Batten Institute Annual Report 2012-13

ANNUAL REPORT 2012–13

FROM THE EXECUTIVE DIRECTOR

MISSION

HISTORY

ACADEMIC YEAR HIGHLIGHTS

INSPIRED EDUCATION

Curricular Initiatives

Experiential Programs

Batten Scholarships

TRANSFORMATIVE RESEARCH

Research Initiatives

Batten Fellows

Research Grants

Publications

CONSEQUENTIAL VOICE

Events

Community Engagement

Media Coverage

ENERGETIC COMMUNITY

University Partners

Batten Affiliates

Leadership Team

FINANCIAL STATEMENTS

2

4

5

6

8

12

18

24

28

TABLE OF CONTENTS

ANNUAL REPORT’12–’13

FROM THE EXECUTIVE DIRECTOR

At the Batten Institute, we have long operated under the hypothesis that students learn best when exposed to diverse individuals with unique back-grounds and expertise. The most promising entrepreneurial ventures and innovative ideas often emerge from multidisciplinary efforts combining a creative vision with business acumen and technological expertise. In 2008, we partnered with the Office of the Vice President for Research to create the U.Va. Entrepreneurship Cup — a pan-University concept competition involving students across Grounds and across the schools of the University. In 2009, we held our inaugural E-Conference, creating an opportunity for students, fac-ulty, staff and alumni throughout the University and Charlottesville community to learn more about entrepreneurship and innovation and to network with one another. In 2012, we established the iDEA network, creating a network of city-based affinity groups linking alumni, students and innovators, to Charlot-tesville and beyond.

This past year, we took perhaps our greatest step towards executing on our vision to help foster a robust entrepreneurial ecosystem at the University and in Charlottesville by creating a space where businesspeople, engineers, scientists, inventors and designers could gather to pursue their entrepre-neurial passions. Through the generous gift of W. L. Lyons Brown III (Col ’82, MBA ’87) and the numerous donors that he helped rally to the cause, we were able to significantly expand the physical plant and operating scope of our Innovation Lab, renamed the W. L. Lyons Brown III i.Lab. In partnership with U.Va. Innovation and the 11 schools of the University, and under the direction of Philippe Sommer, the i.Lab provides opportunities for coaching, course work and incubation for those interested in entrepreneurship and in-novation. We have opened our Incubator to the entire University and Charlot-tesville community. Twenty-four ventures founded by students, faculty, staff, alumni and Charlottesville community members convened in June to form the first incubator class under the tutelage of new Incubator director, Kathy Carr. Lyons said it best at our gala opening in April that the i.Lab provides a bog where creativity bubbles up from the impassioned exchange of entrepreneur-ial individuals.

While the renovation and expansion of the i.Lab consumed much of our entre-preneurial energy during the past 12 months, we continued to execute our es-tablished and well-regarded programs. In July, 22 Darden students completed internships at entrepreneurial ventures with support from the Batten Venture Internship Program. In August, 14 students (seven Second Years and seven First Years) matriculated as Batten Scholars, enjoying full-ride scholarships to Darden to help them pursue their entrepreneurial dreams. In October, more than 150 student ventures competed in the U.Va. Entrepreneurship Cup. In November, we convened the fourth annual E-Conference, hosting more than

... THE i.LAB PROVIDES A BOG WHERE CREATIVITY BUBBLES UP FROM THE IMPASSIONED EXCHANGE OF ENTREPRENEURIAL INDIVIDUALS.”

- W. L. Lyons Brown III

MICHAEL J. LENOX

2 | ANNUAL REPORT 2012–13

350 attendees. In January, we held our annual venture capital bootcamp in Washington, D.C. In February, we held our first “de-risking” competition, recognizing that entrepreneurship is an effectual process requiring constant experimentation and iteration. In April, 16 ventures participated in our annual business plan competition. Throughout the year, students participated in dozens of courses on innovation, entrepreneurship, design thinking and new product development.

On the thought leadership side, working with our faculty partners we contin-ued to publish work of practical import and broad significance. Batten-affili-ated faculty published nine articles and two books, Ed Hess’ Grow to Great-

ness: Smart Growth for Entrepreneurial Businesses (Stanford University Press, 2012), and Ed Hess and Jeanne Liedtka’s The Physics of Business Growth:

Mindsets, System and Processes (Stanford University Press, 2012). In Sep-tember, we held our second Jefferson Innovation Summit in partnership with the Virginia Governor’s Office and focused on the role of state and local policy in the creation of entrepreneurial ecosystems. In October and then again in April, we convened our Innovators’ Roundtable, bringing together faculty and chief innovation officers from leading companies throughout the world to discuss best practices in corporate innovation. In May, we convened the fourth annual Darden Entrepreneurship and Innovation Research Conference in partnership with the University of Cambridge and under the leadership of Darden Professor Jeremy Hutchison-Krupat.

Through our teaching and research, we are confirming our hypothesis that the best innovations arise from a rich, diverse community of entrepreneurial lead-ers. At the Batten Institute, we operate under this belief. Our diverse team of entrepreneurial leaders are creating value in numerous ways for a wide variety of stakeholders. We are not standing still. We are continually innovating in our efforts to enrich Darden and the University of Virginia community. With this in mind, the next year promises to be one of exciting changes and opportuni-ties. I will be transitioning from my role as executive director to the role of academic director. Director of research, Sean Carr, will be assuming the title of executive director and Philippe Sommer, director of the Center for Entrepre-neurial Leadership and the i.Lab, will be taking on additional responsibilities as an associate with U.Va. Innovation. These leadership changes will allow us to better leverage our talents and accelerate even further our growth and impact.

These are exciting times at the Batten Institute. We welcome and encourage you to become involved and to contribute to our burgeoning ecosystem.

“THROUGH OUR TEACH-ING AND RESEARCH, WE ARE CONFIRMING OUR HYPOTHESIS THAT THE BEST INNOVATIONS ARISE FROM A RICH, DIVERSE COMMUNITY OF ENTREPRENEURIAL LEADERS.

Michael J. LenoxAssociate Dean and Executive Director, Batten Institute; Samuel L. Slover Professor of Business

Administration; Darden School of Business3 3

MISSION

TRANSFORMATIVE RESEARCHCreate thought leadership through a diverse portfolio of research projects of consequence to business and society.

CONSEQUENTIAL VOICEEngage leaders through a broad array of channels to directly influence the world of practice.

INSPIRED EDUCATIONCultivate the next generation of entrepreneurial leaders through rigorous academic and experiential programs.

ENERGETIC COMMUNITYFoster a diverse and collaborative community of scholars,

students, alumni and practitioners.

The Batten Institute seeks to improve the world by

creating knowledge about the transformative power

of entrepreneurship and innovation and by cultivating

principled, entrepreneurial leaders.

To fulfill its mission, the Institute has adopted a four-

pronged strategy.

FRANK BATTEN SR.1927–2009


BATTEN INSTITUTE

HISTORY

In 1996, University of Virginia alumnus Frank Batten Sr. and his family gave the Darden School a generous gift to be used for the establishment of a com-munity of scholars and practitioners who would pursue leading edge research and develop educational programs in entrepreneurship and innovation. In 2000, after a subsequent gift from Frank Batten Sr., the former CEO and chair of Landmark Communications and founder of the Weather Channel, the initial community formally became the Batten Institute.

Today, the Batten Institute encompasses a research center focused on academic scholarship and Darden’s Center for Entrepreneurial Leadership, focused on student activities. The extensive programs and initiatives sup-ported by these units bring together scholars, students, alumni and business leaders, fostering a diverse and energetic collaborative community in support of the Institute’s mission to create knowledge and improve society.

OVER $370,000 in grants are awarded at U.Va.-wide

competitions annually

OVER $1 MILLION awarded annually in scholarships

Since 2000, more than 150 GRANT-FUNDED PROJECTS

undertaken by more than 75 scholars

BOOT CAMPS, WORKSHOPS AND FAIRS offered in

venture capital, entrepreneurship and design thinking

MORE THAN 70% OF DARDEN STUDENTS TAKE ENTREPRENEURSHIP COURSES

23 BATTEN VENTURE INTERNSHIPS FUNDED ANNUALLY

42% OF INCUBATOR COMPANIES REMAIN ACTIVE AFTER FIVE YEARS

5

2012–13 ACADEMIC YEAR HIGHLIGHTS

E-CONFERENCE: PATHWAYS TO ENTREPRENEURSHIPApproximately 350 Darden alumni and students, as well as students from other U.Va. schools and the local community, gathered for a full day of panels and workshops by Darden faculty, entrepreneurs and venture capitalists. The conference began with Darden’s annual student concept competition.

OCT 2012

NOV 2012

SEP 2012

INNOVATORS’ ROUNDTABLE In October, approximately a dozen innovation officers representing top U.S. corporations gathered with Darden faculty members at the University of Virginia for a daylong Socratic dialogue on the use of technology to further corporate innovation. In May, the group reconvened at Montalto, maintained by the Thomas Jefferson Foundation, to discuss managing information portfolios.

JEFFERSON INNOVATION SUMMIT FOR THE COMMONWEALTHIn recognition of Virginia’s Year of the Entrepreneur in 2012, the Batten Institute and the Office of the Governor of Virginia gathered a diverse and influential group of 60 policymakers, entrepreneurs, executives and thought leaders at Darden to discuss how best to create and sustain a society of entrepreneurs and innovators in the commonwealth.

UVA ENTREPRENEURSHIP CUPThe fourth annual Entrepreneurial Concept Competition, the U.Va. Cup boasts entries from multiple schools and awards more than $35,000 in nondilutive funds.


BATTEN INSTITUTE

DARDEN AND JUDGE ENTREPRENEURSHIP AND INNOVATION RESEARCH CONFERENCEMore than 60 researchers from around the world gathered for the fourth annual Darden Entrepreneurship and Innovation Con-ference. Hosted by the Batten Institute and this year co-spon-sored by The University of Cambridge’s Judge Business School, the conference brought together a broad range of scholars for an engaging series of paper presentations and discussions.

W.L. LYONS BROWN III INNOVATION LAB AT U.VA. EXPANSION OPENINGThe i.Lab is a University-wide initiative that creates a nexus for entrepreneurship and innovation education. Its mission is to foster deep cross-collaboration with no boundaries, across disciplines, schools or ways of thinking. The i.Lab provides coaching, courses and incubation to students, faculty and community members innovating the future.

MAY 2013

MAY 2013

APR 2013

7

INSPIRED EDUCATION8 | ANNUAL REPORT 2012–13

70% OF DARDEN STUDENTS ENROLL IN ENTREPRENEURSHIP AND INNOVATION COURSES

CURRICULAR INITIATIVES

EXPERIENTIAL PROGRAMS SCHOLARSHIPS

PROGRAMS AND INITIATIVES

DARDEN ENTREPRENEURSHIP PROGRAM

The Batten Institute provides a broad array of academic and experiential programs for students supporting dozens of exciting course; a business incubator; full-time intern-ships; business plan, effectual de-risking and concept competitions; design-thinking workshops; boot camps, mentorship opportunities; and scholarships.

AT A GLANCE

35 ENTREPRENEURSHIP COURSES

#5 IN THE U.S. FOR ENTREPRENEURSHIPTHE PRINCETON REVIEW FOR ENTREPRENEUR MAGAZINE, 2014

139 UNIQUE VENTURES AND 354 ENTREPRENEURS/ PARTICIPANTS HOSTED IN THE BUSINESS INCUBATOR SINCE 2000

10 FULL SCHOLARSHIPS

AWARDED ANNUALLY, VALUED AT $1.1M FOR THE 2012–13 ACADEMIC YEAR

• VENTURE FAIR FOR DARDEN ALUMNI AT REUNION

• LAW CLINIC WITH U.Va. LAW SCHOOL

• i.LAB INCUBATOR

• PARTNERSHIP WITH SILICON VALLEY INCUBATOR

• INNOVATION LABORATORY

• DESIGN-THINKING WORKSHOPS

• MENTORSHIP NETWORK

$370,000AWARDED IN CONCEPT AND BUSINESS PLAN COMPETITIONS IN THE ACADEMIC YEAR (FUNDING PROVIDED BY THE BATTEN INSTITUTE, THIRD SECURITY, VONAGE, THE GALANT CENTER CHALLENGE AND PARTICIPATING SCHOOLS U.Va.-WIDE)

#1 RANKED FACULTY BY THE PRINCETON REVIEW, 2011

BATTEN INSTITUTE INSPIRED EDUCATION | 9

CURRICULAR INITIATIVESThe Institute’s research arm supports scholarship that advances the fields of entrepreneurship and innovation, and this research often manifests itself in novel, forward-thinking new courses, such as Corporate Innovation & the Design Experience, New Product Development and Starting New Ventures.

Research supported by the Institute also takes the shape of groundbreaking initiatives, such as the i.Lab at U.Va., a nontraditional, flat-classroom teaching environment that includes a design-build studio where students can transform their ideas into physical prototypes. A number of Darden’s new entrepreneur-ship and innovation courses are steeped in design and multidisciplinary think-ing and are taught in the i.Lab at U.Va.

Students pursuing an MBA at Darden may elect the entrepreneurship concen-tration. The concentration lays the foundation for a deeper understanding of corporate and entrepreneurial success, covering topics such as how to create value not only through new products or services, but with novel technologies, business concepts, organizing structures, transaction/financing mechanisms, distribution channels and market segmentation.

EXPERIENTIAL PROGRAMSDarden’s program in entrepreneurship builds on all of Darden’s academic offerings with a range of experiential programs and initiatives, providing students the critical skills they need to create successful businesses after graduation.

The experiential programs include a business incubator, numerous competi-tions (including support for national and global competitions), funded intern-ships, workshops, boot camps and mentorship opportunities.

These programs enjoy a broad level of student participation and interest. Beginning in May 2013, the U.Va. i.Lab Incubator is hosting 24 companies for the 2013–14 academic year, including both those founded by current students and those founded by members of the local community. To date, 42 percent of incubator-launched or supported companies remain active enter-prises after five years.

The Batten Institute sponsors three major competitions each academic year: the Darden Concept Competition (which leads into the U.Va. Entrepreneurship Cup), the Effectual De-Risking Competition, and the Darden/U.Va. Business Plan Competition. Overall, a total of $85,000 was awarded at these competi-tions during the 2012–13 academic year.

INSTITUTE-SUPPORTED COURSES SOLVING BUSINESS CHALLENGES IN REAL-WORLD SETTINGS

BIOINNOVATION

A multidisciplinary course drawing students from Darden, U.Va.’s Department of Biomedical Engineering, and the schools of nursing, architecture, engineering and medicine. Students col-laborate across disciplines to identify and frame clini-cally based challenges at the U.Va. Health Center.

CORPORATE INNOVATION AND THE DESIGN EXPERIENCE

The course examines how design thinking and innova-tion principles can be used to enhance the value and accelerate the development of business opportunities that deliver organic growth. Students learn to apply de-sign methodologies and in-novation tools by working in teams on a live, corporate project, in close proximity to a client company who has real problems to solve.


The Institute also actively develops or supports alumni and student entre-preneurship groups and networks, such as Darden’s Entrepreneurship and Venture Capital Club, Darden’s Business Innovation and Design Club, the Innovators, Designers and Entrepreneurs in Action at U.Va. (iDEA) networking group on LinkedIn, and U.Va.’s Entrepreneurship and Innovations Committee of the Student Council, a group that connects entrepreneurs from various schools across U.Va.

BATTEN SCHOLARSHIPSTen full scholarships are awarded annually to incoming Darden MBA students interested in starting their own ventures or becoming innovative leaders at established companies. One of the 2012–13 recipients is profiled below:

Lucas Rogers (Class of 2013) spent the summer of 2012 in the Darden Business Incubator further developing Mobile Motions, his venture that will offer a smartphone app which allows the user to perform various functions through motion control by tapping into technology native to the phones. Rogers’ Batten

Scholarship and acceptance into the Incubator program provided the fund-ing, time and space needed to create a prototype. In coming to Darden after working as an engineer for General Motors, Rogers “always envisioned myself as an entrepreneur. … I keep a journal of ideas and a list of problems with solutions. This was an opportunity to work on one of those.”

DEVELOPING NEW PRODUCTS AND SERVICES

Students from several schools come together to use the basic tools of new product development in the context of a hands-on, team-based, product or service development project. Using the resources of the work-shop in the i.Lab at U.Va. and those at the School of Engineering and Applied Science, students develop their ideas into working prototypes. Along the way they are led through concept generation and selection, iterative design, intellectual property management and product economics. This highly popular course is regularly over-subscribed despite expansion to three sections.

BATTEN INSTITUTE INSPIRED EDUCATION | 11

TRANSFORMATIVE RESEARCH12 | ANNUAL REPORT 2012–13

BATTEN INSTITUTE

ENTREPRENEURSHIP EDUCATIONFaculty Leader: Saras Sarasvathy Recent decades have brought an explosion in activity in the field of entrepreneurship education, with the number of U.S. colleges and universities offering courses related to entrepreneurship growing from just a few in the 1970s to more than 1,600 today. Yet no consensus has been reached on how entrepreneurship should be taught or even whether the existing programs are having the desired impact. This initiative seeks to illuminate effective strategies for teaching entrepreneurship and to better understand the outcomes of these programs.

INNOVATION AND GROWTHFaculty Leader: Edward Hess Shrinking markets, unrelenting competition and swiftly evolving technologies challenge the vitality of every business enterprise, large and small. This initiative examines how innovation can be the engine for sustained, internally generated business growth.

ENTREPRENEURSHIP IN EMERGING DOMESTIC MARKETSFaculty Leader: Greg Fairchild

New businesses are crucial for sustained economic development. This initiative sup-ports research projects focused on entrepre-neurs and the ingredients of entrepreneur-ship: seed-stage capital, mentors, sound social institutions and a culture that wel-comes new ideas and educates and supports those who pursue them.

ENTREPRENEURIAL FINANCEFaculty Leader: Susan Chaplinsky

Financial capital plays an important role in launching and growing most entrepreneurial ventures. However, robust data on financing events and investor networks for businesses is scarce, as most companies are private and face limited reporting requirements. The Batten Institute’s Entrepreneurial Finance Initiative takes a rigorous approach to devel-oping data and analyses that explore how entrepreneurs in public and private business build investor networks and finance their operations.

ENTREPRENEURIAL INNOVATION AND SUSTAINABILITYFaculty Leader: Andrea Larson Global concerns about sustainability have resulted in a wave of new products, pro-cesses, technologies, markets and ways of organizing business — inside firms, through supply chains and across vast networks of stakeholders. This initiative focuses on the mechanisms by which entrepreneurship and innovation can simultaneously drive a firm’s market success and discover solutions to critical societal challenges.

The Institute supports a diverse portfolio of research initiatives in entrepreneurship and innovation. Current initiatives address five topics of critical importance to society:

RESEARCH INITIATIVES

13

BATTEN FELLOWSThe Batten Fellows Program brings prominent and high-potential thought leaders to the Darden School of Business to further their research and to enrich our community.

2012-13 BATTEN FELLOWS

William Gartner is the Spiro Professor of Entrepre-neurial Leadership at Clemson University, and he is one of the co-founders of the Entrepreneurship Research Consortium, which initiated, developed and managed the Panel Study of Entrepreneurial Dynamics. He has used his fellowship to investigate

“entrepreneurial narrative,” which is a concept that he developed to describe the trend of relying on entrepreneurs sharing “war stories” in entrepreneur-ship classes as a method for conveying knowledge about the entrepreneurial process and mindset. Gartner has generated a novel literature review of this area of investigation. To advance the research, he has collected primary data about how these stories tend to skew material aspects of the entrepreneur-ial experience. These outcomes have the potential to be published in peer reviewed journals, book chapters, and in practitioner-focused outlets to help entrepreneurship teachers maximize their effectiveness.

Dali Ma is an assistant professor at the Drexel University LeBow College of Business and has ex-pertise in the sociology of entrepreneurship. During his fellowship, he has sought to understand how social structural processes and positive psychologi-cal traits influence the likelihood of starting a new

business. Ma has focused on positive psychological traits because people with them tend to be more susceptible to entrepreneurship. During his investigations as a Fellow, he has constructed a positive psychology index based on traits like optimism, self-efficacy and future orientation, and has isolated how social structural turbulence caused by significant life events and social capital impacts positive psychological traits important to the origin of entrepreneurship.

JOEL BROCKNERThe Implications of Crisis

Management for Corporate

Innovation, Creativity and

Change

CLAIR BROWN

Innovation Dynamics in the

Electronics Sector

JOHN SEELY BROWN Learning in the Innovation

Process

GERD GIGERENZER

Consumer Responses to

Product Innovation

ROGER GORDON

Corporate Taxation

LUTZ HILDEBRANDT

Driving Innovation Through

Marketing and R&D Synergies

BATTEN FELLOWS2000–13 selected list


Susan Cohen recently earned her Ph.D. at the University of North Carolina Kenan-Flagler Business School in the area of strategy and entrepreneurship. During her fellowship, Cohen investigated business accelerators, which are intensive entrepreneurship education programs that facilitate venture gesta-

tion. Specifically, she looked at accelerators’ role in reducing entrepreneurs’ startup risks through compressing the learning necessary for venture suc-cess into ever smaller time periods while not compromising the quality of learning. There are several findings. First, learning is accelerated by informa-tion overload created by time-compressed interactions with external advisers that delay implementation rather than spur it. Second, learning is accelerated by expert transfer that builds absorptive capacity in nascent ventures that lack it. Finally, learning is accelerated by peer coopetition — related ventures that are concurrently rivals and helpers. More broadly, this study contributes to organizational theory by bringing to light the central but heretofore hidden role of learning-coordination costs. This study also contributes to strategy by challenging the widely held assumption of time-compression diseconomies and to entrepreneurship by pioneering academic research on the purpose and effectiveness of accelerators.

RESIDENT FELLOW

The Resident Fellows program is new this year and is offered to Darden fac-ulty members. In addition to research funds, the fellowship affords professors the opportunity to reduce their teaching responsibilities in order to focus on research opportunities.

Sam Bodily is the John Tyler Professor of Business Administration and the first Darden faculty member to be accepted into the new Resident Fellowship program. His research investigates the balance between the risks that entrepreneurs must take and the risks that investors are willing to tolerate. In

order to build a deeper understanding, Bodily has identified incentive-compati-ble mechanisms for entrepreneurs to reduce startup risks; developed models of a promising subset of mechanisms and demonstrated their effects on the entrepreneur, investors and interested parties; and carried out a risk analysis of these mechanisms in order to identify those that individually or in combina-tion might achieve the greatest reduction of risk and the greatest incentive to innovate at the lowest cost.

A complete list of fellows and descriptions of their research are available at www.batteninstitute.org.

MICHAEL JENSEN The Agency Costs of Overvalued Equity

HENRY MINTZBERGDesigning Strategy, Designing

Global Management Education

HOWARD STEVENSON

Insights on Global Entrepreneurship:

Education, Policy and Practice

DALI MA

Positive Psychological Traits in Social

Structure: A Life-Course Analysis of

the Origin of Entrepreneurship

CHARLES “CHIC” THOMPSON Focus: Creative Leadership

PAUL JUNGER WITT Innovation and the Business of Film

BATTEN INSTITUTE TRANSFORMATIVE RESEARCH | 15

RESEARCH GRANTS

Each spring, the Batten Institute solicits grant proposals from faculty mem-bers of the University of Virginia who are conducting rigorous and relevant research about entrepreneurship and innovation that results in high-impact intellectual outputs consistent with the missions of the Darden School and the University.

2012-13 GRANT RECIPIENTSRaul Chao and Jeremy Hutchison-Krupat: “The Collaborative Search Process”

Ming-Jer Chen: “The Ambicultural Orientation and Entrepreneurship in Asia”

Drew Hess and Tom Bateman (McIntire School of Commerce): “Breadth and Depth of Scientific Achievement”

Edward Hess: “The Conundrum of Innovation and Execution Excellence”

David LeBlang (College of Arts & Sciences): “Migrant Entrepreneurs, Remit-tances and Venture Capital in Emerging Markets”

Michael Lenox: “Policy Drivers of the Direction of Innovative Activity: An Ex-amination of the Role of Public Policy in Driving Green Innovation” (renewal)

Jeanne Liedtka: Book projects — Solving Problems with Design Thinking: 10

Stories of What Works and Designing for Growth: A Field Guide

Sonal Pandya (College of Arts & Sciences): “The Political Economy of Interna-tional Venture Capital and Private Equity”

Christopher Sprigman (School of Law): “Measuring Innovation in Intellectual Property: Experimental Studies”


BOOKSThe Knockoff Economy: How Imitation Sparks Innovation Christopher Sprigman and Kai Raustiala New York: Oxford University Press, 2012

The Strategist’s Toolkit Jared Harris and Michael Lenox Charlottesville: Darden Business Publishing, 2013

ACADEMIC ARTICLESLiedtka, J. and Parmar, R. 2012. “Moving Design from Metaphor to Management Practice,” Journal of Organi-

zational Design.

Liedtka, J. and Ogilvie, T. 2012. “Helping Managers to Discover Their Appetite for Design Thinking,” Design

Management Review.

York, J. and Lenox, M. 2012. “It’s Not Easy Building Green: The Intersection of Private and Public Institu-tions in the Adoption of Voluntary Certification Stan-dards.” Working Paper.

Hutchison-Krupat, J. and R. Chao. (2013). “Tolerance for Failure and Incentives for Collaborative Innovation,” forthcoming in Production and Operations Management.

Venkataraman, S., Sarasvathy, S.D., Dew, N. and For-ster, W. 2013. “Of Narratives and Artifacts.” Academy

of Management Review, 38(1): 163-166.

Sarasvathy, S.D. 2013. “MAZES Without Minotaurs: Herbert Simon and the Sciences of the Artificial.” Euro-

pean Management Journal, 31: 82– 87.

Venkataraman, S., Sarasvathy, S.D., Dew, N. and For-ster, W. 2012. “Whither the Promise? Moving Forward With Entrepreneurship as a Science of the Artificial.” Academy of Management Review, 37(1): 21-33.

Read, S. and Sarasvathy, S.D. 2012. “Co-Creating a Course Ahead From the Intersection of Service Domi-nant Logic and Effectuation.” Marketing Theory, 12(2): 225-229.

Sarasvathy, S.D. 2012. Danish Translation of “What Makes Entrepreneurs Entrepreneurial.” Kognition and

Pedagogik.

BATTEN BRIEFINGSBatten Briefings is a series of research reports that ad-dress important and timely topics in entrepreneurship and innovation. The reports are offered free of charge online: www.darden.virginia.edu/batten/briefings

Innovators’ Roundtable Series: Symphonic Improvisa-tion — Creating a Culture of Innovation Competency

Innovators’ Roundtable Series: The Double-Edged Sword of Collaboration Technologies

Special Report: Prison Break — Can Entrepreneurship Solve the Recidivism Problem?

JOURNAL OF BUSINESS VENTURINGThe Institute is a long-standing supporter of the Journal

of Business Venturing (JBV), the premier scholarly jour-nal devoted to entrepreneurship and innovation. JBV is ranked by the Social Science Citation Index as one of the most influential management journals. From 1995 to 2009, Darden Professor S. Venkataraman served as editor-in-chief. Darden faculty Michael Lenox and Saras Sarasvathy currently serve as field editors.

PUBLICATIONS

BATTEN INSTITUTE TRANSFORMATIVE RESEARCH | 17

CONSEQUENTIAL VOICE


Conferences, workshops, and speaking events provide the Institute with a platform to foster critical conversations with key stakeholders throughout the year.

EVENTS

IDEAS TO ACTION TOUR

JEFFERSON INNOVATION SUMMIT FOR THE COMMONWEALTH SEPTEMBER 2012

SUNNYVALE, CALIFORNIA

Darden’s Entrepreneurs-in-Residence, Plug and Play

NEW YORK, NEW YORK

Philippe Sommer, Director of the Center for Entrepre-neurial Leadership

BOSTON, MASSACHUSETTS

Trip Davis, former President of the Darden School Foundation and Senior Associate Dean for External Relations

Summit delegates looked deeply into the many under-leveraged opportunities within Virginia and identified strategies to help build more dynamic and robust entre-preneurial ecosystems. Drawing from these exchanges, delegates prepared a Policy Playbook to outline the best way forward for Virginia, potentially setting a benchmark for other states across the nation.

www.jeffersoninformationforum.org

Since 2009, Batten-affiliated faculty members have traveled to major cities to discuss their research with alumni, prospective students and community members.

HOUSTON, TEXAS

Professor Greg Fairchild Bert Smith, CEO, Prison Entrepreneurship Program

BATTEN INSTITUTE CONSEQUENTIAL VOICE | 19

Several hundred people from across the University and the Charlottesville community convened at the i.Lab, located in Darden’s Sponsors Hall, for an afternoon of speakers and activities designed to showcase the remodeled collaborative space, home to an expanded business incubator.

The opening event included presentations from current incubator businesses and innovation and design exercises led in the i.Lab classroom by Darden professors Jeanne Liedtka and Bidhan (“Bobby”) Parmar.

The last portion of the event included a crowd-sourced community competi-tion, “U.Pitch.C’ville Decides,” organized by the Batten Institute and the Tom Tom Founders Festival, which celebrates innovation and the arts in Charlot-tesville. The winner was Kenny Schulman, whose business, Eat. Drink. Play., connects visitors to Charlottesville with locals who can share the best the region has to offer. Schulman won $5,000 and an opportunity to participate in the i.Lab’s 2013-14 incubator class.

OPENING OF THE EXPANDED W.L. LYONS BROWN III INNOVATION LAB AT UVACelebration and Community Pitch Competition

THIS IS MORE THAN JUST AN INGENIOUSLY DESIGNED PHYSICAL SPACE … IT REFLECTS HOW WE VIEW OUR ROLE AS PART OF THE UNIVERSITY OF VIRGINIA AND THE WORLD FAR BEYOND.”

– Robert F. Bruner, dean of the Darden School of Business

i.LAB REOPENING: 11 APRIL 2013

W.L. Lyons Brown III (Col ’82, MBA ’87) address-

es a capacity crowd at the expanded i.Lab opening

celebration. Brown donated generously to the

creation of the new state-of-the-art incubator, along

with 50 other donors and friends.


THE i.LAB WILL ENABLE STUDENTS ACROSS THE UNIVERSITY TO LEARN ABOUT, CONCEIVE, LAUNCH, GROW AND ENGAGE WITH ENTREPRENEURIAL VENTURES THROUGH A DIVERSE ARRAY OF EDUCATIONAL AND EXPERIENTIAL PROGRAMS.”

– Philippe Sommer, i.Lab director

“JEFFERSON WAS A POLYMATH, SO I THINK HE WOULD APPRECIATE THE FACT THAT THE i.LAB

WILL BRING TOGETHER FACULTY, STUDENTS AND LOCAL ENTREPRENEURS FROM SUCH A

VAST RANGE OF DISCIPLINES AND INTERESTS TO COLLABORATE ON BUSINESS VENTURES.

– Teresa Sullivan, U.Va. president

BATTEN INSTITUTE CONSEQUENTIAL VOICE | 21

The Institute’s website, www.batteninstitute.org, provides an important connection to members of the Batten community and beyond. Site features include news, informa-tion about the Institute’s major initiatives, brief articles on supported projects, profiles of Batten-affiliated researchers and professionals, links to academic articles and teaching cases, and events listings.

COMMUNITY ENGAGEMENT

The Batten Institute supports the formation of online forums, communities centered on the topics of entrepreneurship and innovation.

The Society for Effectual Action, spearheaded by Darden Professor Saras Sarasvathy, is dedicated to the groundbreaking form of entrepreneurial think-ing known as effectuation. Effectuation fundamentally reframes how entrepre-neurship is researched and taught around the world, and how its principles are taught and applied in several Darden entrepreneurship courses and programs.

Design@Darden provides resources for academics and others interested in teaching design thinking, and Darden's Center for Entrepreneurial Leadership is applying a design-based methodology to help Darden’s students through the product conception and innovation stages of developing a new business.

i.Lab at U.Va. creates a nexus for entrepreneurship and innovation education. Its mission is to foster deep cross-collaboration with no boundaries, across disciplines, schools or ways of thinking. The i.Lab online forum facilitates information exchange among i.Lab Incubator participants and the larger entre-preneurial community. The site also features programs, courses and entrepre-neurial activity at U.Va. and beyond.

iDEA (Innovators, Designers & Entrepreneurs in Action) via LinkedIn is a burgeoning network of University of Virginia alumni, both new and experienced in the entrepreneurial sphere, and other leaders. Members share successes and opportunities, including events held around the country. In addition to the main group, there are several regional subgroups.

FACULTY LEADERS FORUMS


BATTEN INSTITUTE

During the 2012–13 academic year, the Batten Institute’s programs and faculty affiliates appeared more than 100 times in national and international media.

MEDIA COVERAGE

e+i NEWSLETTER

Creative Risk Reduction

Darden Professor Samuel Bodily uses the tools of quantitative risk analysis to develop low-cost incentives for entrepre-neurs and fresh approaches to venture financing.

“De-Risk” Your Idea Before You Quit Your Job

Darden students will learn to “de-risk” their business ideas in a new competition that challenges them to prove that their product ideas can overcome the most common risks.

Teaching Design to MBAs

Darden professor Jeanne Liedtka gives students the tools to find opportunities amid uncertainty. In the process, she takes them, and herself, well beyond what’s comfortable.

Sign up for the e+i Newsletter by emailing [email protected]

RECENT TOP POSTSRecent Darden’s Forbes.com Blog

BIG DATA, SMALL BETSBY ROBERT CARRAWAY

“Big data and small experiments —

what could appear more seemingly

incongruous? Yet the truth is: These

two trends, one from the world of

analytics, the other from the world of

innovation and change, can be power-

fully combined to drive sustainable

success in a highly uncertain world.”

THE IMMINENT SHAKEOUT? DISRUPTIVE INNOVATION AND HIGHER EDUCATIONBY MIKE LENOX

“Much has been made of ‘flipping the

classroom’ with MOOCs, but at a So-

cratic case-based school like Darden,

we have been flipping the classroom

for over 50 years.“

HOW TO INNOVATE — WITHOUT A MIRACLEBY JEANNE LIEDTKA

“We talk about innovation, we fervent-

ly wish for it, and we wait for miracles

— for Moses to part the waters …

Maybe instead of waiting for someone

to part the waters for us, the other

99 percent of us need to get real and

start building some bridges.”

23

ENERGETIC COMMUNITY

24 | ANNUAL REPORT 2012–1324 | ANNUAL REPORT 2012–13

UNIVERSITY PARTNERS

The Batten Institute partners with many units and organizations at the University of Virginia. These partnerships are critical to delivering programs and events to enhance the scope of the Institute’s efforts.

In 2012–13 the Institute partnered with: the Office of the Governor of Virginia to host the Jefferson Innovation Sum-mit for the Commonwealth; all 11 schools of the University and the University’s Office of the Provost and Office of the Vice President for Research to launch the newly expanded W.L. Lyons Brown III Innovation Laboratory; and with several schools to host the U.Va. Entrepreneurship Cup competition.

Institute-affiliated faculty members play a key role in shaping the continued evolution of the fields of entrepreneur-ship and innovation through both their teaching and research.

Finally, the Institute also works closely with student organizations. In 2012–13, the Center for Entrepreneurial Leadership collaborated with Darden’s Entrepreneurship and Venture Capital Club and the Business Innovation and Design Club, and the Institute is a strong supporter of the university-wide E*Society formed by Darden students in 2009.

SCHOOL OF ARCHITECTURE

COLLEGE AND GRADUATE SCHOOL OF ARTS & SCIENCES

MCINTIRE SCHOOL OF COMMERCE

SCHOOL OF CONTINUING AND PROFESSIONAL STUDIES

CURRY SCHOOL OF EDUCATION

SCHOOL OF ENGINEERING AND APPLIED SCIENCE

SCHOOL OF LAW

FRANK BATTEN SCHOOL OF LEADERSHIP

& PUBLIC POLICY

SCHOOL OF MEDICINE

SCHOOL OF NURSING

BATTEN INSTITUTE ENERGETIC COMMUNITY | 25

SAMUEL E. BODILY John Tyler Professor of Business

Administration; Area Coordinator,

Quantitative Analysis

RAUL O. CHAO Assistant Professor of Business

Administration

SUSAN CHAPLINSKY Tipton R. Snavely Professor of Business

Administration

MING-JER CHEN Leslie E. Grayson Professor of Business

Administration

ROBERT L. CROSS Associate Professor of Commerce and

Management, McIntire School of Commerce

GREGORY B. FAIRCHILD E. Thayer Bigelow Associate Professor of

Business Administration

MARY MARGARET FRANK Associate Professor of Business

Administration

YAEL GRUSHKA-COCKAYNE Assistant Professor of Business

Administration

MICHAEL E. GORMAN Professor, Engineering & Society, School of

Engineering and Applied Science

ANDREW M. HESS Assistant Professor of Commerce, McIntire

School of Commerce

EDWARD D. HESS Professor of Business Administration and

Batten Executive-in-Residence

ANDREA LARSON Associate Professor of Business

Administration

DAVID LEBLANG J. Wilson Newman Professor of Governance

Chair, Department of Politics, College of Arts

and Sciences

MICHAEL J. LENOX Samuel L. Slover Research Professor of

Business and Associate Dean; Academic

Director of the Batten Institute

JEANNE M. LIEDTKA United Technologies Corporation Professor

of Business Administration

ELENA LOUTSKINA Assistant Professor of Business

Administration

LUANN J. LYNCH Professor of Business Administration

PEDRO MATOS Associate Professor of Business

Administration

ANTON S. OVCHINNIKOV Assistant Professor of Business

Administration

SONAL S. PANDYA Assistant Professor, Department of Politics,

College of Arts and Sciences

BIDHAN L. PARMAR Assistant Professor of Business

Administration

GAL RAZ Associate Professor of Business

Administration

SARAS D. SARASVATHY Isidore Horween Research Associate

Professor of Business Administration;

Jamuna Raghavan Chair Professor in

Entrepreneurship, Indian Institute of

Management, Bangalore

JAMES D. SAVAGE Professor, Department of Politics, College of

Arts and Sciences

KATHRYN M. SHARPE Assistant Professor of Business

Administration

PAUL J. SIMKO Associate Professor of Business

Administration and Associate Dean, MBA for

Executives

THOMAS C. SKALAK Vice President for Research and Professor

of Biomedical Engineering

CHRISTOPHER SPRIGMAN Professor of Law, School of Law

THOMAS J. STEENBURGH John L. Colley Associate Professor

SANKARAN VENKATARAMAN MasterCard Professor of Business

Administration; Senior Associate Dean for

Faculty and Research

RAJKUMAR VENKATESAN Bank of America Research Associate

Professor of Business Administration

BATTEN AFFILIATES


BATTEN INSTITUTE

LEADERSHIP TEAM

MICHAEL LENOX Executive Director (through 1 October 2013)

Academic Director and Associate Dean

(as of 1 October 2013)

Samuel L. Slover Research Professor of Business

Administration; B.S., M.S., University of Virginia;

Ph.D., Massachusetts Institute of Technology

SEAN CARRExecutive Director and Assistant Professor

(as of 1 October 2013)

B.A., Northwestern University; M.S., Columbia

University; MBA, Ph.D., University of Virginia Darden

School of Business

DEBBIE WHITEAssociate Director of Operations

B.A., University of Virginia; M.A., George

Washington University

JOYCE SMARAGDIS Associate Director of Outreach

B.A., University of Virginia; M.A., Virginia

Polytechnic Institute and State University

MALGORZATA “GOSIA” GLINSKA Senior Research Associate

B.A., University of Gdansk, Poland; M.A.,

Boston University; MFA, University of Virginia

DERRY WADEAssistant Director of Communications

A.B., Smith College; M.A., University of Virginia

ANDREW KINGSenior Research Associate

B.A., The University of the South; M.S., Oxford

Brookes University

GAYLE NOBLEOffice Manager

Pan American Business School

PHILIPPE SOMMER Director, Center for Entrepreneurial Leadership

Director, i.Lab at U.Va.

Associate, U.Va. Innovation

B.A., Amherst College; MBA, Columbia University

VERONICA MCMILLIONSpecial Projects Manager

B.A., University of Virginia

SHIVON SCOTTi.Lab Program Manager

B.S., Cornell University; M.S., Rutgers University

KATHRYNE CARRDirector, i.Lab Incubator

B.A., Alleghany College

MJ DOUGHERTY TOMSAssociate Director, Center for Entrepreneurial

Leadership

B.A., Williams College; MBA, Yale University

ADMINISTRATION OUTREACH AND COMMUNICATIONS

RESEARCH DIVISION

CENTER FOR ENTREPRENEURIAL LEADERSHIP

27

FINANCIAL STATEMENTSFY 12 (Actual) FY 13 (Estimated) FY 14 (Budget)

Administration $397,391 $431,905 $436,583

Outreach $334,796 $198,323 $134,273

Subtotal $732,187 $630,228 $570,856

CEL Staff $354,030 $486,256 $618,600

Outreach $39,355 $47,600 $58,000

Incubator $164,399 $472,000 $138,322

BVIP Interns $73,970 $145,000 $184,750

Competitions $45,231 $46,000 $71,750

Course Support $35,477 $34,400 $100,000

Batten Scholarships $653,900 $971,60 $1,097,400

Subtotal $1,366,362 $2,202,856 $2,268,822

Researchers $435,447 $472,005 $477,686

Faculty Research Grants $110,512 $250,000 $200,000

Batten Fellows $1,945 $20,000 $30,000

PhD Student Scholarships $72,943 $79,251 $49,374

Faculty Salary Support $1,031,027 $1,250,000 $1,250,000

Conferences $601,686 $124,865 $154,600

Subtotal $2,253,560 $2,196,121 $2,161,660

TOTAL OPERATING BUDGET $4,352,109 $5,029,205 $5,001,338

cent

er f

or e

ntre

pren

euri

al le

ader

ship

rese

arch

div

isio

nad

min

CASH FLOW

EXPENSES

Spendable Balance $2,618,455 $2,924,776 $3,576,776

Endowment Interest $4,517,880 $3,426,678 $4,326,024

Scholarships --- $971,600 $1,097,400

Craddock Fund $16,000 $45,000 $20,000

20 Account (E-Conference) $30,505 $30,505 $33,000

E-Conference Registration Fees $3,044 $2,350 $3,050

Scholarships $91,000 $111,000 $148,000

W. L. Lyons Brown III i.Lab Renovation

__ $1,300,000 __

Adjustments __ $40,000 __

Total Income $4,658,429 $5,927,133 $4,878,226

Operating Expenses $(4,352,108) $(5,029,205) $(5,001,338)

W. L. Lyons Brown III i.Lab Renovation

__ $(1,670,763) __

Total Expenses $(4,352,108) $(6,699,968) $(5,001,338)

ENDING BALANCE $2,924,776 $2,151,941 $2,028,829

expe

nses

inco

me


BUDGET

Administration

Administration $436,583

Outreach $192,273

Research Division

Researchers $477,686

Faculty Grants $200,000

Batten Fellows $30,000

PhD Scholarships $49,374

Conferences $154,600

Faculty Salaries $1,250,000

Center for Entrepreneurial Leadership

CEL Staff $618,600

Incubator $138,322

BVIP Interns $184,750

Competitions $71,750

Course Support $100,000

Scholarships $1,097,400

BATTEN INSTITUTE

BUDGET$5,001,338

FY 2013–14

TOTAL $5,001,338

25%

9%

4%

12%

3%

4%

1%

2%

22%

3%

1%

1%

4%

9%

Faculty Salaries

Administration

Outreach

CEL Staff

Incubator

BVIP Interns

Competitions

Course Support

Scholarships

Conferences

Ph.D. Scholarships

Batten Fellows

Faculty Grants

Researchers

Percentages are rounded to the nearest whole number.

Income to support the Batten Institute is provided by an endowment created by Frank Batten Sr. and his fam-

ily. As of June 2013, the market value of the endowment had reached approximately $113 million. The annual

budget from this endowment is $5 million for fiscal year 13–14.

BATTEN INSTITUTE FINANCIAL STATEMENTS | 29

CONTACT [email protected]

WEBWWW.BATTENINSTITUTE.ORG

TWITTER@BATTENINSTITUTE @DARDENESHIP @DESIGNATDARDEN

Documents

Batten Institute Annual Report 2012-13