Open Innovation in Accelerator Programs

Abstract

Successful startup growth can bring economic and social benefits to society. Entrepreneurs, however, face many challenges, often related to a lack of resources, knowledge and network. To overcome these challenges startups can participate in an accelerator program, organised by a business accelerator. Here, startups receive support, mainly through network introductions and workshops, to enhance their business capabilities. However, where business accelerators induce developments to a startup’s business exactly and to what extent they add to the contribution of the startup’s personal network was yet unidentified and determined in this research.

As a business accelerator aims to induce business-related developments, startups within this research are examined on developments in their business model. These developments are induced by external sources that originate from outside the startup’s organisational boundaries, either from their personal or the accelerator’s network. This represents an inbound open innovation process that induces developments in a startup’s business model.

The research follows a comparative case study design, comparing 23 European, energy-related startups. Fifteen accelerated to eight non-accelerated. The author collected qualitative data to identify all business model developments that were induced by external actors. The business model developments were categorised according to the business model canvas components. This enabled the author to create a structured overview of all developments that were induced, to which startups, by which actor and whether this actor originated from the accelerator or the startup’s personal network.

Business accelerators only contribute meaningfully to the key partners and key activities components of startups through their mentors, their legitimacy and fundraising support. For key resources, participation in an accelerator program is beneficial, but startups are in principle capable of developing this component with their personal network. In the other components accelerator program participation did not make a difference. The most influential external actors appeared to be the accelerator itself, investors and universities.

The results show that the inbound open innovation process, facilitated by an accelerator program, provides additional developments on the left side of a startup’s business model canvas, compared to developments induced by their personal network. This refers to the internal management of their organisation.

Business accelerators do contribute to the development of startups that participate in their program, but they are not decisive for startup success. As they only facilitate additional developments in two components they do not provide as much value as they aim to.