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Riga, LatviaJune 9, 2004

Guided Entrepreneurship™

Powering A Knowledge Economy

Boris N. Reznik, Ph.D.Chairman, Vendevia Group

Miami, Florida USAwww.vendevia.com

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How Latvia Can Become A Worldwide LeaderIn The Commercialization Of Science & Technology

The Lessons of HistoryHow Silicon Valley grew from a small agricultural region to the worldwide leader in the commercialization of science and technology.

The Emergence of the EntrepreneurWhy the entrepreneur is the real key to commercializing science and technology.

Guided Entrepreneurship™The most effective method for building an army of entrepreneurs in the least possible time.

Guided Entrepreneurship Centres™ How and why they work to implement Guided Entrepreneurship programs.

A GEC Case Study

Creating the Latvian LegendTaking the first steps

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Imagine thePossibilities

From Silicon Valley toThe Latvian Legend

How Latvia can become a worldwide leader in the

commercialization of science and technology

SiliconValley

BostonCorridor

ResearchTriangle

New JerseyBiogarden

BangaloreIndia

Latvia

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In The BeginningIt Wasn’t Always Called

Silicon Valley

Two great Universities (Stanford & UC Berkeley) with great scientists and great students

Cultural reverence for science

No real local markets for S&T

Great potential business environment (Lots of Land, Low Taxes, Cheap Labor)

Sunnyvale California c1955

The Bay AreaNorthern California

Then came Sputnik followed by NASA

The Age of MegaTech was bornHuge Companies

Making Huge ProductsFor Huge Contracts

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Mid 1960’sTeknekron Gives Birth To A New Paradigm

To Create Entrepreneurs Apollo Versus Harvey Wagner

Product Entrepreneur

GovernmentContracts

CommercialContracts

TechnologyCentric

MarketCentric

SellingSize

SellingCapabilities

GuidanceCompetition RecognitionRich Incentives

The Foundations of the Entrepreneurial Factory

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The Major Elements of Market CentricityThe market asks and the entrepreneur finds the science and answersSmall and agile versus big and slowMarket Solutions versus ProductsFrom the God of the $ to the Goal of the Contract

Market CentricityHow the Entrepreneurs Took OnThe MegaTech Giants - And won!

REI RETNAUC

Berkeley

Teknekron

Optics

1961

1967

Microfiche

To storeimages for

fasterretrieval

MagneticStorageSystems

Can you storemore information?

Can you recognizeinformation?

Optical LaserDisk

More?

Still more?

Juke Box

ImageProcessing

Can you recognizeimages?

OpticalCharacter

RecognitionCan you

read some data?

Mag Stripe

More?

SlugCodes

Can youread fast?

Bar Codes

Faster andmore reliable?

SmartCards

Transponders

3D Bar Codes

GPS

Mor

e in

form

atio

n?

Distribution

Transportation

Insurance

Financial

Communications& ITCommunications

and IT Transportation

“RETNA”

Distribution

Financial

Insurance

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Teknekron spin offs growThe new entrepreneurship becomes the legacy Teknekron Alumni defined entrepreneurship through the’80s

Building An Army of EntrepreneursTeknekron and The Mushroom Effect

Both TIBCO &TERA

Went Public

IBM

Sun Microsystems

HewlettPackard

AT&T

SymbolTechnologies

LucentTechnologies

.

.

.

Boeing

GeneralMotors

EDS

LockheedMartin

OccidentalPetroleum

MCI

CONSOLEnergy

.

.

Litton

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Bridging the GulfWhat Entrepreneurs Do And How They Do It

The entrepreneur is a connector between the source of the technology

and the users of the technology.

“No one buys technology for the sake of technology, they buy it to solve a problem or realize an opportunity.”

- H. Wagner

Connector RequirementsClient and market centricEntrepreneurially driven

Mastery of runningan entrepreneurial business

Problem Solving Point Of ViewDesire

Russian Science& Technology

WorldwideTechnology

Markets

Very Wide Gulf

Latvian EU

Russian Science& Technology

WorldwideTechnology

Markets

The Connector

Latvian WorldwideMarkets

WorldwideMarkets

Latvian Science& Technology

Latvian Science& Technology

That’s all fine and good, but“How do you build an army of

entrepreneurs?”

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Guided Entrepreneurship Is Both Effective & EfficientThe Lowest Cost Per Entrepreneur Developed

All approaches are designed for a different purposeGuided Entrepreneurship creates the entrepreneurial soup and builds the critical mass required for an army

Cos

t Pe

r E

ntr

epre

neur

VentureFund

AcceleratorIncubator

GuidedEntrepreneurship

Focuses onthe financial deal

DevelopsCompanies

Focuses onthe technology

DevelopsProduct

Focuses onthe market

DevelopsEntrepreneurs

Number of Entrepreneurs

Per Centre

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Guided Entrepreneur CentreA Look Inside and Outside

The GEC supplies the basic infrastructure.But it’s the constant interaction that makes it run.

Candidates - Entrepreneurs - Mentors - Technologists - Clients

GEC

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Climbing The Stairs In The GECA Competitive Approach To Progress

Candidate

Application made to join a specific GEC. Goal is to get

selected.

Spin Off

The goal is to go public.

Division Manager

Is running a Division. Goal is to dominate market niche and spin off a

company.

Entrepreneur

Has first signed contract in hand. Goals is to build team and make more sales to

create a division.

In Training

Working on a full time basis

in a GEC. Goal is to get out into the field, meet clients and

land a contract.

The Race To The Top

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Inside A Guided Entrepreneurial CentreFrom Candidate To Spin Off

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Creating Entrepreneurs How Guided Entrepreneurship Builds

An Army of Entrepreneurs That Makes A Difference

Driving World Wide

Markets

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We’ve done it in IT and are doing it in Biotech

Thousands of jobs created along with and billions of € of value

The GEC - A Case StudyBoris Reznik Founds ATC in 1985

Cisco Systems

Oracle

Arriba

Equifax

.

.

.

Merisel

FamousFootwear

Light Signatures

Symbol Technologies

Manhattan Associates

.

.

American Turnkey

Sonica Inatel

Siemens

LogicwareSwiss Log, AG

MetasysOptum

Software

HNC Software

Celerity

IndX Software

WhitestoneBridge

Zmarket

Just In Time

4th Shift

PlatinumSoftware

Avexus

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Creating The Latvian LegendA Look At The Basic Architecture

The Government Role

The Setup Role

The GEC– Specialized to Market

Segment

– Ensures Market Focus

– Fosters Competition

– Creates Tailored Incentives

– Provides Access to Resources

– Provides Guidance

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Creating The Latvian LegendGetting Started

Do conceptual design of GEC program for Latvia

Create a GEC Strategic Initiative

Establish Setup Agency and fund it appropriately

Do detail design of the overall GEC Initiative Infrastructure

Create the first GEC and start Guided Entrepreneurship

Evaluate progress and make adjustments

Continue rolling out the program

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Riga, LatviaJune 9, 2004

Guided Entrepreneurship™

Powering A Knowledge Economy

Boris N. Reznik, Ph.D.Chairman, Vendevia Group

Miami, Florida USAwww.vendevia.com