A key challenge in the Canadian innovation ecosystem is developing new models for innovation intermediaries and knowledge transfer. This presentation shares the founder's experience as an innovation intermediary while operating TheCodeFactory business incubator and shared workspace in Ottawa, Canada, since 2007. As a bootstrapped startup in its own right, TheCodeFactory takes a novel approach to business incubation: the business is funded from the bottom-up by entrepreneurs and innovators. Through an overview of TheCodeFactory's history and evolution within the burgeoning web and mobile innovation ecosystem in Ottawa, this presentation provides a practioner's perspective of lessons learned in an entrepreneurial business incubator. This experience also raises key questions for future academic research with practical applications for entrepreneurship support systems. In this way, the purpose of the presentation is to help bridge the gap between theory and practice in the domains of business incubation and knowledge transfer.

1. A Practitioners Perspective
Innovation ecosystems from the bottoms up
Ian Graham, MBA
Founder and President, TheCodeFactory Inc.
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09-Oct-2013

2. Agenda
 The Practitioner
 Lessons Learned
 Personal
 Academic
 Professional
 TheCodeFactory Inc.
 Innovation Intermediary
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Concept
Launch
Timeline
Evolution
Future
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School of hard knocks
Ecosystem Evolve
Ecosystem Dynamics
Ecosystem Diversity
Theory and Practice
 Research Questions
Copyright © 2013 by TheCodeFactory. All rights reserved.
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Architecting
Meritocracy
Commercialization
Innovation
Entrepreneurship
09-Oct-2013

3. The Practioner
Personal
 My wife Jo and I have been married for 28 years
 3 Children in their early 20’s; Gareth, Erin, Lauren
 1 Dog miniature schnauzer named Fraser
 System Thinker, trend spotter
 Personal passion is entrepreneurship, innovation and
ecosystems
 Driven by learning: Life Long Learner
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09-Oct-2013

4. The Practioner
Academic
 Academic wannabe … PhD
 Apply Practice to Theory
 eMBA from the University of Ottawa
 Went back to school from 2000 to 2002
 Life changing event
 Technology diploma from Algonquin College
 Electronic Technology
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09-Oct-2013

5. The Practioner
Professional
 Started in Hardware Test mid-1980’s:
 Digital Equipment, Newbridge, Alcatel
 Migrated from technical to business;
 R&D to project and product management
 Liked to understand customers
 Left Alcatel in 2004 to work for a small company
 Started TheCodeFactory in 2008
 Been hard at work ever since
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09-Oct-2013

6. TheCodeFactory Inc.
Concept
Timeline
Results
Evolution
Future
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09-Oct-2013

7. TheCodeFactory Inc.
Concept
Coffee Shops
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Demo Camp
09-Oct-2013

8. TheCodeFactory Inc.
Overview
 TheCodeFactory is:
 A replicable sustainable model of business incubation,
 An Ethical Business, Entrepreneurial Organization
 Our business is:
 Principled, Results Oriented
 We tap into existing ecosystems
 We build communities of shared interest
 We facilitate high value job and wealth creation for
the local economy
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Copyright © 2013 by TheCodeFactory. All rights reserved.
09-Oct-2013

9. Idea
TheCodeFactory Inc.
Timeline
6 Years
TODAY
Bus Strike
Move
Location
Recession
1,000
Events
246 Queen
2007
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2008
Pain!
2009
2010
2011
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MediaStyle
2012
100 Gloucester
Arkalumen
2013
2014
09-Oct-2013

10. TheCodeFactory Inc.
Business Results
 Disruptive model of Business Incubation and
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knowledge transfer
Unique Bottoms UP Innovation Intermediary
2 Graduates
3 Senior Startups (Future Graduates)
28 Students Hired through Students and Startups
50+ Jobs Created
Key Contributor to Ottawa Downtown ecosystem
 1,000 events held
 20 new users groups formed
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09-Oct-2013

11. TheCodeFactory Inc.
Evolution
Original
Today
 Coworking Space
 Event Space
 Workspace
 Community Resource
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 Incubator
 Private Community
Copyright © 2013 by TheCodeFactory. All rights reserved.
09-Oct-2013

12. TheCodeFactory Inc.
Future
 Grow locally HQed sustainable businesses
 Increase the probability of venture success to 75%
 Graduate 30 companies per year per facility
 Create 250 local Knowledge based jobs per year per facility
 Next 2 years
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Complete our business model
Connecting – merit based resource introductions
Learning – teach entrepreneurship
Open 2nd and 3rd location
 Next 5 years
 Have facilities in 10 Canadian cities
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09-Oct-2013

13. Lesson Learned
School of hard knocks
Ecosystems Evolve
Ecosystem Dynamics
Ecosystem Diversity
Theory and Practice
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09-Oct-2013

14. Lesson Learned
School of hard knocks
 Entrepreneurial roller
coaster
 Setbacks
 Financial Pressure
 Everything takes longer
than you think
 The devil really is in the
details
 Major obstacles are
those you didn’t plan
for
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09-Oct-2013

15. Lessons Learned
Ecosystems Evolve
Downtown Ottawa
Ecosystem Model
 Web and Mobile
Kanata
Hierarchy Model
 Telecom and Semi-
 2004 – 2008: Emergent
 2008 – 2012: Growth
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 2013 - … Irrational
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 Gartner Hype Cycle
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 Peak of Inflated
Expectations
 Sliding toward the trough
of disillusionment
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
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conductor
1995 – 1998: Growth
1999 – 2001: Irrational
2001 – 2004: Declining
2004 – 2012: Decay
2013 … Re-emerge?
09-Oct-2013

16. Lesson Learned
Ecosystem Dynamics
Stakeholder Characteristics
 Motivators
 Herzberg's two factor theorem
 Hygene, Motivators
 Hofstedes dimensions of
Stakeholder Interactions
 Linkages
 Bonding versus Friction
 Tribal tendencies
culture
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Power Distance,
Individualism vs Collectivism,
Male or Female,
Uncertainty Avoidance,
Long term versus short term,
Indulgence or restraint
 Demographics,
 Industry,
 CMA Geography
 Communities of interest
 Formal versus Informal
organizations
 Optics vs reality
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 Groups of like minded
stakeholders within
ecosystems
 Stakeholder attraction
09-Oct-2013

17. Lessons Learned
Ecosystem Diversity
 Dimensions of Diversity = Elements Organizational Culture
 Public Sector versus Private Sector
 Industry Sector
 Product Lifecycle
 Funding source
 Demographics
 Urban, Suburban, Rural
 Heterogeneous versus Homogeneous
 Communities of interest
 Maslow's Hierarchy of “organizational” needs
 Survival versus self actualization
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18. Lesson Learned
Theory and Practice
Jan L. A. van de Snepscheut
Yogi Berra
“In theory, there is no difference between theory and practice. But, in practice, there is.”
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09-Oct-2013

19. Research Topics
Architecting
Meritocracy
Commercialization
Innovation
Entrepreneurship
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09-Oct-2013

20. Research Topics
Architecting Ecosystems
Top Down
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Bottoms UP
09-Oct-2013

21. Architecting Ecosystems
Innovation Value Chain
Top Down
Bottoms Up
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09-Oct-2013

22. Research Topics
Mertiocracy
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09-Oct-2013

23. Research Questions
Commercialization – Actionable!
Demand Side
Supply Side
D
Research
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Research
Outputs
Knowledge
Transfer
Activities
Economic
Activity
Copyright © 2013 by TheCodeFactory. All rights reserved.
Model of Knowledge Transfer within the Innovation Ecosystem – University of Glasgow
Economic
Impact
09-Oct-2013

24. Research Questions
Innovation and Organizational Culture
Hofstedes Dimensions
Other Dimensions
 Power Distance
 Formal and informal
 Individualism vs
 Good to Great
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Collectivism,
Male or Female,
Uncertainty Avoidance,
Long term vs short term
Indulgence vs restraint
 Maslows hierarchy
 Herzbergs Two Factor
Theorem
 Productivity Overlay
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 Inputs, Outputs
 Metrics
 Standardization
09-Oct-2013

25. Research Questions
Entrepreneurship
 Entrepreneurial Key Success Characteristics
 “Think and Grow Rich”
 Napoleon Hill
 “The Relationship of Entrepreneurial Traits, Skill, and
Motivation to Subsequent Venture Growth”
 J. Robert Baum and Edwin A. Locke
 University of Maryland
 Can entrepreneurship knowledge and motivation be
learned and internalized?
 What is the maximum success rate achievable for new
Venture companies?
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09-Oct-2013

26. Thank you – Questions?
Ian Graham, founder and President
TheCodeFactory Inc.
ian@thecodefactory.ca
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Copyright © 2013 by TheCodeFactory. All rights reserved.
09-Oct-2013