. Business Plan Competition. In the fall of 2010, 139 concepts were submitted for the U.Va. Entrepreneurship Cup competition from six schools of the University.

U.Va. received outside sponsorship from Third Security for $50,000 awarded to U.Va. Cup top winners. Overall, a total of $80,500 was awarded at the aforementioned competitions during the 2010-11 academic year.

22 | ANNUAL REPORT 2010-2011

The Center also actively develops or supports alumni and student entre-

BIOINNOVATION

preneurship groups and networks, such as Darden’s Entrepreneurship and Venture Capital Club—Darden’s most active student organization—and the

A multidisciplinary course

E*Society, a group that connects entrepreneurs from various schools across

drawing students from

the University of Virginia.

Darden, U.Va.’s Department of Biomedical Engineering,

BATTEN SCHOLARSHIPS

and the schools of nursing,

Ten full scholarships are awarded annually to incoming Darden MBA students

and medicine. Students col-

interested in starting their own ventures or becoming innovative leaders at

laborate across disciplines

established companies.

to identify and frame clini-

architecture, engineering,

cally based challenges at the Winner of the 2010 Darden Concept Competition,

U.Va. Health Center.

Brianne Warner (MBA’11), spent two summers in the Darden Business Incubator working on various ventures both independently and with other Darden students. Warner found the Incubator experience to be highly productive, “There’s an energy there, a shared experience of highs and lows, that’s different than the recruiting path.”

CORPORATE INNOVATION & THE DESIGN EXPERIENCE

As a recipient of a Batten Innovation Scholarship, Warner was able to devote

This course examines how

more time and resources nurturing her entrepreneurial skills during her time

design thinking and innova-

at Darden. “Graduating without the burden of loans is very valuable,” said War-

tion principles can be used

ner. Her current venture, Travel Jems, uses information about clients’ favorite

to enhance the value and ac-

destinations in cities they have visited to generate a custom, printed travel

celerate the development of

guide for their future destinations of choice.

business opportunities that deliver organic growth.

Lendstreet, a peer-to-peer lending venture, was founded by R. Jerry Nemorin (MBA’08) and developed in the Darden Business Incubator during the summer of 2010. Unlike other peer-to-peer lending operations, Lendstreet provides loans to distressed debtors to help them restructure their debt. “People can’t get equity loans anymore to pay off credit card debt,” said Nemorin. Batten Scholarship recipient Jordhy “J.V.” Ledesma (MBA Class of 2012) joined with Nemorin to further Lendstreet’s growth in the summer 2011 Incubator.

“The scholarship gives you more leverage to work on your business and takes the risk out of being an entrepreneur,” Ledesma said. Anticipation for Lendstreet’s launch is growing: it has been featured in Forbes and discussed in leading financial blogs. Nemorin believes that Lendstreet will further serve its users by teaching good spending habits and helping them establish a higher credit rating, “This is a way to help people who are distressed minimize the future impact of their debt,” he said.

BATTEN INSTITUTE

Inspired Education | 23

ENERGETIC COMMUNITY

At the heart of the Batten Institute is a diverse and collaborative community of scholars, students, alumni, and practitioners.

This energetic community is the source and inspiration for many of the Institute’s growing programs.

24 | ANNUAL REPORT 2010-2011

UNIVERSITY PARTNERS The Batten Institute partners with many units and organizations of the University of Virginia. These partnerships are critical to delivering programs and events to enhance the scope of the Institute’s efforts. In 2010-2011, the Institute partnered with the University’s Office of the Vice President for Research

FACULTY AWARDS AND RECOGNITION 2010–2011

(VPR) to host U.Va.’s third Annual Venture Summit.

The Institute also proudly collaborates with Darden’s Tayloe Murphy Center.

2010 DECADE AWARD

An independent center housed at Darden, the Tayloe Murphy Center forms al-

Academy of Management Review

liances with communities in the Commonwealth of Virginia facing challenging economic conditions. Under the leadership of Darden faculty member Greg Fairchild, the center aims to take a multidisciplinary and multipronged approach to creating and sharing expert knowledge in building globally competitive communities.

The AMR Decade Award, given to the article published 10 years prior with the greatest impact in terms of citations, was awarded to Professor S. Venkataraman (Venkat) and his coauthor, Scott Shane, for their 2000

Finally, the Institute also works closely with various student organizations.

In 2010-2011, the Center for Entrepreneurial Leadership collaborated with

Academy of Management Review article, “The Promise of Entrepreneurship as a Field of Research.”

Darden’s Entrepreneurship and Venture Capital (EVC) Club to host the fall E-Conference, and the Institute is a strong supporter of the university-wide E*Society formed in 2009 by Darden students.

2010 RESEARCH PROFESSOR IN ENTREPRENEURSHIP Financial Times

BATTEN AFFILIATES Institute-affiliated faculty play a key role in shaping the continued evolution of

The Financial Times named Associate Professor Greg Fairchild the world’s top research professor in the category of entrepreneurship.

the fields of entrepreneurship and innovation through both their teaching and research. This past year, a number of faculty affiliated with the Institute have been recognized for their contributions and scholarship.

2010 BEST SYMPOSIUM AWARD Academy of Management Professor Jeanne Liedtka received the Best Symposium Award in the Management Education and Development division of the Academy of Management for the symposium “Finding the Right Side of the MBA Brain: Teaching Design Thinking.”

BATTEN INSTITUTE

Energetic Community | 25

2010 ASPEN IDEAS FESTIVAL “SCHOLAR” Aspen Institute

CURRENT BATTEN AFFILIATES WITHIN THE UNIVERSITY OF VIRGINIA RAUL O. CHAO

ANDREA LARSON

GAL RAZ

Assistant Professor of

Associate Professor of

Associate Professor of

Business Administration

Business Administration

Business Administration

the Aspen Institute and The Atlantic

SUSAN CHAPLINSKY

DAVID LEBLANG

SARAS D. SARASVATHY

and featuring the world’s leading

Tipton R. Snavely

J. Wilson Newman

Isadore Horween

scholars who are “exploring ideas,

Professor of Business

Professor of Governance;

Research Associate

deepening dialogue and inspiring

Administration and

Chair, Department of

Professor of Business

action.”

Associate Dean for Faculty

Politics, College of Arts

Administration

Scholarship

and Sciences

ROBERT L. CROSS

MICHAEL J. LENOX

Associate Professor of

Associate Professor of

Samuel L. Slover

Business

Commerce, and Director,

Research Professor of

Administration and

Network Roundtable,

Business, Associate Dean

Associate Dean,

McIntire School of

and Executive Director of

MBA for Executives

Commerce

the Batten Institute

GREGORY B. FAIRCHILD

JEANNE M. LIEDTKA

Vice President for

Associate Professor of

United Technologies

Research and

Business Administration

Corporation Professor of

Professor of Biomedical

Business Administration

Engineering

Associate Professor of

ELENA LOUTSKINA

Business Administration

Assistant Professor of

CHRISTOPHER SPRIGMAN

Business Administration

Professor of Law

LUANN J. LYNCH

ELIZABETH O. TEISBERG

Professor of Business

Associate Professor of

Administration

Business Administration

ANTON S. OVCHINNIKOV

SANKARAN VENKATARAMAN

Associate Professor Greg Fairchild was named a Festival “Scholar” at the 2010 Aspen Ideas Festival, hosted by

PAUL J. SIMKO

2010 ONE BEST DISSERTATION AWARD Academy of Management Former Senior Batten Researcher

Jeffrey York was honored for the quality, importance, originality, methodology, structure, and readability of his dissertation.

THOMAS C. SKALAK

MARY MARGARET FRANK

YAEL GRUSHKACOCKAYNE Assistant Professor of Business Administration

ANDREW M. HESS Assistant Professor of Commerce, McIntire School of Commerce

Assistant Professor of Business Administration

SONAL S. PANDYA Assistant Professor,

EDWARD D. HESS Professor of Business Administration and Batten Executive-in-Residence

26 | ANNUAL REPORT 2010-2011

Department of Politics College of Arts and Sciences

MasterCard Professor of Business Administration

RAJKUMAR VENKATESAN Bank of America Research Associate Professor of Business Administration

LEADERSHIP TEAM ADMINISTRATION Michael Lenox Executive Director and Associate Dean Samuel L. Slover Research Professor of Business Administration; BS, MS, University of Virginia; PhD, Massachusetts Institute of Technology

Debbie White Associate Director of Operations BA, University of Virginia; MA, George Washington University

RESEARCH DIVISION Sean Carr Director of Intellectual Capital BA, Northwestern University; MS, Columbia University; MBA, University of Virginia

Daniel Bierenbaum Senior Research Associate BS, Duke University; MA, Columbia University

Joyce Smaragdis

Malgorzata “Gosia” Glinska

Associate Director of Outreach

Senior Research Associate

BA, University of Virginia; MA, Virginia Polytechnic

BA, University of Gdansk, Poland; MA, Boston Uni-

Institute and State University

versity; MFA, University of Virginia

Derry Wade

Amy L. Halliday

Communications Manager

Writer and Editorial Consultant

AB, Smith College; MA, University of Virginia

AB, Brown University; MPhil, Oxford University

Leigh Wilkerson Graphic Design Consultant BS, University of Virginia

Andrew King Research Associate BA, The University of the South; MS, Oxford Brookes University

Gayle Noble Office Manager Pan American Business School

CENTER FOR ENTREPRENEURIAL LEADERSHIP Philippe Sommer Director, Center for Entrepreneurial Leadership Director, Darden Incubator BA, Amherst College; MBA, Columbia University

Ashley Bickers Entrepreneurial Projects Manager American InterContinental University

MJ Dougherty Toms Associate Director, Center for Entrepreneurial Leadership BA, Williams College; MBA, Yale University Energetic Community | 27

FINANCIAL STATEMENT Income to support the Batten Institute is provided by an endowment created by Frank Batten Sr. and his family. As of June 2011, the market value of the endowment had reached approximately $105 million. The annual budget from this endowment is $4.49 million for FY 11-12.

13%

Administrative Staff

6%

24%

Public Relations

Faculty Salaries

1%

Marketing

2%

Conferences

2%

Ph.D. Scholarships

<1%

Batten Fellows

8%

BATTEN INSTITUTE

CEL Staff

BUDGET $4,490,203

Incubator

FY 2011-2012

BVIP Interns

4%

2%

1%

3%

Competitions

Faculty Grants

1%

10%

Courses

Researchers

23% Scholarships

Percentages are rounded to the nearest whole number.

Administration

Center for Entrepreneurial Leadership

Research Division

Administrative Staff

$559,765

CEL Staff

$348,146

Researchers

$466,907

Public Relations

$246,683

Incubator

$179,000

Faculty Grants

$154,980

Marketing

$28,236

BVIP Interns

$100,625

Batten Fellows

$9,000

Competitions

$43,900

PhD Scholarships

$110,484

Courses

$52,267

Conferences

$81,200

Scholarships

$1,040,000

Faculty Salaries

$1,069,010

TOTAL 28 | ANNUAL REPORT 2010-2011

$4,490,203

research division

center for entrepreneurial leader ship

BATTEN INSTITUTE EXPENSES FY 10-12

admin

YEAR COMPARISONS FY 10 (Actual)

FY 11 (Actual)

Administrative Staff

$497,437

$537,377

$559,765

Outreach, PR & Marketing

$549,851

$344,716

$317,919

Subtotal

$1,047,288

$882,093

$877,684

CEL Staff

$307,908

$319,305

$348,146

Communications

$16,260

$33,992

$17,000

Incubator

$195,771

$147,483

$179,000

BVIP Interns

$102,950

$68,678

$100,625

Competitions

$46,226

$38,935

$43,900

Courses

$50,628

$35,375

$52,267

Batten Scholarships

$945,600

$810,501

$1,040,000

Subtotal

$1,665,342

$1,454,269

$1,780,938

Researchers

$346,623

$351,848

$466,907

Faculty Research Grants

$288,447

$246,686

$154,980

Batten Fellows

$9,502

$5,056

$9,000

PhD Student Scholarships

$146,249

$116,430

$110,484

Faculty Salary Support

$833,615

$1,026,196

$1,069,010

Conferences

$29,933

$111,330

$81,200

Subtotal

$1,654,369

$1,857,546

$1,831,581

TOTAL OPERATING BUDGET

$4,366,999

$4,193,908

$4,490,203

BATTEN INSTITUTE DRAW FY 10-12

FY 10 (Actual)

1. Scholarship repayment.

4. Anticipated E-Conference registration fees, corporate sponsorships of Innovatorsâ&#x20AC;&#x2122; Roundtable and Jefferson Innovation Summit.

5. i.Lab renovation ($675,350) and additional faculty salaries ($781,574).

6. i.Lab ($78,609.57) and Jefferson Innovation Summit ($86,244).

expenses

3. Unspent draw miscalculation and scholarship repayment.

income

2. E-Conference registration fees.

FY 12 (Estimated)

FY 11 (Actual)

FY 12 (Estimated)

Spendable Balance

$3,870,272

$2,369,224

$2,576,455

Endowment Interest

$4,052,875

$4,312,996

$4,326,024

Sponsorships & Fees

---

$1,989

$150,000 4

Adjustments

$270,000 1

$251,008 3

---

TOTAL INCOME

$4,322,875

$4,565,993

$4,476,024

Operating Expenses

$(4,366,999)

$(4,193,908)

$(4,490,203)

Extraordinary Expenses

$(1,456,924)

$(164,854)

$(500,000) 7

TOTAL EXPENSES

$(5,823,923)

$(4,358,762)

$(4,990,203)

ENDING BALANCE

$2,369,224

$2,576,455

$2,062,276

5

2

6

7. Jefferson Innovation Summit.

Financial Statement | 29

CONTACT BATTEN INSTITUTE THE DARDEN SCHOOL OF BUSINESS UNIVERSITY OF VIRGINIA P.O. BOX 6550 CHARLOTTESVILLE, VA 22906-6550

PHONE +1.434.924.1335

FAX +1.434.924.7104

EMAIL BATTEN@DARDEN.VIRGINIA.EDU

WEB WWW.BATTENINSTITUTE.ORG

TWITTER @BATTENINSTITUTE @DARDENESHIP