According to Professor Bill Aulet of MIT, innovation driven entrepreneurship (IDE) is defined as the pursuit of opportunities focused on products or repeatable services beyond the local market.
IDEs have the following characteristics:
- They focus on super regional or global markets. The company is based on some sort of innovation (tech, business process, model) where they can go global or across regions.
- They create “Tradable jobs” – jobs that do not have to be performed locally.
- They typically have a more diverse ownership base as the focus of founders is on high growth and realizing financial returns. Founders tend to be more team-oriented.
- The company starts by investing time, effort & resources, but in time will have exponential growth. When investment is made into the company, the revenue does not respond as quickly as in small and medium enterprises.