GRANT'S DESI ACHIEVER

CAN ENTREPRENEURSHIP BE TAUGHT?

Prof Ajay Agrawal at a lecture at Balliol College at Oxford.

By SHAGORIKA EASWAR

 Professor Ajay Agrawal was named as a member of the Order of Canada for his contributions as an educator, scholar, mentor, and entrepreneur to enhance Canada’s productivity, competitiveness, and prosperity through innovation and entrepreneurship.

Of all the hats he wears, educator probably describes him best, he says.

“It encompasses everything I have spent my adult life doing.”

First at UBC and then MIT, with a faculty job at Queens, and as resident scholar at Harvard before moving to University of Toronto, and as a visiting professor at Stanford, all other facets of his work are related to his being an educator.

Renowned for his work in the economics of innovation, specially artificial intelligence, Prof Agrawal holds the Geoffrey Taber Chair in Entrepreneurship and Innovation and is a professor of strategic management at the Rotman School of Management. He is also the founder of the Creative Destruction Lab (CDL) and co-founder of Next Canada.

There’s an interesting story behind why he chose to call the non-profit organization that delivers an objectives-based program for massively scalable, seed-stage, science- and technology-based companies Creative Destruction Lab.

“The famous Austrian economist Joseph Schumpeter was the first to introduce the role of the entrepreneur in the model of economic growth,” says Prof. Agrawal. “Without them, large companies would become stale, he said, and spoke of the ‘perennial gale of creative destruction as a constant force’ putting pressure on companies to keep them innovative. I wanted to capture the essence of that.”

CDL works in 20 streams including AgTech, Artificial Intelligence, Blockchain, Climate, and Space technology, allowing founders to learn from experienced entrepreneurs. Started in Toronto, it has expanded to sites at five Canadian and seven international universities. 

Participants come from around the world. These are scientists who have the big invention but lack a business background and want help in turning it into a financeable business.

The successful commercialization of cutting-edge science and technology achieved through the program has led to the creation of over $28 billion in equity value. CDL alumni companies include Ada (Toronto), Notch Therapeutics (Vancouver), and Pixxel Aerospace (Bengaluru, Karnataka).

And there are ones that fly in from India. Prof Agrawal cites the example of Dhruva Space.

“They used to fly in every two months for our space program and are very big fans of CDL. They are based in Hyderabad and came to us very early in their journey. They have raised over $10 million and have 50 people working for them, building satellite platforms and earth station antennas, etc. They’re an impressive group.”

Success stories abound.

Nuha, another CDL alumni, created a biodegradable material to replace single-use plastics. Her company Erthos is a Canadian manufacturing success story.

San Francisco-based Atomwise use AI to enhance drug discovery.

A woman in Montreal, frustrated by the tears in nylons, created a company called Sheertex.

“Hers was a discovery in material science,” says Prof Agrawal. “She basically invented unbreakable pantyhose, using a fibre similar to that used in bullet-proof vests. You can put a brick in it and swing it around your head and it wouldn’t tear. She has raised around $100 million and her range is sold all over North America.”

He is co-founder and co-chair of two annual conferences on machine intelligence. Two words that send shivers down the spine of many people, rasing the spectre of robots taking over the universe. Prof Agrawal addresses those concerns by saying that some of those concerns are actually warranted.

“I know people are concerned. For example, Elon Musk is very concerned. In the short term, the biggest concern is the ability of technology to create deceptive material. AI can imitate my voice, the way I speak. You could receive a call and think it was from me. AI can also create a video of me that would have you believe you were seeing me on a video call. This creates an ‘authentication crisis’. Think of wealthy people who don’t have to go into banks to transfer large sums of money, they just pick up the phone and call their money managers. But now, it could be someone else calling.

“You can do the same thing in text, write a resignation letter, for instance, in the exact writing style of someone. The possibilities of deception are very real.

“But on the upside, technology can make people much more productive. We’re heading into a population crisis across the Western world. The ratio of people of working age to that of people not of working age is getting low. France wants to move the retirement age back by two years because they don’t have enough people of working age to step into vacancies left by those who retire.”

Prof Agrawal is also co-founder of Next Canada, a not-for-profit organization that delivers three programs designed to support the training and personal development of young entrepreneurs.

But can entrepreneurship be “taught”?

“I sure hope so, “says the man who was named to The Globe and Mail’s Power 50 list of the most influential Canadians in business, with a laugh. “I’ve spent a good part of my life doing this! Seriously though, some people are definitely more predisposed to it, that is for sure true. However, what I teach is entrepreneurial mindset. A way of thinking. How to pursue goals even when you don’t have many resources. A relentless pursuit of opportunities without regard to resources currently controlled. We don’t want to hear excuses about not having the money, equipment, etc. True entrepreneurs attract people, talent, capital, to reach their goal. It’s the mindset, and can apply to any field, not necessarily what we think of as ‘business’. It could be a teacher with a vision for a new program at school. Or a doctor looking to help patients in innovative ways.”

“Set high aspirations for yourself and then pursue those with energy and commitment.” – Prof Ajay Agrawal (left) with his friend Michael.

Prof Agrawal describes a Zoom call he was on with a former student of his entrepreneur course the day before this interview.

“He started a company, BenchSci, a few years ago, that is now worth between $500 million and $1 billion has 400 employees, many of whom were on the call. Meeting people who have transformed their trajectory in life, who are building something that benefits society, and who are happy and productive, that is so rewarding.”

India is often described as a country with the largest number of startups. Prof Agrawal sees India as a country full of entrepreneurs. Of people creating their own source of income. Some are very small, but still entrepreneurial.

He himself didn’t inherit the entrepreneurial gene.

“My father was an engineer and my mother studied literature and was interested in the arts, so no, no entrepreneurial instincts whatsoever!”

It was a few mentors that sparked his interest. He mentions Haig Farris and Jerry Agi in particular.

Farris taught a course in tech startups at UBC where Agrawal was an engineering student. Agi, who had immigrated from Estonia and set up a business, gave him his first job.

“I was a junior engineer, but he also introduced me to the business side of the company, writing proposals, applying science to business.”

 His parents were supportive, because he was an engineer.

“Had that not been the case, the conversation might have been different!” he chuckles.

His father had come to Canada from Bhopal, India, on a Commonwealth scholarship to do his PhD in structural engineering. Though as someone who did his PhD in Canada his father didn’t face the challenges many new immigrants come up against, there were other difficulties. He was a vegetarian and unlike now, there were few vegetarian options in restaurants – people thought vegetarian meant chicken or fish.

“My mother was born in Canada and is of Scottish-English background and inter-racial marriages were not common,” says Prof. Agrawal. “When they started dating, there was some tension. So much so that her parents asked her to move to a different city, saying that if she still wanted to marry him after a few years, they would then give their blessing. So that’s what they did. It was, eventually, a happy ending, but with a bumpy start.”

The happy ending included a visit by her parents to his parents in India. Both sides got along so well that they kept up a regular correspondence for many years.

Prof. Agrawal’s wife Gina is the well-known author of historical fiction, whose latest novel is The Virgins of Venice.

“There’s a lot of research that goes into her books,” he says, his pride evident.

Their daughter is carving her own path at university, studying philosophy and economics. Their son is young enough that he trying lots of different things.

He encourages everyone who looks to him for tips to succeed to set high aspirations for themselves. And then pursue those with energy and commitment.

“It sounds very basic, but though there’s no reason why a person can’t have ambitions, dream or vision, I find many people don’t set an ambitious goal and then feel underwhelmed by where they landed. Or, they set the goal, but didn’t follow through or gave up. Remember that even people who don’t look like they faced any hardships, have – we just can’t see it.”

He shares an insight. That often, people who come from the most difficult backgrounds are the most successful because they aren’t easily daunted. 

“I sometimes worry about my kids in this aspect. Have they faced enough discomfort, have they developed the muscle to handle life’s ups and downs?”

He describes the crisis among undergrads who come to university having had such a smooth ride that they can’t handle even minor setbacks.

“Ten years ago or so, students rarely asked for an extension for handing in their work and if they did, it was necessitated by real, serious reasons. Now they ask for an extension for the most frivolous reasons. And expect to get it!

“They haven’t learned to plan for those bumps. I find immigrants are the best in that, they can work around hardships, they have developed the resilience.”      

• Grant’s is proud to present this series about people who are making a difference in the community. Represented by PMA Canada (www.pmacanada.com).