Entrepreneurship and Innovation Education - Marcos Lima - E-Book

Entrepreneurship and Innovation Education E-Book

Marcos Lima

0,0
173,99 €

Beschreibung

This book is a compilation of tools, techniques and frameworksfor use in the field of entrepreneurship and innovation (E&I)education. Developed and honed over the past two decades,these teaching approaches are combined with well-versedpractical insight.As professors know all too well, the human brain cannot articulatemore than three or four dimensions of a problem without the aidof what could be referred to as checklists for thinking :frameworks (visual or otherwise) that help students think in termsof multiple variables affecting a problem.Entrepreneurship and Innovation Education provides a toolboxof more than 50 frameworks for analyzing entrepreneurship andinnovation problems, and for enabling effective decision-making.It is a useful guide for professors and students alike who arelooking for an overview of available tools, methods andapproaches to actively learn how to go from the visionary idea tothe market.

Sie lesen das E-Book in den Legimi-Apps auf:

Android
iOS
von Legimi
zertifizierten E-Readern

Seitenzahl: 276

Bewertungen
0,0
0
0
0
0
0



Contents

Cover

Dedication

Title page

Copyright

Introduction

1 E&I Education: An Overview

1.1. Defining entrepreneurship and innovation

1.2. Innovation and entrepreneurship education

1.3. Can entrepreneurship be taught? Towards a framework of E&I education

1.4. Collaborative Interactivity learning principles

2 From Idea to Vision

2.1. Self-knowledge: follow thy passion

2.2. Knowledge of the business field

2.3. Relationship networks

2.4. Other factors contributing to the development of the vision

2.5. Teaching the visionary theory

3 From Vision to Business Plan

3.1. Executive summary

3.2. Context: vision development

3.3. Literature review

3.4. Market analysis

3.5. Marketing plan

3.6. Organizational strengths and weaknesses

3.7. Other sources of competitive strengths and weaknesses

3.8. Strategy and development plan: the TOWS matrix

3.9. Financial objectives

3.10. Conclusions and perspectives

3.11. Appendices and References

3.12. Teaching business planning

4 From Business Plan to Business Model

4.1. Business models and business model artifacts

4.2. Claimed benefits and criticism of the BMC

4.3. Value flow in the Business Model Canvas

4.4. Sources of business model innovation

4.5. Visualizing business model innovation

4.6. Business modeling and the principle of effectuation

4.7. Testing business model innovations

4.8. Teaching business model innovation

5 From Business Model Design to Design Thinking and Lean Startup

5.1. New product development: the traditional stage-gate approach

5.2. Customer development

5.3. Design thinking

5.4. Lean startup

5.5. Teaching Design Thinking and Lean Startup

6 Scaling Up: The Challenges of Knowledge Management

6.1. An overview of management systems

6.2. The 7S framework for organizational analysis

6.3. Towards a framework for innovative knowledge management

6.4. Applying Terra’s framework: best practices from leading companies

6.5. Knowledge management in the ecosystem: Quintuple Helix and stakeholder maps

6.6. Teaching and learning knowledge management

7 Epilogue: Insights from Twenty Years of Teaching E&I

7.1. Learning by reflecting about authentic situations

7.2. Learning by collaboration

7.3. Learning by interacting through technology

7.4. Learning by exploring the ecosystem

7.5. From idea to market: innovative business development frameworks

Appendices

Appendix 1: List of Tools and Frameworks Used in the Book

Appendix 2: Framework for Evaluating the Effectiveness of Entrepreneurship Teaching

Appendix 3: Sources of Secondary Data

Appendix 4: Franco-Russian Research Project on the Perceived Relevance of Design Thinking Education

References

Index

End User License Agreement

List of Illustrations

Chapter 1

Figure 1.1. Business management versus entrepreneurship education (adapted from ...

Figure 1.2. Differences between entrepreneurship education and training (adapted...

Figure 1.3. University–enterprise interface and the entrepreneurial ecosystem (a...

Figure 1.4. The Quadruple/Quintuple Helix models (adapted from Carayannis et al....

Figure 1.5. Key questions in entrepreneurship education (adapted from Fayolle an...

Figure 1.6. Framework for evaluating effectiveness of entrepreneurship education...

Figure 1.7. Enablers of the entrepreneurial environment at University of Corsica...

Figure 1.8. Concept of Collaborative Interactivity (adapted from Lima 2003). For...

Chapter 2

Figure 2.1. Progression from emergent to central to complementary visions (based...

Figure 2.2. Relationship between elements supporting the entrepreneur’s visionar...

Figure 2.3. Lead users develop a solution to a deeply felt need before it is com...

Chapter 3

Figure 3.1. Elements of a funnel-like literature review structure (developed by ...

Figure 3.2. Market analysis: from the marketing environment to the marketing mix...

Figure 3.3. The Political, Economic, Socio-Cultural, Technological, Environmenta...

Figure 3.4. Porter’s extended rivalry model (1980). For a color version of the f...

Figure 3.5. Segmentation–targeting–positioning process. For a color version of t...

Figure 3.6. Example of perceptual map for the segmentation table above. For a co...

Figure 3.7. The 4Ps of product marketing and the 3Ps of service marketing. For a...

Figure 3.8. McKinsey’s 7S framework. For a color version of the figure, see http...

Figure 3.9. Value Chain model (adapted from Porter 1980). For a color version of...

Figure 3.10. TOWS matrix with offensive and defensive strategies. For a color ve...

Figure 3.11. Example of a Google Docs shared sheet as a peer-review dashboard. F...

Chapter 4

Figure 4.1. The Business Model Canvas (adapted from Osterwalder and Pigneur, 201...

Figure 4.2. Value flow in the ontology diagram of the Business Model Canvas (ada...

Figure 4.3. Value delivery system (adapted from Lanning and Michaels 1988). For ...

Figure 4.4. Iterative approach between the value creation and value delivery sid...

Figure 4.5. Equivalence between 7P framework and the right side of the BMC. For ...

Figure 4.6. An example of a color-coded multiple-sided business model: Google Se...

Figure 4.7. Tidd and Bessant’s innovation wheel (adapted from Tidd and Bessant 2...

Figure 4.8. Adoption rate of disruptive innovations (adapted from Christensen 19...

Figure 4.9. Tidd’s 4Ps (2013) associated with Osterwalder and Pigneur’s (2010) i...

Figure 4.10. The effectuation process (adapted from the Society for effectual Ac...

Figure 4.11. Four key questions to ask about any innovation opportunity (adapted...

Figure 4.12. Collaborative dashboard to create multiple-role teams for innovatio...

Chapter 5

Figure 5.1. The stage-gate system (adapted from Cooper 1990). For a color versio...

Figure 5.2. The Customer Development Model (Blank 2020). For a color version of ...

Figure 5.3. Design Thinking and Lean Startup approaches to innovation (adapted f...

Figure 5.4. Traditional organizational learning and innovation (based on Lima 19...

Figure 5.5. Learning in an organization embedded with DT principles. For a color...

Figure 5.6. Design Thinking stages (adapted from the d.school framework, Stanfor...

Figure 5.7. Lean Startup cycle (Ries, 2011). For a color version of the figure, ...

Figure 5.8. Simplified design sprint stages (adapted from Knapp et al. 2016). Fo...

Figure 5.9. Example of CJM created by student Manon Ray and a group of colleague...

Chapter 6

Figure 6.1. The “DNA” of management problems. For a color version of the figure,...

Figure 6.2. Illustration of a management system. For a color version of the figu...

Figure 6.3. Revisiting McKinsey’s 7S framework. For a color version of the figur...

Figure 6.4. The seven dimensions of knowledge management (Terra, 2001). For a co...

Figure 6.5. The Balanced Scorecard (adapted from Kaplan and Norton 1996). For a ...

Figure 6.6. Revisiting the Quintuple Helix of knowledge flow in innovation ecosy...

Figure 6.7. Stakeholder priority mapping (adapted from Mendelow 1981). For a col...

Appendix 4

Figure A4.1. The relevance of DT skills

Figure A4.2. Areas of DT application

Figure A4.3. Level of DT method application in companies

Figure A4.4. Obstacles to DT application at the corporate level

Figure A4.5. Assessment of the potential effectiveness of the use of DT in compa...

List of Tables

Chapter 1

Table 1.1. Examples of studies on the roles of entrepreneurship education in dev...

Table 1.2. Examples of entrepreneurial initiatives in French universities encour...

Chapter 3

Table 3.1. Segmentation table with typical consumer segmentation criteria

Chapter 4

Table 4.1. Claimed benefits of business model artifacts

Table 4.2. Different business model templates categorized by the main source of ...

Table 4.3. Principles of causation and effectuation paradigms (adapted from Dew ...

Chapter 6

Table 6.1. Vertical and horizontal table for qualitative data analysis and synth...

Guide

Cover

Table of Contents

Dedication

Title page

Copyright

Introduction

Begin Reading

Appendices

Appendix 1

Appendix 2

Appendix 3

Appendix 4

References

Index

End User License Agreement

Pages

v

ii

iii

iv

ix

x

xi

xii

xiii

xiv

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

141

142

143

144

145

146

147

148

149

151

152

153

155

156

157

159

160

161

162

163

164

165

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

To Baptiste, Maia, Léa and Louise, may their visions and plans come true

To Sylvie, constant source of inspiration.

Smart Innovation Set

coordinated by

Dimitri Uzunidis

Volume 32

Entrepreneurship and Innovation Education

Frameworks and Tools

Marcos Lima

First published 2020 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc.

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address:

ISTE Ltd

27-37 St George’s Road

London SW19 4EU

UK

www.iste.co.uk

John Wiley & Sons, Inc.

111 River Street

Hoboken, NJ 07030

USA

www.wiley.com

© ISTE Ltd 2020

The rights of Marcos Lima to be identified as the author of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.

Library of Congress Control Number: 2020945629

British Library Cataloguing-in-Publication Data

A CIP record for this book is available from the British Library

ISBN 978-1-78630-622-7

Introduction

This book is a compilation of practical insights for entrepreneurship and innovation (E&I) education based on tools, techniques and frameworks I have developed or adopted in my 20-year career as a teacher. As most of this experience took place in France, my country of adoption, the book is biased towards a European perspective of this phenomenon. However, its applicability is by no means restricted to this continent – it could be adopted anywhere in the world.

Why write another book about entrepreneurship and innovation education? As mentioned above, this book is focused on creating a “toolbox” of frameworks for analyzing entrepreneurship and innovation problems and making decisions. Like my previous books (Lima and Fabiani 2014, 2016), this one assumes that the human brain cannot articulate more than three or four dimensions of a problem without the aid of what might be called “checklists for thinking”: frameworks (visual or otherwise) that help students think in terms of multiple variables affecting a problem. A typical example of a very valuable tool for thinking about business creation is the Business Model Canvas by Alexander Osterwalder and Yves Pigneur (2010). It suggests nine building blocks to think about how value is created, delivered and captured throughout the process. Before this framework was proposed, students of entrepreneurship and innovation tended to focus either on the value creation or on the value delivery process, or neglected to contemplate the relationship between the multiple dimensions involved. Thus, I strongly believe that one of the main roles of a business educator is to provide students with a toolbox for analyzing different problems using appropriate concepts, preferably in a visual manner. This manual presents an extensive list of frameworks and analytical models that can be used in different stages of entrepreneurship and innovation education. As Abraham Maslow is believed to have said, “If all you have in your head is a hammer, every problem looks like a nail.” Appendix 1 lists all the frameworks used in the book for easy reference.

Furthermore, the book introduces the notion of “collaborative interactivity” as a mediating principle to teaching and learning innovation and entrepreneurship. This principle is drawn from my PhD thesis (summarized in English in Lima et al. 2004). It explores how the constructivist approach of “learning by doing” can enhance knowledge acquisition through a combination of reflection, interaction and collaboration in a real-life setting. At the end of most chapters, a “teaching and learning” section illustrates how I have applied these principles in my own classes, often relying on collaborative technologies and cloud-based resources to enhance student interaction and engagement. Chapter 1 discusses these principles and how they are applied in more depth.

Another important characteristic of this book is its emphasis on a more dynamic strategic view of business model innovation based on the principles of effectuation (Sarasvathy 2001) and human-centric innovation (such as Business Model Design, Customer Development, Design Thinking and Lean Startup). Many business schools in Europe still prompt entrepreneurship students to write long business plans, often based on dangerously flawed assumptions. We build a case in this book on how a more dynamic approach, based on business model testing and product or service prototyping, is a much more effective way of learning about real innovation opportunities. This does not mean that old-school business planning should be buried and forgotten. Indeed, the initial chapters of this book discuss typical business plan structures and the analytical tools involved in moving from vision to plan. Even though the effectuation approaches discussed in later chapters have proven to be more adapted to the dynamic nature of entrepreneurship and innovation projects, static business plans could be a good starting point to gain an overview of the initial strategic elements, which may help mature the entrepreneur’s vision. The problem with these plans, we argue, is their tendency to become a static reference point for every decision beyond the initial stages of vision development. This danger must be avoided by applying dynamic effectuation approaches such as business modeling and design thinking.

I.1. A humble contribution to strengthening entrepreneurship and innovation in Europe

One of the challenges of writing a book about E&I in Europe is that there are multiple perspectives on a continent so culturally diverse. We do not have the pretension of presenting “the” definitive and comprehensive view of this phenomenon for the continent, but simply “a” perspective from my own experience of teaching European students for over a decade in France.

To illustrate how differently E&I are perceived in Europe, Dodd et al. (2013) analyzed positive and negative metaphors associated with entrepreneurs in a continent-wide survey. Whereas 46% of Greeks had a negative attitude towards entrepreneurs (blood-sucking leeches), in Ireland 82.3% saw them positively (bright and illuminating rainbows). Table I.1 presents these differences.

Table I.1.Different perceptions about entrepreneurs across Europe (adapted from Dodd et al. 2013)

Positive images

% per country

Predominant metaphor

Ireland (82.3%)

Bright and illuminating rainbows

The Netherlands (73.8%)

Lubricating oil of economy

UK (72.5%)

Poets. They must invent new ideas and turn them into something profitable

Italy (70%)

The wings of freedom

Cyprus (65.5%)

A ship with a good captain. They know where the ship begins its voyage and where it docks. They have targets

Poland (49.3%)

Hunters – they are persistent on their aspirations for a success

Greece (41%)

Conductors of the orchestra

Negative images

% per country

Predominating metaphor

Greece (46%)

Leeches, because they suck the blood of the employees

Poland (26.2%)

Stone – insensitive to the needs of others

Italy (20.7%)

Leeches

Cyprus (20.5%)

Foxes – they try to sell their products in a treacherous way

UK (13.5%)

The historical titanic, the discovery shuttle

Ireland (7.3%)

Hares, running about all over the place

The Netherlands (5.7%)

Profiteer

If the tools adopted in Europe are the same that are being used in Silicon Valley, creating a new venture in the Old World remains a much harder exercise. According to Henrekson and Sanandaji (2018), Europe overall has an “entrepreneurship deficit” that is largely acknowledged in the public debate. We have a less dense institutional framework for innovation and the venture capital sector is less developed. Europe has fewer innovative firms and lower R&D efforts among startups.

Wright et al. (2007) show that whereas in the USA we have 140 adults per 10,000 in nascent ventures with an expectation of having more than 19 employees in the next five years, this number is much lower for European countries: 70 in the UK, 49 in Sweden, 46 in Germany, 38 in France and 16 in Belgium. This is not just a matter of creating startups, but also scaling them up. Table I.2 shows the number of large firms founded since 1990 in the USA, China and Europe, depicting the vast superiority of the Americans in this domain.

Table I.2.Entrepreneurship and value creation in different countries (adapted from Henrekson and Sanandaji 2018)

Billionaire entrepreneurs per million

Number of startups valued at 1B+ (unicorns)

Large firms founded since 1990

USA

1.37

115

60

China

0.17

47

22

East Asia

0.55

8

19

Eastern Europe

0.13

1

2

Western Europe

0.47

22

18

 Germany

0.52

5

3

 UK

0.72

10

5

 France

0.39

2

1

 Italy

0.38

0

1

 Spain

0.26

0

1

 Nordic

0.62

2

0

 Switzerland

1.75

1

2

Canada

1.06

2

3

Israel

1.75

2

1

This book is thus a humble attempt to contribute to narrowing this gap by sharing with teachers and students of E&I in Europe up-to-date tools and methods more widely used by the most dynamic startup clusters in the USA, by applying teaching and learning approaches based on constructivist principles.

I.2. A note about entrepreneurship versus innovation education

Our text treats entrepreneurship and innovation interchangeably, even though we are aware of the obvious differences between creating a new venture (which does not necessarily involve innovation) and improving the value creation process (which does not necessarily involve entrepreneurship). This conscious choice was made for the sake of enlarging the audience of the book, as several of the entrepreneurship tools used for creating new ventures can be adapted to innovation projects of “intrapreneurship”. Conversely, every entrepreneur who wishes to grow their business must become familiar with innovation tools.

I.3. Who is this book for?

This guide targets entrepreneurship and innovation teachers looking for proven tools to facilitate the process of new venture creation according to the pedagogical principles of Collaborative Interactivity, enriched with digital support systems and project-based learning. At the end of each chapter, professors will find a summary of teaching and learning strategies adapted to each stage of the entrepreneurship and innovation (E&I) process, with examples of best practices extracted either from my own experience or that of other E&I teachers.

The book was also conceived for students of E&I courses interested in hands-on tools for developing new businesses. The text presents over 50 frameworks as it follows the stages of new venture creation: how to go from a vague idea to a clearer vision, how to transform the vision into a business plan and then how to transform this static plan into a testable, dynamic business model strategy. They will then learn how to apply Design Thinking principles to prototype their products and services and how to test and improve them before they start their businesses. We conclude by presenting the challenges of keeping the business innovative as it scales up.

Finally, this guide can also be used by “intrapreneurs”. This type of innovative entrepreneur consists, according to Schumpeter (1982), of managers who have the will and the power to perform the “entrepreneurial function” in companies or startups they do not own. Indeed, the tools and methods described here can be applied both to new venture creation and to mature business development. By better understanding the unmet needs of existing or new customers, intrapreneurs can use this guide to fulfill them with more innovative products, services and business models.

Maybe we should also alert readers to what this book is not. It is not a detailed manual on how to use the dozens of frameworks presented here. It is meant as a summary overview of the “forest” of tools available to teachers and students of entrepreneurship and innovation, not a guide on how to apply them in detail. The internet (as well as our own references at the end of the book) contains several resources to go deeper on each tool, depending on the reader’s interests and needs. Thus, the text was kept deliberately short to make the reader aware of the different approaches to developing visionary products and services, and how to learn and teach them, without getting lost in the details. Once the contours of the “forest” are well understood from this “helicopter perspective”, it is much easier to descend onto the “canopy” and explore specific “trees”.

1E&I Education: An Overview1

This chapter defines the nature of entrepreneurship and innovation, as well as the limits and possibilities for teaching and learning the skills involved. It discusses some of the differences between traditional management education and training versus E&I-focused programs. It briefly argues the eternal question of whether entrepreneurship can be taught. It presents a framework for understanding the E&I education landscape and some of the processes and expected outputs of this educational system. It illustrates this approach with a case of a French University E&I education program. Finally, it presents the Collaborative Interactivity approach to teaching and learning E&I.

This section is designed to help professors to better understand some of the challenges of E&I teaching. It is highly theoretical and should be of little interest to students. If you are a student, we suggest you skip this section entirely and go straight to Chapter 2, about how to develop your entrepreneurship vision.

1.1. Defining entrepreneurship and innovation

The phenomenon of entrepreneurship lacks a single, universally accepted definition (Valerio et al. 2014). Kirzner (1999) defines it as a process of identifying and exploring (frequently unnoticed) profit opportunities. Klapper et al. (2010) describe it simply as the process of creating new wealth. In its narrowest definition, entrepreneurship is the process of converting ideas into products or services and then creating a new venture to market it (Johnson 2001). Innovation, on the other hand, can be simply defined as “the process of turning opportunity into new ideas and of putting these into widely used practice” (Tidd and Bessant 2013, p. 19). As can be seen from the definitions above, E&I are intrinsically correlated. Creating new ventures does not necessarily imply innovating and, conversely, one may be an innovator without creating a new business. Nevertheless, it can be argued that the kind of entrepreneurship that creates most value does involve innovation. As Peter Drucker (1994) suggested, innovation is the main tool of entrepreneurs.

Joseph Schumpeter’s view of this phenomenon is widely accepted as one of the most relevant and comprehensive to date. According to this Austrian economist who pioneered the field, an entrepreneur is someone involved in the creation of innovative and growth-pursuing firms (Schumpeter 1982). He argues that innovative companies grow faster by introducing new goods or new methods of production, by opening new markets, by conquering of new sources of supply and by carrying out a new organization of an industry. These categories are the basis for the standardized types of innovation as defined by the Oslo Manual for Collecting and Interpreting Innovation Data (OECD 2005): product innovation, process innovation, marketing innovation and organizational innovation.

Let us examine each of the Schumpeterian categories below.

New products or services

. Arguably the most visible part of innovation, this process consists of identifying unmet customer needs and developing solutions that deliver superior value. Superior value can be achieved by designing products and services that offer better quality, more convenience, lower cost or any other differentiation attribute that is valued by the target customer. An example of this kind of innovation would be a more effective toothpaste, a less expensive computer or a better designed customer experience.

New methods of production

. Also known as process innovation, this approach consists of improving existing methods to lower costs, increase efficiency, lower environmental impact or achieve any other enhancement in the way products and services are created and delivered. Examples of this type of innovation could include improving the quality, reducing the cost or increasing the speed of a project, or reducing the amount of wood used in the manufacturing of furniture.

Opening new markets, foreign or domestic

. Contrary to widespread belief, an innovation does not have to be “new”. If an existing product, service or process is introduced in a new market segment which was previously unfamiliar with its benefits, this can be considered an innovation in the Schumpeterian perspective. Examples include successfully introducing a gaming console targeting non-gamers or introducing an old product in new country or region.

Conquering new sources of supply

. This is about working with suppliers to adopt materials or energy source with better performance, lower cost or improved environmental impact. An example would consist of contributing to the transition towards a fossil-fuel-free society.

Carrying out a new organization of an industry

. This final Schumpeterian category is the most difficult to achieve and most powerful type of innovation. It consists of introducing such innovative products or services or using such revolutionary methods of production that the rules of the game in an entire economic sector are changed. Ford’s use of the assembly line to produce affordable cars in the early 20th Century is another example. So was Toyota’s introduction of its total quality movement in the 1980s. The introduction of personal computers in the 1980s or smartphones in the 2000s are instances of this powerful disruption.

The entrepreneurship definitions by Schumpeter assume that innovation is an intrinsic part of value creation. It does not exclude the phenomenon of “intrapreneurship” (Drucker 1994), that is, a manager who innovates in one of the above categories without necessarily owning shares in the firm. Like Schumpeter and Drucker, we believe that the entrepreneurship spirit could and should be part of any manager’s attributes, and that is the reason why intrapreneurs are the third target of this book.

According to this approach, it is not enough to create a new venture to be considered an entrepreneur. One must innovate. In our understanding, innovation is the process of addressing the unmet needs of a large enough group of people to sustain a business or organization. This definition is compatible with Schumpeter’s view without requiring radical or entirely new products, services or business models. Indeed, being first to market may result in failure to innovate.

To illustrate this underlying principle, let us take the case of one of the most innovative companies of the last decades: Apple. They have created what can be arguably considered one of the largest value-yielding empires in the history of mankind without ever having been “first to market”. They did not launch the first personal computer, the first portable music player, the first smartphone, the first tablet or the first smartwatch. But when they did launch each one of these groundbreaking product categories, they took deep care to address the unmet needs of a large audience, whether that need was user-friendliness, integration or elegant design.

Therefore, for the purposes of this book, innovation and entrepreneurship are profoundly intertwined. True entrepreneurship in the Schumpeterian sense requires more than simply creating a business: we must constantly try to understand and serve the ever-evolving needs of customers by launching better products or services, by improving our processes and by opening up new markets or segments. On the other hand, innovating in a well-established business is as important as creating new ones. Thus, the tools and insights offered in this book are also valuable to intrapreneurs.

1.2. Innovation and entrepreneurship education

Valerio et al. (2014) make a distinction between entrepreneurship and business management education. Typically, in a European business school, business management focuses on two key competencies: corporate management and enterprise development. In their first year of management, students are often exposed to the principles of organizational theory and its foundational sciences (psychology and sociology) while developing hard skills associated with corporate finance (based on financial mathematics) and accounting, risk management (including notions of statistics and probability), macro- and micro-economics. As this underlying knowledge is acquired, students are better prepared to understand organizational development, having disciplines such as strategic planning, innovation management, sales, marketing and accounting later in the program. Entrepreneurship education builds upon these competencies of enterprise development while adding specific disciplines about softer, “socio-emotional” skills, such as creativity, entrepreneurial vision, business model design, product management and business planning (Figure 1.1).

Figure 1.1.Business management versus entrepreneurship education (adapted from Valerio et al. 2014). For a color version of the figure, see http://www.iste.co.uk/lima/entrepreneurship.zip

Valerio et al. (2014) make a further distinction between entrepreneurship education (within the context of secondary and higher education institutions) and entrepreneurship training (for people outside the regular education system). Training programs are often offered by European governments to vulnerable, unemployed individuals in the hope of helping them create a self-employment business. Businesses created by these individuals are seldom innovative in nature. However, a second type of individual often seeks entrepreneurship training programs: inspired professionals who come across an opportunity to innovate. Training programs are also offered to active small business owners who wish to hone their entrepreneurship skills. Government-funded training programs hope to transform uninspired individuals into active innovators and regular SMB owners into developers of high-growth businesses (see Figure 1.2).

Figure 1.2.Differences between entrepreneurship education and training (adapted from Valerio et al. 2014). For a color version of the figure, see http://www.iste.co.uk/lima/entrepreneurship.zip

These definitions and examples illustrate the main challenges involved in teaching entrepreneurship and innovation in the 21st Century. The speed of digital transformation has multiplied the tools to prototype product and service design, to create more efficient processes, to reach new markets beyond the barriers of time and space and to create entirely new business models, as the examples of Uber and AirBnB illustrate. In order to keep up with this transformation, students must experiment with in-class digital tools that facilitate self-learning, collaborating and sharing projects in a real-world setting.

There is a European consensus about the importance of teaching E&I. According to Fayolle and Gailly (2008, p. 572),

A recent work conducted by a European group of experts representing all EU member countries proposed a common definition [of entrepreneurship education]. The consensus reached led to the inclusion of two distinct elements: (1) A broader concept of entrepreneurship education which should include the development of entrepreneurial attitudes and skills as well as personal qualities and which should not be directly focused on the creation of new ventures; and (2) A more specific concept of new venture creation-oriented training (European Commission 2002).

We argue that in order to foster relevant “attitudes and skills” mentioned in the first part of this definition, we should include a series of digital tools and project-based learning approaches explored in this book. Rather than simply consider this as a process of “knowledge transfer” concerning opportunities to created new products and services (Hindle 2007), we propose a constructivist approach in which future entrepreneurs, intrapreneurs and innovators build their own knowledge from the practice of project-based activities. Indeed, the word “teaching” hardly seems appropriate in this process. As Fayolle and Gailly (2008, p. 574) further argue: