Climate Technology Program | In Brief No. 6 Creating a Hub, Creating a Buzz: How to Attract the Best and Brightest for Climate Innovation in Developing Countries As activity ramps up in climate innovation for developing countries, organizations are finding that attracting quality talent and companies to such efforts is both a key success factor and one of the most intractable challenges in nascent clean tech sectors. Boosting the profile of an organization that supports climate innovation greatly helps draw the diverse sources of expertise needed to enable bottom-up climate solutions. This brief examines lessons from the World Bank’s seven Climate Innovation Centers on setting up buzzworthy hubs to attract top talent and companies in emerging clean tech markets. Introduction The Need for Top Talent The World Bank Group’s Climate Technology Program (CTP) Initiatives for climate innovation in developing countries set out in the late 2000s on the ambitious task of growing have launched one after another in the past few years, with the nascent, and sometimes nonexistent, climate innovation announcements filling many an in-box. While it seems like sectors in developing countries heavily impacted by climate substantial attention is directed at the space, the crowding change but having the potential to grow a vibrant clean tech in of international players has, as yet, brought only mixed private sector ( figure 1 ). Recognizing that local capacity is success and results. The reasons for this are myriad, from needed to develop appropriate solutions, the CTP launched sparse local infrastructure to competing initiatives to seven Climate Innovation Centers (CICs)—locally owned stubborn local cultures. Developing countries typically lack institutions that support clean tech ventures in Kenya, Ghana, the financial institutions, supply chains, policies, and risk- Vietnam, and other countries. Since then, the CICs have friendly spirit to spur native clean tech start-ups—aspects met several milestones but also grappled with challenges that no one organization or initiative can alter on its own. endemic to resource- and capacity-poor environments. This Furthermore, well-intentioned international players launching In Brief discusses insights the program has gleaned along initiatives end up competing for talent, companies, and its journey, with a focus on the importance of top talent to eyeballs in an already resource-poor space. Finally, there are an organization’s success, and how to establish oneself as a often cultural barriers at the grassroots level as well as at buzzworthy hub to attract that talent and other resources. the top organizational levels to new climate solutions. For example, target consumers may be unwilling to adopt new Figure 1. The Climate Technology Program In Brief No. 6|Page 2 technologies, or climate change may rank low on a country’s willing to break new ground and take the CEO’s lead, and political agenda. These issues—inertia to new developments, have generated enough buzz in the community to catch the and competition for a meager talent pool amid bare-bones potential CEO’s interest. infrastructure—can conspire to cripple new organizations. A champion CEO can then help attract a competent team, as A new entrant on the local climate innovation scene needs well as determine the structure of that team – crucial elements substantial resources to overcome these challenges. Creating in the ultimate success of an organization. A harmonious team a high profile is one of the most effective ways to attract will be able to swiftly deploy the vision of the CEO, as well as those resources, both capacity-related and otherwise, as well add their own insights and strengths to enrich that vision. as promising companies to invest in. In a positive feedback Of course, a climate innovation organization would be nothing loop, successful alumni companies and an effective leader without star alumni. Breakout companies both demonstrate and team will in turn boost the organization’s image and the strength of the organization’s program and prove the reach. viability of their market. The right CEO can help attract promising companies, as well as the strong support staff Attracting the Best and Brightest to nurture them. The organization should also take care in Finding a capable leader and team for the organization, selecting their firms. A firm selection strategy that targets as well as the right companies to support, are some of the quality over quantity is a more sustainable route for climate key steps an organization can take to increase its chance of innovation: most clean tech firms are based on hardware and success. have high upfront capital costs and long paths to maturation. This requires substantial levels of investment—something A competent chief executive officer is one of the most highly not feasible with a large cohort and limited resources. So, a sought assets to any new organization, but for climate small but quality cohort has the greatest chance of success. An innovation in a developing country, a top-notch CEO is even alternative option is a funnel of support: a wide applicant pool more indispensable because of the particular challenges gets trimmed with successive hurdles, paired with increasing of the space. The ideal CEO for such an organization is a support, to surface the best companies. Those few companies “champion,” defined as someone who is a highly respected then receive the full services of the organization. fixture in the local ecosystem with the social clout, passion, and leadership skills to fight for a cause. This type of CEO has the deep knowledge and connections in the local community Building a Buzz to procure resources and favors outsiders would be hard- Through both victories and failures, the CICs have realized the pressed to gain. This is especially pertinent in emerging importance of building a buzzworthy hub to address these markets where there is little formal infrastructure in place to issues. Here are lessons learned on a successful approach— obtain these resources. This CEO will also, in turn, help boost namely, establishing a presence with high-profile partnerships, the organization’s brand and attract a talented team in a using the right marketing channels, timing events to keep positive feedback loop. momentum, and building a strong brand for the organization. Because of the high demand for champion CEOs, it is typically hard to woo one to a new, to-be-proven 1. Establish Your Presence Early with High-Profile organization. Several institutions will be offering high Partnerships and Events salaries, attractive perks, and talented workforces to lure the As a new entrant to the climate innovation arena of a country, CEO—in the local scene and abroad. To differentiate itself nothing builds buzz better than the debutant hosting a from the competition, a new entrant must present a worthy conspicuous event with a reputable local partner. The new mission to the potential CEO, and the chance to expand organization will gain considerable credibility by its affiliation his or her social capital and reputation. The organization with the local partner, and attention gained from the event ought to position its brand as a locally owned organization In Brief No. 6|Page 3 will kick the organization into high gear as the publicity spurs energy, agribusiness, and water sanitation categories put it client applications. While new organizations may be hesitant on the map for emerging entrepreneurs, where winners would about publicizing themselves early, they should not doubt go on to work with the KCIC. Over the next few years, as the their readiness for the spotlight: the benefits gained from KCIC continued to partner with Business Daily on “The Next hosting events outweigh any qualification concerns. Big Thing,” the event proved to be a valuable pipeline of new Kenya CIC Reaps Rich Rewards with High-Profile Partnership clients and it kept the KCIC’s profile visible in the region’s innovation network. Lesson learned: never underestimate In 2013, Kenya’s Nation Media Group approached Kenya CIC the impact of a great partnership and hosting events when it (KCIC) about co-sponsoring an event, “The Next Big Thing,” comes to raising your profile and building clientele. along with their publication, Business Daily. The event was a high-profile, annual conference gathering entrepreneurs 2. Tailor Your Marketing Channel to the Local across all sectors to compete for financial prizes, support, Context and visibility. The KCIC staff hesitated at first, concerned that they weren’t well established enough to take on such a role. Crafting a great message is essential, but it will have low Nevertheless, they signed on. It was a good decision. That first impact if it can’t reach the target customer—a common year, the competition drew more than 2,000 applications across issue organizations face in a new environment. International 13 categories. The KCIC’s role in sponsoring the renewable players entering a regional market may be tempted to use the communication channels they are familiar with, but they must Scene from Caribbean GreenTech Startup Bootcamp in Barbados. © The Caribbean Climate Innovation Center In Brief No. 6|Page 4 tailor their methods to regional norms. While social media or workshops. This way, incoming companies will channels (such as Facebook, Twitter, and so on) dominate experience a seamless transition from their first in some countries, television, radio, or even word of mouth interaction with the organization, to acceptance into may be more relevant in other countries. It is part of a the program, to beginning the program. Of course, new entrant’s due diligence to find the primary mode of things go awry with time lines, especially when working communication and broadcasting in the local context. in an unknown space. As there is no preexisting trust between players and clients to fall back on when this Caribbean CIC Boosts Reach by Tailoring Marketing Channel happens, it’s important to ensure that all stakeholders In early 2014, the Caribbean CIC (CCIC) put out a call are consistently and reliably informed on the timing of for proposals for their first proof-of-concept (PoC) next steps, funding, and other details. One of the most competition. They used the usual channels: social media, likely crimps in a planned launch is a delay—either due local newspapers. They received a paltry number of to finalizing the business design, availability of funding, applications, mainly from Jamaica, even though they availability of mentors, or all of the above. If the delay targeted all of the Caribbean countries. Bemused, the CCIC drags on, organizations can lose the trust of companies staff consulted with the local team, who had a hunch. and other stakeholders if they are not realistic with As it turns out, radio is a much more popular channel in timing early on. It is better to set the right expectations the region. The team put together the messaging for a than to disappoint stakeholders down the road. radio jingle, which played for a month throughout the CICs Learn the Importance of Timing islands. The radio campaign was paired with informational sessions held by local hub partners scattered throughout In December 2014, the Vietnam CIC (VCIC) organized a the Caribbean, where participants were directed by four-day boot camp for prospective applicants. Twenty- the jingle to get more information. The hub partners four clean tech start-ups worked on their product made sure interested applicants got all the information strategies, business models, and marketing pitches, they needed. The results were impressive: the team graduating from the boot camp with the expectation subsequently received more than 200 applications for the of joining the to-be-launched VCIC in six months. PoC competition from all across the Caribbean islands. As Unfortunately, the VCIC was far from being launched. staff noted afterward in interviews, “It really paid off in It took two more years for the VCIC to obtain the getting a lot of the word out.” Knowing the right channels necessary grants and settle on their business structure for your regional context can be decisive in whether or not to launch. In the meantime, several start-ups expressed your message gets heard. disappointment in delayed funding and support, and donors were not happy. In Africa, the Ghana CIC (GCIC) experienced similar troubles; an extended delay in 3. Timing is Everything launching, mostly due to comparable bureaucratic While successful CIC activities generated valuable issues, meant irritated clients. Fortunately, in both lessons, perhaps the best lessons came from forays countries most of the clients still found it worthwhile to that didn’t quite go as desired—a common occurrence wait for the CIC’s eventual launch. But the CTP learned when establishing an unprecedented sector in the its lesson: when launching a new CIC, have all the developing world. A key lesson was on the importance requisite components settled (structure, grant funding, of realistic timing (particularly, to prevent possible mentorship, and services) before drafting the start-ups, delays and keep momentum going) and having a pro- and be very transparent with them on the process and active communications strategy. When establishing possible timing. It’s better to be pragmatic and wait a fresh venture, organizations should have all major to market a new launch than disappoint start-ups with components, including business plans and funding, premature hype. settled before embarking on major marketing efforts In Brief No. 6|Page 5 The Ghana Climate Innovation Center held a “Green Innovators Bootcamp” at Ashesi University College in February 2015. It was an intensive two-day program for potential green businesses with innovative ideas, concepts, and products. © InfoDev/The World Bank Group 4. Make Your Brand Strong Morocco CIC’s Search for Brand Buzz Last but not least, keep your brand strong. One of the risks of The Morocco CIC (MCIC) hosted a big conference with partnering with other organizations, especially better-known Morocco’s Cluster Solaire and government partners to kick local players or even a consortium of players, is losing one’s off their launch in 2014. While the event was successful, it visibility in the mix. Thus, great partners can come with both didn’t deliver as much buzz for the MCIC as desired. One of the blessings and nuisances. A new player should work to keep reasons may be the crowding of high-profile partners: they its name prominent, especially when co-hosting high-profile tended to overshadow one another at times. For example, events. Otherwise, it forfeits one of the biggest rewards Cluster Solaire’s logo was prominently displayed on conference for hosting the event: increased name recognition (box 4). materials, whereas MCIC’s logo was crowded with several other Additionally, annual events are productive because they logos at the bottom of the page. If an organization puts in the keep one’s brand in the public discourse year after year. With effort for a highly visible event or publication, they should annual events, an organization can build up a cohort of past make sure their branding is clearly defined. participants, creating a network that draws more people and perpetuates the brand on its own. In Brief No. 6|Page 6 Conclusion When the CTP set out to build these CICs, it had a daunting task: establish climate innovation networks and services in countries barely familiar with the sector but at most risk to the ravages of climate change. Through both successes and drawbacks, the centers have gleaned indispensable insights on how to engender interest—and thus gain resources—for a self-sustaining clean tech organization in these challenging contexts. Key lessons include cementing one’s presence with high-profile partnerships and events, drawing the best capacity through a worthy cause and bottom-up development, communicating through the right local channels, the importance of timing, and making the brand strong. By incorporating these lessons, a new climate innovation organization may embed itself deep enough in its local ecosystem to obtain and direct the considerable resources the developing clean tech sector needs to grow and thrive. The Climate Technology Program’s Jonathan Coony poses during a visit to the Morocco Climate Innovation Center (MCIC). The MCIC, partnering with the Moroccan Solar Energy Agency (MASEN) and Cluster Solaire, in 2014 hosted the first Climate Technology Forum in the region dedicated to clean technologies and local small and medium enterprises in. © InfoDev/The World Bank Group In Brief No. 6|Page 7 Climate Technology Program In Brief About Us The Climate Technology Program (CTP) In Brief series is a publication of the World Bank Group’s Trade and Competitiveness (T&C) Global Practice and infoDev. infoDev’s CTP is managed by the Innovation and Entrepreneurship Unit of T&C. CTP focuses on the growing opportunities of the clean technology sector in developing countries. Through a global network of seven Climate Innovation Centers, the program provides local entrepreneurs with the knowledge and resources they need to launch and scale their innovative business solutions to climate change. CTP In Brief is a series of knowledge briefs highlighting important aspects of the CTP global and in-country operations and research. Learn more at www.infoDev.org/climate. © 2017 The World Bank Group Acknowledgements 1818 H Street NW This brief was prepared by Rosa Lin with contributions from Jonathan Coony, Diletta Doretti, and Mike Ehst. More on the Climate Washington, DC 20433 Technology Program and the CICs can be found at www.infodev.org/ Website: www.infodev.org climate. Email: info@infodev.org Twitter: @infoDev Facebook: /infoDevWBG