January 31, 2003
Contact: Harvard Business School
Harvard Business School Receives $25 Million
from Venture Capitalist Arthur Rock
Gift will support School's faculty, research, and course development in entrepreneurship and establish Arthur Rock Center for Entrepreneurship.
BOSTON -- Arthur Rock, a member of the Harvard Business School MBA Class of 1951 and a pioneering venture capitalist who helped form numerous startups that went on to become twentieth-century success stories, including Intel Corp., Teledyne, Scientific Data Systems, and Apple Computer, has donated $25 million to the School to fund the establishment of the Arthur Rock Center for Entrepreneurship.
The gift, the largest directed toward a particular academic program since the School's founding in 1908, continues Rock's extraordinary commitment to the support of research, teaching, and course development at HBS, which offered the country's first graduate course in entrepreneurship more than a half century ago.
In 1981, Rock and his classmate, Fayez Sarofim, funded the first professorship at HBS in the field of entrepreneurship. From 1997 to 2002, he served as founding chairman of the Advisory Board of the School's California Research Center, located in the heart of Silicon Valley. This facility - one of five research centers and offices that Harvard Business School has established around the world -- has produced some 100 case studies focusing on the creation and management of new and developing enterprises in California and neighboring states.
"The future of this nation lies with new ventures," says Rock. "They supply the new projects, the new technologies, and the new jobs. Harvard Business School has long been at the forefront in understanding the many facets of the entrepreneurial process - from the intricacies of finance to the art of leadership - and I am delighted to be able to do something that supports those efforts both now and for the future."
"Arthur Rock epitomizes the mission of the Harvard Business School," says HBS Dean Kim B. Clark. "We are dedicated to educating leaders who make a difference in the world. Through his foresight, wisdom, and hard work, Arthur has made possible companies and products such as microprocessors and computers that have provided thousands of jobs, created enormous value, and changed our lives in the workplace and at home.
"This very important gift," Clark continues, "supports an area of intense interest among our students and alumni and comes at an inflection point in the School's history as we proceed with a Capital Campaign that aims to raise $500 million by 2005. All of us in the HBS Community are forever grateful to Arthur for his generosity and help as we guide the School to meet the demands of the new century. We will rename South Hall, the building that houses our entrepreneurship faculty, The Arthur Rock Center for Entrepreneurship in his honor."
In addition to supporting a variety of faculty projects, the new fund will also be used to provide fellowships for MBA and doctoral students, underwrite symposia and conferences on entrepreneurship, and develop new publications and Web sites to extend the reach and impact of the School's work in this field.
Born in Rochester, New York, in 1926, Arthur Rock graduated from Syracuse University after serving in the U.S. Army and entered Harvard Business School in 1949. He began his business career two years later as a security analyst in New York City before joining the corporate finance department of Hayden, Stone & Company, where he focused on raising money for small high-technology companies.
An opportunity to help a startup near San Francisco led to his first trip to California and the founding of Fairchild Semiconductor, an enterprise that became hugely successful. Eager to be in the center of all this entrepreneurial activity, Rock moved to California in 1961 and formed the partnership of Davis & Rock, which worked with Max Palevsky to build Scientific Data Systems, a pioneering scientific computing company that flourished in the 1960s. He also helped Henry Singleton to create Teledyne, which quickly grew into one of the most successful technology conglomerates in the history of American business.
Setting out on his own in 1968 to form Arthur Rock & Company, he worked with Robert Noyce and Gordon Moore to launch Intel and with Steve Jobs and Steve Wozniak to start Apple Computer. Described by one publication as "the best of the risk-taking, high-tech rollers," he was featured on the cover of Time in 1984.
Entrepreneurship at Harvard Business School traces its roots back to 1937, when Professor Georges Doriot, who would later found American Research and Development, one of the first venture capital firms in the United States, began dealing with entrepreneurial issues in his second-year Manufacturing course. In 1947, Professor Myles Mace developed a second-year elective titled the Management of Small Enterprises to meet the demands of HBS students eager to start their own businesses after World War II. A number of new courses followed under the direction of other faculty members, and in 1972, the School launched an Executive Education offering known as the Smaller Company Management Program (now the Owner/President Management Program) that is dedicated entirely to entrepreneurial issues.
Beginning in 1981, under the leadership of Sarofim-Rock Professor Howard H. Stevenson, the School's entrepreneurship experts developed a framework for future teaching and research that saw entrepreneurship as a special kind of approach to management rather than an innate trait. "It is the pursuit of opportunities beyond the resources a person has under his or her control," Stevenson explains.
Currently, all first-year students in Harvard's two-year, full-time MBA Program take a required course called The Entrepreneurial Manager, while nearly all of the 900 students in the second-year of the program typically choose to take at least one course from a broad selection of more than 20 entrepreneurship electives. Since 1999, the 30 faculty members in the School's Entrepreneurship Unit, which now comprises eleven full professors and six faculty with long-term appointments as professors of management practice, have developed nearly 600 pieces of course and curricular material, including nearly 400 teaching cases. More than 1,800 cases on myriad aspects of entrepreneurship are now available from Harvard Business School Publishing.
"Arthur Rock is part of the history of American business and entrepreneurship," says Professor Stevenson. "With his most recent gift, he has left a lasting legacy that will help future generations of HBS students follow in his path."
Founded in 1908 as part of Harvard University, Harvard Business School (www.hbs.edu) is located in Boston and offers full-time programs leading to the MBA and doctoral degrees, as well as a portfolio of more than 40 Executive Education programs. With a faculty of over 200 distinguished scholars, the School is dedicated to educating leaders who make a difference in the world. Its core focus is to shape the practice of business, build enduring knowledge, and effectively communicate important ideas to meet the challenges and opportunities of the 21st century.