Recently,
Walmart has started their own tech incubator in which they will invest in the
newest technology and start-ups. Walmart has already invested in start-ups like
Jet.com and a clothing store called Modcloth. According to the CEO, Walmart is
looking to invest in the newest technology regarding virtual and augmented
reality, machine learning devices, robotics and artificial intelligence. In the
article, The Relational Organization of Entrepreneurial Ecosystems by Ben
Spigel, Spigel suggests that cultural attributes which revolve around the way
entrepreneurship is viewed within a region is important (Spigel p. 52). Keeping
this in mind, it is very interesting to see how popular tech incubators have
gotten over the past few years. Before, being an entrepreneur was not a popular
career path due to the fact that there was not much support available for induvial.
However, in todays society, it is a complete different story. What are your
thoughts about Walmart starting their own tech incubator?
I see this as a great business venture for Walmart because they have the capital required to be a major investor into their own tech incubator. Also, in reference to virtual and augmented reality, machine learning devices, robotics and artificial intelligence, they are growing at an extremely fast rate which is exciting for anyone investing capital into that area. I believe this is a smart move by Walmart and this move can instate them as another company with a large representation in the tech industry.
ReplyDeleteI think that Walmart starting their own tech incubator is a good idea in theory. Their investment in VR and AR, machine learning devices, robotics and artificial intelligence is a great idea for them as a corporation. All of these products have their current state or futures in the field of marketing products to consumers. Products that we probably won't always need. Investing in these ventures is a great way to grow there $200+ billion company even bigger and better. From a business standpoint, it is genius. When looking at the ethics behind Walmart's creation of some of their goods, not as much!
ReplyDeleteEspecially since Fortune 500 R&D investments are rapidly declining because of short-term shareholder return initiatives, this idea is especially interesting.
ReplyDeleteWith limited research budgets, companies like Wal Mart, often innovative through acquisition's of start-up companies. So the notion of opening a tech incubator could be a really effective strategy for innovation ecosystems broadly for several reasons:
1) It can give Wal Mart a competitive advantage by giving it 'first-dibs' on acquiring new an innovative retail/e-commerce technology start-ups. Thereby increasing their profits and potentially government tax-revenues.
2) Wal Mart can re-invest it's plethora of capital in emerging technology, which ultimately supports governments pushing their innovative agendas forward.
3) Unlike governments inability to make equity investments in emerging companies (as Mazzucato points out), private-sector led incubators could be more sustainable by making equity investments in companies they incubate which may generate returns that could offset costs (or a portion of) associated with running the incubator.
Seeing that they have already invested in multiple successful startups that are involved in technological advancements such as augmented reality and AI, it is a smart business venture for Walmart to start their own tech incubator. I also think that it is interesting to see how popular tech incubators have gotten over the past few years as well, especially after finding an article stating that Facebook is planning to open a startup incubator in Paris. It will be providing 10-15 independent data-driven startups desks and space, as well as access to “experienced” Facebook employees through workshops spanning multiple areas. Supporting a new generation of startups seems to be a trend going forward for these large companies, and I think that it is a smart way to utilize their companies own success in order to generate more innovation within the tech industry.
ReplyDeleteHere’s the link about Facebook’s incubator if you’re interested in learning more about it! http://uk.businessinsider.com/facebook-launches-startup-incubator-in-station-f-2017-1