Technology Parks

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Technology Parks Technology IncubatorsThe
Future for Africas ICT Industry
By Kojo Anyane-Yeboa Technology Park and
Incubators Evangelist
ICT for Government Conference at the Kofi Annan
Centre on 26 27 January, 2005
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Welcome
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Contents

• Introduction
• Technology Parks (TP)
• Technology Incubators (TI)
• Emerging Economies The Role of TPs TIs
• Framework for Initiatives
• Steps for Establishing a Park
• Conclusion

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Introduction
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Introduction
Today, the whole world is undergoing IT-based
socio-cultural changes characterised by

• globalisation
• the cyberspace (virtual not geographical)
• dependence on science, technology, and knowledge
• a demand for high level of training and education
• dramatic changes in work patterns
• elevation of networks
• the spawning of globapolitans (half physical,
  half virtual humans, living mostly in airports
  and in websites)

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Introduction

• In this new emerging economic order, information
  and knowledge are
• fundamental bases for wealth creation
• considered primary resources for the operation of
  the economy
• generating opportunities for
• the creation of wealth
• rapid economic development, and
• the means to facilitate global competitiveness

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Introduction
To be able to compete on the global market,
Africa has to transform an agriculture-dominated
economy into a service-sector economy driven by
high value-added information and knowledge-based
technology.
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Introduction
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Introduction
Technology Parks and Technology Incubators could
be the vehicles by which Africa could create
wealth, dramatically grow its economies, and
thereby offer credible competition to the
developed world.
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Technology Parks
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Technology Parks
Technology Parks what are they?

• property-based initiative with formal links to
  universities and research institutions
• encourage formation and growth of knowledge-
  based businesses or high value-added firms
• has a steady management which
• actively support technology brokering and enhance
  business skills in tenant firms
• provide assistance and advice for new
  technology-based firms
• International Association of Science Parks (IASP)

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Technology Parks
Links to University or Research Inst. provides
access to

• faculty and staff on a consultative basis
• graduate and undergraduate students through
  internships
• university facilities, intellectual property, and
  proprietary technology
• university library system

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Technology Parks
Links to University or Research Inst. provides
access to

• on-site customised training and education, and
  continuous professional education
• contractual use of university-owned scientific,
  engineering and computing equipment, and
• adjunct faculty positions for employees of park
  tenants

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Technology Parks
TPs are also referred to as

• science parks
• research parks
• technopoles
• technology precints
• science cities
• innovation centers
• etc

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Technology Parks
Aim of Technology Parks

• To increase the wealth of its community by
  promoting the culture of innovation and the
  competitiveness of its associated businesses and
  knowledge-based institutions.
• International Association of Science Parks (IASP)

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Technology Parks
To enable these goals to be met, TPs

• stimulate and manage the flow of knowledge and
  technology amongst universities, RD
  institutions, companies and markets
• facilitate the creation and growth of
  innovation-based companies through incubation and
  spin-off processes and
• provides other value-added services together with
  high quality space and facilities.

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Technology Parks
What is innovation, anyway?

• Innovation is all the entrepreneurial attitudes
  that aims at constantly adding value to all the
  different elements of a companys activities
  i.e. products, production processes,
  methodologies, management, marketing, etc

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Technology Parks
Why do we need TPs? They

• are tools for wealth creation
• are catalysts 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, status, and collective identity to
  tenant firms

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Technology Parks
Entities (tenants) that live in TPs are

• 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,

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Technology Parks
TPs provide tenants with (1)

• High-quality and adequate infrastructures (space,
  landscaping, communications and transportation
  accesses, good location, good facilities and
  buildings, etc.)
• Good value-added services (telecommunication
  infrastructures, quality access to Internet,
  videoconference, consulting services, commercial
  support to the companies, etc.)
• Technology / knowledge monitoring and
  observatory, helping their clients to be updated,
  to know what their competitors are doing, to know
  where are the sources of new and relevant
  technologies and knowledge, etc.

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Technology Parks
TPs provide tenants with (2)

• Good common services (office facilities, meeting
  rooms, parking, cafeteria, restaurant, hotel
  accommodation, security, etc.).
• Efficient links to University and Research
  institutions, to the researchers, lab and
  equipment facilities, etc.
• Incubation units, to encourage and facilitate the
  creation of new local companies.
• International links and contacts to facilitate
  the access of their companies to international
  networks.

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Technology ParksExample Malaysia Multimedia
Super Corridor
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Technology ParksExample Malaysia Multimedia
Super Corridor

• established in 1996 Multimedia Development
  Corporation
• 15 km wide X 50 km long zone
• hosts high technology firms
• excellence in multimedia applications
• modern infrastructure with smart homes,
  schools, cards and partnerships
• test-bed for inventions

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Technology ParksExample Indias 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 intl
  gateway
• assistance in project approvals, imports/exports
  and bonding certification
• incubation schemes

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Technology Incubators
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Technology Incubators
What are TIs?

• They are support corporations, usually set up by
  a government, that give fledgling (novice)
  entrepreneurs opportunities to develop their
  innovative technological ideas and set up new
  businesses to produce exportable commercial
  products. Eventually, these fledging businesses
  are commercialised.

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Technology Incubators
What is the rational behind TIs?

• Early stage of business development is the
  riskiest.
• Commercial money does not take this kind of risk.
• The government therefore assumes the risk by
  funding the incubators to prevent their good
  ideas from coming to naught.

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Technology Incubators
What is the rational behind TIs?

• TI is an effective means of promoting business
  growth by effectively linking talent, technology,
  capital, and professional know-how.

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Technology Incubators
Technology Incubators

• create and nurture new innovative
  technology-based enterprises by
• raising financial investments
• promoting, and
• finding strategic partners for them
• provide ways of commercialising research results
• provide jobs through start-up companies
• helps overcome bureaucratic obstacles
• increase the chances of a new firms survival and
  growth

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Technology Incubators
Technology Incubators assist the innovative
entrepreneurs with (1)

• superior, flexible, shared physical facilities
  (office space, parking lot), utilities, and
  infrastructure (communications, other tools) in a
  prestigious location, with competitive leasing
  terms
• management, secretarial, and administrative
  support
• raising capital

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Technology Incubators
Technology Incubators assist the innovative
entrepreneurs with (2)

• formulating orderly business plans guidance and
  support for venture capital
• professional guidance (legal and regulatory,
  financial, marketing, advertising, technological,
  procurement, etc.)
• opportunities to network

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Technology incubators and start-ups Modalities
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Technology Incubators
The Economic Roles of TIs

• 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

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Technology Incubators
TI Organisation

• no single format vision, flexibility,
  versatility and dynamism are the key criteria
• management is responsible for policy, strategy
  and regulatory aspects
• main considerations
• networking and resources
• occupancy period (normally 2 years, rent, etc.)
• graduation and follow-up

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Technology incubatorsExample Malaysias 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

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Technology incubatorsExample Israels
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

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Emerging Economies The Role of TPs and TIs
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The Role of TPs and TIs
TPs and TIs are created in emerging economies to

• actively support and facilitate the creation of
  new innovation-based local companies
• increase the competitiveness of existing local
  businesses
• provide sufficiently attractive space and
  infrastructure for foreign industrial investments

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The Role of TPs and TIs
1. Actively supporting and facilitating the
creation of new innovation-based local companies
leads to

• steady employment
• high entrepreneurial and management culture
• education, and ultimately
• a sound and stable economy!

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The Role of TPs and TIs

• Innovation leads to productivity, competitiveness
  and economic growth through
• the dissemination of new technologies
• provision of incentives for SMEs to innovate
• lifelong learning
• investment in innovative inputs
• adequate institutional structures and networks

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The Role of TPs and TIs
2. Providing sufficiently attractive space and
infrastructure for foreign industrial investments

• helps to attract foreign investments by offering
  a good framework of local suppliers (for
  international industries) and good facilities

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Framework for Initiatives
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Technology Incubators
TI Critical Success Factors

• factual and balanced feasibility study
• desirable working and living environment
• availability of on-site business expertise
• steady supply of skilled manpower
• access to financing and capitalisation
• good tax incentive duty-free imports
• provision of entrepreneurial education
• formal links and proximity to a university or
  research center.

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Framework for Initiatives
Political, Legislative, and Regulatory Environment

• national/local political backing for initiatives
  needed
• national strategy, specifying priority areas
• 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

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Framework for Initiatives
Financial Aspects

• adequate financial support
• indirect support from governments through
  investment laws and tax incentives
• venture capital from the private sector, and
  financial institutions

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Framework for Initiatives
Management

• 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
• strive for top-notch institutions in parks

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Framework for Initiatives
Networking

• Networks are essential for the success of
  initiatives especially in emerging 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.

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Steps for Establishing a Park
Phase 1 Planning and Advocacy

• Clearly define the mission of the park.
• Select founding partners that subscribe to the
  mission.
• Generate support for park at relevant state
  institutions (Ministries of Communication and
  technology, Trade Industry, Education, etc),
  Universities, the Academy of Science.
• Win for the idea dynamic companies from the
  software development and information technology
  sector.

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Steps for Establishing a Park
Phase 2 - Construction

• Select a site for the park.
• Prepare a feasibility study on the building
  reconstruction and modernization for the purpose
  of hosting a park.
• Prepare financial projections based on the
  start-up costs, investments, and revenues of the
  park.
• Develop different financing options on the basis
  of the number of tenants, the rent and
  maintenance costs of the incubator and park.
• Secure start-up financing.

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Steps for Establishing a Park
Phase 3 - Implementation

• Establish a screening/selection procedure for
  incubator projects and park tenants.
• Incorporate the park and appoint a managing
  company.
• Set up the incubator.
• Market the park.
• Select projects for the incubator and tenant
  companies for the park.

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Conclusion
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Thank You!