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
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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
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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
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