IC2 Update Fall 2013.pdf

8/14/2019 IC2 Update Fall 2013.pdf

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IC2INSTITUTEUPDATE

INNOVATION, CREATIVITY & CAPITAL AT THE UNIVERSITY OF TEXAS AT AUSTI

We know that it is o

connectivity that hmade us, simpwhat we ar

John Sibley But

FALL 2013

www.ic2.utexas.edu2815 San Gabriel St.Austin, Texas 78705512.475.8900


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W

elcome to the 2013 FallUpdateof the IC2Institute. Here

we provide illustrative profiles of some of the workthat is happening at the Institute. Since I became the direc-tor in 2002, the Institute has grown in its global reach andin the number of its global programs. We have welcomedthe Bureau of Business Research to become part of the IC 2family; initiated the Global Commercialization Group; pro-vided focused support for companies in clean energy, wire-less, and biotechnology at Austin Technology Incubator;and released the Master of Science in Commercialization

degree program to the McCombs School of Business. Wehave increased our work through Endowed Fellows invarious disciplines across The University of Texas at Austin.

The integration of the student experience with the Institutehas grown. We have continued to host Visiting Scholarsfrom around the globe (including Fulbright Scholars) and

Honoring the past...

From the Directors


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Looking to the future...

When George Kozmetsky created the IC2 Institute in

1977, he envisioned it as a think and do tank. JohnSibley Butler has proven to be a strong guardian of theInstitutes original mission. As a visionary, John has focusedon the big picture, and as incoming director I plan to con-tinue executing his vision for the Institute. John and I havea symbiotic relationship that predates our time at the IC2Institute, and we have co-managed most of the Institutesfunctions and activities during his tenure as director.Consequently, while I am new to the directorship, I am very

familiar with the Institute and the people who make it sospecial.

I hope to further the Institutes increasingly global activi-ties as well as its interdisciplinary activities across campus.More and more frequently the Institute is being asked tocollaborate across the university to serve as a bridge to


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Sustaining the Technopolis: The Case of Austin, Texas by David Gibson and John Butler, WoTechnopolis Review,Vol. 2, No. 2 Issue 6, August 2013, Daejeon Metropolitan City, Republic of Korea

Abstract: In Creating the Technopolis: High Technology Development in AusTexas, Smilor, Kozmetsky, and Gibson (1988) make the case that in the mid1980s Austin was becoming a globally competitive high tech region. Indeover the years and into 2013, Austin has established its reputation as a leadientrepreneurial and technology center and talent magnet. D elegations froacross the United States, and worldwide, visit Austin to better understand hothis central Texas city went from being a state government and university towto become a fast growing, globally competitive, technology region that leathe state and nation in job creation. Central to the concept of the Triple Heand Technopolis Frameworks is the importance of university, business, agovernment cooperation. This paper gives examples of mechanism, processand metrics on knowledge-based regional development.

T h e Update sh ow c a se s on l y afew highlights of our activities.F o r m o r e i n f o r m a t i o n a b o u tthe programs, activities, and history ofthe IC2Institute, please see our web site,www.ic2.utexas.edu.

The Updateis the newsletter of the IC2Institute, an interdisciplinary researchunit at The University of Texas at Austin,which works to increase quality ofhuman life through new technologyapplications, entrepreneurial growth,and regional economic acceleration. TheAustin Technology Incubator, the Bureauof Business Research, and the GlobalCommercialization Group are programsof the IC2Institute.

IC2Institute Director:Robert A. Peterson

[email protected]

Update Coeditors:Coral Franke

[email protected] Margaret [email protected]

Layout and Graphic Design:Margaret Cotrofeld

IC2INSTITUTEUPDATE

IN THIS ISSUE

RESEARCH: SOCIAL PHYSICS 2013 Fellows Meeting: Exploring Social Physics

Laura Kilcrease Looks Back to the Futurefor Central Texas

Regional Advantage, Wealth Creation, and Job Creation

AROUND THE GLOBE TechBA Celebrates Mexicos Entrepreneur ial Spirit

CGIE Has 5-Year Milestone

BIZ.pt: IC2s Next Generation Portugal Program

US Connect Reveals Entrepreneurial Readiness in Portugal

Social Physics, BIZ.pt & the Business Hub Model

World-changin g Technologies in India Programs

Practical Technology Commercialization Workshop in Granada, Spain

ACROSS THE UNIVERSITYNew Faculty Research Model

WHATS HAPPENING AT THE IC2INSTITUTE Bridging DisciplinesIntern Updates the 2004 Belize Report

The Idea Room

PUBLICATIONS Habits of Leadership, by Art Markman

The Texas Way, by Bill Cunningham

Taking the Austin Model to Moscow

Creative Regions, Innovation Clusters, and Science Parks in

Developed, Developing, and Emerging Regions Worldwide

Research Universities in the Framework of Regional InnovationEcosystem: The Case of Austin, Texas

Sustaining the Technopolis: The Case of Austin, Texas

Universities and Regional Innovation Ecosystems

No News Is Bad News: Sensegiving Activities, Media Attention, andVenture Capital Funding of New Technology Organizations

TAKE NOTE Calendar Items

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Research Universities in the Framework of Regional Innovation Ecosystem:The Case of Austin, Texas by John Butler and David Gibson. FORESIGHT-RUSSIA, Vol. 7, No. 2, 2013

Abstract: Based on the case of Austin, Texas, the authors provide a model ofknowledge-based regional development that fosters innovation andentrepreneurship. In the framework of this model, The Universityof Texas is regarded as a core of a regional innovation ecosys-tem. In addition to performing the traditional objectives ofresearch and education, universities are increasingly taskedwith the third mission of transferring and commercializing

university-based R&D to stimulate economic development.While responding to growing industry needs and efficientlyinterrelating with industries and governments, universitiesshape a unique entrepreneurial environment that fostersregional development The case of Austin shows that itstransformation from a university and state governmenttown to a globally competitive hi-tech hotspot has o ccurreddue to visionary influencers, as well as the pursuit of institu-tional excellence in academia, government, and business. Theability to make bold decisions, connect and leverage otherwiseunconnected and perhaps competing sectors in the frameworkof important projects, generates a creative environment for produc-tive partnership and achieves synergy that leads to regional growth. TheAustin Model is based on the Technopolis Wheelconsisti ng of seven sectors:the research university; large and small entrepreneurial firms; federal, state and local govern-ment; and support groups (business associations, venture capitalists a nd angel investors, chamber of commerce, etcThe paper characterizes in detail the role of each sector in the transformation of the Austin region.

Publications 33 THE UNIVERSITY OF TEXAS AT AUS

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Some of our favorite quotesDigital Clusters & Wealth Creation:

We talk about kaleidoscopic change:Change is inevitable; change onmultiple variables is inevitable. Butits the compounding effect of thechange of multiple variables thatcreates, almost in an instant, like akaleidoscope, a whole new image ofthe landscape we are managing.

Debra AmidonFounder, Entovation

For many years we thought thatcluster development was based ongeography. But thats an old way ofthinking of place. The relationshipsthat are enabled by technology makethat space disappear. Things workby relationships: shared information,shared power, and resources thatflow.

Martha RussellExecutive Director, mediaX,

Stanford University

The University of Cambridge in England gave the region a cultureby insistingon every academic having a college, and a duty to meet for dinner regularly.That meant that I (as an economist) would sit for dinner next to a physicist.Opposite me would be a chemist, and opposite there would be a linguist.This built horizontal networks that broke down the classic linear networksthat you have in most university-based communities, and indeed, in most

businesses. That horizontality was absolutely crucial because it is through thecombination of knowledge that we create value. This gave a culturein whichthe combination of knowledge could be easily integrated.

Bob HodgsonManaging Director, Zernike

Here is the challenge for social net-works: what are the fundamentallaws? They may be conservationlaws. What is conserved in socialnetworks? Is it some degree of infor-mation? That is the breakthrough wehave yet to find in complex real socialphysics.

Juan SanchezVice President for Research

The University of Texas at Austin

Ic2INSTITUTEUPDATE 6 Fall 2013 Publications 31 THE UNIVERSITY OF TEXAS AT AUST

THE TEXAS WAYby Bill Cunningham with Monty Jones, The Dolph Briscoe Center forAmerican History at the University of Texas at Austin

The Texas Way is a memoir that details the seven years I spent as

President of UT Austin and the eight years as Chancellor of UTSystem. I examine many important issues including fraternityhazing; affirmative action; the demise of the SouthwestConference; apartheid; the creation of UTIMCO; the relationshipbetween UT, the Legislature, and the Governor; the Hopwoodcase; the top 10% admissions law; and the role of effectiveRegents. I hope that people who are interested in UT Austinand UT System will find the book interesting and, at times,provocative.

Bill Cunningham

Bill Cunningham opens his memoirs with moving to Texas and working with GeorgeKozmetsky, who was then Dean of the Business School. Dr. Kozmetsky gave him his firstsignificant responsibilities at UT, and in July of 1976, asked Cunningham to join him as

associate dean. Working with Kozmetsky gave me an opportunity to see a real profes-sional in action. He was a bigtime national player on numerous issues. I learned moreabout leadership and administration when I was Kozmetskys associate dean than I didat any other stage in my career.

The Texas Way outlines how money, power, politics, and ambition all play roles in thebusiness of running the states premier university system, particularly in its relationswith the state government. As president and then as chancellor, Cunningham dealt withconflict from all sides of the political spectrum, always striving to protect the universitysinterests.

Bill Cunningham was at the center of many important issues during the fifteen years heserved as president and chancellor. The Dolph Briscoe Center for American History at theUniversity of Texas at Austin is pleased to publish Cunninghams detailed and insightfulmemoir, which serves as a reminder of how these issues continue to resonate and affecthigher education in Texas.

Bill Cunningham has influenced more Texans than barbecue. I have had the pleasure o fworking with him as a teacher, as the dean of the business school at UT, as the presidentof UT Austin, and a chancellor of the UT System. This book is the real thing, and I amfortunate to have lived part of this big story.

Red McCombs Founder and Chairman, McCombs Enterprises

Bill Cunningham

Monty Jones


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In thinking about social physics, weneed to remember the social side ofthe questiongender. Where are thewomen in your model? ...We need tobe thinking about those aspects of

In the Obama administration, oneof the first challenges we faced was

to find new ways of granting discre-tionary dollars to city and states....We came to the conclusion that weneeded to have people begin to thinkof themselves, not as isolated, but ashubs or as a node in part of a largerecosystem And so we began to

The Impact of Social Physics


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The Idea Room:BecauseSerendipityHappens

At the IC Institute building on SanGabriel, a quiet transition hasoccurred on the third floor. The largeroom that housed the launch of theMSTC program (Seminar A) has beenrepurposed to solve several spatialproblems at the IC Institute. Withlimited meeting space in the building(particularly for the spontaneous),

the room now provides a conferencetable, flex work space for studentsand researchers, and a living roomenvironment for relaxed conversa-tion. The room can also be rearranged

to create a classroom for 30 within amatter of minutes. Dubbed The IdeaRoom, people who previously hadno place to gonow have a place toland, work, and collaborate.

The Idea Room is also home to theIC Institute Travelling Gnome. In thefield, the gnome provides his peersan opportunity to discuss:

Intellectual property and the rev-enue brought to The University ofTexas at Austin by the Longhornlogo in its various applications

The power of branding and the

difference between trade secrets,patents, and copyrights

The value of positioning a productwith memorable space to thebuyer.

The IC gnome has acquired an etensive photo collection of himselfexotic locations, and with many intnational friends. Some of these phtos can be seen on the wall of the IdRoom, surrounding the plinth whehe rests when at home, and where hangs his notice when abroad.

The gnome has acquired an enthsiastic group of friends around tglobe. As this article is being finized, an email is circulating with tsubject line, Gnome Dancing Samin Brasilia (his eighth internatiodestination). In any case, his sign

on the plinth, and The IC InstituTraveling Gnome Is Currently In tWild.

M. Cotrofe

I view my mission here as helping tomake Austin a better Silicon Valleywhile keeping it weird. You can beinnovative and as weird as you want.Theyre not inconsistent.

Robert MetcalfeNational Medal of Technology, 2003

Murchison Chair of Free EnterpriseThe University of Texas at Austin

Investing is a face-to-face trustbusiness. The reason we have angelnetworks is to get people together acouple of times a year, have a drinktogether and make friends. I havefriends all over the state (and all overthe nation) who know specific indus-tries. I trust them. When they call meand say I have the greatest deal youever saw, then I will write the check or

I will find a friend who will write thecheck.

Jamie RhodesVice Chair

Angel Capital Association

We know ATI works, but we dont quite know why. A lot of whats going on isaccess to the vast networks that exist in the heads of the directors a nd the peo-ple who are associated with the incubatorand a large number of events thatare designed to create networking opportunities. ATI has a huge network.It provides a location, but more importantly it provides expertise through thedirectors to provide introductions to key members of the business communi-ty, potential funders, technology experts, and other important connections.

It succeeds in part because it is not a stake-holder, and it succeeds in partbecause of the somewhat haphazard way that many things occur.

Art MarkmanResearch Director, IC2Institute

Professor, The University of Texas at Austin

There are African American churchesin Milwaukee that have million dollarbudgets. There are no other kinds ofAfrican American businesses that are[working on economic development]in Milwaukee. These younger pastors

have different kinds of networks.They are participating in chambersof commerce, they are sitting at allkinds of different levels of influence,so their networks have become morerobust.

Keenan GrenellPresident, Grenell Group, LLC

Digital Clusters & Wealth Creation:The Impact of Social Physics

Whats Happening at the IC2Institute? 29 THE UNIVERSITY OF TEXAS AT AUSTIc2INSTITUTEUPDATE 8 Fall 2013

Francesca Lorenzini, Greg Pogue, and Keela Thomson work in the Idea Room, overseen by the IC2Institute research gnom

Photo by C. Franke.


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Laura Kilcrease is looking forward

to watching the future unfoldin Central Texas. At the IC2 FellowsMeeting in April, she outlined adynamic representation of regionalentrepreneurial development overthe past 25 years.

Austin has gotten big; we dontmuch talk about Austin any more.

We talk about Central Texas. Shebegan to sketch an event-based timeline as she discussed large trendsacross timeillustrating the regionsentrepreneurial ecosystems evolu-tion in terms of capital, talent, andtechnology. In all of these areas shehas observed three phases of growth

that can be plotted like the businesslife-cycle.

Similarly, Laura has observed threephases in regional networking trends.She aptly described these phasesin database terms of one-to-one,

across a relatively small community.

As Austins success (and population)grew through the late 90s andinto the new millennium, Austinsentrepreneurial network expandedto a one-to-many phase thatleveraged the strength of weak links.While strong personal relationshipsremained, the network was expandedto include new acquaintances andfriends-of-friends.

In recent years, as Austin has con-tinued to grow in spite of nationaland global set-backs, the start-upnetwork has necessarily expandedto its current phase: many-to-many.Increasingly, while regional actors

necessarily maintain one-to-one andone-to-many networks, we are alsoconstrained to add a new (larger)layer of contacts who are unknownto us, our friends, and even ourfriends-of-friends.

friends-of-friends, these newcomers

bring new technologies to thecommercialization table.

Assessing the potential of the tech-nologies has become the easy part,as capital investors (seeking invest-ments) and entrepreneurs (seekinginvestors) explore new ways to deter-mine trust, integrity and respect. This

has resulted in, or at least coincidedwith, a critical capital gap betweenseed capital and Series A funding,which has dropped nationwideoverall.

To meet this capital gap, todaysentrepreneurs need new models forcapital funding. One such new model

is crowd-sourcing, which is in itself aresult of the larger, global network.Yet crowd-sourcing cannot fill thecritical gap in capital funding. Further,the overall effect of crowd-sourcingon traditional funding channels

b di d h h

Laura Kilcrease Looks Back to the Future for Central Texas


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white board on her right (a metaphorfor blank slates and new beginnings).I think the future has so many greatpossibilities. We have absolutelyseen nothing yet. She explainedthat, in spite of present challenges,

todays talent pool presents a muchhigher quality of entrepreneurialtalent than we have seen in the past.This bifurcating talent base includes

a group of vibrant, young entrepre-neurs juxtaposed against a group ofseasoned, knowledgeable retireeswho have an increased number of ac-tive, productive years. Added to thislarger talent base are the profound

networks that we have developed.These networks, these relationshipsthat we have developed over de-cades, provide an incredible strengthfrom which to maneuver.

As we go forward and the Institutelooks at wealth generation, weve gotto look at the cyclical nature of this[regional growth] starting again in awhole different wayto make surewe achieve this global growth, andgenerate this shareholders value(asa synonym of the values that we needto get from our networks) for thewealth that generates communities.

Article by M. Cotrofeld, based on presen-tation by L. Kilcrease. Photo by C. Franke.

Laura Kilcrease is a premier fellowof the IC Institute, active in manyongoing projects and a member ofthe IC Advisory Board. Before shefounded Triton Venture Partners, LP,Laura was a key staff member of the

IC Institute: director of the Center forCommercialization and Enterprise(C2E), and founding director of the

Austin Technology Incubator (ATI).Under her leadership seven earlystartups put forward IPOs. In August

2013, Laura completed a stellar yearas the Entrepreneur-in-Residencewith the Herb Kelleher Center forEntrepreneurship at the McCombsSchool for Business. She has receivedmany honors for her work as an entre-

preneurial catalyst in Central Texas, in-cluding Ernst & YoungsEntrepreneurof the Year, Austin Business JournalsProfiles in Power, The University ofTexas at Austins Trail Blazer Award,and the Longhorn Entrepreneurship

Agencys Faculty Entrepreneur of theYear. Recently the Austin BusinessJournal also named her One of 20Austinites You Simply Must Know.

I think the future

has so many great

possibilities.

We have absolutely

seen nothing yet.

GeneralTREND LINE

1988

ATI

1989

TXCapital

Network 1991NASA

grant

1994

Austin TechCouncil

NOAH Grant

1995

MSTC

1998

The Bubbly Economy

2000

ATI Model 2

(vertical specialties)

2004

TCN ends

2005

Central TX

Angel Network

2009

Crowd

Sourcing

2011

Jobs

Act

NETWORKPhases

One-to-one(Strong Personal Relationships)

One-to-many(Acquaintances; friends of friends)

Many-to-many(How to build trust, integrity & respect?)

CAPITALPhases Seed Capital

Series A FundingVenture Capital Investors

Series B FundingGrowing Shareholder Wealth

TALENTPhases

No Mgmt Experience(30-45 yrs old)

Entrepreneurs(20-30 yrs old)

Serial Entrepreneurs(Bifurcating: young & 50+)

TECHNOLOGYPhases

Software, Semiconductors& Hardware

Clean Energy, Gaming,Life Sciences

Global Scaling &Increased Diversification

Ic2INSTITUTEUPDATE 10 Fall 2013 Whats Happening at the IC2Institute? 27 THE UNIVERSITY OF TEXAS AT AUST

Bridging DisciplinesIntern Updates the2004 Belize Report

Students who intern at the IC 2Institute find various paths to its

doors. Osvaldo Castellanos chose tointern in summer 2013 to contributeto his Bridging Disciplines Programcertificate in Innovation, Creativity,and Entrepreneurship. As a major inLatin American studies with a concen-tration in Art History and a BusinessFoundations Program certificate,he was intrigued by IC2s project toupdate the Institutes 2004 report onthe nation of Belize. Osvaldo explains,The opportunity to take the time toexplore and connect ideas that onetruly cares about arrives less oftenthan anyone would like to admit.

Osvaldo had not heard about the IC

Institute until he found the Belizeproject on a list of internship possi-bilities. Ive come to the conclusionthat IC2is one of the hidden gems ofUT and Im grateful to have gottenthe opportunity to work there. Theinstitutes vision, goals, and researchresonated with me, as did the lifeand accomplishments of GeorgeKozmetsky. But the main highlightshave been the people Ive met andtheir tireless enthusiasm. Workingunder the guidance of Dr. Gibson andDr. Butler has been nothing short ofmagnificent and their suggestionsand encouragement were critical tothe development of my report andmy thought process behind it.

Osvaldos enthusiasm has providedthe basis for a successful internshipexperience. Hes done excellentwork that provides new perspectives

on the considerable environmental,

social, and economic challengesin Belize. The nation is truly at acrossroads in sustainable develop-ment, and Osvaldos work highlightsimportant issues that are currentlythe focus of academic, business, andgovernment attention in Belize,saysDavid Gibson.

One key challenge for the nation ofBelize is whether to allow (or perhapshow to best manage) offshore oildrilling on the worlds most pristinebarrier reefa resource that alsofacilitates ecotourism, which is akeystone of the national economy.A similarly compelling challenge ishow to address a rising crime rate

that, while it increases the risk forall businesses, can present barriersfor small and start-up ventures.Previously the nation enjoyed a lowcrime rate in comparison to most

Central American and Caribbea

nations, but a global tendency towaentrenched gang violence has masignificant regional encroachmentsthe past decade.

The nation of Belize

has a population about

one third the size of

Austin. As the global

community becomes

increasingly connected,

one can now ask

in a meaningful wayhow do you

bootstrap a nation?

Osvaldo Castellanos with supervisor Dr. David Gibson. As a Bridging Disciplinstudent pursuing a certificate in Innovation, Creativity, and EntrepreneurshOsvaldo was intrigued by the possibility to update the Institutes 2004 report othe nation of Belize.

Whats Happening at the Institute?


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January 29, 2014 5:00-8:30 p.m.AT&T Executive Education & Conference Center

The IC2 Institutes Austin Technology Incubator will mark its

silver anniversary with a celebration to include graduationof nineteen current ATI companies. Beginning in November, acount down blog will feature 25 interviews: five VIPs, five big exits,

five alumni companies, five current companies, and five former asso-ciates or interns. We invite you to join us online as we explore questions

about the growth of the incubator as an organization, and the value thatATI has provided to member companies and the Central Texas community. If

you would like to join us on January 29, at the AT&T Center please contact RobinMurphy [[email protected]]. Seating is strictly limited. Watch for the countdown

blog to begin in November at http://ati.utexas.edu/blog/.

ATIs 2014 Graduating Cos

1. Amatra

2 A t T h l i

ATIs Blog Interviews: 5x5

5 VIPS Laura Kilcrease /Triton Ventures John Sibley Butler/IC2 Institute

austin technology incubatorCelebrates 25 Years of Excellence


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Regional Advantage,

Wealth Creation,

and Job Creation:

The Impact of SocialPhysics in a NetworkedEconomy

In the research chain, the white pa-per serves as a foundation for futurejournal articles and book chapters. Todate, the 2012 white paper by JohnButler and David Gibson, Sustainingthe Technopolis: High-TechnologyDevelopment in Austin, Texas,has provided the basis for threepublications.

Dr. Butlers summer research hasfocused on social physics, withresearch assistant Bryan Stephens,a doctoral student with UTsDepartment of Sociology. The WhitePaper is titled, Regional Advantage,Wealth Creation, and Job Creation:The Impact of Social Physics in aNetworked Economy.

The Abstract. Research on regionaladvantage and wealth creationhas always given a considerationto the importance of networksand how they influence eco-nomic development. Originalresearch at IC is grounded

in Alfred Marshalls 1870 theory ofcluster analysis. From this analysis hascome the technopolis, a modelingconcept designed to capture how sci-ence, innovation, and entrepreneur-ship combine to create the sciencecity. This model has been utilizedaround the globe as a framework forcreating wealth and as a model forunderstanding network linkages. Thepurpose of this paper is to augment,from a measurement perspective, thetechnopolis model.

The theoretical model of social phys-ics is introduced to accomplish thistask. The revolution in connectivity,made possible by micro-electronics-based communication technologies,has transformed models of everydaylife, business processes, and the roleof cities, or the technopolis.

The bending of time and space,through instant communication, hasgiven new life to ideas of social phys-ics. Social physics, first developed byAugust Comte in the 1870s, is beingutilized by many disciplines, especial-

ly physics, to map and measure bothstructures and processes in this net-

worked society. This paper exam-ines the impact on how we

model and measureregional advan-

tage (as

measured by wealth and job creationthrough the creation of new com-panies) in the 21st Century. The firstsection discusses the theoretical un-derpinning of social physics, with anintegration of literature from sociom-etry, mapping theory, and networktheory.

The theory of the space of flows, asdeveloped by Manuel Castells, is

introduced to add dynamics to tradi-tional mapping, sociometry, and net-work theory. Social physics allows usnot only to graph the network struc-ture, but also to measure strengthsand breadth of the network. Thisshould allow us to measure and im-prove our understanding of, and theimpact of the technopolis, throughtime and space.

Take One. The first completed man-uscript submitted for publication isReviving the Theoretical Tradition ofSocial Physics: The InterdisciplinaryImpact of the August Comte,by JohnSibley Butler and Bryan Stephens.Opening words from the working

abstract highlight the papersfocus, to explain the evolution and

purpose of the new social physics anddemonstrate how this methodologycan augment, from a measurement

perspective, key pillars of sociologicaltheory and improve the disciplinescore objective.

B. Stephens

Bryan Stephens andJohn Butler workedon concepts in socialphysics through thesummer. In August,John played theguitar as the work

wound down.

Ic2INSTITUTEUPDATE Fall 2013 Across the University 25 THE UNIVERSITY OF TEXAS AT AUS

Elkins Develops the

Constitute Project:

Sponsored in Part by

The IC2InstituteWith a grant from Google Ideas toThe University of Texas at Austinand support from the IC Institute,

Zachary Elkins, associate professorof government and a leading consti-tutional scholar, and his colleagues

Tom Ginsburg (University of Chicago)and James Melton (University CollegeLondon) created Constitute, a freeonline resource that offers constitu-tional texts that users can comparesystematically across a broad set oftopics. The website launched Sept.23 at the United Nations GeneralAssembly in New York.

IC Institute is interested in explor-ing how this analysis in collective

writing, legislative deliberation, andecision making can be applied collaborative environments such

entrepreneurship.

The research is first focused on deveoping a strategy for analysis using tconstitutional model. The stratecan then be adapted in a variety ways such as into the business plmodel structure.1

1. Information adapted from http://www.utexaedu/know/2013/09/25/cultivating-statehood

1


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Regional Advantage, Wealth Creation & Job Creation:The Impact of Social Physics in a Networked Economy

Social Physics

Theory of Space and Flow

Methods/Applications

Death of Distance (Space)

Cluster Theory

Global City Network

D t t

Network as the Whole(Ecosystem)

Community Finding(Community-detection)

Node Level(Firm/Individual)

Visualizing Meta-nodes

IC2Research Question& Metrics of Analysis

IC2 Institute(Butler)

Centrality

Metrics of Analysis

Power

Structural Holesand Bridges

Network + Graph Theory


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PhotobyC.F

ranke.

Ic2INSTITUTEUPDATE 14 Fall 2013

The IC2 Institute.

Austin, Texas.

Open enrollment. At last.

Converting Technology to Wealth.Technology transfer workshop.

Participants learn the latest tested and proven methodologies in converting

technology to wealth; taught by professionals with firsthand experience in

technology assessment, technology commercialization, licensing, international

business development, and management of technology transfer.

Finally. You can. Enter the depths.

For technology

transfer specialists,

incubator managers,

scientists, and

researchers to

gain practical skills

and methodologies to

commercialize R&D from their

organizations.

Participants work with real

technologies from their

home institutions to engage

in market research, marketvalidation, and targeted

presentations.

Offered for the first time in

October 2013, this new course from

the Global Commercialization Group

combines preparatory online curriculum and

an intensive on-site training experience, followed by

months of individualized mentoring.

For details on the next offering of this course, contact

[email protected].


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This year, at TechBAsBootcamp, Patricia Rubio

rediscovered her passion:

caring about peoples

wellness. Founder of

eShower in Mexico and

one of 15 finalists in

the TechBA Bootcamp,

P t i i R bi k

On June 13th, 2013, the SixthAnnual TechBA Austin Expo drewa large audience to the West PickleResearch Building on Braker Lane.TechBA is a program of internationalbusiness acceleration, created in 2004by the Mexico Ministry of Economyand Fundacin Mxico-EstadosUnidos para la Ciencia (FUMEC) tobring Mexican technology-basedcompanies to global markets. Itoperates in eight internationalregions: Arizona, Austin, Madrid,Michigan, Montreal, Seattle, SiliconValley, and Vancouver.

in global markets, contributing to acumulative total for TechBA Austin of$71 million to date. Medina describedTechBA Austins training of 680entrepreneurs as the most significantcontribution because it is changingthe entrepreneurial culture in Mexico.

TechBA managers anticipated re-ceiving 150 applications for thisyears Bootcamp; they received 400.Fifteen were selected as finalists, andthirteen of these participated in theExpo. Ten companies made businesspitches to local entrepreneurial

TechBA Celebrates

Mexicos Entrepreneurial Spiritat Sixth Annual Austin Expo


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annual DST-LM India Growth Program

Awards, and Fidelity Investmentsawarded the company $4.5 million.

Dr. Kumar states the Xcyton visionwith great clarity, Imagine: no blind-ness due to [infections followingeye] surgery... cancer patients aftertreatment, go home... the transplantpatient goes home and lives a normallife... all sepsis patients walk out ofthe hospital... encephalitis epidemicsare reported, but we are able to saythat no children were damaged; no-body died. That is the end game ofSES, and that is what the entire teamhas worked for. Nothing else.

Antibiotic Adjuvant Addresses AMR

A gold medal was also awarded to Dr.Manu Chaudary for the developmentof Elores, an antiobiotic agent oradjuvant that addresses the enzymesproduced by some bacteria thatmake them resistant to antibiotics.

Anti Microbial Resistance (AMR),is recognized by the World HealthOrganization as a worldwide healththreat. As cofounder and director ofResearch for Venus Medicine ResearchCentres in India, Dr. Chaudary has ledin the development of Elores, whichis currently undergoing phase III clin-ical trials in India and South Korea. Todate the drug has shown excellentresults, and a large international con-tract has recently been signed.

A major innovator in the medicalfield, worldwide, Dr. ChaudarysVenus Medicine Research Centres

have a propensity for creating workthat receives global attention. Thisaward represents Dr. Chaudarysthird gold medal in the DST-LMIndia Growth Program. In 2011 shereceived an award for Trois,a topicalnano emulsion to relieve arthriticpain; and in 2010, she received theaward for Ampucare,a treatment forsevere wounds that might otherwiseresult in amputation.

New Internal Combustion Engine

A first-of-its-kind vehicle enginewas awarded a gold medal: Mr.Das Ajee Kamaths Compact RotaryVariable Compression Ratio InternalCombustion Engine (RVCR). Not an it-eration of Felix Wankels rotary enginedesign, the RVCRs pistons revolvearound a donut shaped combustion

chamber, directly turning the powoutput shaft. The design is direccomparatively simple, light, elimnates a significant number of movinparts, runs on many different fueand is up to 54% smaller.

The variable compression ratio eables real-time setting of optimupower-to-economy ratio while thengine is under varying loads, rducing both fuel consumption anemissions while providing maximu

power. Each piston stroke is a powstrokea 500cc RVCR engine catheoretically produce the same power as a significantly larger four-stroreciprocating piston engine. Fmore info on the IC2Institutes workIndia, see www.ic2.utexas.edu/globa

programs/india/.

J. Vanc

Dr. Manu Chaudhary, Director ofResearch for Venus Medicine ResearchCentres, receives a gold medal fordeveloping an antibacterial adjuventthat helps fight Anti MicrobialResistance (AMR).

met Dr. George Kozmetsky, founderof the IC Institute, at his office at 4:30one morning, because Dr. Kozmetskyhad asked them to arrive before 5:00a.m. He passed along Dr. Kozmetskysadvice that the key to a successfulprogram was to keep going, keepgoing. At that meeting, Fernandezfound a deep, new awareness of

entrepreneurship as an intellectualchallengea realization which sethim on a path that eventually led tothe creation of TechBA.

E. Anthony Wayne, U.S. Ambassadorto Mexico, concluded the programby emphasizing the activities thatstrengthen bi-national education,

innovation, and research, Entrepre-neurship is the driver of innovation,

job creation, and sustained economicgrowth.

C. Franke

For more information on TechBA, seewww.ic2.utexas.edu/global/programs/techba/.

In addition to an array of Austin business investors, the yearly TechBA Austin event draws dignitaries from Mexico and the UnitedStates. Attending this years event were(left to right): Karl Ruggeberg, FUMEC Board of Governors; Glenn Robinson, GCG-UT; LuisMedina, Director of TechBA-Austin; Guillermo Fernandez, FUMEC Executive Director; Thomas Bowles, FUMEC Board of Governors;Ambassador E. Anthony Wayne, Ambassador of the United States to Mexico; Juan Sanchez, UT Vice President for R esearch; GuillermoMartinez, Mexico Ministry of Economy; Robert Peterson, UT Associate Vice President for Research; Haru Yamasaki, Director Generalof TechBA. Photo by Ernesto Montalvo.

CGIE Has 5-Year Milestone

This fall, the IC2 Institute

Center for Global Innovationand Entrepreneurship (CGIE) inMonterrey, Mexico, met the markof success that was called out atthe programs initiation: 150 MCCTgraduates within five years.

Congratulations to Carlos Ross, theCGIE staff, the MCCT faculty, andevery MCCT graduate! Shown herewith their families are 2013 graduatesJess Cienfuegos from MonterreyTech campus in Chihuahua, MarthaGuerrero from the Autonomous University of Nuevo Len, Miguel Tamez, entrepreneur and owner of Consiss, andRoberto Fras from the Autonomous University of Ciudad Juarez. For more information see http://cgie.org.mx.

Around the Globe 21 THE UNIVERSITY OF TEXAS AT AUSTIc2INSTITUTEUPDATE 16 Fall 2013


17/36

In June 2013, the IC2Institute signed

a five-year agreement to generateopportunities for business develop-ment, incubation, and accelerationfor Portuguese technology venturesin international markets BIZ pt pro

international markets with the firstproduct launch.

Acceleration; working with estab-lished ventures to introduce existingproducts and services to new inter-

i l k ( h

Building on this progress, BIZ.pts goalis to leverage this new entrepreneur-ial readiness and help Portuguesecompanies in a more direct way.

Marco Bravo, IC2 Institute project


31CoLab

To promote hi-techdegree programs

& collaborative

research in PT

2UTEN

To establish aprofessional

technology transfer

network in PT

To incubate andaccelerate hi-tech

PT companies

BIZ.pt

Around the Globe


18/36


Incredible Potential

If one were to imagine the perfectbiotechnology company, its basicresources might include access to ex-tracts from an array of diverse marinespeciessay those that inhabit theMid-Atlantic Rift off Portugals Azoresislands and the largest continentalshelf in Europe. These species mightthrive in extreme environmentssuch as deep sea hydrothermalvents where physical extremes oftemperature and pressure are pres-ent, or along the deep sub seafloorbiospherea dynamic environmentthat provides a diverse range of livingconditions that host rich microbial

communities.

In an almost offhand way, this com-panys resources might also includethe array of microbes that could bedrawn from one of Europes oldestregions for the production of wine, ol-ives, cured meats, and dairy products.

These dream team qualities are allfound in the Portuguese companyBioalvo S.A. This virtually inexhaust-ible source of natural compoundshas led to the identification of about40,000 natural extracts to date, withproperties that include antibiotic, an-ti-wrinkle, anti-tumor, anti-microbial,anti-proliferative, photoprotective,

and anti-fouling. Potential marketsinclude pharmaceuticals, health andbeauty, therapeutics, nutrition, agro-sciences, textiles, and industrial andhousehold chemicals.

US Connect Activities

In 2011 and 2012, the IC Instituteinitiated the US Connect pilot pro-gram to help companies expand toglobal markets, with U.S. businessdeals as the target. Five companieswere selected for Stage Two business

development efforts in the UnitedStates. One of these companies wasBoialvo. IC2 Institutes Greg Pogueand Jim Vance helped Bioalvos CEOHelena Vieira and her team hone aplan to enter the U.S. market with ahigh profile and multiple contracts.

The U.S. cosmetic industry was thebest first market, and the US Connectteam and Bioalvo worked together tocreate a compelling pitch to introducethe companys unique products andhelp overcome the insecurity of work-ing with new bioactives. Proctor &Gambles Director of Open Innovationprovided feedback to strengthentheir presentation. Meetings wereset up with Mercks Global head ofTherapeutic Skin Care R&D, the headsof skin care research at Avon, Revlon,and Mary Kay; the R&D team of KerryGroup, a leader in food ingredients

and flavors; as well as remote meet-ings with Proctor & Gambles SkinCare group, and LOreal.

To date, one contract has beensigned, a second is undergoing finalapproval stages, a third is in negoti-ation, and LOreal Europe is engagedin preliminary discussions. Recently,AlphaVektor, a U.S. pharmaceuticaland specialty product developmentcompany acquired the developmentand posterior use rights of Bioalvoextracts for pathologic treatment ofa metabolic disease. AlphaVektorsCEO, John Koleng, stated: We werevery impressed with the potentialapplications of Bioalvos novel extractlibrary... [to] provide advanced prod-ucts to address unmet market needs.

Bioalvos CEO, Helena Vieira said,Without the support of the USConnect team this step would havebeen much harder.

M. Cotrofeld

Read more: UTEN 2012 ComprehensiveReport, pgs. 44-50, http://ic2.utexas.edu/pubs/uten-progress-report-2012/.

US Connect RevealsEntrepreneurialReadiness in Portugal:BIOALVO Case Study

Social Physics,BIZ.pt & theGlobal Innovation

Business Hub Model

Marco Bravo, BIZ.pt project direc-tor, hopes to implement a newIC2 incubation model for Portugueseand other international companies

entering the United States. Thebusiness hub would combine severalsuccessful IC2 models (somewhatliterally) by increasing horizontalinteraction between IC projects, par-ticularly those with international en-trepreneurs. Albeit a simple concept,the plan is not without challenges.IC2 Institute programs are intrinsical-ly designed with a vertical focus toachieve specific results that cannot becompromised (i.e., to provide X groupwith Y training toward Z results).

Typically these programs operatein relative isolation from one other,each with contiguous office space tofacilitate centrality and highly tar-

geted group activities. Yet this doesnot seem the best model for BIZ.pt. Marco observes, If Portugueseentrepreneurs are grouped together,they will speak in Portuguese whenthey should be practicing English.Yes, they need to interact with oneanother, but they also need to in-teract with entrepreneurs from theU.S., Korea, Colombia, or elsewherein the worldto learn new perspec-tives and increase their networkingcapacity.

Innovative companies includingGoogle, Pixar, and Zappos are design-ing their office spaces to purposetraffic flow to encourage interactions

among employees who normallydont work together.1These efforts are

1. Silverman, R. The Science of Serendipity in theWorkplace, Wall Street Journal, U.S. Edition, May 1,2013, p. B6.

being made in the belief that casualconversations inspire creativity andlead to new insights (not to mentionsimple camaraderie). The businesshub model embraces this mindset.

In the IC2Institute style to think anddo,the business hub model illustratessocial physics at work. Figure A showsthe separate groups of entrepreneursas small lattice networks of varioustypes. The space that can be observedbetween these groups can be classi-fied as structural holes, and thus anopportunity to improve networkingcapacity.2

2. Burt, R. 1992. Structural Holes,Harvard University

To maximize interactions betwecultures, the business hub modwould integrate international entrpreneurial teams across the incubtion office environment and introduplanned cross-cultural events (figurB and C). Frequent casual commucation across cultures increases tpotential for all participants to locanew international partners and uderstand new international markperspectives (figure D).

As random links form across latticea small world network emerge

Press: Cambridge, MA.3. Watts, D. & S. Strogatz. Collective dynamics of

A. When international entrepreneurs visit IC2 for education and training, the commtraining experience imparts these small groups (or lattices) with the strengths of a centraliznetwork: ease of communication and resilient ties. The relative separation between thegroups can be classified as structural holesand therefore an opportunity to improve tnetwork.

B. The business hub concept will distribute entrepreneursoffice space as well as methodcally introduce new opportunities for horizontal interaction.

C. The natural inclination remains to develop new, strong relationships within each natio

al group. The strengths of the centralized network are retained.D. Increased interaction across culture groups expands the potential for intl exchange anultimately, global partnerships. A new small worldne twork emerges that will exhithe strengths of the decentralized network: broader connectivity and diversity, and strength of weak ties.

A B

C D


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Social Physics,BIZ.pt & theGlobal Innovation

Business Hub Model

Marco Bravo, BIZ.pt project direc-tor, hopes to implement a newIC2 incubation model for Portugueseand other international companiesentering the United States. Thebusiness hub would combine severalsuccessful IC2 models (somewhatliterally) by increasing horizontalinteraction between IC projects, par-ticularly those with international en-trepreneurs. Albeit a simple concept,the plan is not without challenges.IC2 Institute programs are intrinsical-ly designed with a vertical focus to

achieve specific results that cannot becompromised (i.e., to provide X groupwith Y training toward Z results).

Typically these programs operatein relative isolation from one other,

h i h i ffi

A. When international entrepreneurs visit IC2 for education and training, the commontraining experience imparts these small groups (or lattices) with the strengths of a centralizednetwork: ease of communication and resilient ties. The relative separation between thesegroups can be classified as structural holesand therefore an opportunity to improve thenetwork.

B. The business hub concept will distribute entrepreneurs office space as well as methodi-cally introduce new opportunities for horizontal interaction.

A B

C D


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In June 2013, the IC2Institute signed

a five-year agreement to generateopportunities for business develop-ment, incubation, and accelerationfor Portuguese technology venturesin international markets. BIZ.pt pro-vides the next phase in a large scaleeffort to increase Portugals nationalcapacity for wealth creation.

Since 2007, the Institute has workedwith Portugal through the CoLaband UTEN programs. The CoLab pro-gram has focused on hi-tech degreeprograms and collaborative research,while the UTEN efforts have con-centrated on training personnel foruniversity technology transfer offices.BIZ.pt is a new UTEN program thattargets its agenda on the entrepre-neurto promote:

Innovation; helping universitiesand companies bring technologiesthrough ideation and prototypedevelopment.

Incubation; assisting start-up com-panies to secure funds and partner-ships for strong entry into the mostviable market, sometimes going into

international markets with the firstproduct launch.

Acceleration; working with estab-lished ventures to introduce existingproducts and services to new inter-national markets (a process that caninvolve large cultural shifts).

UTENs initial pilot programs revealedthat working directly with companieswould be premature before estab-lishing a broad base of technologytransfer talent to provide an entre-preneurial ecosystem and supportnetwork. A six year training effortensued, which included regionalworkshops, international internships,and more. Data from participatingtechnology transfer offices (TTOs) un-derscore UTENs success, as key met-rics revealed marked improvementfrom 2007 to 2011 (the number ofTTO invention disclosures, provisionalpatents, partner agreements, andaggregate license income). Moreover,in 2012, the UTEN pilot program

US-Connect revealed new readiness onthe part of Portuguese entrepreneursto meet the challenges of enteringthe U.S. market.

Building on this progress, BIZ.pts gois to leverage this new entrepreneial readiness and help Portuguecompanies in a more direct way.

Marco Bravo, IC2 Institute projedirector for BIZ.pt explains, We wato meet entrepreneurs at every stag

of company development. At StaOnewe will help them with ideatioand prototype development for neproducts and services. We can assStage Two companies to find fundiand get their products to the markWe can help Stage Three companiintroduce an established product the U.S. or other international makets, or scale to their next growstage. We want to make a majdifference in Portugal by havinglong-lasting economic impact, whiis so relevant given the countrys curent financial challenges.

M. Cotrofeld and C. Fran

Robert Peterson is Principal Invesgator for CoLab, UTEN, and BIZ.pRead more about UTENs programsuccess at http://ic2.utexas.edu/pubuten-progress-report-2012/.


31CoLabTo promote hi-techdegree programs

& collaborative

research in PT

2 UTENTo establish aprofessional

technology transfer

network in PT

To incubate and

accelerate hi-techPT companies

BIZ.pt

Around the GlobeMoreover, these relationships be-tween networks present the highestpotential for benefit, including thestrength of weak ties, which isparticularly useful for business con-nectivity, the transfer of informationand talent, and partnering oppor-tunities.4 Thus the business hubconcept combines the strengths

small-worldnetworks,Nature, Vol. 393, June 93.

4. Granovetter, M. The Strength of Weak Ties,Amer-ican Jrnl of Sociology, 78:6, May 73, 1360-80.

of a centralized network (effectivecommunication and resilient ties,which are inherent in verticallydesigned training programs) withthe strengths of a decentralizednetwork (broader connectivity, di-versity, andresistance to systematicfailure) through horizontal interac-tion across programs.5

5. Butler, J. & B. Stephens,Reviving the Theoretical

Tradition of Social Physics: The Interdisciplinary Impactof the August Comte, Forthcoming, 2013.

Greg Pogue, Senior ResearchScientist, adds, Weve been work-ing on the hub concept for sometime now. And while its so logicallycompelling that it seems intuitive, itsthe sort of thing that doesnt happenwithout planning.

M. Cotrofeld, with special thanksto Bryan Stevens for his insightful

comments.

SES: New Diagnostic Test Enables

Earlier Medical Treatment

In Bangalore, India, Dr. B. V.Ravi Kumar, founder of XCytonDiagnostics, has discovered a majordiagnostic breakthrough that hasthe potential to alter the landscapeof patient survivability across theglobe. Syndrome Evaluation System(SES) detects and identifies up to 30

pathogens within seven hours.

Sepsis (a whole body or bloodstreaminfection) occurs in the United Statesat the rate of 750,000 cases peryear, and causes 200,000 to 300,000deathsmore than breast cancer,

prostate cancer, and AIDS combined.The U.S. mortality rate for infants withsepsis is 50%. Worldwide figures areworse, and in India, 40% of infantmortality is due to sepsis. Most septicinfections are treated without iden-tifying the pathogen, which reducesthe effectiveness of medical interven-tion. Those who survive often facelifelong complications such as kidney,liver, or lung damage.

Todays most accurate diagnostictechnologies require at least 12hoursand typically take severaldays, and sometimes weekswhilethey identify the pathogens in only17% to 22% of all sepsis cases. Within

seven hours, SES identifies 75% to80% of pathogens including bac-terial, fungal, parasitic, RNA or DNAviral, or polymicrobial. This advancein medical diagnosis enables earlier,more effective treatmentwhichcould dramatically increase surviv-ability while lowering health carecosts worldwide.

In addition to diagnosing sepsis, SES

would help patients with compro-mised immune systems (i.e., cancerand organ transplant patients) to bediagnosed and treated as pathogensenter the body. In May 2013, judgesawarded Dr. Kumar one of eightgold medal awards at the seventh

Dr. Kumar, third from the left, received$4.5 million from Fidelity Investmentsafter XCyton developed SES. FromLeft, Mr. Ketan Patel, Principal, FidelityBiosciences, Fidelity Investments; Dr.

Kiran Mazumdar-Shaw, Biocon; Dr. B. V.Ravi Kumar, Founder-Chairman, XCytonDiagnostics; and Mr. Prem Pavoor,Associate Director, Fidelity GrowthPartners.

World Changing Technologies in India Programs


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annual DST-LM India Growth ProgramAwards, and Fidelity Investmentsawarded the company $4.5 million.

Dr. Kumar states the Xcyton visionwith great clarity, Imagine: no blind-ness due to [infections followingeye] surgery... cancer patients aftertreatment, go home... the transplantpatient goes home and lives a normallife... all sepsis patients walk out ofthe hospital... encephalitis epidemicsare reported, but we are able to saythat no children were damaged; no-body died. That is the end game ofSES, and that is what the entire teamhas worked for. Nothing else.

have a propensity for creating workthat receives global attention. Thisaward represents Dr. Chaudarysthird gold medal in the DST-LMIndia Growth Program. In 2011 she

received an award for Trois, a topicalnano emulsion to relieve arthriticpain; and in 2010, she received theaward for Ampucare, a treatment forsevere wounds that might otherwiseresult in amputation

chamber, directly turning the poweroutput shaft. The design is direct,comparatively simple, light, elimi-nates a significant number of movingparts, runs on many different fuels,

and is up to 54% smaller.

The variable compression ratio en-ables real-time setting of optimumpower-to-economy ratio while theengine is under varying loads, re-d i b h f l i d

Dr. Manu Chaudhary, Director ofResearch for Venus Medicine ResearchCentres, receives a gold medal fordeveloping an antibacterial adjuventthat helps fight Anti MicrobialResistance (AMR).


22/36


This year, at TechBAs

Bootcamp, Patricia Rubio

rediscovered her passion:

caring about peoples

wellness. Founder of

eShower in Mexico and

one of 15 finalists in

the TechBA Bootcamp,

Patricia Rubio spoke

during the formalprogram at TechBA Expo.

TechBA taught us to

think globally, choose

the right market, and

validate. Planning

one product for the

commercial building

market and another for

high-end customers,

eShower now has aprototype in

development.

On June 13th, 2013, the SixthAnnual TechBA Austin Expo drewa large audience to the West PickleResearch Building on Braker Lane.TechBA is a program of internationalbusiness acceleration, created in 2004by the Mexico Ministry of Economyand Fundacin Mxico-EstadosUnidos para la Ciencia (FUMEC) tobring Mexican technology-basedcompanies to global markets. Itoperates in eight internationalregions: Arizona, Austin, Madrid,Michigan, Montreal, Seattle, SiliconValley, and Vancouver.

Luis Medina, Master of Ceremonies

and CEO, TechBA Austin describedthe event as an opportunity forthe University community tointeract with and get to know theoutstanding entrepreneurial spirit ofMexico. The TechBA Expo providesa unique opportunity, in a non-threatening environment, for theMexican entrepreneurs who havebeen through extensive trainingand preparation prior to the event,to practice presenting their valueproposition and unique businessmodel to real, live business contacts,including, in many cases, potentialcustomers and partners.

Since it began eight years ago,

TechBA Austin has trained more than250 companies. The 29 companiesthat participated in last yearsTechBA Austin have sold $21 million

in global markets, contributing tocumulative total for TechBA Austin$71 million to date. Medina describTechBA Austins training of 6entrepreneurs as the most significacontribution because it is changithe entrepreneurial culture in Mexi

TechBA managers anticipated rceiving 150 applications for thyears Bootcamp; they received 40Fifteen were selected as finalists, anthirteen of these participated in tExpo. Ten companies made businepitches to local entrepreneurinvestors, helping to evolve tentrepreneurial system in Mexic

One of these companies was PatricRubios eShower. A spea ker during tformal program, Patricia describhow TechBAs Bootcamp had helpher rediscover her passion, whihad become hiddencaring abopeoples wellness. TechBA taugus to think globally, choose the rigmarket, and validate.

Dr. Juan Sanchez, Vice President fResearch at UT Austin, spoke aboTechBA Austin as a crown jewshowing the visionary entrepreneurapproach of Mexicos Minister Economy. He described theefforts as valuable contributioto diplomacy by universities in tUnited States.

Guillermo Fernandez, FUMECExecutive Director, related how

TechBA Celebrates

Mexicos Entrepreneurial Spiritat Sixth Annual Austin Expo

In late May, an IC Institute teamincluding Greg Pogue, Marco Bravo,Max Green, and Tony Miranda Arandapresented a workshop to inspire par-ticipants with the excitement that isinherent in managing the innovationprocess, from ideation and deal cre-ation to company capitalization.

The workshop, Practical TechnologyCommercialization: Converting Tech-

nology to Wealth,took place at the BICHealth Science Technology Park, withthe University of Granadaa campusthat serves about 80,000 students.

About 40 participants including sci-entists, entrepreneurs, and technolo-gy transfer managers formed teamsto address the same challengetocreate an idea prototypefor a tech-nology that would enhance the solu-bility of sugar in coffee, and providebenefits to coffee drinkers and coffeevendors.

The winning team designed a plastic,flat spoon on which reward notescan be printed. The sugar is adheredto the spoon and variations couldinclude a chocolate or caramel cov-ering to the sugar to allow for mocha

or caramel drinks. The reward noteswould function as advertising anda mechanism for coffee shop give-aways, such as you won a free coffee!

Max Green says, The program withthe University of Granada was anexciting representation of the successof IC2s action-based training pro-

grams. The participants were highlyengaged, taking important stepsthroughout the program to practiceand adopt the principles taught byour team. We watched their under-standing, capabilities, and confidencetransform overnight.

Following the workshop, the IC2

team toured the labs and sciencepark, and advised on biotechnologyentrepreneurship.

G. Pogue

The winning teamdesigned a plastic, flat

spoon on which rewardnotes can be printed. The

sugar is adhered to thespoon and variations

could include a chocolateor caramel covering to the

sugar to allow for mocha orcaramel drinks. The reward

notes would function asadvertising and a customer

mechanism for coffee shopgiveaways, such as

you won a free coffee!

Practical Technology

Commercialization

Workshop in

Granada, Spain


23/36

The IC2 Institute.

Austin, Texas.

Open enrollment. At last.

Converting Technology to Wealth.Technology transfer workshop.

For technology

transfer specialists,

incubator managers,

scientists, and

researchers to

gain practical skillsand methodologies to

commercialize R&D from their

organizations.

Participants work with real


24/36

Bryan Stephens, a graduate student in sociology, had a summer internship with John Butler, conducting research on socphysics that included mapping data. Photo by C. Franke.

Regional Advantage, Wealth Creation & Job Creation:The Impact of Social Physics in a Networked Economy

Source: Bryan M. Stephens

Social Physics

Theory of Space and Flow

Methods/Applications

Death of Distance (Space)

New social physics: Shifting from

space of placesto space of flows

Cluster Theory

Global City Network

Datasets

Network as the whole(ecosystem)

Communityfinding(community-detection)

Node level(firm/individual)

Visualizing meta-nodes

IC2Research Question &Metrics of Analysis

IC2 Institute(Butler)

Centrality

Metrics of Analysis

Power

Structural Holesand Bridges

Network + Graph Theory

Research: Social Physics 13 THE UNIVERSITY OF TEXAS AT AUSTIc2INSTITUTEUPDATE 24 Fall 2013

Across the University

The IC Institute supports the research of UT professorsin its core areas of interest. UT Faculty, IC research staff,and student research teams are conducting collaborativeresearch from the IC Institutes Idea Room. Professor ArtMarkman, IC Director of Research, implemented these threeprojects working with former d irector John Sibley Butler.

IC2 Institute Pilot Project Yields Positive Results for NewResearch Model at The University of Texas at AustinNew Faculty Research Model

The goal of these projects is to focus on increasing the depth of ICInstitutes interaction with UT faculty. The way this is done best isthrough the support of students, because students end up being thevaluable resource that faculty can deploy.

Greg Pogue, Sr. Research Scientist, IC2Institute


25/36

Zachary Elkins, associate professorof government and a leading consti

writing, legislative deliberation, anddecision making can be applied in


26/36

Spinuzzi CapturesMetrics of BusinessTraining Process

Dr. Clay Spinuzzi, professor of rhetoricand writing in the College of LiberalArts, works with a number of differentcompanies to understand how theirprocesses and communication pat-terns work. He is using the ICs GlobalCommercialization Groups Gyeonggi,Korea program data to measure themanner in which problem state-ments, solution descriptions, valuepropositions, etc. evolve during thebusiness training process.

IC Institute plans to use these met-rics to validate, refine and iterate thementoring process to become moresuccessful at teaching entrepreneursacross the globe how to effectively

commercialize their products. This re-search will also help to illustrate howa university can work with a state toimprove the commercialization po-tential of private enterprise.

January 29, 2014 5:00-8:30 p.mAT&T Executive Education & Conference Cent

The IC

2

Institutes Austin Technology Incubator will mark silver anniversary with a celebration to include graduatiof nineteen current ATI companies. Beginning in November,

count down blogwill feature 25 interviews: five VIPs, five big exifive alumni companies, five current companies, and five former ass

ciates or interns. We invite you to join us online as we explore questioabout the growth of the incubator as an organization, and the value th

ATI has provided to member companies and the Central Texas communityyou would like to join us on January 29, at the AT&T Center please contact Rob

Murphy [[email protected]]. Seating is strictly limited. Watch for the countdowblog to begin in November at http://ati.utexas.edu/blog/.

ATIs 2014 Graduating Cos

1. Amatra

2. Aptus Technologies

3. Datical

4. ihiji 5. Toopher

6. M87

7. NOOM

8. Ordoro

9. Black Locus

10. Wheel InnovationZ

11. Xeris Pharmaceuticals

12. Omniwater Solutions

13. LimeLite

14. Vecturalux

15. Yan Engines

16. Terra Pave International

17. NUVE

18. FlowBelow

19. BeHome247

ATIs Blog Interviews: 5x5

5 VIPS Laura Kilcrease /Triton Ventures John Sibley Butler/IC2Institute Joel Wiggins/Crown College Erin DeFosse/Bazaarvoice

Pike Powers/Pike Powers Group, LLC 5 Big Exits

Manoj Saxena/Webify Robert Reeves/Phurnace Jean Belanger/Metrowerks Steve Smaha/Haystack Labs Rob Neville/Savara Pharmaceuticals

5 Featured Alumni Aruni Gunasegaram/Querium Kay Hammer/Dorsan Biofuels Ed Taylor/Collective Warren Sumner/Omni Water Solutions Barry Evans/Calxeda

5 Current Companies Steven Prestrelski/Xeris Antonio Arocha/Nuve Vikram Devarajan/Structured Polymers Daniel Appel/AdBm Technologies Michael Koetting/Hoot.me

5 Former Associates or Interns Dennis McWilliams/Apollo Endosurgery Michael Webber/Webber Energy Group Alissa Bayer/Milk and Honey Caroline Jennings/Bain and Company Brett Newswanger/Xeris

austin technology incubatoCelebrates 25 Years of Excellenc

Ic2INSTITUTEUPDATE 26 Fall 2013

Traphagan PursuesCross-culturalResearch on WomenEntrepreneursDr. John Traphagan, associate profes-sor of religious studies, and facultyaffiliate of the Population ResearchCenter, has deep relationships inJapan and is conducting researchthere using IC Institutes traditionalincubation networks. He recentlyreturned from studying females wholead businesses in rural and urbanJapanese environments, finding thatmost women in rural environments

had pursued life in urban environ-ments and then, for a variety ofreasons, chose to return to their ruralorigins.

Traphagans research focuses on de-veloping an increased understandingof the motivations, strategies, andchallenges that differ between ruraland urban environments. Japanesedata will be analyzed along with datacollected from other female entre-

preneurship programs IC Instituteconducts internationally, includingin South Korea, Mexico, and Portugal.This ethnological research and cross

cultural analysis will help identify keyfactors and cultural barriers that maypreclude women from applying to orsucceeding in IC2programs.

The President of The Republic ofKorea, Park Geun-hye has identifiedfemale entrepreneurship as a primaryfocus of her administration.

C. Franke

2

3

A group of researchers work in the Idea Room: Post-doctoral Fellow AlexandriaStone, Research Associate Keela Thomson, Senior Research Scientist Greg Pogue,and Graduate Research Assistant Richard ScottNelson. Photo by C. Franke.


27/36

Bridging DisciplinesIntern Updates the2004 Belize Report

Students who intern at the IC2

Institute find various paths to itsdoors. Osvaldo Castellanos chose to

intern in summer 2013 to contributeto his Bridging Disciplines Programcertificate in Innovation, Creativity,and Entrepreneurship. As a major inLatin American studies with a concen-tration in Art History and a BusinessFoundations Program certificate,he was intrigued by IC2s project to

update the Institutes 2004 report onthe nation of Belize. Osvaldo explains,The opportunity to take the time toexplore and connect ideas that onetruly cares about arrives less oftenthan anyone would like to admit.

Osvaldo Castellanos with supervisor Dr. David Gibson. As a Bridging Disciplinesstudent pursuing a certificate in Innovation, Creativity, and Entrepreneurship,Osvaldo was intrigued by the possibility to update the Institutes 2004 report onthe nation of Belize

Whats Happening at the Institute?


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Laura Kilcrease is looking forwardto watching the future unfoldin Central Texas. At the IC2 FellowsMeeting in April, she outlined adynamic representation of regionalentrepreneurial development overthe past 25 years.

Austin has gotten big; we dont

much talk about Austin any more.We talk about Central Texas. Shebegan to sketch an event-based timeline as she discussed large trendsacross timeillustrating the regionsentrepreneurial ecosystems evolu-tion in terms of capital, talent, andtechnology. In all of these areas shehas observed three phases of growththat can be plotted like the businesslife-cycle.

Similarly, Laura has observed threephases in regional networking trends.She aptly described these phasesin database terms of one-to-one,one-to-many, and many-to-many.One-to-one networking, which

describes Austins general businesscommunication model in the late1980s and the early 1990s, is basedon strong personal relationships

across a relatively small community.As Austins success (and population)grew through the late 90s andinto the new millennium, Austinsentrepreneurial network expandedto a one-to-many phase thatleveraged the strength of weak links.While strong personal relationshipsremained, the network was expanded

to include new acquaintances andfriends-of-friends.

In recent years, as Austin has con-tinued to grow in spite of nationaland global set-backs, the start-upnetwork has necessarily expandedto its current phase: many-to-many.Increasingly, while regional actorsnecessarily maintain one-to-one andone-to-many networks, we are alsoconstrained to add a new (larger)layer of contacts who are unknownto us, our friends, and even ourfriends-of-friends.

This new, more complex many-to-many network system is far more

difficult to navigate in terms oftrust, integrity, and respect: keyrequirements for doing businesswell. Like people we know, and like

friends-of-friends, these newcomebring new technologies to tcommercialization table.

Assessing the potential of the tecnologies has become the easy paas capital investors (seeking invements) and entrepreneurs (seekininvestors) explore new ways to dete

mine trust, integrity and respect. Thhas resulted in, or at least coincidwith, a critical capital gap betweseed capital and Series A fundinwhich has dropped nationwioverall.

To meet this capital gap, todaentrepreneurs need new models fcapital funding. One such new modis crowd-sourcing, which is in itselresult of the larger, global netwoYet crowd-sourcing cannot fill tcritical gap in capital funding. Furththe overall effect of crowd-sourcion traditional funding channecannot be predictedas to whethit will enhance, compete, absorb, be absorbed by angel and capinetworks.

To move into the main point of her prsentation, Laura shifted to the emp

Laura Kilcrease Looks Back to the Future for Central Texas

Ic2INSTITUTEUPDATE 28 Fall 2013 Research: Social Physics 9 THE UNIVERSITY OF TEXAS AT AUST

Professor Colin Young, with the De-

partment of Environmental Scienceat Galen University in Belize, says,Belize, for its small size, is remark-ably diverse ecologically and cultur-ally. However, its forests and marine

resources are under significant threat,mainly from high deforestationrates, improper solid waste manage-

ment, rapid coastal development,increasing poverty, weak institution-al and legal frameworks, and the

recent discovery of sweet crude oil.Sustainable solutions to these chal-lenges will require innovative, practi-cal, and cost-effective strategies thatinvolve all stakeholders and that seek

to improve the socio-economic con-ditions of these stakeholders. Belizesnetwork of protected areas must bemanaged transparently, utilizing bestmanagement practices and informedby applied scientific research, if the

biodiversity they contain is to bemaintained.1

Adriana Pulecio, an internationalstudent intern from Colombia hasalso assisted with the Belize research.

Adriana is in her final semester atAustin Community College and hopesto transfer to The University of Texas at

Austin in Spring 2014.M. Cotrofeld

1. Young, C. 2008. Belizes Ecosystems: Threats andChallenges to Conservation in Belize. Tropical Conser-vation Science 1(1):18-33.Available online: tropical-conservationscience.org

The report, Knowledge-Base Bench-marking for Belize Education, Science & Technology(BEST) Park, was completed in November 2004. In April of that year, IC Instituteresearch teams traveled to six Central America/Caribbea n nations to assess key aspectsand challenges for knowledge-based economic development, an effort made possibleby the generous support of Gerhart Walch (CEO of Mayan Plantation, Belize)and NancyAtmospera-Walch(President of Health Care Education Association, Hawaii). The teamswere composed of IC staff, visiting scholars, and students and alumni of the Master ofScience in Technology Commercialization (MSTC) degree program. The publication isavailable at http://repositories.lib.utexas.edu/handle/2152/19055.

TowardRegionalProsperity

TowardRegionalDecline

BUSINESS & INDUSTRY

Emphasize land & physical assets Dependent on tourism & service industries

Limited career growth

BUSINESS & INDUSTRY

Emphasize education & knowledge assets Invest in knowledge-based industries

Entrepreneurship & career development Create wealth

EDUCATION & TRAINING

Enhanced education access More graduate degree programs

Research & development

EDUCATION & TRAINING

High drop-out rates Dead end careers

Little post-secondary education

LEADERSHIP

Promote competition betweencommunities

Colonialism mentality that resistsoutsideinput

LEADERSHIP

Foster regional collaboration Leverage assets

Open to innovation &entrepreneurship

QUALITY OF LIFE

Inadequate infrastructure High unemployment & low wages

Inadequate healthcare Increasing crime

QUALITY OF LIFE

Infrastructure serves the population Recruit, grow, and retain talent

Civic and social entrepreneurship Innovative healthcare systems

Shared prosperity

Belize: A Nation at the Crossroads


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habits of leadershipby Art Markman

In his internationally acclaimed book, SmartThinking,which examines the gap between innateintelligence and acquired mental skills, Art Markmanpresented a three-part formula to show readers howto develop smart habits, how to acquire high quality

knowledge, and how to use that knowledge whenits needed. Now, Markman takes his scientificallybased formula one step further to demonstrate thecorrelation between personality and habits, andthe impact of personality and habits on leadershippotential and innovation success.

Habits of Leadership explores the Big 5personality characteristicsExtroversion, Agreeableness, Conscientiousness,Openness, and Emotional Stabilityas well as other key variables such as persons ability to acquire and use knowledgeor the level of ones tolerance to risk. Using a unique personality profiler, readers are able to determine their strengthsand weaknesses and then apply this understanding to develop smart habits.

Great leaders have key traits that influence their success. People who are Extroverts can serve as effective advocatesfor ideas. Those who are low in Agreeableness are willing to tell people things that they do not want to hear, and sofacilitate open and honest lines of communication. People high in Conscientiousness get things done. They ensurethat a project once started is completed. Those who are high in Openness and are able to acquire and use knowledgethrough reasoning, intuition, or perception tend to be good change-makers. Their breadth of knowledge allowsthem to communicate ideas from a wide variety of sources to innovate and solve problems. And leaders possessed ofEmotional Stability have the clear-mindedness and confidence to navigate through any storm.

Individuals who demonstrate these traits and who have developed habits that serve them well, are extraordinary. Yetthe potential for greatness is within everyone. Habits of Leadershipwill show anyone how to develop and use theseexceptional gifts. (Penguin Press)

Most growth-promoting decisions of a nation are very forward looking, andmay not pay off for decades. It is tempting to make changes half way through,when you might have made a different plan if you had known everything thatwould occur. Many times a nation will short circuit a good plan before it hastime to work. Consistency is important.... At the same time, consistency doesnot guarantee success if the long range plan is not good. China is an example

of great consistency with a poor economic plan.

Finn KydlandNobel Prize in Economics

Professor, University of California at Santa Barbara

In thinking about social physics, weneed to remember the social side ofthe questiongender. Where are thewomen in your model? ...We need tobe thinking about those aspects ofwhat we do. If a bunch of guys gettogether in a pub to discuss regional

vision, do they include any women?Because they should.

Patricia GreenProfessor, Babson College

In the Obama administration, oof the first challenges we faced wto find new ways of granting discrtionary dollars to city and statesWe came to the conclusion that wneeded to have people begin to thiof themselves, not as isolated, buthubs or as a node in part of a largecosystem.... And so we began require that proposals have compnents which would bring togeth

not just business and academia, balso government partners, as wellcultural aspects from the communto make a whole representation that ecosystem.

Barry JohnsPrincipal, Inbound Investment Practice (F

Over 95% of the worlds population

is not American. That changes ev-erything. That makes it absolutelyessential that we think about globalintellectual property rights no matterwhat town we are in.

Bill HulseyHulsey P. C.

Intellectual Property Lawyers

The Impact of Social Physic

Research: Social Physics 7 THE UNIVERSITY OF TEXAS AT AUSTIc2INSTITUTEUPDATE 30 Fall 2013

Publications

Is there any way to tell that you havemade a good paper airplane?...Whether that

plane succeeds depends both on the featuresyou give it when you crease the paper

and the conditions when you let it fly.

The same thing is true with leadership.Good leaders are determined both by thecharacteristics they have and the circumstances that face them.


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THE TEXAS WAYby Bill Cunningham with Monty Jones, The Dolph Briscoe Center forAmerican History at the University of Texas at Austin

The Texas Way is a memoir that details the seven years I spent as

President of UT Austin and the eight years as Chancellor of UT

System. I examine many important issues including fraternity

hazing; affirmative action; the demise of the SouthwestConference; apartheid; the creation of UTIMCO; the relationship

between UT, the Legislature, and the Governor; the Hopwood

case; the top 10% admissions law; and the role of effective

Regents. I hope that people who are interested in UT Austin

and UT System will find the book interesting and, at times,

provocative.

Bill Cunningham

Bill Cunningham opens his memoirs with moving to Texas and working with GeorgeKozmetsky who was then Dean of the Business School Dr Kozmetsky gave him his first


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Research Universities in the Framework of Regional Innovation Ecosystem:The Case of Austin, Texas by John Butler and David Gibson. FORESIGHT-RUSSIA,Vol. 7, No. 2, 2013

Abstract: Based on the case of Austin, Texas, the authors provide a model of

knowledge-based regional development that fosters innovation andentrepreneurship. In the framework of this model, The Universityof Texas is regarded as a core of a regional innovation ecosys-tem. In addition to performing the traditional objectives ofresearch and education, universities are increasingly taskedwith the third mission of transferring and commercializinguniversity-based R&D to stimulate economic development.While responding to growing industry needs and efficientlyinterrelating with industries and governments, universitiesshape a unique entrepreneurial environment that fostersregional development The case of Austin shows that itstransformation from a university and state governmenttown to a globally competitive hi-tech hotspot has occurreddue to visionary influencers, as well as the pursuit of institu-tional excellence in academia, government, and business. Theability to make bold decisions, connect and leverage otherwiseunconnected and perhaps competing sectors in the framework

of important projects, generates a creative environment for produc-tive partnership and achieves synergy that leads to regional growth. TheAustin Model is based on the Technopolis Wheel consisting of seven sectors:the research university; large and small entrepreneurial firms; federal, state and local govern-ment; and support groups (business associations, venture capitalists and angel investors, chamber of commerce, etc.).The paper characterizes in detail the role of each sector in the transformation of the Austin region

/

Fortune500


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Universities and Regional I nnovation Ecosystemsby David Gibson, Professor II at Troms University, Norway, and Lene Voss, Professor,Troms University, Norway, University-Industry Innovation Magazine, 2013:1, Spring/Summer

The interrelationships between regional characteristics, (entrepreneurial) universi-ties and the regional innovation ecosystem have attracted high interest of research-ers, practitioners, and politicians alike. This article presents the results of extensiveresearch projects to be published in the book Universities and Innovation Ecosystems:Case studies and policy implications (Foss and Gibson). Central to this examination arethe differing national and regional contexts and how they impact universities andregional innovation ecosystem development, with analyses from Austin (US), New

York City (US), Cambridge (UK), London (UK), and select regions in Norway, Finland,and Sweden.

The concluding paragraph of the article states: By focusing on selected cases fromdeveloped regions in Scandinavia, the United Kingdom, and the United States, we are able to focus discussion onkey issues leading to important policy recommendations that have produced significant results to the benefit of na-tions and regions. We use the case study approach in order to better elaborate and demonstrate the interrelatednessamong factors at different levels of analysis and thus the interdependency between institutions, actors, and relations.We draw lessons learned and generalizable conclusions from our case studies and literature review. These conclusionslead to policy implications for fostering and sustaining successful technology- and knowledge-based economic de-velopment in emerging, developed, and developing regions worldwide. See: http://magazine.uiin.org/index/issues.

Looking to the future..

When George Kozmetsky created the IC2 Institute in

1977, he envisioned it as a think and do tank.JohnSibley Butler has proven to be a strong guardian of theInstitutes original mission. As a visionary, John has focusedon the big picture, and as incoming director I plan to con-tinue executing his vision for the Institute. John and I havea symbiotic relationship that predates our time at the IC 2Institute, and we have co-managedmost of the Institutesfunctions and activities during his tenure as director.Consequently, while I am new to the directorship, I am veryfamiliar with the Institute and the people who make it sospecial.

I hope to further the Institutes increasingly global activi-ties as well as its interdisciplinary activities across campus.More and more frequently the Institute is being asked tocollaborate across the universityto serve as a bridge tolink disciplines toward a single purpose or as a catalyst tohelp interface with external organizations.

As the Institute continues to expand its understandingof market economies and innovation management, itwill also continue to disseminate this understandingthrough its publications, education platforms, and othercommunications.

Growing both the Institutes local and global networks isintegral to accomplishing its overall mission, and the valueof these networks cannot be overstated: in the Universityat both the student and the faculty level; in Austin andthe state of Texas, across th

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