gec+ 2016: ainsley lloyd
TRANSCRIPT
Measuring the Digital Entrepreneurial Ecosystem
Ainsley LloydThe GEDI Institute
Understanding digital entrepreneurship ecosystems
• GEDI’s Telefonica Index on Digital Life –understanding digital life
• Recent GEDI research – understanding the intersection of digital and entrepreneurial ecosystems
• Unicorns and digital entrepreneurship ecosystems
Telefonica Index on Digital Life
https://thegedi.org/telefonica-index-on-digital-life/
Digital life
Digital life and GDP
Recent GEDI research• A significant gap exists in the conceptualization of entrepreneurship in the
digital age. We introduce a conceptual framework for entrepreneurship in the digital age by integrating two well established concepts: the digital ecosystem and the entrepreneurial ecosystem. The integration of these two ecosystems helps us better understand the interactions of agents and users that incorporate insights of consumers’ individual and social behavior.
• The Digital Entrepreneurial Ecosystem framework consists of four concepts: digital infrastructure governance, digital user citizenship, digital entrepreneurship, and digital marketplace. The digital marketplace is the interaction of agents and users in e-social network based business, e-commerce and digital services including e-health, e-education, and e-government.
Definition of Entrepreneurial Ecosystem
• we define entrepreneurial ecosystems at the socio-economic level with properties of self-organization, scalability and sustainability, composed of sub-systems and systems, as
• “…a dynamic institutionally embedded interaction between entrepreneurial attitudes, abilities and aspirations, by individuals, which drives the allocation of resources through the creation and operation of new ventures.”
The Merging of Two Ecosystems
Digital ecosystems
Entrepreneurialecosystems
Digital Entrepreneurial
ecosystems
Conceptual Framework of Digital Entrepreneurship Ecosystems
Unicorns: Startups valued at $1 billion
Country Unicorns Country2 Unicorns3United States 95 Czech Republic 1China 33 France 1Germany 6 Indonesia 1India 6 Japan 1United Kingdom 6 Luxembourg 1Singapore 3 Netherlands 1South Korea 3 Nigeria 1Canada 2 Scotland 1Israel 2 Switzerland 1Sweden 2 United Arab Emirates 1Argentina 1Data from https://www.cbinsights.com/research-unicorn-companies, 12-Aug-16
CompanyValuation
($B)Date Joined Country Industry Select Investors
Uber $68 8/23/2013 United States On-Demand Lowercase Capital, Benchmark Capital,
Xiaomi $46 12/21/2011 China Hardware Digital Sky Technologies, QiMing Venture Partners,
Didi Chuxing $36 12/31/2014 China On-Demand Matrix Partners, Tiger Global Management,
Airbnb $30 7/26/2011 United States eCommerce/Marketplace General Catalyst Partners, Andreessen Horowitz,
Palantir Technologies $20 5/5/2011 United States Big Data RRE Ventures, Founders Fund, In-Q-Tel
Lu.com $18.50 12/26/2014 China Fintech Ping An Insurance CDH Investments, Bank of
China Internet Plus Holding
$18 12/22/2015 China eCommerce/Marketplace DST Global, Trustbridge Partners, Capital Today
Snapchat $18 12/11/2013 United States Social Benchmark Capital, General Catalyst Partners,
WeWork $16 2/3/2014 United States Facilities T. Rowe Price, Benchmark Capital, Wellington
Flipkart $16 8/6/2012 India eCommerce/Marketplace Accel Partners, Digital Sky Technologies, Iconiq
Data from https://www.cbinsights.com/research-unicorn-companies, 12-Aug-16
Top ten unicorns
Understanding digital entrepreneurship ecosystems
• They are global – more interconnected than traditional entrepreneurship ecosystems (customers can be anywhere)
• They allow leap-frogging – entrepreneurs can participate without the conventional requirements (geography, education, some institutional/ infrastructure factors)
• They are flexible and social – they rely heavily on digital networks (the sharing economy)
• They produce unicorns
Unicorn industries
80% of unicorns are in industries that are by definition digital
Industry Unicorns Industry UnicornseCommerce/Marketplace 36 Gaming 3Internet Software & Services 27 Media 3Fintech 20 Facilities 2Big Data 14 VR/AR 2Healthcare 11 Ed Tech 2On-Demand 10 Auto Tech 1Cybersecurity 9 Clothing & Accessories 1Social 9 Greentech 1Hardware 8 Other Transportation 1Mobile Software & Services 5 Robotics 1Adtech 3
Measuring digital entrepreneurship:a preliminary approach
DIG
ITAL
EN
TREP
REN
EURS
HIP
ECO
SYST
EM
Sub-indexes Pillars Variables
DIGITAL CITIZENSHIP
Digital
technology
absorption
Firm level technology absorption (Institutions)
Availability of latest technology (Users)
DIGITAL GOVERNANCE Digital freedomBusiness freedom (Institutions)
Laws relating to ICTs (Digital Infrastructure)
DIGITAL
MARKETPLACEE-education
E-education: Internet access in school (Agents)
E-education: MOOC per population (Users)
DIGITAL
ENTREPRENEURSHIPDigital business
Digital startups (Agents)
Impact of ICT (Digital Infrastructure)
Unicorns per population vs. Digital entrepreneurship
Singapore
United States
United KingdomCanada
Sweden
SwitzerlandUnited Arab Emirates
Netherlands
Israel
Germany
FranceSouth Korea
Japan
Czech Republic
IndonesiaArgentina
IndiaNigeria
China
R² = 0.4231
0
0.1
0.2
0.3
0.4
0.5
0.6
0 20 40 60 80 100
Uni
corn
s pe
r 1 m
illio
n po
pula
tion
GEDI simplified digital entrepreneurship ecosystem measure
Measurement issues
• How to identify a digital enterprise – not necessarily tech sector (WeWork, Buzzfeed)
• How to quantify intangible aspects like networks and flexible innovations (Integration across websites/apps)
• How to value the contribution of digital enterprises (valuation vs. customers served)
