How to Build and Sustain Momentum for Rapid International Growth
by Professor Erkko Autio QinetiQ-EPSRC Chair in Technology Transfer and Entrepreneurship, Imperial College London.

While visiting Nova UCD, Professor Autio delivered a Master Class focusing on international growth for SMEs and issues specific to early and proactive internationalisation. This was a follow on from his lecture the night before 'Build your own waves' - entrepreneurial strategies for building and harnessing innovation momentum, given on a glorious spring Friday morning in Nova UCD’s delightful facilities.

There are three key questions to determining one’s path to internationalisation.

1. Should I internationalise?
2. When should I do it?
3. How should I do it?

To be successful one’s internationalization strategy must be positively motivated and driven by a growth objective.  A company should be able to leverage its unique strengths and build new competitive advantage.

A defensively motivated internationalization strategy is not likely to succeed: one that is responding to:

• Competitive pressure (as opposed to driving it),
• Excess capacity
• Declining domestic sales
• My neighbour’s actions: my neighbour is doing it

You must know where your advantages will be – don’t bungy jump in the wrong places!

The conditions to build advantage demand:

• Unique technology
• A global market place
• Access to valuable resources scattered across borders
• Market to market synergies

If a business is to enjoy advantage over its competitors it must stand apart from them and it must be clear that the advantages one has domestically are transferable.  Be aware of any positive domestic idiosyncratic experience that may not be transferable.

We can leverage advantage when we have :

Strong distinctive strengths in our home base
A robust and scalable model
Clear evidence of customer demand beyond our home market

Remember also that earlier adaptors are rarely representative of the market.

When should I internationalise?
Timing is not an inconsequential decision.  As a parallel to human behaviour, what one does early in life will influence how one sees oneself and how one behaves later.  Do it early, learn, survive and grow. Consider whether you see yourself as an Irish or international company, for instance and how will that impact your performance on an international market stage.  Paradoxically, internationalization feeds faster domestic growth: it demands greater learning and awareness of competitors in a broader market place.

How do I internationalise?
Systematizing the process is essential.

You need to conduct rapid market research and create a roll out action plan.  While you can manage in some instances from your domestic base, in other cases it will require a local market presence. Professor Autio likens a country roll-out process to conducting an orchestra.

Ask yourself:
Do you have a global vision?
Are you internationally experienced?
Do you have a strong international net-work?
Do you employ pre-emptive technology or marketing strategies?
Do you rely on unique intangible assets?
Are you able to co-ordinate your business world-wide?

In our current economic environment internationalization must be one of the fundamentals for Irish technology companies looking for a long-term sustainable business model.