Keywords: incubation, networking, startups

Main users: Resident companies or institutions

A collaborative open innovation program formed by CHJ and Cisco CRDC (China Research& Development Center) to share resources, co-incubate and co-invest high potential growth startups, and to establish joint labs for developing innovation capabilities. This incubation service has been effective through several model cases, and a sustainable partnership between STP-corporation is maintained.

The first purpose is to strengthen long term competitiveness of CRDC through external open innovation practice. Like many corporations CRDC is grappling with urgent needs to break out the traditional business model for innovation mindset and capability among business sectors. The traditional CRDC Thinkubation program is an internal innovative practice composed of technology domain communities, university joint research, and ideas to reality innovation projects. However, the fact that Thinkubation is an internal innovation community sets limits to the scope and strength of innovation. CRDC is still in want of more external resources and sustainable innovation on a broader open innovation platform. The second purpose is to integrate and optimize resources. Optimization of business functions help to ensure the most valuable resources are used to maximum effect. Though cross-sector partnership between a CHJ (an STP) and CRDC (corporation), business functions and advantages are aligned. The third purpose is to provide built-to-suit ""incubation-outsourcing model"" service for startups and SMEs for increasing profitability and revenues.

For the first time for CHJ, sectors, resources and advantages in CHJ and CRDC are connected in 3 directions to harness collective creativity: joint incubation and outsourcing model means mentorship are combined to coach SMEs, and SMEs become subcontractors of some Cisco outsourcing projects joint financing schemes to SMEs means that Cisco corporate venture and CHJ Angel Fund and CHJ Oriental Foundation have mutual priority to become follow investors in VC activities building up of joint lab requires co-planning of budget and joint implementation. Creativity of this innovative solution is fourfold. First, it is a pioneer open innovation project to form a self-supporting ecosystem. In this AOI, CHJ, Cisco CRDC and SMEs come from heterogeneous background and expertise in conjunction with neighboring resources, interacted and interplayed as a living system to drive innovation. Secondly, Venture Capital and knowledge are proactively mobilized. Co-sharing of mentorship ensures that entrepreneurship expertise is grasped by SMEs. The mutual priority in following VC investment makes sure that CHJ and Cisco are synchronously exchanged with information. Thirdly, Cisco alumni and CHJ alumni are connected across industries and sectors, bringing in more fast growing ICT, IoT startups. Additionally, building up a standard Cisco joint lab is another innovative contribution to benefit every SME in the area.

The program has two phases. Phase 1 is the launch of built-to-suit incubation service. SME screening starts in early 2016. Among the 40 applicants, 5 SMEs were rated A+ and chosen to be qualified incubatees. They moved into the 3rd floor of CHJ Global Innovation Hub (a working space covering a total area of 1700 square meters) where built-to-suit incubation such as equipment, facility and mentorship are provided. Phase 2 is building up a joint lab and started from mid 2017. A budget over 3 million rmb is setup. The joint lab aims at providing the most up-to-dated facility for the communal use of resident programs. We have witnessed positive, sustainable impacts in every phase. The built-to-suit incubation especially coaching and financing schemes effectively helped SMEs increase profitability and revenues. One model case is VC investment and mentorship towards Horen Plastics. In 2017, CHJs Angel Fund and Oriental Foundation work with Cisco Investment division for selection of growing SMEs, and Horen Plastics was chosen. CHJ and Cisco together invested angel round to Horen Plastics. Apart from the investment, Horen Plastics received Ciscos expertise coaching on developing wireless ICT modules. Besides, the ""incubation and outsourcing"" model innovated a tri-win business case. Tethrnet producing ICT solutions was spun out of CRDC in 2015 then joined the program and moved into the CHJ Global Innovation Hub. On one hand, together with CHJs incubation service and CRDCs support in advanced labs and equipment, Tethrnet grows faster and was able to be the subcontractor of CRDCs outsoucing programs. On the other hand, in return the three parties find a way for Tethrnet to pay back and play to its advantages--when CHJ and other incubatees need ICT service such as cloud computing, Tethrnet becomes their supplier.

Cisco CRDC is a main user to improve open innovation competitiveness. Participant incubatees who benefit from and contributing to the program such as Tethrnet and Horen are also primary users. And when joint lab is completed, users of the lab are all resident SMEs in the whole building of CHJ Global Innovation Hub, not only incubatees on the 3rd floor. Last but not least, CHJ is a big user to bridge the gap between technology corporations and SMEs.

The initiative is promoted by CHJ innovation center and Cisco CRDC. On this sharing platform, CHJ provides mentorship, working space and infrastructures. CRDC provides manpower, professional expertise and advanced lab facility. Besides, investment sectors in Cisco mobilized with CHJ Angel Fund and Oriental Foundation to invest high potential SMEs.