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New technology-based institutional forms as instruments to enhance innovation and competitiveness of SMEs

Expert Group Meeting Enhancing Competitiveness through the promotion of Innovative Approaches in SMEs Manama, 10-12 June 2002. ESCWA. New technology-based institutional forms as instruments to enhance innovation and competitiveness of SMEs.

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New technology-based institutional forms as instruments to enhance innovation and competitiveness of SMEs

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  1. Expert Group Meeting Enhancing Competitiveness through the promotion of Innovative Approaches in SMEs Manama, 10-12 June 2002 ESCWA New technology-based institutional forms as instruments to enhance innovation and competitiveness of SMEs Omar Bizri and Mansour FarahTechnology Section ESCWA NTIFs as instruments to enhance innovation and competitiveness in SMEs

  2. Contents • Introduction • What are NTIFs? • Technology parks and SMEs • What? Why? • Tenants; Roles • Examples • Technology incubators and start-ups • What? Facilities and services • Modalities; Roles; Organization • Examples • Conclusion NTIFs as instruments to enhance innovation and competitiveness in SMEs

  3. Introduction (1) • Innovation leads to productivity, competitiveness and economic growth • Dynamic system of national innovation and S and T policies to focus on: • Dissemination of new technologies • Incentives for SMEs to innovate • Lifelong learning • Investment in innovative inputs • Adequate institutional structures and networks NTIFs as instruments to enhance innovation and competitiveness in SMEs

  4. Introduction (2) • Robust cost-effective participatory approaches between capacity building institutions (universities, research centers, industry, government, investors) are needed • New technology-based institutional forms proved to be effective in creating strong bonds between complementary institutions NTIFs as instruments to enhance innovation and competitiveness in SMEs

  5. What are NTIFs? • Technopoles • Technology parks • Science/research parks • Science cities • Centers of excellence • Technology incubators • Innovation centers • … NTIFs as instruments to enhance innovation and competitiveness in SMEs

  6. Technology ParksWhat? • Property-based initiatives with formal links to universities and research institutions • Encourage formation and growth of knowledge- based businesses • Actively support technology brokering and enhance business skills in tenant firms • Provide assistance and advice for new technology-based firms NTIFs as instruments to enhance innovation and competitiveness in SMEs

  7. Technology ParksWhy? • Catalyst for local development and employment • Hasten technology transfer to SMEs • Facilitate formation of networks/linkages based on mutual needs and benefits • Provide access to research facilities • Constitute a center of innovation • Give prestige and status to tenant firms + collective identity NTIFs as instruments to enhance innovation and competitiveness in SMEs

  8. Technology ParksTenants • Firms: diverse in size, business interest, technological status and future ambitions; including start-ups • Research institutions • Universities: branches for education and training; may host the park • Incubators: related to research on the park • Standardization/calibration and testing labs • Services: gov. agencies, finance institutions, conference services, business center, … NTIFs as instruments to enhance innovation and competitiveness in SMEs

  9. Technology ParksRoles • Technological support to SMEs • Business linkages • Counseling services (financial, administrative, technical, legal, …) • Technology transfer • Local development: catalyst for enterprises NTIFs as instruments to enhance innovation and competitiveness in SMEs

  10. Technology ParksExample: Malaysia Multimedia Super Corridor • Established starting in 1996 – Multimedia Development Corporation • 15 km wide X 50 km long zone • Hosting high technology firms • Excellence in multimedia applications • Modern infrastructure with “smart” homes, schools, cards and partnerships • Test-bed for inventions NTIFs as instruments to enhance innovation and competitiveness in SMEs

  11. Technology ParksExample: Dubai Internet City • Launched in October 1999 • Free-trade zone • Hosting international ICT firms • Modern infrastructure • Web-based businesses • E-commerce regional cluster • 100% foreign ownership, 50 year land leases, tax exemptions NTIFs as instruments to enhance innovation and competitiveness in SMEs

  12. Technology ParksExample: India’s Software Technology Parks • Flourishing Indian software industry (over $5 billion export and local market) • Thousands of SMEs engaged in software development • Government initiative (1986): Software Technology Parks (STPs) initiative launched • Nearly 20 STPs established, providing: • Modern infrastructure, incl. high speed int’l gateway • Assistance in project approvals, imports/exports and bonding certification • Incubation schemes NTIFs as instruments to enhance innovation and competitiveness in SMEs

  13. Technology incubators and start-upsWhat? • Creation and nurturing of new technology-based enterprises • Means for promoting innovative firms and commercialization of research results • Job creation through start-up companies • Increase the chances of new firm survival and growth NTIFs as instruments to enhance innovation and competitiveness in SMEs

  14. Technology incubatorsFacilities and Services • Shared physical facilities and infrastructure • Management support • Access to basic business related services • Technology expertise • Guidance and support for venture capital • Legal assistance • Market information • Networking NTIFs as instruments to enhance innovation and competitiveness in SMEs

  15. Technology incubators and start-ups Modalities NTIFs as instruments to enhance innovation and competitiveness in SMEs

  16. Technology incubatorsRoles • Overall economic development • Development of entrepreneurial culture • Promotion of SME productivity and competitiveness • Transforming research results to products and services • Dissemination of technical skills • Strengthening public-private cooperation and effective utilization of capital NTIFs as instruments to enhance innovation and competitiveness in SMEs

  17. Technology incubatorsOrganization • No single organizational format: flexibility, versatility and dynamism are the key criteria • Management is responsible for policy, strategy and regulatory aspects • Main considerations: • Networking and resources • Occupancy period, rent, etc. • Graduation and follow-up NTIFs as instruments to enhance innovation and competitiveness in SMEs

  18. Technology incubatorsExample: Malaysia’s SIRIM incubator • Launched by SIRIM Berhard Institute in 1986 • Entrepreneurial and SME development • Focus on classical technologies first • Moved to advanced technologies: mechatronics, CAD/CAM, robotics, multimedia, polymers, … • Incubation process: from technical conception to commercialization over period of 1-2 years • Expansion to 8 locations NTIFs as instruments to enhance innovation and competitiveness in SMEs

  19. Technology incubatorsExample: Israel’s technology incubator programme • Started in 1990 to create a sheltered environment for nurturing innovative ideas, employ qualified immigrants and boost Israeli exports • 1990: $1.8m & 50 projects - 1999: $30m & 200 projects • Incubators: 10-15 projects each • Projects: innovative ideas leading to products, an entrepreneur with 3-6 developers • In 2000: 900 professionals employed NTIFs as instruments to enhance innovation and competitiveness in SMEs

  20. Technology incubatorsExample: Egypt’s Tala incubator • Launched in 1998 by the Social Fund for Development • Tenants working in various fields: metal sheet works, automotive parts, fiberglass, computer training and software development, assembly of electronic components, … • Business plan required for projects • Services provided: counseling, training, marketing, information provision and pro-active support of graduates • Challenges: delivery mechanisms, financial sustainability, customer-focused projects NTIFs as instruments to enhance innovation and competitiveness in SMEs

  21. Conclusion (1) • NTIFs proved to be effective instruments to implement S and T policies and strategies through: • Accelerating technology transfer • Reforming education • Facilitating knowledge acquisition by SMEs • Enhancing innovation and competitiveness of SMEs • NTIFs needed in ESCWA member countries to face socioeconomic challenges NTIFs as instruments to enhance innovation and competitiveness in SMEs

  22. Conclusion (2) • NTIFs require adaptation to technological maturity level of member countries • Partners in NTIF initiatives: government, NGOs, professional societies, academic institutions, … • Great care needed in planning, design and implementation of NTIFs • Feasibility studies, demand-side considerations, proper management, partnerships are crucial elements for NTIF success NTIFs as instruments to enhance innovation and competitiveness in SMEs

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