From The Netherlands to Canada: International Entrepreneurship

Could you briefly introduce yourself and the career path you chose?

I am a doctorate in nuclear physics and an entrepreneur. I founded INCAS³, a Dutch based private research institute, and am the founder and CEO of Ingu Solutions, a Canadian based company. After obtaining my doctorate from the University of Groningen, I began working in R&D at KPN. This was during the height of the 1990s telecommunications industry, the period when technologies like voice over IP started. After six years I switched from industry to education, and became Dean of the School of Computer Science at Hanze University of Applied Sciences in 2004. Four years later, I started INCAS³, a high tech sensor institute, with the ambition to solve the world’s most challenging sensing and monitoring problems. Ingu Solutions came later in 2014, to commercialize our activities in Canada. In my career path there was also a brief period when I was a consultant. However, as a consultant you are primarily on the sideline, only advising. The great thing about being an entrepreneur is that you get to make your own decisions. Of course you bear the risks and consequences, but you are able to create your own path.

Could you describe to our readers the relationship of INCAS³, with its subsidiary Ingu Solutions in Canada? How do they compare?

Simply put, INCAS³ is responsible for the research and Ingu Solutions handles the business side. Together, they create synergy. It is in the essence of bringing leading edge research that identifies unsolved issues, and devising solutions by creating products and services. These then create a business opportunity, which Ingu Solutions focuses on. The products also need to be tested in the harshest conditions, which ensures their reliability. Canada offers the perfect location for testing, with its abundance of oil, mining and remote areas. The businesses themselves are therefore very connected, but the atmosphere between the two is completely different. INCAS³ was funded with 19 million euros, whereas Ingu Solutions was fully a start-up. When you begin with money it creates a vastly different atmosphere compared to when you start from scratch. Ingu Solutions has encompassed a truly entrepreneurial attitude in its operations. Having that additional pressure of trying to grow the company makes a difference.

Could you elaborate on the foreign investment climate in Canada?

Canada and The Netherlands are very similar in terms of the business climate and culture. In the last couple of years both countries have reconnected and continue to create significant export opportunities for SME’s working in either country. Furthermore, Canada is an excellent entry to the North American continent, while the Netherlands has a similar position in Europe.

What are some of the considerations that had to be analyzed when picking a location to setup the subsidiary? Why Waterloo?

Initially we opened an office in Saskatchewan, given that most of our clients are there. We intended to grow this office with product management and development capabilities, until we were invited to the Waterloo region by Canada’s Technology Triangle (CTT), an organization which promotes trade and investments to this Ontario region. They gave us a tour and on that same day we decided that this would be the place for our new office. Waterloo combines three unique features that influenced our decision: Human capital (students), technology industry (manufacturing companies) and investment climate (investors). These are very important for establishing a business. The area comes the closest to another Silicon Valley that I’ve ever seen. In general, the brochure is always nicer than reality, but Waterloo delivered as promised.

Growing internationally requires you to learn very quickly about foreign economies. What are some differences you find operating in Canada compared to The Netherlands? 

There is the obvious difference with the Dutch directness and Canadian politeness. However, in Canada that does not always mean you will get what you are looking for. In the Netherlands you always know what is going on. You just need to understand the mechanism of Canada; different systems of business are at work. In terms of laws, there are some interesting differences. In The Netherlands a notary is responsible for all of the arrangements, but in Canada this is not the case, meaning contracts need to be much more detailed. For instance, there are some interesting clauses that can be used, such as the “shotgun clause”. This clause activates when two shareholders want to separate, but can’t agree on the price. The clause then basically states if one shareholder offers x dollar for the shares of the other one, the other one can buy the first one shares for the same price. It forces a fair deal. Additionally, when compared to Canadians, Dutch employees are also in a sense spoiled. In Canada there are no such things as permanent contracts so there is less security, and holiday pay means you actually get paid when you have holiday and not, like in the Netherlands, that you get an extra salary in May.

Your operations are largely revolved around the commercialization of intellectual property. Can you explain this process?

Our business model involves developing products that have an application already. In the classic model, a university has a research strategy and afterwards tries to raise market interest for their inventions. This is not the case for us. We look at the market and see what it is interested in and set out to develop a product to satisfy this need. It is self-fulfilling. However, we have to be cautious about being too far ahead of the market. Take for example Voice over IP technology. Even though the technology was there, it took over a decade for the market to catch up. As for intellectual property, we currently own 6 patents. However, you have to think of why we own these. It is not that we want to protect the IP. If a large corporation was using this IP we would not be able to compete in a legal battle. It is more a defensive measure to ensure another company does not block our ability to carry on researching.

You are a board member on The Netherlands- Canada Chamber of Commerce. Can you explain the position and what the organization aims to achieve?

The Netherlands – Canada Chamber of Commerce (NCCC) promotes trade, investment, industry, commercial services and cultural affairs between Canada and The Netherlands. The organization supports both Canadian and Dutch companies in both countries with a focus on small and mid-size companies. If an owner wishes to relocate to Canada, it would be very time-consuming to establish the business alone. This is where the members of the NCCC can help; there will always be a member of the NCCC who has had a similar experience and is happy to share. Furthermore, the NCCC organizes business and networking events, e.g. on soft landing in Canada or on CETA, the Comprehensive Economic and Trade Agreement between Canada and the European Union.

Do you have any advice to share with Tilburg University students?

Be careful taking very successful business people as an example. Do not try to use what Microsoft or Facebook have done as a model to set up a business, as there is no formula for success. I never read those entrepreneurial books they sell. You need to do your own thing; it will get you there eventually. Follow your passion and not the money, unless your passion is money. People will notice that you are not engaged with what you are doing and they will be reluctant to do business with you. If people feel your passion, like what you are doing and you are good at it, you will succeed.