UNESCO Team Visit: Prince Abdullah Bin Abdulaziz Science Park (PASP) Project.

1. UNESCO Team Visit:Prince Abdullah Bin Abdulaziz Science Park (PASP) Project. KFUPM 22nd-25th February 2003

2. Effective Strategic Management; Route to Science Park Success Harry Nicholls ADCAL

3. Credentials • Experience of Strategic Management as Chief Executive, Chairman, Professor and Consultant • Consulting Experience of Science Parks in more than 35 countries • Synthesis of the above and the application of supporting computer-assisted tools

4. Harry Nicholls was the Managing Director , 1982 - 1992, of Birmingham Technology Ltd., the managing company of Aston Science Park Birmingham, United Kingdom

5. Entrepreneurs in the Incubator (BIC) at Aston Science Park

6. Some Questions/Issues • Science Park success criteria • Time-scale - Piero Formica’s 70 years for maturity in the Bologna Packaging industry, • experience at Aston • Scale of competition from Asia Pacific • Government Policies

7. Familiar Success Criteria • technological factors usually pre-eminent in people’s initial judgement • then physical environment - pretty buildings, landscaped setting • inter-action between tenant companies and host university • level of support - subsidy from local, regional and national government

8. My Success Criteria • wealth and welfare creation • through the successful establishment and facilitation of the growth of knowledge-based, high technology companies, ( which is the main mission of science parks) • achieved through quality of managementin tenant companies and the park managing company

9. Aston Science Park Mission To create wealth and long term employment in the City of Birmingham by encouraging the establishment and and facilitating the rapid growth of knowledge-based companies through the provision of business, management,and technical support, venture funding, flexible premises and leases to meet changing requirements.

10. Lessons from Experience • the importance of the commercialisation of technology as a contributor to the process of wealth creation • the importance of science parks as a vitally dynamic force in economic development

11. Lessons from Experience • the need to accept that science parks are a long-term developmental process - not a "quick-fix" solution • the need for clarity of objectives • the vital importance of the quality of management

12. Lessons from Experience • the need to tailor the objectives of a park to the technological, political, social and business realities of the area, country in which it is situated • the need to reconcile conflicting interests of various stakeholders

13. Mission • strategic vision • strategic adaptability • clarity of objectives • success criteria • conflict resolution

14. Examples of Successful Experience • Birmingham & the Lunatics • Stanford and Silicon Valley • Utah, MIT • The Cambridge Phenomenon • Chalmers Institute • Nancy and its Technopôle

15. Birmingham • Merchants of Light • Industrial Revolution • Community of “movers & shakers” • Prototype for Silicon Valley?

16. Stanford • Hewlett Packard established 1938 • First science park 1951 • Real estate development • Silicon valley - not planned • US government, NASA, DoD, money • Cheap labour - Vietnamese, Mexicans • Fertile soil of university, entrepreneurship & venture capital

17. Utah • US national science foundation pilot initiative • Wayne Brown - champion, academic & entrepreneur • Now several hundred US innovation centres

18. MIT • Route 128 • Spin-offs, estimated by the Bank of Boston in 1989 to be worth $10 billion and 300,000 jobs annually to Massachusetts • 25 companies per year • MIT research record and reputation not damaged, but enhanced, by this process • Only 3% of inventions suitable to Spin-off

19. Cambridge • Cambridge Instruments • Cambridge Science Park • The Cambridge Phenomenon • Family tree of companies linked to 14 departments of Cambridge University - +400 • spin-offs and spin-offs from spin-offs - 20,000 employed • Science Park only indirectly involved - key factor is the supporting Community as in Stanford

20. Cambridge 2 • St. John’s College Innovation Centre • emphasis is on building-in mechanisms, that will encourage innovation and entrepreneurship • University activities represent less than 15% of the total high technology business activity in the area which now includes more than 700 companies with a combined turnover in excess of £2 bn.

21. Chalmers • Chalmers early organisation for collaboration with industry • Further developments in Chalmers co-operation with industry • Uddevalla shipyard closure - a technology transfer case • What are the lessons?

22. University spin-offs, SMEs, and the science base • Technology originator • Entrepreneur • the R & D organisation • Venture Investor

23. Path to Maturity • attainment of self-sustaining growth and re-creation • tenant companies • science park complex

24. Technological Innovation Strategic Selling Managing Innovation High Tech Marketing Total Quality Management Managing Know-How Concepts& Principles Concurrent Engineering Entrepreneurship & Innovation Quality Function Deployment Thriving on Chaos Business Process Re-Engineering In Search of Excellence Complex Process - mass of conflicting advice

25. Technological Innovation Strategic Selling Managing Innovation High Tech Marketing Total Quality Management Managing Know-How Concepts& Principles Concurrent Engineering Entrepreneurship & Innovation Quality Function Deployment Thriving on Chaos Business Process Re-Engineering In Search of Excellence Enterprise Support Systems & Processes...

26. Typical Problems • gap between strategic planning and product planning • strategic plans “shelved” & not implemented • excessive product orientation • weak market orientation • lack of effective processes for transition and innovation

27. Critical Challenges • Provide significant value and benefits: • through innovative & unique products • at a price customers are willing to pay • by innovating from within • Become Market-Oriented through: • strategic product planning • continuous product assessment & enhancement • representing R&D as product plans

28. Strategies for Innovation (SFI)

29. Project Results • Plans & Models that can be Readily Implemented • Trained Managers • Common Framework for Assessing Success Potential • A Strategic Management Support System

30. Importance of Synergy • Identify strategic gaps in the region’s technological capability and eliminate them • Identify strategic strengths in the region’s technology and reinforce them • Make use of the multiplier, accelerator and demonstration effect

31. Path to Maturity • Attainment of self-sustaining growth and re-creation • Relationship between companies • Relationship between companies and universities and research institutes

32. Incubator Technopolis Wider Economy Science Park Technopôle

33. Desired Technology Profile • Chosen technologies do not have to be “leading edge” or “state of the art” • Technologies that fit with the potential for business success of the area • Profits from a successful venture can be used to develop higher level technology • Technology for its own sake likely to result in commercial failure

34. Technology Push Versus Market Pull • Solution in search of an application • Market need requiring technological answer

35. Technology Mission • Exploitation of technologies from abroad • Why invent what already exists ? • It is the use of technology that is important not its development • Exploitation of research from universities and other institutions within region

36. Summary • markets, markets, markets • not technology, technology, technology • the aim is the creation of wealth • the aim is not technology for the sake of technology • the aim is notsatisfaction for the engineer or scientist but satisfaction for the manager meeting the needs of customers profitably

37. Prestige Aston Science Park building now occupied by successful former BIC tenant FAME Computers 70% of Science Park buildings occupied by graduates from BIC