Business Incubators in Cyprus

1. Business Incubatorsin Cyprus Dr Alexandros Michaelides General Director ERMIS Research & Incubator Center

2. Agenda • Cyprus New Industrial Policy – Business Incubator Programme • Business Incubators • Funding • Shareholding • Services • Procedure • Incubatees obligations • Results (2003-2006) • Problems • The future Dr A. Michaelides - ERMIS

3. Cyprus New Industrial Policy • 2002 • 12 Chapters • Strategic goals • To attract and support the development of new high tech companies • To restructure and support of the existing manufacturing companies • To attract foreign investments (mainly on capital intensive activities) • Business Incubators Programme (Ch. 1 - NIP) • International Call for Proposals (Nov. 2002) • 10 applications • 4 consortia evaluated successfully • Feb. 2003 Contracts signed Dr A. Michaelides - ERMIS

4. 4 Approved Business Incubators • ERMIS Research & Incubator Center • www.ermis.org • Promitheas Business & Innovation Center • www.promitheas.com.cy • HELIX Business Incubator • www.helixincubator.com • Diogenes Business Incubator • www.diogenes.com.cy Dr A. Michaelides - ERMIS

5. Funding • Business Incubators • £19,000 annually (~€33,000)de minimis • Buildings and Equipment • 7,5% Medium Enterprises • 15% Small Enterprises • Incubatees • £120,000 ~ €207,600 National Funds • £10,000 ~ €17,300 Own Funds • Maximum number of incubatees per incubator 15 Dr A. Michaelides - ERMIS

6. Shareholding • Entrepreneur(s) >50% • ONLY individuals • Other partners • Individuals and or Legal Entities • No limitation for non Cypriots participation • Corporate tax in Cyprus 10% (lowest in EU) • The business incubator negotiates its participation • usually ~20% Dr A. Michaelides - ERMIS

7. Services • Management support • Fund raising support • Support for the participation in EU funded projects • Support for the implementation of the research plan (access to research facilities) • Secretarial, accounting and legal support • Organisation of seminars on common business practice and according to special incubatees’ needs • Networking, Partnering • Company registration • Reception - Call center • Office furniture. • Telephone, telefax, internet connection • Printing, scanning and photocopying facilities • Meeting and presentation rooms • Library • Audio-visual equipment • Security services • Central heating and air conditioning • Messengers' services • Parking Dr A. Michaelides - ERMIS

8. Procedure • Presentation of the business idea • Submission of Business Plan / Application • Presentation of the business plan in front of the Incubator’s Evaluation committee • Business plan modifications according to evaluators’ comments • Submission of the final version of the business plan to the Ministry of Commerce, Industry & Tourism • External evaluator • Presentation of the business plan in front of the technical committee of the Incubators Scheme • Approval (with or without comments) / Rejection • Modifications/Improvements of the Business Plan according to the evaluators comments Dr A. Michaelides - ERMIS

9. Procedure(cont.) • Preparation of 3-party contract (Ministry-Incubatee-Incubator) • Establishment of a Cypriot limited company • ~ £300-400 • Signing of the contract by the company legal representative • 1st Installment (according to the budget) • Signing of the incubator’s protocol • Start of company operations • 4-9 months Dr A. Michaelides - ERMIS

10. Incubatee’s Obligations • Duration of the contract up to 24 months • Successful implementation of he business plan • 12month progress and financial report • 18month progress and financial report • Final progress and financial report • No “penalties” if the project is not successful Dr A. Michaelides - ERMIS

11. Results (2003-2006) • Applications 32 • Approvals 21 (66%) • Rejections 7 • Pending4 • Graduations2 Dr A. Michaelides - ERMIS

12. Problems • The government approaches the business ideas as a “research project” rather than new company • The external evaluator is always a member of the academic community • Delays • Duplication of evaluation process • Incubator’s evaluation – Ministry’s evaluation • Incubatees are not allowed to participate in national funded research projects • Limited research infrastructure in Cypus Dr A. Michaelides - ERMIS

13. The future • New Business Incubator programme (2006) • Business Incubator Accreditation (;) • Utilization of Structural Funds Dr A. Michaelides - ERMIS

14. ERMIS • RTD Talos • www.talos-rtd.com • Cyprus College • www.cycollege.ac.cy • Science & Technology park of Crete • www.stepc.gr • Spidernet Services Public • www.spidernet.net Dr A. Michaelides - ERMIS

15. Business Incubator 26 Offices 32 m2, Management Offices, Reception, Library, Meeting and Presentation Rooms, Bank, Canteen, Gym Dr A. Michaelides - ERMIS

16. Incubatees • D.T. Diabetes Research Technologies Novel nutraceutical compounds that alleviate and prevent diabetic complications • Pythagoras Engineering New type of vertical multistage pump for difficult applications of low discharge and high manometric head • Atlantis Information Systems Technologies Integral building control and energy management, telematic services routed via the Power Line Network • MEDSONIC High intensity focused ultrasound (HIFU) system, which is guided with magnetic resonance imaging (MRI) in order to treat brain tumors • AGENCOR Information Systems Generic alert system Dr A. Michaelides - ERMIS

17. Incubatees(cont.) • F.P. Fire Protect Car High Tech total solution Car fire protection • Toy Robot Systems Structural educational toys • EMBIO Diagnostics Biosencors for medical diagnostic systems • DACTOLIVE Opto-electronical Identification Systems using novel dactyloscopy technology Dr A. Michaelides - ERMIS

18. Thank You ! Dr Alexandros Michaelides General Director ERMIS Research & Incubator Center www.ermis.org 22559559ermis@ermis.org