Now-a-days fundamental changes are taking place in the world as well as in the global economy, where events such as globalization, financial crises, wars, hurricanes and earthquakes – just to new a few of them – are shaping the daily life of million of people. However, to be aware of these events is not possible without another phenomenon that makes information about these extraordinary events available to each of us, i.e. innovation, since without it would not be possible to know about these events.
However, one of the fields where innovation occurs really fast is the field of information and communication technologies (ICT). Indeed, incredible progress in the field of information and communication technologies (ICT) has made things possible today which would have been unthinkable some decades ago, and as ICT continued to spread into all sectors of social and economic life, it became a vital instrument for creating knowledge based society, building and sustaining human development, as well as transforming our world from the industrial society into an informational one.
In this context, by the opening of borders to trade and foreign investment, globalization brings opportunities and pressures for domestic firms in global market economies to innovate and improve their competitive position, and thus contribute to foster the economic growth of a country.
Aware of this, and even though the Lisbon Strategy, set out by the European Council in Lisbon in March 2000, with the aim to make the EU “the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion”, by 2010, did not fully accomplished most of its initial goals, many countries are now starting policies with the aim to develop their strategic innovative sectors in order to compete in the international markets.
Among these countries we can find also Germany and Italy, which aware of their growth po- tentials in some high-tech sectors such as ICT, are seizing the moment by reconsidering new policy actions to cope with the international competitive pressures that the globalization as unleashed in the last few years.
Bearing this in mind, aim of this work is to present the current trends, as well as growth potentials, in the German and Italian ICT sectors by focusing the attention on venture capital and high-tech start-ups.
Contents
Introduction
1 Theory: Concepts & Definitions
1.1 Innovation
1.1.1 Definition of Innovation
1.1.2 What is Innovation About
1.1.3 Innovation and Economic Performance
1.2 Clusters
1.2.1 Definition of Clusters
1.2.2 Innovative Clusters and Typologies
1.2.3 Clusters and Economic Performance
1.3 High-Tech Start-Ups
1.3.1 Definition of High-Tech Start-Ups or New Technology Based Firms (NTBFs)
1.3.2 Steps to an High-Tech Start-Up
1.4 Information and Communication Technologies
1.4.1 Definition of ICT
1.4.2 Evolution of the ICT sector
2 The Venture Capital Market
2.1 Venture Capital
2.1.1 Historical Overview
2.1.2 Definition of Venture Capital
2.1.3 Sources of Venture Capital: Type and Role of Investors
2.1.4 Benefits of Venture Capital
2.1.5 Phases of Venture Capital Financing
2.1.6 Venture Capital in Innovative High-Tech Sectors
2.2 The Venture Capital Market in Germany and Italy
2.3 The German Venture Capital Market
2.3.1 The Distribution of Venture Capital Investments in Germany
2.3.2 Venture Capital for High-Tech Start-Ups in Germany
2.4 Italian Venture Capital Market
2.4.1 The Distribution of Venture Capital Investments in Italy
2.4.2 Venture Capital for High-Tech Start-Ups in Italy
3 Determinants of Start-ups
3.1 Factors Fostering the Creation of High-Tech Start-Ups
3.1.1 Local Context Factors
3.1.2 Government Support Factors
3.1.3 University Level Support Factors
3.1.4 Individual Level Related Factors
3.2 The German Innovation System
3.2.1 The German Cluster Strategy
3.2.2 The German System of Coordination of Innovation Policies
3.2.3 The German High-Tech Strategy and the Direct Public Support to High-Tech Start-Ups.
3.2.4 The Regional Distribution of Businesses and High-Tech Start-Ups in Germany
3.2.5 The Regional Characteristics and Locational Determinants of High-Tech Start-Ups in Germany
3.3 The Italian Innovation System
3.3.1 The Italian Cluster Strategy
3.3.2 The Italian System of Coordination of Innovation Policies
3.3.3 The Italian High-Tech Strategy and the Direct Public Support to High-Tech Start-Ups
3.3.4 The Regional Distribution of Businesses and High-Tech Start-Ups in Italy
3.3.5 The Regional Characteristics and Locational Determinants of High-Tech Start-Ups in Italy
4 Two ICT Clusters in Comparison
4.1 The German ICT Sector
4.1.1 German ICT Industry Segments
4.2 The Italian ICT Sector
4.3 German and Italian ICT Clusters in Comparison
4.4 BICCNET: a German ICT cluster
4.4.1 Bavaria as Attractive Location for New Business and High-Tech Start-Ups
4.4.2 ICT in Bavaria: an Overview
4.4.3 BICCNET: the Bavarian ICT cluster
4.4.4 The Role of the Bavarian Government in Supporting Innovation
4.4.5 Effective Support in Bavaria for High-Tech Start-Ups
4.4.6 Public and Venture Capital for High-Tech Start-Ups in the Bavarian ICT Sector
4.5 Torino Wireless: an Italian ICT cluster
4.5.1 Piedmont as Attractive Location for New Business and High-Tech Start-Ups
4.5.2 ICT in Piedmont: an Overview
4.5.3 Torino Wireless: the Piedmontese ICT cluster
4.5.4 Actors Supporting Innovation and ICT in Piedmont
4.5.5 Effective Support in Piedmont to Innovation and High-Tech Start-Ups
4.5.6 Public and Venture Capital for High-Tech Start-Ups in the Piedmontese ICT Sector
5 Conclusions
5.1 Main Findings
5.2 Concluding Remarks
Objectives & Core Topics
This thesis examines the current trends and growth potentials of the German and Italian ICT sectors. Its central goal is to investigate how venture capital and high-tech start-ups are nurtured in these two countries, with a specific focus on the comparative analysis of two prominent regional ICT clusters: BICCNET in Bavaria (Germany) and Torino Wireless in Piedmont (Italy).
- The theoretical foundations of innovation, industry clusters, and high-tech start-ups.
- The structure and evolution of the venture capital markets in Germany and Italy.
- The determinants of start-ups and the differing regional innovation systems.
- A comparative analysis of the German (Bavaria) and Italian (Piedmont) ICT clusters.
- The role of public and venture capital in supporting the development of high-tech firms.
Auszug aus dem Buch
1.2 Clusters
Conceptually, industry clusters have become the sine qua non of economic development policy in many parts of the world (Rosenfeld, 2002). And due to this it can be said that successful economies are, to varying degrees, specialized. Even the most diversified regions are home to industries that, because of historical reasons or geographic peculiarities, are found in higher concentrations than in other places. Competitive advantage of place can be best understood in terms of the comparative advantages of specific industries within that place’s borders. No nation, and certainly no region, can be outstanding at producing everything. Therefore successful places develop strengths and focus innovative capacities on certain types of industries, or clusters. Clustering provides firms with access to more suppliers and specialized support services, experienced and skilled labour pools and the inevitable knowledge leakage that occurs where people meet and talk about business, as for example in the ICT sector. The advantages of place draw not only similar but also complementary enterprises and, as a result, clusters become a breeding ground for new clusters.
Why are some regions better able to develop and support innovative and competitive clusters and become more prosperous than others? In Germany for example, the federal state of Baden Württemberg has some outstanding research universities with its best graduate greatly contributing to the economic growth of the place. On the contrary, the south of Italy has a milieux that attracts tourists but lacks the skilled labour force to attract technology-dependent firms. However, on this last point I will return later on when comparing two ICT clusters. Now after this brief introduction I proceed by explaining what clusters are, which typologies exist, and expose the linkage between innovation and clusters by introducing the concept of “innovation clusters”. At the end the role that clusters play for economic performance is introduced.
Summary of Chapters
Theory: Concepts & Definitions: This chapter establishes the theoretical groundwork by defining innovation, industry clusters, high-tech start-ups, and the ICT sector, while analyzing their relevance to economic performance.
The Venture Capital Market: This chapter provides a historical overview and definition of venture capital, analyzes its financing phases, and compares the development of venture capital markets in Germany and Italy.
Determinants of Start-ups: This chapter explores the factors that foster high-tech start-ups at local, governmental, university, and individual levels, while outlining the distinct innovation systems and cluster strategies of Germany and Italy.
Two ICT Clusters in Comparison: This chapter presents a comparative analysis of the German ICT cluster BICCNET in Bavaria and the Italian ICT cluster Torino Wireless in Piedmont, examining the role of local actors and venture capital in these specific regions.
Conclusions: This chapter summarizes the main findings of the thesis, contrasting the "bottom-up" approach in Germany with the "top-down" approach in Italy and offering concluding remarks on the future of these ICT sectors.
Keywords
Venture Capital, ICT Sector, Innovation, High-Tech Start-Ups, Industrial Clusters, Economic Growth, Regional Innovation Systems, Germany, Italy, BICCNET, Torino Wireless, Technological Development, Entrepreneurship, Technology Transfer, Investment Policy.
Frequently Asked Questions
What is the primary focus of this thesis?
The work focuses on analyzing current trends and growth potentials in the German and Italian ICT sectors, specifically by examining the role of venture capital and high-tech start-ups within these countries.
What are the central thematic fields covered?
The core themes include the definition and role of innovation, the dynamics of industry clusters, the financing mechanisms of venture capital markets, and the specific determinants that drive the success of high-tech start-ups.
What is the primary research objective?
The main goal is to document and compare how high-tech start-ups and venture capital are nurtured within specific regional innovation systems, illustrated through a comparative analysis of the Bavarian ICT cluster (BICCNET) and the Piedmontese ICT cluster (Torino Wireless).
Which methodology is employed in this work?
The thesis utilizes a cross-country comparative analysis method, drawing upon existing academic literature, statistical data, and policy reports to contrast the institutional frameworks, innovation strategies, and investment climates in Germany and Italy.
What does the main body of the work address?
The main body systematically explores the theoretical concepts of innovation and clusters, provides a detailed review of venture capital history and phases, analyzes the innovation systems of both nations, and performs a deep dive into the comparative study of two specific regional clusters.
How would you characterize the work's keywords?
The key concepts defining this research include venture capital, ICT industry dynamics, regional innovation systems, and the structural differences between German and Italian high-tech support policies.
How do the German and Italian cluster strategies differ?
The research suggests that the German strategy follows a largely "bottom-up" pattern, heavily influenced by regional variations, whereas the Italian strategy is characterized by a "top-down" approach from central government initiatives.
Why are Munich and Turin significant in this study?
Munich and Turin are identified as the premier venture capital hubs in their respective countries, serving as essential case studies for the analysis of how regional ICT clusters attract and utilize venture capital to foster high-tech growth.
- Arbeit zitieren
- Fabrizio Milio (Autor:in), 2010, Venture Capital and High-Tech Start-Ups in the Italian and German ICT Sector, München, GRIN Verlag, https://www.grin.com/document/174732
