Science

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Science Technology Parks A New Era for
Sustainable Technology-Based DevelopmentPresente
d atIEEE Saudi Arabia Education Society
ChapterVenue Chamber of Commerce Industry,
Eastern Province

• By
• Sadiq M. Sait
• Member, Prince Abdullah Bin Abdulaziz Science
  Park
• King Fahd University of Petroleum Minerals
• KFUPM, Dhahran
• Tuesday, 1 March, 2005

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Presentation Outline

• Part I A Brief Overview of Science Parks
  Business Incubators
• Part II An Example of a Science Park
  at a University in Saudi Arabia
• Part III Progress and Status

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Mission of the University

• A Balance between three key elements
• Generation of new knowledge.
• Passing on this knowledge to future
  generations.
• Serving the needs of industry (business)
  and the community.

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History and Trend

• Earlier, most (if not all) universities were
  reluctant to embrace collaboration with industry
• Around 1980s, Universities began trying to
  contact industry (a little earlier in some
  industrialized countries such as the UK)
• The science park concept was an unfamiliar one
  and companies were mainly attracted to it by a
  desire to be near to the University's scientific
  research
• Around 1994, Universities began contacting
  companies through Science Parks (Research Parks)
• Now, there are networks of universities and
  networks of Science Parks
• With time, science from laboratories (with work
  on proof of concept, prototyping), via liaison
  offices, incubators, nurseries, science parks has
  made it to the industry

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Methods for Supporting Knowledge-Based Business

• Science Cities
• Technopolis
• High Technology Industrial Parks
• Science Research Parks
• Business Incubators

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What is an Incubator?

• An incubator is for individuals who are eager to
  start companies
• It provides financial, logistic, and intellectual
  support for a fixed period
• Provides incubation to new entrepreneurs through
  the utilization of University resources (and
  sometimes funds from governments and agencies)
• Value proposition they hope to create (a)
  Capital, (b) Ideation, (c) Development, i.e.,
  building a company

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Types of Incubators

• IT Backed
• Government Academic Institutes (to achieve
  developmental, strategic, and economic
  objectives)
• VC Backed (VCs providing business acceleration
  services in conjunction with funding)
• Indie (an incubator that has no affiliation
  with an IT product, service firm or VC)
• Corporate (backed by traditional non-IT
  corporation)

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Services Provided

• Leveraging contacts, strategy planning, business
  plan evaluation, partner identification, business
  infrastructure, branding, funding, board of
  directors recruitment, PR, accounting services,
  legal services, advertising, and others.
• Can be summarized as providing
• Logistical Support (dedicated facilities, ready
  to move in office for example, and shared
  facilities)
• Strategic Support (experienced network of
  advisors)
• Operational Support (marketing, auditing, legal,
  technical services, etc)

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What Are Science Parks?

• A generally accepted definition includes
• It is a property-based initiative which
• Has operational links with universities and
  research centers
• Is designed to encourage knowledge-based
  industries
• Has an element of technology transfer and
  creation of job opportunities
• Different from a Research Institute

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Benefits from the Park

• Development of the region, creation of wealth
  and employment opportunities for the Kingdom
• Enhancement of University skill at industry
  collaboration
• Tenant-University associations are built
• Commercialization of University research

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International Associations Science Parks

• IASP Intl Association of Science Parks, Spain
• UKSPA UK Science Park Association, UK
• AURP Association of University Research Parks,
  USA
• APSTI Associatione Parchi Scientifici E
  Technologici Italiano, Italy
• TEKEL Suomen Teknologiakeskusten Litto, Finland

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Major International Science Parks

• Number of science parks in the world is more than
  1,000
• Most Science Parks are linked with Universities
• Major Science Parks are found in
• USA, UK, Canada, Russia, France, Finland
• Japan, Hong Kong, China, Korea
• Malaysia, Iran
• Others

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Major Science Parks in Muslim World

• Bahrain 1
• Iran 13
• Kuwait 1
• Malaysia 4
• Morocco 3
• Nigeria 1
• Oman 1
• Saudi Arabia 3
• Tunis 2
• Turkey 4
• UAE 3

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Major Science Parks in GCC Region

• Saudi Arabia Prince Abdullah Bin Abdulaziz
  Science Park, KFUPM, Dhahran
• Kuwait HRD Intl Enterprise Center
• UAE Techno Park, Dubai
• Oman Knowledge Oasis Muscat
• Bahrain Bahrain Technology Park
• Qatar Science Technology Park at Qatar
  Foundation Education City

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Prince Abdullah Bin Abdulaziz Science Park

• The Vision
• The Mission
• Goals/Objectives
• PASP Site
• Benefits to KFUPM
• Benefits to Tenants
• Success Factors

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Vision

• To make a significant contribution to the
  wealth welfare of the Kingdom of Saudi Arabia
  through the development of knowledge-based
  companies
• Keywords Closer ties and enduring links between
  academia and industry

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Mission

• To develop a financially self-sustaining entity
  at KFUPM
• Development of an entrepreneurial culture
• Provision of space in the incubator and science
  park, and creation of self-sustaining facilities

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Objectives

• Commercialization of University research
• Providing incubator programs to young Saudis, and
  promoting emerging small-businesses
• Utilizing the Kingdoms industrial and market
  strengths
• Generating employment opportunities in
  knowledge-based businesses

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Modes of Participation in Science Park

• Single-unit building
• Multi-tenant building
• Incubator building

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PASP SITE
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Chronology of Events

• KFUPM Science Park Project Committee Formed
  19/05/2002
• Conceptual Plan Prepared 15/09/2002
• Foundation Stone by HRH Prince Abdullah Bin
  Abdulaziz 20/10/2002
• UNESCO Experts Visit to KFUPM
  22/02/2003
• Project Awarded for Layout/Infrastructure
  Planning 09/04/2003
• Schlumberger Construction started
  01/10/2003
• PASP company being formed Now

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What is in there for KFUPM?

• Joint research projects
• Sharing of university laboratories
• Custom-designed courses for tenants
• Tenant staff in graduate programs
• Advice from tenants (companies) on course design
• Adjunct appointments of industry experts in the
  University

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KFUPM Research Strengths?
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Other Benefits to KFUPM

• Close links between tenants and the University
  community
• Attraction of high-quality faculty and
  researchers
• Multinational scientists in PASP will keep the
  University abreast of the latest trends and
  developments
• Employment opportunities for students (during
  study and upon graduation)

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Benefits to Tenant Firms

• Tenant companies can have a significant point of
  presence in the region
• Availability of a skilled work-force pool from
  the student body
• Opportunity for commercial deployment of
  Universitys intellectual property
• Access to the Universitys educational programs

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KFUPM Pilot and Demonstration Plants
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KFUPM Laboratories
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Other Joint Activities

• Large companies may choose to contract their
  research work to the University
• Companies may donate equipment and share
  expertise, etc.
• Senior staff of tenant companies may serve on
  University advisory committees
• Tenants may offer scholarships to postgraduate
  students

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Critical Success Factors

• Planning, leadership, commitment, involvement
  of everyone, for the effective implementation of
  the plan
• Close interaction between the tenant firms and
  the University
• A clear management structure, with a Park Manager
  appointed at an early stage
• Preference to companies in the areas of general
  strength of the University

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Part IIIProgress/Status

• What to Expect?
• Major Companies Involved in KFUPM
• Current and potential tenants of PASP

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What to Expect?

• University will be surrounded by some of the
  worlds leading technology companies
• Industry participation in academia
• The University will build on its current
  strengths due to proximity with industry
• Research teaching programs will concentrate on
  modern high-technology

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Major Companies Collaborating with KFUPM

• SABIC
• Saudi Aramco
• Schlumberger, USA
• Japan Cooperation Center Petroleum
• Ciba, Switzerland
• Others

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International Companies in PASP

• Schlumberger (Construction in near completion)
• CIBA Specialty Chemicals, Switzerland
• Japan Cooperation Council for Petroleum
• Letters of Intent received
• Idemitsu Kosan Ltd., Japan
• Cytec, The Netherlands
• WIPRO, India
• Institute Francais du Petrole (IFP), France
• Membrana, Germany
• DevCorp Intl, Bahrain

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Proposal for Funding Finance

• Given its ideal location and the explicit returns
  for the industry, the PASP-KFUPM Company is being
  formed with participation from
• KFUPM
• Private Investments (Venture Capital)
• Saudi major companies (Saudi Aramco, SABIC,
  possibly others)
• The University would be responsible for
  establishment of standards for leasing, while
  the operation, maintenance and construction would
  be the responsibility of the PASP-KFUPM Company

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Governance Management

• For effective management and governance,
  PASP-KFUPM Company will be formed based on the
  collaboration between three major parties
• University knowledge and resources
• Industry financing and RD
• Government regulations and incentives
• The Park may be managed as a commercial
  enterprise by a Park Manager, who heads the
  management team, and will be overseen by the
  Board of Directors of PASP-KFUPM.

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Finally.

• PASP is a strong statement of KFUPMs
  determination to maintain its high standards.
• PASP initiative will couple the University with
  industry, and will create an environment with
  vast potential for joint technological RD.
• With the establishment of PASP, KFUPM moves
  forward with a far-reaching initiative that will
  be a dynamic catalyst for technological
  development.

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Acknowledgments

• KFUPM
• British Council
• UNESCO
• IASP

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THANK YOU