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Science/Technology Parks and Incubators in ESCWA Member Countries: Models and Criteria

Expert Group Meeting Technology Capacity Building Initiatives ESCWA - 1-3 November 2000. ESCWA. Science/Technology Parks and Incubators in ESCWA Member Countries: Models and Criteria. Technology Section - ESCWA. Contents. Introduction: the need for S and T initiatives

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Science/Technology Parks and Incubators in ESCWA Member Countries: Models and Criteria

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  1. Expert Group Meeting Technology Capacity Building Initiatives ESCWA - 1-3 November 2000 ESCWA Science/Technology Parks and Incubators in ESCWA Member Countries: Models and Criteria Technology Section - ESCWA Sience/Technology Parks and Incubators: Models and Criteria

  2. Contents • Introduction: the need for S and T initiatives • Science/technology parks • Case studies: • Sophia Antipolis Technopole • Cambridge Science Park • Technology incubators • Case study: Israeli Incubators Program • High technology industry clusters • Criteria for enhancing success Sience/Technology Parks and Incubators: Models and Criteria

  3. Introduction: the need for Science and Technology Initiatives • Investment in new technologies has tangible socioeconomic impact and leads to a dynamic system of innovation • Clear policy objectives are needed • Coordination of efforts between government, private sector and NGOs • New models: technology parks & incubators, innovation centers and industry clusters Sience/Technology Parks and Incubators: Models and Criteria

  4. Science/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 Sience/Technology Parks and Incubators: Models and Criteria

  5. Science/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 Sience/Technology Parks and Incubators: Models and Criteria

  6. Science/Technology ParksTenants • Firms: diverse in size, business interest, technological status and future ambitions; include start-ups, outward/ inward looking firms. • Research institutions: independent, corporate, public, university labs,… • Universities: branches for education and training; may host the park. • Incubators: related to research on the park. • Services: gov. agencies, finance institutions, conference services, business center, … Sience/Technology Parks and Incubators: Models and Criteria

  7. Science/Technology ParksManagement • Important role in success/failure of park • Determines park’s character • Should be based on tenants needs • Should have clear objectives • Should play a “technology broker” role • Should take into consideration the park phases: institutional and entrepreneurial Sience/Technology Parks and Incubators: Models and Criteria

  8. Sophia Antipolis Technopole • First distinguished technopole in Europe (1969) • Model for economic development • 2,300 hectares; 1,200 firms; 21,000 engineers; 5,000 researchers; university; engineering schools; research centers; … • Center of excellence in new technologies • Innovation center Sience/Technology Parks and Incubators: Models and Criteria

  9. Sophia Antipolis TechnopoleSectors of activity Sience/Technology Parks and Incubators: Models and Criteria

  10. Sophia Antipolis TechnopoleEvolution of institutions Sience/Technology Parks and Incubators: Models and Criteria

  11. Sophia Antipolis TechnopoleEvaluation • Model of a “Science City” followed by the Japanese and Edinburgh University • Not very innovative in the beginning, it has become an internationally recognized center • Large number of start-up companies and new jobs • Development of new specialized training and research programs • Socio-professional associations and clubs Sience/Technology Parks and Incubators: Models and Criteria

  12. Cambridge Science Park • A truly entrepreneurial high technology center • Aims at increasing interaction between Cambridge University and high-tech industries • 64 companies on the park; 4,000 employees • Cluster of nearly 1,200 high technology companies in the Cambridge area employing nearly 35,000 people Sience/Technology Parks and Incubators: Models and Criteria

  13. Cambridge Science ParkSectors of activities Sience/Technology Parks and Incubators: Models and Criteria

  14. Cambridge Science ParkEvaluation • The park has been at the origin of virtually all new companies in the area • Symbol of the innovative milieu: “Cambridge Phenomenon” • Success due to: quality investment, quality science and quality people • Negative aspect: takeover of small companies by multinationals Sience/Technology Parks and Incubators: Models and Criteria

  15. Technology incubatorsWhat? • Creation and nurturing of new technology-based enterprises • Means for promoting innovative firms and commercialization of university research • Tools for job creation through start-up companies • Increase the chances of new firm survival and growth Sience/Technology Parks and Incubators: Models and Criteria

  16. Technology incubatorsObjectives • Overall economic development • Economic restructuring • Addressing specific economic development problems • Creating employment opportunities • Commercializing new technologies • Property and real-estate development ventures Sience/Technology Parks and Incubators: Models and Criteria

  17. Technology incubatorsServices • Shared physical facilities and infrastructure • Access to basic business related services • Technology expertise • Guidance and support for venture capital • Management support • Market information • Networking Sience/Technology Parks and Incubators: Models and Criteria

  18. Technology incubatorsOrganization and Management • 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 Sience/Technology Parks and Incubators: Models and Criteria

  19. Israeli Incubators ProgramObjectives • Started in 1990 under the supervision of the Office of the Chief Scientist at the Ministry of Industry to: • Create a sheltered environment for nurturing innovative ideas • Employ qualified Soviet immigrants • Boost Israeli exports Sience/Technology Parks and Incubators: Models and Criteria

  20. Israeli Incubators Program Organization • Steering Committee for supervision, guidance and control of incubators • Professional director, Policymaking Board and a Project Committee for each incubator • High caliber professional as members • Each incubator can handle 10-15 R&D simultaneous projects Sience/Technology Parks and Incubators: Models and Criteria

  21. Israeli Incubators Program Projects • Should have innovative technological ideas • Entrepreneur + team of 3-6 • Budget should not exceed $172,000; grant: 85% Project approval: experts + project committee + steering committee • Agreement signed to ensure developer’s rights & reimbursement to the State • Entrepreneur carries out ideas to the stage of product definition and proven feasibility; learns how to operate as commercial venture; after graduation, can obtain State support and outside investment Sience/Technology Parks and Incubators: Models and Criteria

  22. Israeli Incubators Program Achievements • January 2000: • 592 projects graduates, employing ~1900 people • 52% went into production • Investments of $50,000 - $27 million • Total investments: $320 million (1.3M per project) • ~40 start-ups leave the incubators per year • Fields of activity: software, electronics, telecom, medical equipment and biotechnology • Massive repositories of potential ideas Sience/Technology Parks and Incubators: Models and Criteria

  23. Framework for initiativesCreation and establishment of initiatives • Factual and balanced feasibility study for any initiative, taking into account national priorities • Prerequisites for an optimal solution include: • desirable working and living environments • proximity to a major university or research institution • steady supply of skilled manpower Sience/Technology Parks and Incubators: Models and Criteria

  24. Framework for initiativesPolitical, legislative and regulatory environments • National/local political backing for initiatives needed • National S and T strategy, specifying areas of priorities • Intellectual property rights laws • Special status should be defined for science parks, incubators and innovation centers • Prominent role for private enterprises • National programs to organize and promote initiatives such as incubators and technopoles • Multinational initiatives Sience/Technology Parks and Incubators: Models and Criteria

  25. Framework for initiativesFinancial aspects • Adequate financial support is a key factor in the success of S&T initiatives • Indirect support from governments through investment laws and tax incentives • Private sector, and financial institutions should be encouraged to provide venture capital Sience/Technology Parks and Incubators: Models and Criteria

  26. Framework for initiativesManagement • Qualified managers and board of directors • Adopt clear objectives and monitoring modalities • Establish advisory boards in incubators involving public and private stakeholders • Screening of tenants and periodic assessment • Seek national and international linkages • Establish strategic alliances for a global market • Adapt management to maturity level of national S and T institutions • Strive for top-notch S and T institutions in parks Sience/Technology Parks and Incubators: Models and Criteria

  27. Networking • Networks are essential for the success of initiatives especially in ESCWA/Arab countries, where resources are often limited • Linkages between incubators, start-up companies and investors are necessary for the good functioning of the incubator and survival of emerging companies. Sience/Technology Parks and Incubators: Models and Criteria

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