Shattering Status Quo

An Innovative Discussion with Jim Coonan. In advance of the upcoming Karnopp Petersen Business 20/20 Driving Innovation Executive Breakfast Seminar, Suzanne Bell sat down with event moderator, EDCO’s Venture Catalyst Manager, Jim Coonan.

Jim knows a thing or two about innovation in Oregon. He’s financed, fostered and managed Oregon entrepreneurial innovation for more than two decades. He was a principal architect of the Oregon Angel Fund, which has provided early stage companies with over $15 million in equity capital since its inception in 2007. Jim has served as the board chair of the Oregon Entrepreneur’s Network (OEN), the largest entrepreneurship assistance organization in the state, and on the advisory boards for Mount Hood Equity Partners and Northwest Technology Ventures. Jim also serves on the recently created Oregon Growth Board, which is focused on access to capital for emerging growth companies. He’s been board chairman and majority shareholder for a number of successful businesses in Portland. In addition, Jim worked on the commercialization of ideas coming out of the Oregon University System and was involved in creating the signature research center ONAMI.

When we recently sat down with Jim, now his final year of his term as EDCO’s Venture Catalyst Manager. He reflected on the progress Central Oregon has achieved in driving innovation. I asked him:

“Innovation” is one of the most used buzz words in the industry.  However, it seems difficult for some to define. How would you define innovation?

In the business world, it is any unique product or service. Innovation is often related to scalable ideas. If you open a pizza parlor and it is just another restaurant, then it does not really involve innovation. But if you have an idea that will revolutionize how pizzas are sold, then that has the potential of being a scalable idea.  Scalable ideas are those that can translate into big opportunities with a broad reach of sales and distribution.

What’s different now than in past that may or may not favor innovation or entrepreneurship?

I think we are on the cusp of even greater innovation and entrepreneurship. There are a number of factors, including technology advancement, that now allow entrepreneurs to create businesses outside of the traditional centers of innovation like Silicon Valley. Technology advances and a new philosophy of idea development (sometimes referred to as the lean start-up model) have reduced the cost and time to develop new ideas. The old venture model involved committing millions of dollars to find out if an idea was viable. It may not be totally fair but I equate this to Harry Potter where Harry just believes he can go through the brick wall and emerge in a new world. Most of these ideas created in this model cratered and returns were generally lousy. The new model uses the smallest amount of capital and time to validate whether the idea has merit or not, then iterating to the best solution or failing quickly. This way, ideas can be carefully vetted before heavy investment.

Steve Jobs once said that innovation doesn’t require lots of R&D dollars, it requires passion, people and the ability to “get it”.  What do you think is the most common limitation when it comes to innovation?

Self preservation and the inertia of status quo are the largest limitations to creativity in any organization. However, I feel the best places to find innovation is with small, emerging businesses. An entrepreneurial spirit fosters creativity and idea generation. It includes the willingness to risk all in pursuit of a vision. I like the comparison that Chris Capdevilla offers. Chris is one of the founders of FoundersPad, our local technology accelerator. Chris equates entrepreneurs with salmon who against all odds swim upstream to reproduce. An entrepreneur needs that “all in” passion and drive to succeed. There are lots of great ideas but few successful ideas that come to fruition.

Is innovation limited to entrepreneurs?

Well, of course not. Innovation is happening all the time.  For instance, within higher education in Oregon at our signature research centers such as ONAMI, OTRADI and Oregon Best. It’s also in our national labs like PNNL in Washington state. In the food industry, there is a new model for beef distribution evolving that paves the way for ranchers and farmers to work directly with consumer sales and marketing. It can happen anywhere.

From an economic development standpoint, however, someone, at some time, needs to commercialize that innovation and that involves the entrepreneur.

Learn more about Karnopp Petersen’s Executive Breakfast series at www.kpbusiness2020.com or follow them on twitter @KPBusiness2020.

The event is scheduled Friday, May 3 at the Tower Theater in Bend.  Doors open at 7:15 am. for networking and coffee.