Startup Amsterdam 2019-2022 - Strengthening the startup and scaleup ecosystem by promoting innovative and sustainable entrepreneurship
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Startup Amsterdam 2019-2022 Strengthening the startup and scaleup ecosystem by promoting innovative and sustainable entrepreneurship
Startup Amsterdam 2019-2022 - Strengthening the startup and scaleup ecosystem by promoting innovative and sustainable entrepreneurship. 0. Executive summary Amsterdam’s ecosystem for startups and scaleups has c) In the coming years, we must also lay the become more sophisticated over the last few years. foundations for a more inclusive society, in which the During its initial phase from 2015-2018, the public-private local startup and scaleup ecosystem also plays a role. A action programme, Startup Amsterdam, generated a step towards inclusiveness means significantly increasing lot of momentum that put Amsterdam on the map as a the business sector’s ambitions for social responsibility. startup hub. The speed at which Amsterdam’s economy For example, the proportion of women and people with has transformed ever since, along with technological a migrant background is far too low among innovative developments and far-reaching globalization, guarantees companies in the city. This offers Amsterdam opportunities there is no going back for the city. During this new, to distinguish itself from other cities worldwide, but we follow-up phase of the programme (during 2019-2022), the must begin work on improving the situation. ecosystem will be further optimized for the long-term. We want a well-functioning ecosystem that serves innovative d) Finally, we must collaborate on both regional and companies wishing to grow sustainably — in continued national scale. Indeed, the economy of a city does not stand collaboration with public and private stakeholders. This alone. We can distinguish a regional startup and scaleup fulfills the current desire of the Mayor and Aldermen of ecosystem because a) the region houses all types of parties Amsterdam to strengthen the climate of development for that are part of that ecosystem, including large companies startups and scaleups (see coalition agreement 2018). and high schools, but also some innovation clusters and knowledge parks, and b) because many employees of Based on Startup Amsterdam’s initial experiences and on Amsterdam-based companies live throughout in the region. conversations held with numerous stakeholders in recent The new programme will explicitly seek cooperation with months, the follow-up programme contains a number stakeholders from the region — be they municipalities, of important shifts in its emphasis, compared to the first companies or knowledge institutes. We are also looking programme: for more connections with StartupDelta to jointly position other innovative hubs (such as in Eindhoven, Wageningen, a) The focus of the new programme will not Delft, Rotterdam) in the Netherlands as the place where only lay on companies from the traditional internet and sustainable and innovative companies come to fruition. IT sectors, i.e. the digital startups. After all, technology is transforming every sector and industry. Therefore, the focus This focus leads to an action-oriented programme centering is on innovative entrepreneurship, sustainable economic on the following five pillars: growth, and job creation. This type of entrepreneurship is visible in all parts of the city (from Amsterdam North to the 1. Talent and Diversity port and from Riekerpolder to Science Park) and includes The aim of this pillar is to mobilize the enormous potential SMEs that have the ambition and potential to grow. of practically- and theoretically-trained people for working in fast-growing companies. The specific aim is to stimulate b) In addition, we have reached a point where in particular more women and young people with a migrant growth of the local ecosystem does not have to mean background to work for fast-growing companies or to start that the local government wants to encourage as many a business themselves. Talent with a technical background companies in Amsterdam as possible; the local government is in high demand. Because the need for staff is so great, we will particularly embrace commercial activities that add will also continue to focus on attracting and retaining talent value to the city in new ways. In other words, this does not from abroad. mean developing an ecosystem that focuses on yet another delivery service or handy app, but on innovative companies that, in addition to a profit objective and the ambition to scale up internationally, also aim to bring about a positive change. We will therefore have to look carefully at which companies add value to the ecosystem and to the economy. This new phase asks: What is missing? How can we bring together those parties that can jointly create added value? -2-
2. Focus on emerging technologies, and their consequences I. Introduction The application of new technologies such as artificial intelligence and robotisation to make products and services better, more efficient, and/or safer is becoming increasingly Rapid technological developments and far-reaching important. How can the scaleups and SMEs here make globalization have a major impact on cities, including better use of them? At the same time, new technologies Amsterdam. Be it in the form of new business models, arouse uncertainty, for example, on aspects such as privacy changing delivery systems, or changing forms of production, and security. How do we deal with new technologies and distribution, and consumption, they affect all sectors and their consequences? In a forthcoming Ethics Lab, we will disrupt the status quo, for better or for worse. This also investigate those consequences, together with the scaleups results in many changes within the social spectrum. How and the universities. do we ensure that everyone can continue to participate in a society that is changing faster and faster? How do 3. Access to markets we deal with the ethical issues of artificial intelligence One of the biggest challenges for innovative companies and robotisation? How do we deal with the potentially in Amsterdam is how they can make their mark in the aggressive growth strategies of large tech companies? world market. By connecting ecosystems worldwide with How do we keep the city diverse and in balance to ensure Amsterdam and giving entrepreneurs the opportunity to that technology and innovation go hand in hand with art, take part in the networks set up by local government, we culture, the creative industry, the manufacturing industry, can contribute to the growth of scaleups to other markets. and other sectors? 4. Stimulate network connections Recently in Amsterdam, we see that technological The right connections and the right information are crucial developments and the digitization of society enable young for promising, innovative companies. companies to experiment with new services and products Startup Amsterdam’s team will also be the point of contact without hindrance. Cumbersome, bureaucratic companies for fast-growing companies in the coming years, working to often lose out to organizations with a flexible, transparent, continue making connections and to stimulate interaction and accessible business model. New products and services between parties from the ecosystem. This will establish lead to new companies and job opportunities. These Amsterdam as the place to be for innovative, top-per- fast-growing companies offer the highest potential for forming businesses. employment growth in our economy, creating jobs faster than traditional companies. According to the OECD, 60% 5. Development of innovation districts of new employment in the Netherlands comes from young The purpose of the last pillar is to set up a strategy to link companies, regardless of the economic situation. Startups spatial development strategies in the city with the urgent and scaleups have a direct impact on the city in which they need for space, by rapidly growing startups and scaleups. reside. Because startups and scaleups are not only located We focus on the lack of physical space, on clustering, and on in the centre of Amsterdam, but also at the city’s edges — bringing together the functions that promote innovation. such as in the Riekerpolder, around the Free University and Academic Medical Centre, at the Science Park, in the North Each pillar contains a mix of initiatives and projects set for and around the seaport — one finds numerous concen- implementation during the period 2019-2022. There are trations of employment. The labour market consists not only successful, tried-and-tested concepts and initiatives that of university-trained programmers, but also, for example, are to be further strengthened, but we will also devise people who work in distribution centers or in customer some new initiatives where necessary. We will apply the service at fast-growing businesses. This means that the same procedures for implementation as the last four opportunities for employment are spread throughout the years; working in close collaboration with private parties city. and various stakeholders, more streamlined teams will be hands-on during the validation and implementation of the Over the last four years, the Startup Amsterdam action initiatives. programme has worked hard to strengthen the ecosystem for these young businesses in the city. A startup ecosystem is formed by startups and a variety of organizations, interacting as a system to jointly create new startups and grow. The organizations can be divided into six different categories: 1) universities, 2) support organizations, such as incubators, accelerators, and co-working spaces, 3) investors, 4) corporations, 5) service providers, and 6) research organizations. Each organization has a focus on a specific part of the ecosystem or assists a startup in a specific phase of its growth. A strong ecosystem provides a breeding ground for innovative companies to be able to grow faster. -3-
Box 1: The ecosystem’s growth The initial Startup Amsterdam 2015-2018 action programme was based on five pillars that meet the needs of startups, namely access to: 1) talent, 2) customers, 3) development opportunities (content), 4) capital, and 5) a facilitating environment. More than thirty projects have been set up or supported over the last four years, through intensive collaboration between public and private parties. Coding for Amsterdam, Amsterdam Capital Week, B. Startup School Amsterdam, Corporate Partner Network, Project A, SCALE network, Ready2Scale and Startup in Residence are some examples of these initiatives. The result is that the Amsterdam startup ecosystem in 2018 has a lot to offer to startups. Startup schools such as BSSA, Growth Tribe and The Talent Institute are training people to work at startups. Numerous accelerators such as Rockstart, Startupbootcamp, Fashion for Good, ACE and Collider attract top talent and entrepreneurial strength. A rich pallet of incubators and co-working spaces such as TQ, WeWork, Spaces, Startup Village, Rent24 and B.Amsterdam have been established. Dutch corporations are directly involved in the ecosystem, acting as a customer for startups and collab- orating with various startup programs. Renowned international events such as the World AI Summit, CES Unveiled and Money 20/20 chose Amsterdam as their European event destination. Tech companies from the Netherlands and abroad prefer Amsterdam as their headquarters, knowing that Amsterdam’s ecosystem makes it relatively easy to foster growth and connection with other startup hubs in Europe. In addition, more and more capital is available, the internet works at ultra-high speed, and Amsterdam is an attractive city for domestic and foreign talent. The growth of the ecosystem has resulted in an increase Innovative companies in Amsterdam with growth potential in the number of startups and scaleups. In 2017, approx- face specific issues and challenges in order to achieve imately 60,000 people were employed by more than sustainable growth. Through our new action programme, 1,000 technology companies in Amsterdam, representing the next four years will be spent on strengthening the 11% of the total Amsterdam labour market. Throughout ecosystem and making it more appealing to these types of 2015 to 2017, more than 10,000 jobs were added to fast-growing companies. these companies. Internationally, this has strengthened Amsterdam’s reputation as a city of innovation and entrepreneurship, consistently leading in the rankings. More and more fast-growing companies in Amsterdam are emerging from technologically smart and innovative ideas, which can rapidly develop into internationally-operating companies. The most exciting examples include Adyen, Kite Pharma, WeTransfer, Elastic and Squla. The next generation of these types of companies are already on the horizon. -4-
II. Ambition and focus Amsterdam as a European leader The next section elaborates upon each of the above points. Startup Amsterdam 2019-2022 is a new public-private action programme that over the next four years, will further a) Strengthening the ecosystem for fast growing companies strengthen Amsterdam’s ecosystem for promising startups The list of startups and scaleups lies far beyond the and scaleups. The aim is to strengthen the growth of traditional Internet and information technology sectors, Amsterdam as a startup and scaleup hub, where innovative to other areas that are now increasingly dependent on companies can sustainably grow, by exploiting the potential technology for their growth. Technology transforms for Amsterdam to permanently claim its spot as one of the every sector and industry. Therefore, the focus of Startup top five European regions for innovation and entrepre- Amsterdam 2019-2022 lays on innovative entrepreneurship neurship. that plays an important role in contributing to sustainable economic growth and job creation. This applies to startups, Whereas the focus of Startup Amsterdam 2015-2018 was scaleups and SMEs. mainly on creating an optimal breeding ground on which tech/digital startups could grow, the new action programme According to the Dutch Office for Research, Information, shifts its approach, aiming at: and Statistics (under the acronym OIS), there was a total a) strengthening the ecosystem for innovative and of 1,185 fast-growing businesses in Amsterdam in 2017 potentially fast-growing companies; (2014-2017 period). Representing 3.5 percent of the total number of companies, they account for 16.4 percent of b) encouraging activity that adds value to the city in total employment in the city. In 2013 (2010-2013 period), new ways; the share of “fast growers” was only 0.6 percent, numbering 207 in total (OIS, 2018). c) an inclusive ecosystem, centralling on activating more target groups; d) more regional cooperation. Box 2: What is a fast-growing company? There is no clear definition for a scaleup, or “fast-grower”. According to the OECD, it is a company with at least 10 employees and 20% annual growth (in turnover or employment) that it achieved over a period of three years. Based on the experience gained with Startup Amsterdam and conversations with fast-growers, we define a scaleup as having a validated business model, paying customers, and a focus on international growth. Additionally, technology and innovation play an important role in this growth. A minimum of ten employees indicates that a company is beyond the startup phase. A validated business model and paying customers means that the business has identified the “problem-solution fit” which customers are prepared to pay for. Ambition to grow is essential to scale up, as are innovation and innovative concepts. This does not mean that every scaleup is a high-tech company; it simply means that it is unlikely that a company will scale internationally without having developed an innovative concept, for example, a form of technology like a particular algorithm, piece of hardware, or online platform. Simply put, fast-growers distinguish themselves from startups because the latter has not yet found a sustainable and scalable business model. -5
Number and employment of fast-growing companies 2017 (period 2014-2017) Total offices No. of scaleups Employees at scaleups 10-25 employees 2.767 687 15.258 25-50 employees 1.024 256 12.330 50-100 employees 500 120 10.678 100-500 employees 412 105 27.934 500+ employees 76 17 20.469 Total 4.779 1.185 86.669 Share of scaleups to total companies/employees 3,5% 16,4% (33.845/527.000) Source: OIS 2018 b) Encouraging activity that adds value to the city in new point for building their innovative businesses. They are ways. rooted in the daily experience of Europeans - a way of life The projects and initiatives that Startup Amsterdam that is more urban, more egalitarian and supported by 2019-2022 will work on will not focus so much on companies better functioning public services that exist in, for example, with yet another delivery service or a fun app, but on the US and China. innovative companies that, in addition to a profit objective In Amsterdam, there are already many newcomers that and the ambition to scale up internationally, also aim to have claimed an important position in their sector in bring a positive change. There is a strong understanding a short span of time - Vandebron renewing the energy in Europe that these fast growers will play a crucial role in sector, Adyen - the banking sector, Kite Pharma researching tackling major societal problems, such as climate change, the cure for cancer, MessageBird encrypting electronic food supply and access to healthcare. messages , Scyfer becoming a leader in artificial intelligence We have reached a point where growth of the local and Picnic disrupting the supermarket industry. Innovative ecosystem does not have to mean that the local government startups are also on the rise in Amsterdam’s cultural sector wants to encourage as many companies in Amsterdam as and manufacturing industry. See some great examples in possible, but encourages activity that adds value to the city the box below. in new ways. There are more and more fast-growing companies in Amsterdam that use the European way of life as a starting -6-
Box 3: Examples of rapidly-growing Amsterdam companies that demonstrate positive change Quicargo, is a logistics company that uses smart algorithms to fill empty trucks driving around Europe (50% of the trucks on the road have no cargo inside), in order to reduce congestion and CO2 emissions. Founded in 2015, it has 24 employees. Land Life Company, develops technology that could help prevent deforestation worldwide, having patented planting technologies. Founded in 2013, it has 30 employees. Kiadis Pharma, is a biopharmaceutical company that designs products aimed at patients who urgently need stem cell transplants to treat leukaemia. Founded in 1997, it is growing fast; in two years their staff more than doubled to 70 employees. Skinvision, developed an innovative app that allows phone users to check their skin for incipient skin cancer. With the 10 million euros in financing they have already raised, they are on a path to scale up even further. Founded in 2011, it has 26 employees. Zyvver, is a cyber security company that secures companies’ data, including e-mails and large files. They have developed a number of standard solutions that prevent data leaks and are easy for customers to understand and use. Founded in 2015, it has 65 employees. Castor EDC, created a platform giving researchers worldwide easy access to high-quality and reusable data in the Cloud. This stimulates the quality of medical research and increases the chance of finding cures. Founded in 2011, it has 37 employees. c) Including more target groups for an inclusive startup many employees of Amsterdam companies live throughout and scaleup ecosystem the region. With the new programme, cooperation will be The nexus between new technologies, employment, and sought more expressly with stakeholders from across the inequality has recently received significant attention. region - whether it concerns municipalities, companies Reasons for this point to the exponential nature of or knowledge institutes. We are also looking for more the current world, the explosion of data, and signs of connections with StartupDelta to jointly position the potential negative consequences for employment through Netherlands with some other innovative hubs (Eindhoven, widespread use of new technologies. It is essential to Wageningen, Delft, Rotterdam) as the place where recognize those people who feel left behind and allow sustainable and innovative companies come to fruition. them to play a role in this changing economy, regardless of their ethnicity, gender, level of education. With the new action programme, we will look specifically at how we can encourage more women and young people with a migrant background to successfully establish their own startups and scaleups. d) A regional approach The city’s economy is connected to the regional startup and scaleup ecosystem because a) the region accommodates all kinds of parties that are part of that ecosystem, such as large companies and high schools, but also some innovation clusters and knowledge parks and b) because -7-
III. An action programme promoting an effective ecosystem for scaleups To further strengthen the startup and scaleup they are surrounded by a rich network of different public ecosystem, we want to have more insight into and private organizations, from which they can gather the factors that determine the growth capacity of resources and knowledge. Networks and systems play a innovative companies. The experiences of Startup major role, through both formal and informal connections. Amsterdam and discussions with our target groups 5. Sufficient room to grow have shown that companies face a number of Commercial space is still one of the biggest bottlenecks for challenges while trying to grow: the growth of startups and scaleups. Although the number of square meters of co-working places has increased 1. Insufficient talent pool enormously in Amsterdam recently, it is still difficult for As the world has rapidly globalized, the challenge for fast-growing companies to find physical workspace for companies to find suitable personnel is so great, that it is one expansion. of the biggest obstacles that scaleups face in Amsterdam. A lack of technical and/or entrepreneurial talent has become Similar to the Startup Amsterdam program from 2015-2018, a limiting factor for the growth of companies across all the new program will be an action-oriented program. sectors, from financial services to life sciences. Central to this program are five crucial pillars, which are required for the further development of Amsterdam’s local 2. Responding to the opportunities brought about startup and scaleup ecosystem. These five pillars correspond by new technologies with the above-mentioned conditions for growth and are New technologies offer many opportunities for scaleups. closely related to each other. Over the following four years, Yet at the same time, they can prompt uncertainty, for together with the (public and private) stakeholders, we example, on aspects such as privacy and security. There will implement and develop various projects and initiatives is still so much unknown about these technologies, that under each of these pillars. many companies still do not yet fully use that potential as optimally as they could. It is essential for Amsterdam’s entire ecosystem to work collaboratively in order to strengthen the local environment 3. Access to international markets and to ensure that a larger number of companies will make For promising companies, scaling up internationally is the transition from startup to scaleup. The local government essential in order to grow. Amsterdam companies that are plays an integral role in ensuring this. Becoming a ‘Scaleup scaling up instinctively turn to possibilities abroad, because City’ is a responsibility for us all. Together we will facilitate the Dutch market is not large enough. But optimal global the environment for (potentially) fast-growing companies growth does often require additional competencies that by investing in the five pillars; outlined further below: the current enterprise cannot provide. 4. Accessing networks When we talk about the ‘ecosystem’, the term refers to the fact that startups and scaleups do not function — and certainly do not thrive — in a vacuum. They grow best when Pillar 1. Talent and Diversity A) Female entrepreneurship Female entrepreneurs are largely underrepresented in the Amsterdam startup and scaleup ecosystem. Moreover, they have less access to financing. The lack of diversity in the ecosystem creates a culture that disadvantages women when it comes to developing their own companies. Recent research has shown that of the founders who received an investment from Dutch venture capitalists (VCs), 94.7% are men and only 5.3% are women. The Netherlands and Amsterdam are therefore missing out on huge potential. More diversity in the ecosystem is important for various stakeholders, according to studies by McKinsey, BCG, and other sources. Primarily, this is because diverse companies create better products and services. In addition, more diversity increases the financial independence of women. This, along with diverse startup teams working on products and services, will ensure a more inclusive society. With the new action programme, we want to actively bring about the changes that support and stimulate female entrepreneurship. -8-
B) Tech talent shortage Fast-growing innovative companies in Amsterdam have a large yet unfulfilled need for staff who possess the digital skills that contribute to further growth. Among the 52 fast-growing companies which received external investment of more than one million euros in 2017, there were 330 vacancies, 45% of which were tech jobs, according to Dealroom.co. That includes programmers, developers, growth hackers and data analysts. Failure to fill these vacancies on time could put a brake on the companies’ development. Various public, public-private and private initiatives have been created to mobilize the enormous potential of practically- and theoretically-trained students, from primary to higher education, to find work among fast-growing tech companies. While this yields many candidates, this is not enough. The number of tech vacancies open in the Amsterdam metropolitan region steadily increases, as more large corporations such as banks and consultancy firms become increasingly digital and therefore look for more tech personnel. In close cooperation with public and private stakeholders, Startup Amsterdam will assess how to accelerate the training and hiring process, outlined in the three points below. The intention is not to reinvent the wheel, but to look carefully at the various ongoing initiatives to see where cooperation can improve, where initiatives can be scaled up or function more sustainably, in order to link those initiatives with the business community — especially the fast-growing companies. 1) Awareness In particular, women and young people with a migrant background do not readily opt for a future working in these types of companies because, for example, they rarely follow tech-related courses. Of all students who started a technical study path in university in 2017, only 25% were women, 23% of which at the “higher-pro- fessional education level” (HBO) and 16% at the “middle-level applied education” (MBO) level (source: DUO). These percentages have hardly risen in recent years and are lower than the European average. Inspiring and motivating young people helps them make informed choices about choosing subjects that shape their future career paths — important as early as primary school, but especially during secondary education. That is why it is crucial that schools devote more attention to learning digital skills and developing entrepreneurial skills. 2) Training and refresher courses House of Skills, Action Plan W&T, House of Digital are examples of good initiatives aimed at training profes- sionals at the MBO level for a range of tech-based skills. In addition, various higher education institutions and some private institutions (such as coding academies) devote attention to training tech students. We will support a number of initiatives to ensure that promising, innovative fast-growing companies can quickly find well-trained personnel, through collaboration with groups like the Amsterdam Economic Board and The Commission for Work, Income, and Education. In addition to reaching multiple target groups, the aim is to strengthen the structural process for learning digital skills, making it a more sustainable part of (future- oriented) education. The existing public and private initiatives will undergo a thorough analysis toward this end. We will also use the new programme to look at how we can better link fast-growing companies with current and forthcoming education initiatives. We will emphatically work to connect fast-growing companies and educational institutions. 3) Attract and retain talent Even with enhanced local training in the school system, the tech personnel shortage problem will not be solved immediately, so we will continue to focus on attracting and retaining outside tech talent. Amsterdam is one of the leaders of a “City Deal” called Warm Welcome Talent, which aims to increase and sustain the Netherlands’ appeal in the eyes of ambitious entrepreneurial and tech talent from abroad. This is done in collaboration with other actors in the startup and scaleup ecosystem and implemented through the Startup Amsterdam programme. The goal is not only to bring the talent we need, but also to retain the talent that came here to study, post-graduation. -9-
Pillar 1. Talent and Diversity DESCRIPTION METHOD STAKEHOLDERS 1a) Stimulate female entrepreneurship 1-Motivate women to start -Investigate the reasons why women are underrep- Educational institutions their own business or work for a resented in the ecosystem fast-growing company -Campaign / information / job markets and support events aimed at the target groups -Offer career orientation -Create a physical co-working and incubation place for female entrepreneurs, in cooperation with private parties 2-Raise awareness among VCs -Starting point: interview male VCs about their role in increasing -HRM support, awareness of why an inclusive diversity recruitment model is advantageous. 1b) More tech talent among fast-growers: awareness 3- Activate women and youth with -Campaign / information / job markets and support Department of Education, a migrant background to become events aimed at the target groups Work Participation and Income; a) acquainted with the tech world, -Use role models in the classroom or through events, Amsterdam Economic Board; or b) to follow a tech course which appeal to the target group Primary and Secondary Education; - Set up on career orientations Universities; High Schools and MBO level education. 4-Connect fast-growing companies -Network of Startup Amsterdam is used to improve Universities, Colleges to the various educational the involvement of employers (CEOs and senior initiatives. managers) in connection with schools -Use the role models that appeal to the target group in the classroom or through events 1c) More tech talent among fast growers: training and refresher courses 5-Strive for future-oriented -Map out which courses and initiatives are aimed at Department of Education, Economic education, centering on digital training tech jobs Board, Primary and Advanced skills -Investigate whether there can be closer cooperation Schools, MBO level education, between the various stakeholders MRA. -Continue Coding for Amsterdam (digital skills programme in primary and secondary education), and embed them sustainably, for example by offering tech education through a catalogue or the Science & Technology Action Plan -Further investigate how new tech academies can be established or supported -Make technology and entrepreneurial training accessible and affordable for a broader group 6-Focus on (further) development -Raise desirability of PPP structures in collaboration MBO level education, colleges and of Public Private Partnerships with scaleups business (PPPs) -Facilitate new PPPs (if there is a demand from the market) -Focus on collaboration in the further development of House of Digital -10-
1d) More tech talent among fast-growers: attracting and retaining 7-International branding made -Create strategy with stakeholders, determine the amsterdam inbusiness (aib), to order: Amsterdam and the focus StartupDelta, RVO, Minbuza, Netherlands as a hub for global -Which target groups? Which countries? We also Amsterdam Marketing, Knowledge fast-growers. Joint marketing of cooperate with universities for this. Match with NL institutes, MRA city and fast-growers branding. -Stand out at tech talent fairs and events abroad -Joint global recruitment for and with Amsterdam growth companies (by continuing and moving to the next phase of project.amsterdam) 8-Retain existing talent from -Continue the joint strategy of Amsterdam and Knowledge institutions abroad in Amsterdam the knowledge institutions aimed at retaining international students -Link students to fast-growers 9-Guidance: -Good information on the website and webinars IN Amsterdam, aib, Amsterdam setting up a ‘one-stop-shop’ for for foreign talent. Striving for “no wrong doors”, ie Marketing, KvK, StartupDelta foreign and enterprising talent linking institutions that talent has to use, from posting network to IN Amsterdam -Setting up account management at IN Amsterdam aimed at international talent 10-Ease regulations for foreign -In conversation with responsible ministries about, IN Amsterdam, aib, StartupDelta talent (from outside the EU) that among other things, the adaptation of national will work for a scaleup regulations as described in the City Deal Warm Welcome Talent. Work on this together with StartupDelta. 11-Attract and/or support tech -Make an inventory of which interesting events for Amsterdam Conventions, talent events specific target groups exist or are missing Economic Board, MRA -Draw up the acquisition strategy -11-
Pillar 2. Focus on emerging technologies, and their potential consequences We are witnessing a global technological revolution, also known as the fourth industrial revolution. Artificial intelligence (AI), machine learning, the Internet of Things (IoT), 3D printing, energy storage, and blockchain are all technologies that can shape the economy in the near future. It is becoming increasingly important to apply these new technologies to make products and services better, more efficient, and/or safer. In some cases, AI, machine learning, facial recognition and 3D printing are already proving highly visible. Others are developing at a less rapid pace, awaiting more tangible applications, such as blockchain. Among startups located at certain clusters in Amsterdam, ecosystems develop around these technologies, for example around AI and Data Science at the Science Park, around VR/AR at the repurposed Navy Yard, and around blockchain throughout the entire city. AI and blockchain are young fields; therefore, talent is still limited. A strong ecosystem attracts specialist talent and ensures that university-trained talent does not go abroad. The ecosystems around new technologies transcend the individual sectors in the city, and the new programme will further stimulate this crossover collaboration. Through Startup Amsterdam, the municipality can play a leading role in connecting startups and scaleups with relevant players, such as universities, large companies, research institutions, and accelerators — especially in the field of AI. In order to stay at the forefront internationally, Amsterdam companies, knowledge institutions, and the Municipality of Amsterdam must understand the trend of artificial intelligence and blockchain and offer support where necessary. It is important that growing companies have easy access to these technologies and use them, for example, by creating a community around such technology. Scaleups, fast-growing small and medium-sized companies, research institutes, and corporates all must make this a priority. The government can set on its agenda a broad public debate among these communities about the opportunities and threats behind the technology. Although these technologies offer exceptional opportunities, they present a number of challenges. The long list includes the impact on employment (in the field of artificial intelligence), controversy surrounding privacy and freedom of speech, cybersecurity, identifying which potential restrictions should be placed on genetic technologies, increasing economic and social inequalities between the parties, and data sovereignty. The government is the pre-eminent forum for placing ethical issues surrounding new technologies on the agenda and doing further research into specific issues. What are the consequences of these often disruptive technologies on the city’s residents and shopkeepers, for example? There is a need for a clearer ethical framework and normative standards to help organizations develop these powerful tools. Artificial intelligence as an example The municipality recently subsidised a portion of the Innovation Center for AI (ICAI) at Amsterdam Science Park. In return, at least 20% of the facilities at the ICAI have been set aside for innovative SMEs and startups. Amsterdam’s government views an exchange like this as an important stimulus for cooperation between universities, research institutions, and the business community. ICAI also houses so-called AI Labs, where mainly large companies collaborate specifically with academic researchers. Linking fast-growing companies with researchers and companies generates mutual benefits: the fast-growing company gains access to technology that can make its product or service better, and the researcher receives input from talented entrepreneurs to improve upon the technology. Bringing forth AI expertise from both the research and business communities into one central location in the city also offers opportunities for the government. For example, it can set up a public AI Lab to allow researchers, companies, and the government to jointly investigate how they can solve problems that involve working with new technology from an audience point of view. The ethical and safety aspects of AI, the governance of AI, or data ownership are such public issues. Pioneering ecosystems based around new technologies require a careful look at how and where government efforts are needed. Where exactly are the opportunities and the barriers to the growth of ecosystems built around a specific technology? Regardless of whatever they may be, we can apply a number of initiatives: -12-
Pillar 2. Emerging Technologies DESCRIPTION METHOD STAKEHOLDERS 2a) Identifiable impact 12-Study the opportunities and -Establish the Research Center Governance & Ethics CTO/CSO office, Universities potential consequences of these Lab: AI for democracy and society. A place of research technologies, and their influence in which ethical and policy issues are examined and on the city and residents translated according to choice of directions and answers - Increase awareness for citizens by telling the story of certain technologies and sometimes negating the myth - Employing a neutral contact person for people, companies and SMEs with questions about (the use of) new technologies 13-A municipality that makes more -Establish a municipal AI lab, in which artificial CTO Office, Economic Board use of new technologies intelligence and blockchain are applied to the Amsterdam municipality’s challenges and services, with the aim of obtaining smart solutions for urban issues. New technologies have the potential to make the lives of Amsterdammers better and more efficient across various aspects. Examples: predictions about poverty and social security, traffic pressure forecasts, crowd management, cyber security, reports about safety and better services with a smart assistant, etc. Experts and tools are available in the lab for the benefit of municipal departments and issues. 2b) Create communities 14-Stimulate entrepreneurship -Creating awareness around new technologies: what CTO/CSO office, Universities, around new technologies can companies (startups, SMEs) do with it? Economic Board -Stimulate crossovers between sectors by organizing meetings, hackathons etc. The Ethics Lab would be the perfect place for this 15-Connect scientific and non-sci- -The municipality of Amsterdam has made a CTO/CSO office, Universities, entific parties (fast-growers) significant contribution to the UvA’s initiative to set Economic Board up the Innovation Center for Artificial Intelligence (ICAI) -Matchmaking between fast-growers and corporates and between fast-growers and national funds 16-Brand Amsterdam as an AI and -Draw up a strategy for branding CTO/CSO office, Universities, blockchain hub -Support, co-create and possibly acquire relevant Amsterdam Marketing events. Amsterdam Blockchain Week is an example of such an event 17-Place more attention on -Determine the strategy with knowledge institutions Universities education for AI and data analysis at the table -13-
Pillar 3. Access to markets One of the biggest challenges for innovative companies in Amsterdam is how they can grow to reach international markets. Although they have global ambitions, it is often necessary to expand strategically, usually from city to city. A local ecosystem that is internationally well connected gives scaleups better opportunities for growth (faster, in more international markets). By connecting global ecosystems with Amsterdam and giving entrepreneurs the opportunity to join municipal networks, we can contribute to the growth of scaleups in other markets. Conversely, for years Amsterdam has been popular as a place of business for fast-growing international companies. amsterdam inbusiness helps these companies find their footing. The question is whether we want to distinguish which scaleups the municipality chooses to facilitate or not, and if we might not need to make acquisitions in a more targeted way to close gaps in the ecosystem. Additionally, we can support and start initiatives that contribute to increasing CEOs and founders’ knowledge on internationalization. Amsterdam Trade and Innovate Amsterdam Trade and Innovate will be responsible for a part of this pillar’s implementation, namely by assisting with internationalization. Designated for this purpose are so-called Trade Developers. These take the lead in activities within the cluster of companies with which they are aligned (Smart Cities, Tech, Health and Life Sciences, and Creative Industry) and organize domestic and international activities to support promising companies in their internationalization. The Trade Developers always organize these activities together with other parties (co-creation). They are closely connected to the companies within the clusters. Within this role, they investigate what companies need, and together with these companies they develop activities aimed at internationalization. An important part of the job will consist of organizing programmes around the international trade missions made by the Mayor and Aldermen of Amsterdam. The plan for Trade and Innovate is included in Appendix 2. Startup City Alliance Europe (SCALE) SCALE is a network of 20 European cities that collaborate to grow their local ecosystems as well as work on a European ecosystem for fast-growing companies by sharing their networks (“Peers”) and learnings (“Experiences, insights and best practices”). SCALE cities (such as Berlin, Stockholm, Barcelona, Helsinki, and Paris) are represented by their public ecosystem builders, who work on strengthening their local startup ecosystems. The goal of SCALE is to help startups grow quickly and scale globally and to ensure that cities offer them a strong ecosystem. Amsterdam is the founder of the SCALE network and will be its chair for the next two years. Below is an overview of the projects and initiatives associated with this pillar: -14-
Pillar 3. Access to markets DESCRIPTION METHOD STAKEHOLDERS 3a) Help with internationalization 18-Organize international activities -Let scaleups accompany the municipality’s trade Amsterdam Trade and Innovate for companies that want to grow and innovation missions and B&W foreign trips, / aib, MRA municipalities, RVO, internationally and organize scaleup bootcamps (a short, intensive StartupDelta, Ministry BZ and EZ introductory programme in a foreign city) that are well-curated and focused on a specific topic -Support large companies that bring (potential) scaleups from their network on trade missions. Also initiate this type of trip ourselves. -Attend several big fairs/conferences annually (such as CES, SxSW, Smart City Expo World Congress) and thereby offer scaleups the opportunity to present themselves to a large audience 19-Build entrepreneurial networks -Trade Developers build networks and set up Amsterdam Trade and Innovate/ and connect entrepreneurs to programmes in which entrepreneurs enter markets aib, MRA municipalities existing international networks and work on business cases together -Link fast growers to (inter-)national networks, e.g. Smart City, SCALE, M-ODE, etc. -Connect scaleup founders to each other by setting up Founder Networks, possibly with Scaleup Mentorship Programmes targeted at supporting international expansion 3b) Link international networks 20-Connect similar city networks -The further development and rollout of the City governments from other European SCALE network SCALE cities -Use the SCALE network to share knowledge and best practices regarding the local government’s role in the ecosystem -Set up and launch co-projects with SCALE cities aimed at connecting networks which fast growers can benefit from, such as a soft landing programme -15-
Pillar 4. Stimulate network connections The right connections and the right information are crucial for promising, innovative companies. It is in the interest of the city to support growing companies in scaling up their business. As a public party, the Municipality of Amsterdam wants to offer services that are not (yet) provided by the private sector. Several of these kinds of initiatives have been launched by Startup Amsterdam in recent years, which can continue in the new programme. a) To provide information that is relevant, correct and impartial, and not commercial. For instance, the Startup Amsterdam portal, Event Calendar, Startup Map, social media channels, newsletter, printed means of communication (such as contributions to AMS magazine, books and flyers). In addition, we continue to host foreign delegations, give presentations during events and offer masterclasses at universities. Through a renewed branding strategy, we will keep positioning Amsterdam internationally as the hub for innovative, sustainable scaleups. b) To connect with each other. This can be done in numerous ways. For example, through the startup and scaleup liaison (municipal point of contact for parties), which aims to connect parties from the ecosystem with each other (solicited or unsolicited), and Amsterdam’s role in the national initiative, StartupDelta. c) To ensure sufficient quality content. Innovative entrepreneurs seek activities and events that give them (international) access to new insights and new networks. A rich startup and scaleup ecosystem offers top-notch events with the best speakers and easy access to experts and potential partners. Amsterdam should offer high-quality international programming around subjects that stimulate entrepreneurship and increase the knowledge and skills of entrepreneurs. The Amsterdam Startup programming team will also be the point of contact in coming years for fast-growing companies, and will continue to make connections and stimulate interaction between parties. Possible initiatives are: Pillar 4. Network connections DESCRIPTION METHOD STAKEHOLDERS 4a) Communication and branding 21-Provide relevant information -Relaunch the website/portal and continue providing KvK, IN Amsterdam, Amsterdam for growing entrepreneurs up-to-date relevant information Marketing, RVO, MRA -Develop and implement a new branding strategy 4b) Connect stakeholders from the ecosystem 22-Connect promising startups -Assign the point of contact at EZ to provide follow-up Amsterdam Economic Board, aib, and fast growers with parties for this group; a startup and scaleup liaison who will Amsterdam Trade and Innovate, that can be beneficial be closely attentive to their needs universities, graduate schools -Collaborate with the Corporate Partner Network of the Economic Board -Link fast growers with knowledge institutions, e.g. by active involvement on behalf of the municipality in running projects such as IXA Next (with UvA and VU), Ready to Scale and ScaleUpNation -Connect investors to startups by co-organizing Amsterdam Capital Week 23-Connect ecosystems on a -Active contribution to StartupDelta will continue StartupDelta, MRA municipalities national level until the end of 2019 4c) Attract and support events 24-Attract and support relevant -Draft an event strategy aib, Amsterdam Conventions, events that strengthen the -Link organizers of events that are relevant to the Amsterdam Economic Board ecosystem ecosystem with potential partners/sponsors -16-
Pillar 5. Development of innovation districts The final pillar aims to set up a strategy to: a) Connect regional development in Amsterdam with the urgent spatial needs that the fast growth of startups and scaleups entail. In particular, there is a high demand from companies which grow rapidly in a very short period (for instance, because the company just received a financial boost from investors) in terms of employees. b) Stimulate collaboration by clustering activities in an intelligent manner. Research (e.g. Van Agtmael and Bakker, 2016) shows that an innovation process can be set in motion by bringing together knowledge institutions, multinationals, and startups and scaleups. More value can be achieved if products and services are created through a method based on open collaboration, exchanging information and multidisciplinary initiatives. c) Develop new sites for incubation and contemporary working environments that address the economic demands of today and the future. Startups and innovative companies look for mixed urban environments in which to settle. These are very dependent on the interaction between innovative ideas and the presence of diverse talent for further growth and development. Such needs demand very different work environments than the monofunctional office buildings of the past. To develop the knowledge parks of the future as described in the Coalition Agreement 2018, Amsterdam is working on the development of urban innovation districts through regional development and transformation. See: Space for the Economy of Tomorrow (2017, par: 4.2) In “Koers 2025,” Amsterdam’s urban growth strategy, and in the economic elaboration thereof, “Space for the Economy of Tomorrow,” the city has designated a number of areas that can potentially accommodate rapid growth, but also where the clustering of businesses and the academic realm can happen. - West Innovation Park/Riekerpolder/ Schinkelkwartier, - Amsterdam Sciencepark, - Marineterrein , - AMC-Amstel III, - VU-Kenniskwartier/Zuidas. woonwijken innovation met districts innovatie- functie -17-
Additionally, the arrival of the European Medicines Agency (EMA) will create great opportunities for the strengthening and growth of the Life Sciences and Health cluster in Amsterdam. Regional development is planned for the coming years, or has already begun, in all of these areas. The task of regional development is to connect (potential) innovative areas with “anchor companies”: leading (knowledge) institutions such as companies, scaleups, incubators and accelerators. By exploring and developing opportunities in regional development together with these anchors, the realization of potential investment and business opportunities can be accelerated, and the potential of economic clusters - optimally utilized and strengthened. A unified strategy plays an essential role in attracting, retaining and cultivating talent; but also in improving the network of innovators. Thanks to EMA’s arrival and the rapid pace of regional development around AMC-Amstel III, it seems the need for integrated innovative regional developments is high and this year is opportune to shape this further. In the initial phases of regional development, it is also important for other areas to benefit from the network, insight and ambition of innovative companies and knowledge institutions. In addition, with the development of the Schinkelkwartier area, the Riekerpolder holds opportunities to include existing anchors, such as B.Amsterdam and the Van Leeuwenhoek, in the plans for regional development and to further develop the area’s programming out of their innovative needs. Depending on the possibilities for regional development offered by the MarineTerrein area in the coming years, the developing innovative ecosystem and knowledge institutions such as the Amsterdam Institute for Advanced Metropolitan Solutions can collectively give real substance to the societal topics that the Marine- Terrein addresses in its programming. Pillar 5. Innovation districts DESCRIPTION METHOD STAKEHOLDERS 5a) Spatial needs pillars 25-Map out the spatial needs -Research in collaboration with UvA/HvA Universities of fast-growing companies in Amsterdam 5b) Regional development of innovation hotspots 26-Give existing anchors a -E.g. using a “co-creation approach,” an approach Regional development projects: more central role in regional to develop the vision through discussions with Schinkelkwartier, Amstel III, development of innovation stakeholders MarineTerrein districts - Jointly draft economic programming with anchors for future regional development 27-Seek opportunities on a -Create a joint audit for the development of a future Regional development projects: regional level for additional synergy innovative ecosystem Schinkelkwartier, and clustering -Research on a national level (in collaboration with Amstel III, StartupDelta) whether closer collaboration can be Marineterrein, achieved among several innovation districts (such StartupDelta as Delft, Eindhoven, The Hague). -18-
V. Procedures and roles With the culmination of Startup Amsterdam 2015-2018, been established through a public-private partnership – the role of the local government in strengthening the almost always with the notion that, in time, the municipality ecosystem has been renewed. Not by using top-down will take a step back. This has been successful, and we want initiatives, and thereby possibly disrupting the market, but to apply the same procedure in the new programme. by taking entrepreneurs’ needs as the starting point. How the ecosystem functions has been closely monitored over Each project has a specific collaboration model; in principle, the past four years. Where needed, connections have been the following three steps are followed: made and initiatives launched or supported. The healthy functioning of an ecosystem depends on a government 1. Determine which of the six municipal roles fit (see above); that listens well and identifies threats – one that is close 2. Determine goals, organize a budget, validate speculative to the entrepreneurs – and looks at what can be done to ideas, and adjust them contingently with (potential) improve the situation. We have listened attentively to the stakeholders at the table; stakeholders and, where needed, helped the growth of 3. If the approach has the right effect, upscale (production running initiatives or started new initiatives. This approach and autonomous growth). is currently being studied and copied by many other hubs in Europe. Some of these projects are large, expensive, and will require a longer period for implementation. The speculative ideas Yet, we still have some way to go. Building a strong startup will be validated per project and adjusted as needed. and scaleup ecosystem takes years. According to the Startups and scaleups let the numbers speak. They begin American entrepreneur Brad Feld, author of the highly small, with an experiment or test. Next, they adapt their praised book Startup Communities, it takes at least 20 years. approach and test again, and often do this several times. With this, the government’s role remains warranted. Based They only proceed to upscaling when it is certain that a on the experiences gained through Startup Amsterdam, relevant approach has an effect. This can mean that an various roles for the local government have been identified initiative may not succeed. We have applied this way of in the startup and scaleup ecosystem: thinking and working over the past four years, and we will continue to do the same in the coming period. 1. Connector: the neutral fostering and mediating of interaction between different people, actors and clusters of The ecosystem for fast growers is a coherent whole in which the ecosystem. all the puzzle pieces must correspond. For this reason, we 2. Ecosystem builder: if the ecosystem is missing something, choose to work in parallel and at the same time get started the city can help its building as a partner in action-driven with projects and initiatives. It is not necessarily important projects. to be fast in this respect, but instead to be congruent, 3. Communicator: creating awareness and positioning precise and effective. We will test the approach, budgets Amsterdam as an innovation hub and entrepreneurial city – and effects of the selected initiatives, and afterwards placing the entrepreneur at the centre. implement a well-developed plan for acceleration. 4. Service provider: (free of charge) services for the ecosystem’s benefit, no private services, not disruptive to Reporting and Data the market. To measure the effects of the projects and initiatives, we 5. Data gatherer, researcher: data is needed in order to have use data as much as possible. Recently, the municipal a good view (and grasp) of the ecosystem. Gather relevant research department OIS and data provider Dealroom. data, conduct research. co have already made a start through more effectively 6. Advocate: by talking to policymakers on a national and mapping the startups and fast growers, including SMEs. European level and representing the importance of fast We will continue to concentrate on this aspect in the new growers. programme. We want to closely monitor the numbers and employment opportunities, among other things. In These government roles will guide the design and addition, we will better chart the effects and results of each implementation of the projects and initiatives of the new individual project. programme. The commitment will differ per role in terms of content, staffing and financial resources. For instance, We will keep the city council informed with an annual the role of connector implies that this primarily requires progress report about programme developments. We will providing personnel, while in the role of ecosystem builder, offer a picture of what the current situation is per project it will be necessary in some cases to set up or support a and initiative, what the effects are thus far, and what the project with financial resources. resources have been spent on. Over the past four years, Startup Amsterdam has gained much experience working closely with private actors from the startup ecosystem. The majority of the projects have -19-
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