Since 2006, the University of Minnesota has created 67 startup companies and of those, only 18 percent are no longer in business. Compared to the national average, that’s pretty low. (Research out of the Harvard Business School says about 75 percent of all startups will fail.) And yet, universities provide a unique environment that may contribute to a greater likelihood of startup success. Here are three key ingredients that help to create startup companies with long-term viability.
World class technology
Research universities are knowledge-generating institutions that provide the ideal platform to pursue discoveries. The University of Minnesota has a long history of producing cutting-edge research and innovation in energy, life sciences, medical devices software, agriculture, food science, engineering and other industries. The U is home to such groundbreaking inventions as the pacemaker, the AIDS drug Ziagen and the flight data recorder.
Inventions that originate in a university lab continue to benefit from ongoing research and can be continually refined. Since university-developed technology is typically in a very early stage of development, it needs significant market-based input and improvements before it can be commercialized via a startup. Information gained from the lab and the marketplace is shared and leads to a better product in the long run. Continue reading