ENTREPRENEURSHIP FOR SCIENTISTS AND ENGINEERS
CHAPTER 8
TECHNOLOGY TRANSITION AND ENTRY STRATEGIES
LEARNING OBJECTIVES
After studying this chapter, students should be able to
2. Detail the launch strategies available to technology entrepreneurs
4. Describe the various legal forms of organization
CHAPTER OVERVIEW
The move from R&D to operations is a difficult one that requires a completely different set of
skills. Planning for operations is challenging for teams that have been comprised primarily of
technology people. At this stage, the team is being pulled in a variety of directions as they
grapple with unexpected technical issues at the same time as they are trying to launch a
company. Now the team has to define and coordinate the various processes inside the new
organization, in particular those that contribute to the manufacture of the product. The team
also has to determine the legal form it will take.
CHAPTER OUTLINE
1. Transitioning from project to operations
Entrepreneurship for Scientists and Engineers
2. Deciding on a launch strategy
a. License the technology
3. Deciding on an operational strategy
4. Organizing from a legal perspective
a. R&D and pre-launch forms
5. Summary
END OF CHAPTER QUESTIONS
1. What are the key challenges a technology team faces when moving from R&D to
operations?
• Operations require different skills than R&D, skills that most technical teams don’t have.
2. Why is developing a mission statement so important to the new venture?
Research has found a positive relationship between a company’s mission statement and its
performance.
3. What is the strategy for constructing a mission statement?
It’s a four-part process that includes determining what stakeholders contribute to the
4. Compare the commitment organizational model with the star or engineering model. Which
is more effective for a start-up company? Why?
Entrepreneurship for Scientists and Engineers
The commitment model consists of an informal peer group that controls the activities of the
5. Why is the corporate form the most popular for high-tech ventures?
• It is a legal entity so it can survive the death or separation of its owners.
CASE STUDY SUGGESTIONS
The Quantum Dots case study provides an opportunity to address the following chapter
concepts:
• Entry strategy is a critical decision point in the commercialization of a technology. The
wrong choice can mean delays and lost opportunity; the right choice can smooth an
otherwise difficult path to market. In this case, the choice was not a clear one. What was
clear was that the wrong choice could propel the technology into a commodity situation
where the initial big gains that entrepreneurs seek would never be realized. The choice of
SUPPLEMENTAL MATERIAL
Jazz Improvisation as an Organizational Form
In the past, product innovation found itself in the domain of the rational-functionalist paradigm, but
that approach seems out of place today in a highly competitive and dynamic environment. What is
needed today is a flexible model with minimal structure based loosely on jazz improvisation as in the
world of music. Jazz improvisation involves composing and performing almost simultaneously, that is,
Entrepreneurship for Scientists and Engineers
Should the improvisational model be used inside an entire organization? What are advantages and
disadvantages?
The Many Reasons to Use an Attorney When Selecting the Legal Form
1. Contracts: The entrepreneur will need to sign contracts for space, supplies, services, not to
mention employee contracts and contracts with investors.
2. Registering, licensing, and permits. The business may have specific legal requirements
because of the type of business it is. At a minimum, a business license will be required.
5. Strict conformity: It is important to understand how strictly you must conform to the state
laws governing your business or you may lose its benefits and protections.
9. Tax. Each business form treats income tax liability differently and has different advantages
and disadvantages.