We use the term ‘IDE’ to mean startups and scaleups that are innovation-driven, from ICT to biotech and medical devices. MIT developed the term IDE to distinguish these businesses from traditional SMEs.
They typically face negative cash-flows early on as they invest in innovation, characterised by a “J-curve” over time. IDEs form an important element within a rapidly evolving, open knowledge economy.
IDEs have common characteristics and face distinct challenges, requiring unique policy solutions and representation.