Ivory Tower and Entrepreneurship

In order to answer the question ‘Are universities, often perceived as ivory towers, a right place for prospective entrepreneurs to learn and grow?,’ INO researchers Toke Reichstein and Jing Chen have made an analysis based on data from Statistics Denmark to find out how many university graduates actually become entrepreneurs.

You can read what they have found out in the article in the CBS Observer: http://cbsobserver.dk/ivory-tower-and-entrepreneurship-0


Should I Stay or Should I Go?

Prof. Toke Reichstein is the designated speaker at the spring 2016 “From PhD to ABC” event held at Copenhagen School of Entrepreneurship and  co-organized with the CBS Entrepreneurship BiS Platform. These events offers a forum in which researchers translate some of their research results into tangible information that can help students or others make better choices in business or in terms of personal career choices. These events foremost centers on entrepreneurship research.

Abstract: Entrepreneurs often face decisions that are both difficult and challenging. Two of the most major decisions regards A) whether to establish a new venture and B) whether to close down the newly started venture if things are not going as planned.

Recent research partly carried out at CBS sheds new light on these decisions. Virgilio Failla (LMU), Francesca Melillo (KU Leuven) and Toke Reichstein (CBS) have scrutinised Danish labor market data to understand when and why entrepreneurs start their own business and why they persist relatively long in the entrepreneurial career.

These findings have major implications for understanding the entrepreneurial choice and the survival of new businesses. And they give entrepreneurs some understanding of when to even consider becoming an entrepreneur and why they sometimes prolong their ventures even when they should close them down.

Date: 19 May 2016


Place: CSE, Porcelænshaven 26, 2000, Frederiksberg, Denmark

Speaker: Prof. Toke Reichstein (INO, CBS)

Organizers: CBS Entrepreneurship BiS Platform and Copenhagen School of Entrepreneurship

Sign up: https://www.facebook.com/events/1558993641061040/

Contracting is essential for learning

Firms are said to be able to enhance their innovativeness through technology partnering. Technology partnering, however, can take on many shapes and sizes. No two partnerships are alike. A new publication by Toke Reichstein and colleagues provides empirical evidence indicating that contracting is an important factor for securing the right conditions for mutual learning. Introducing the terms “Thin” and “Thick” contracts to the technology licensing literature allow a more fine grained understanding on how to reap the maximum learning benefits of technology licensing. Thick contracts contains clauses that secures a commitment by parties to assist each other for assimilating and integrating the licensed knowledge into their own technological assets while thin contracts tend to be more arms length contracts. The extend to which these clauses are associated with learning depends on how well the partner knows the licensed technology.

This article introduces the distinction between thin and thick contracts to the investigation of licensing-in as a mechanism for technological learning. Thick contracts include a clause specifying that the licensors are obligated to assist the licensees in assimilating and integrating the technology. Drawing on a sample of 133 licensees and an equal number of matched nonlicensees, we present empirical evidence that thick contracts propel the licensees’ likelihood of introducing new inventions. It is also found that thick contracts act as a substitute for licensees’ absorptive capacity. Licensees that are more familiar with the licensed technology are in less need of assistance from the licensors to assimilate and integrate the knowledge. However, this substitution effect is neutralized once the hurdle of invention has been overcome, meaning that the licensees have succeeded to ignite the invention process, suggesting the exploitation of the learning curve, triggered by their mutual understanding.

Publication: Leone, M. I., Reichstein, T., Boccardelli, P. and Magnusson, M. (2015), License to learn: an investigation into thin and thick licensing contracts. R&D Management. doi: 10.1111/radm.12187

The Price of a Patent License

Toke Reichstein has an article in Journal of Industrial and Business Economics on patent licensing specifically focusing on the remuneration structure of license agreements. The question is whether flexibility of the contract and the market and technological uncertainty associated with the contract impacts the negotiated price expressed by upfront fee.

As patent licensing has become the prime driver of technology trade, understanding the rationales behind a properly-defined payment structure of the agreements is essential. Specifically, among the other remuneration components, upfront fees are critical in license negotiations since they imply a significant initial investment by the licensee and represent a source of liquidity for the licensor. We investigate how contractual flexibility, market uncertainty and technical uncertainty shape upfront fees from the licensee’s perspective. Upfront fees are shown to be positively associated with contractual flexibility and market uncertainty, while technical uncertainty is positively associated with upfront fees only if the license warrants contractual flexibility to the licensee. Licensees therefore do not necessarily see uncertainty as a negative attribute of a patent license, but rather as a potential value, above all if in presence of contractual flexibility.

Toke Reichstein at Novo Nordisk Innovation In Action case competition

Novo Nordisk organize a yearly case competition in which a heterogeneous group of individuals are grouped into 8 teams of 6 individuals and are asked to tackle one of Novo Nordisk pressing challenges. The heterogeneity among team members provides a vibrant atmosphere and a dynamic environment with lots of discussions a on potential solutions to the case posed. This year the topic of the challenges regards a pharmacological solution to the health risk of obesity. Participants are asked to reconsider how we think about obesity and come up with a solution on how to convince medical doctors to treat obesity pharmacologically. This year, Prof. toke Reichstein participates as a member of a panel that guides the students through the process of coming up with solutions.

The Residence Week for Entrepreneurship Scholars

The Residence Week for Entrepreneurship Scholars is an innovative initiative on the part of Saul Estrin (London School of Economics) and Mirjam van Praag (Copenhagen Business School), organised for the first time in the summer of 2012 in order to bring together leading figures in the field of economics of entrepreneurship. Following the success of the three previous years and due to popular demand for its repetition, the 4th Residence Week for Entrepreneurship Scholars took place June 29 – July 3, 2015 in Oxford with the generous support of the Templeton Education and Charity Trust.

What differentiates the Residence Week from other conferences is the tradition of having no preordained programme. This ensures an informal setting that many participants list as a unique advantage of the event. During the day people work on their own projects or collaborate with old and new colleagues. Formal presentations are only organised after 4pm, allowing scholars to create the ideal balance between individual research and sharing ideas.

This year, the diversity of the topics presented during the afternoon sessions reflected the broad spectrum of the field of entrepreneurship research, touching upon for instance social and hybrid entrepreneurship, equity (crowd)funding, decision-making styles, and the impact of human capital on start-up performance. The presentations conveyed new insights about the behaviour of social and commercial entrepreneurs, corporate managers, and the importance of venture capital and other types of equity investors.

Participants from INO were: Mirjam van Praag, Toke Reichstein, Orsola Garofalo and Vera Rocha.

Teaching Entrepreneurship

The Entrepreneurship Platform will host an event 8 October on the experiences and challenges related to teaching entrepreneurship.

Three experienced teachers will give their take on case based teaching, studio based teaching or simulation based teaching.

Find out more and sign up at: http://www.cbs.dk/cbs-event-da/2999/teaching-entrepreneurship

Book out on Intellectual Property Right Management

In a new book published in collaboration with Lars Alkjærsig (DTU) and Karin Beukel (Copenhagen University), Toke Reichstein addresses one of the major challenges of young, small and medium sized firms: How to navigate through the jungle of IP tools, practices and conduct. Intellectual Property Rights Management explores how the entire toolbox of intellectual property (IP) protection and management are successfully combined and how firms generate value from IP. In particular, this book provides a framework of archetypes which firms will be able to self-identify with and which will allow companies to focus on the IP and IP Management issues most relevant to them. By doing so, the authors offer further insights as to the use of IP and IP management practices across firms. By looking at empirical data covering the population of firms, the findings not only pertain to large organization but also reflect the practices and operations that reside in SMEs. This volume also utilizes labor market and firm data to determine whether there is a definitive relationship between IP and economic performance on the firm level. Coupled with qualitative analysis of 50+ interviews with managers of smal and medium sized firms, this book aims to map different approached to IP and understand how the different approaches may or may not matter for the firms further development. The anecdotal evidence coupled with register analysis offers new insights aimed at assisting firms in making the right choices with regard to IP issues.

Supportive website: http://boostyourprofit.org/ Book at Publisher: http://www.palgrave.com/page/detail/intellectual-property-rights-management-lars-alkaersig/?isb=9781137469526