Support presentation to the SPIN-UP Training Programme on Entrepreneurial Skills for University Spin-Offs. SPIN-UP is a cooperation project supported by the European Commission that aims to create an Entrepreneurship Training and Coaching Programme that contributes to the development of Key Entrepreneurial Skills, both technical and behavioural, essential to enable and leverage University Spin-Offs growth. Download and have access to other training materials in www.spin-up.eu

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INTERNATIONALISATION FOR GROWTH
Module Presentation
[Place], [Date]

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TRAINING OBJECTIVES AND CONTENTS
The SPIN-UP training in
Internationalisation for Growth
will help University Spin-Off’s
managers to managers to
improve the abilities needed
to plan and act in a particular
business growth strategy,
namely oriented to foreign
production, networks and
markets, etc.
Know the basics
about business
internationaliza
tion
Identify needs for
internationalization and
develop a strategy
Decide on the
best options
and practice

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TRAINING OBJECTIVES AND CONTENTS
Recognize the importance of internationalization
Understand drivers and types of internationalization
Understand models, entry modes and integration
Understand barriers to internationalization
Know the basics about business internationalization

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TRAINING OBJECTIVES AND CONTENTS
Internationalization as a strategic option
Incorporating internationalization in the strategy formulation
process
Internationalization and the Internet
Identify needs for internationalization and develop a strategy
Decide on the best time (‘readiness’)
Decide on options in the Internationalization Plan (exports and
outsourcing)
Search for the best support.
Decide on the best options and practice

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TRAINING OBJECTIVES AND CONTENTS
 Knowing the basics of
internationalization
 Identifying future
needs and developing
the strategy
 Deciding on the
options
Learning Objectives Learning Contents
Know the basics
about business
internationaliza
tion
Identify needs for
internationalization
and develop a strategy
Decide on the
best options
and practice

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WHAT INTERNATIONALIZATION IS
 Extending business operations abroad
 ‘Sophisticated’ definition: Innovative, pro-active and risk-seeking
behavior that crosses national borders with the intention to create
value
 It encompasses: export, import, outsourcing/subcontracting,
knowledge exchange, etc.

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Push factors:
- Limited home market
- Fierce competition in home market
- Skills that can be easily used abroad (without substantial extra costs)
- Government export subsidies and support
- Strong regulation in home market
PUSH-PULL FACTORS APPROACH (1)

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Pull factors (active attraction reasons)
- Globalization and increasing liberalization of international markets
(EU), advances in ICT and transport
- Attractive foreign resources (cheap labor and raw material)
- Attractive foreign partners (suppliers; large firms providing finance and market
access)
PUSH-PULL FACTORS APPROACH (2)

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1. Stepwise model: the firm goes abroad if a well-established position gained in
the domestic market (however, danger of competition capturing markets
abroad)
2. ‘Born globals’: the firm goes abroad already during or immediately after
establishment (based on existing research networks abroad, early international
fair networks, etc.). Main driver: too small domestic market (niche) and a large
investment size.
MODELS OF INTERNATIONALIZATION

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• Size of demand and of future demand (trends) (export)
• Specific customer specifications and taste, including the need to adapt the
product (export)
• Price differences, quality level, logistics (export, outsourcing/ import)
• Distance with the country/region abroad e.g. physical and cultural
(export, outsourcing; import)
• Differences in legal/regulatory circumstances, e.g. IP, risks in payment, etc.
(export, outsourcing, manufacturing on-site)
• Contact persons, networks to access the country (all activity)
• Labor: staff recruitment (export, manufacturing on-site)
MARKET/COUNTRY CHOICE

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Indirect: without presence of the firm (works via representative/
agent)
Cheap but less control!
Direct: with presence of the firm in the foreign country
(office/manufacturing plant)
More expensive, but also more control over activities
and better knowledge of local market demand
ENTRY MODES

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• Gaining access to networks and contacts in foreign markets
• Navigating in unfamiliar business environments, e.g. due to language, (business)
culture
• Procedural barriers (standards, legal and regulatory framework)
• Missing the capability to understand the competition and to assess potential
opportunities and risks abroad
• Short in confidence, management time and other resources to investigate and
pursue opportunities in networks and markets abroad
FIVE TYPES OF BARRIERS (UK 2010)

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• Readiness includes specific conditions for take-off of internationalization set in
place in the firm:
• A product/service that is in demand abroad
• Significant management time and commitment across the firm
• Stepwise model: solid position in the domestic market (confidence, working
capital)
• Sufficient resources to succeed: travelling costs, product
modification, international marketing staff, etc.
• A solid Export Plan (strategy)
• Export knowledge and skills (e.g. country profile, export documentation)
• Access to trade networks arranged in the host country (e.g. distribution)
• Benefits from support (e.g. export credit insurance)
READINESS TO INTERNATIONALIZATION

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