Status Report

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Prince Abdullah Bin Abdulaziz Science Park
(PAASP) (PAASP Committee Thanks HE The Rector For
Associating The Name of Prince Abdullah with
KFUPM Science Park)

• Status Report
• To
• HE The Rector of KFUPM
• By
• Committee on PAASP
• 4 November 2002

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Committee Membersand Their Responsibilities

• Dr. Mohammad Abul-Hamayel
• Legal Issues and Governmental Regulations
• Dr. Mohammad Al-Ohali
• Detailed Planning
• Dr. Sadiq M. Sait
• Conceptual Planning and IT Related Activities
• Dr. Aymen Kayyal
• Technology Transfer and Intellectual Property
  Management
• Dr. Halim Hamid Redhwi
• Overall Coordination and Petroleum/Petrochemicals
  related
• Activities

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Outline of Presentation

• Conceptual Plan
• Proposed Site
• Potential Tenants
• Role of DevCorp
• UNESCO Expert Visit
• Other Items
• Directives Needed From HE The Rector
• Look-Ahead Plan

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Conceptual Plan
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Conceptual Plan Outline

• The Vision
• The Mission
• Goals and Objectives
• Strategic Directions
• Stakeholders Benefits
• Funding Finance
• Governance Management
• Some Critical Success Factors

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The Vision

• To create an environment within the university
  that will forge closer ties and enduring links
  between academia and the industry spanning a
  spectrum of research and development issues for
  technological and economic growth.

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The Mission Statement

• To institute a financially self-sustaining
  physical entity that would foster technological
  innovation and accelerate its commercial
  deployment through sustained collaboration with
  established companies as well as promote start-up
  enterprises through business incubator programs.

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Goals

• The primary goals of instituting a science park
  
• within KFUPM are
•  
• To forge a strong collaboration between the
  university and industry in the areas of research
  and development.
• To promote small technology-specific businesses
  and start-up enterprises through an incubator
  program.
• To direct significant technology-driven foreign
  investment and presence in the eastern province
  and the Kingdom.

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Objectives

• These goals can be visualized through the
  following
• objectives
• Commercialization of research.
• Providing a strong point of presence for major
  international companies and enterprises.
• Providing incubator programs to promote emerging
  small-businesses and enterprises.
• Utilizing the industrial presence for the benefit
  of students.
• Generating employment opportunities for students
  during their course of study and upon graduation
  in these business houses.
• And others.

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Joint Activities

• The above goals and objectives can be achieved
• through a wide sphere of activities and joint
• ventures between the industry and the university
• Work experience programs for undergraduate
  students
• Industry research projects for graduate and
  doctoral students
• Mentoring opportunities for management students
• Sharing of equipment and laboratories
• Inclusion of senior management technical
  personnel from these tenant firms into the
  university advisory boards
• Adjunct appointments of industry experts as
  faculty and researchers in the university

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Strategic Directions

• From the goals and objectives that were
• outlined in the previous section three
• primary areas of strategic thrust can be
• identified
• Collaboration between university and industry
• Nurturing start-up companies and enterprises
• Channeling new global technologies and practices
  into the Kingdom

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Stakeholders

• The primary stakeholders in the development and
  sustenance of the science park are
• The University
• Tenant firms and enterprises
• Investors and Private Start-up Companies
•  
• Each of these stakeholders will play a vital role
  in the development and growth of the science
  park.

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Benefits to KFUPM

• Close links and collaborative efforts between the
  science parks businesses and tenants and the
  universitys faculty, researchers and students.
• Attraction and retention from amongst the best
  faculty and researchers.
• The presence of International major companies and
  enterprises will help keep the university abreast
  of the latest technological trends and
  developments.
• Significant student absorption into these
  business houses, both during their course of
  study and upon graduation.
• And several others.

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Benefits to Tenant Firms

• Tenant companies can have a significant point of
  presence in the region especially from an RD
  perspective.
• Availability of a skilled work-force pool from
  graduate and undergraduate student body.
• Assistance in identifying university programs and
  resources that best relate to the tenants
  research.
• Adjunct faculty participation from tenants
• Opportunity for commercial deployment of
  universitys proprietary patents and innovations.
  
• Access to the universitys advanced educational
  and training programs

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Benefits to Investors

• Venture Capital Companies can get involved in
  developing infrastructure for PAASP and can go
  beyond it by managing the park as a commercially
  profitable enterprise.
• Private start-up companies would have access to
  the incubator program at PAASP, which would
  provide a stable growth catalyst. This is in
  addition to other research and development
  facilities as available to other tenants.
• Developing companies would benefit from the
  mentoring, investment and marketing support which
  established larger companies could provide.

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Funding Finance

• Given its ideal location and the explicit returns
  for the Industry, it is proposed that the park
  should be financed entirely by private investment
  rather than through government funding.
• This would not only give the university
  independence from this huge task, but also would
  be a measure of the Industrys interest and
  initiative in the project.
• Under this model, the university would be a
  privileged decision member responsible for laying
  down standards and leasing tenants while
  maintenance and construction would be the
  responsibility of a private sector enterprise.

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Funding Finance

• Under the proposed financial system, the
  University will provide the land-area for the
  science park, entering into a lease agreement
  with a private enterprise for construction and
  development.
• This enterprise may receive its returns from a
  percentage of the land and building rentals.
• One of the major companies that the Science Park
  Planning Committee has been in contact with is
  DevCorp, which with its experience in funding and
  managing such projects has expressed interest to
  partner with the university and secure funding
  for the offset program.

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Governance Management

• The effective management and governance of the
  science park is based on the collaboration
  between three major parties the university,
  industry, and the government. The prerogatives of
  each of these entities as per their relation to
  the science park are as follows
• Regulations and incentives from the government
• Knowledge and resources from the university
• Financing from the industry

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Governance Management

• It is proposed that the park be managed as a
  commercial enterprise in which the above three
  entities would have a share.
• The university will provide the land-area for
  the science park.
• The parks management would be overseen by a
  board of directors.
• A management team headed by a park manager would
  play the intermediary role between the tenants
  and the administration and would report to the
  board of directors.
• The management team would exercise sufficient
  power and control to allow for flexibility and
  easy adaptation to change.

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Governance Management
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Critical Success Factors

• There is a broad consensus among experts on the
  factors that contribute to the success or failure
  of university-related science parks. These can be
  placed in two categories
• Factors associated with the site, its size and
  location. This also includes the universitys
  inclination and research base to contribute and
  gain from such a relationship.
• Factors associated with the universitys
  administration and sponsoring of the project.

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Critical Success Factors

• From these two categories, the various factors
  that can greatly impact the development and
  growth of the science park are
• Leadership, ownership, commitment and involvement
  of all concerned parties for effective
  implementation of the plan.
• The plan should be based on clear objectives,
  well integrated with the long-term mission and
  goal of the university.
• The location of the science park should allow for
  close interaction between the tenant firms and
  the university.

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Critical Success Factors

• A clear management structure with a Park Manager
  appointed at an early stage of development with
  significant authority on park affairs would allow
  for considerable flexibility in management.
• The administration and the park manager should
  promote interaction between the personnel and
  university scientists and engineers through
  regular seminars and briefings.

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Finally

• The PAASP is a strong statement of KFUPMs
  determination to maintain these high standards in
  research, technological development and academic
  excellence.
• It is an initiative to couple the universitys
  resources and talent with the technological
  capabilities of the industrial sector, thereby
  creating a highly collaborative environment with
  vast potential for joint technological research
  and development.
• With the establishment of this science park,
  KFUPM moves forward into its fiftieth year with a
  far-reaching initiative that will be a dynamic
  catalyst for technological development and
  collaboration between the university and the
  industrial sector

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Proposed SiteMap

• Map to be inserted

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Proposed SiteContacts

• Dr. Abdelqadir Amir (Contacted)
• Mr. Mansoor Sabir (Contacted)

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Potential Tenants

• Schlumberger, France
• CIBA, Switzerland
• JCCP, Japan
• Idemitsu, Japan (LOI)
• Cytec, Italy (LOI)
• IFP, France

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DevCorps Role

• Participation Through Saudi Offset Limited
  Program (SOLP)
• Role envisaged for DevCorp/SOLP in the
  developmental effort
• Development of the Concept as a Commercial
  Venture
• Investment through SOLP in the Commercial Venture
• Advisory role in the Project implementation

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UNESCO Experts VisitObjectives

• UNESCO Expert Group will Review the Conceptual
  Plan already submitted (but still evolving) and
  will assist the PAASP Committee in Developing a
  detailed Plan. Moreover, Group will share their
  Experience in Establishment, Operation, and
  Critical Success Factors of Science Parks

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UNESCO Expert GroupMembers

• Datuk Dr. Mohamad Salleh Ismail, President CEO
  of Technology Park, Malaysia
• Dr. Marco Baccanti, President of International
  Association of Science Park (IASP) and Director
  Centuria Parco Scientifico Technologico, Italy
• Mr. Harry Nicholls, President ADCAL, UK
• Mr. Nur Yuslan, UNESCO, Paris, France

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UNESCO Expert GroupOne Week Program

• Meeting With HE The Rector and Vice Rectors
• Daily Meeting with The PAASP Committee
• Three Presentation by Experts to KFUPM Faculty
  and Researchers (Organized by the Departments)
• Presentations by PAASP Committee Members
• Meeting with Representative of Schlumberger,
  DevCorp, SAGIA, SABIC, and S. Aramco
• Finalizing of the Plan
• Social Activities

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Other Activities By Committee Members

• Visit To Rio Science Park
• Visit to IT Parks
• Meeting With The SABIC VP for RT
• Meeting with Representatives of Japanese and
  other International Companies

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Directives Needed From HE The Rector

• Jurisdiction of Ministry Of Industries
• Benefits of Having Prince Abdullahs Name
• Bandwidth Availability and direct access for
  Internet
• PAASP Intl Advisory Committee
• Governance of PAASP
• Housing Availability
• Presentation of Dr. F. Al-Adel in Riyadh
• Lease Document

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Look Ahead PlanFor Q4

• Presentations about PAASP in Local, Regional, and
  International Forums
• Interviews and articles in eMedia and Print Media
  for Public Awareness
• Visits to International Science Parks and
  attendance in related Conferences
• Visits of International Experts to KFUPM
• Sub-Committee and Group formation for Sub-Tasks
  Related PAASP (Such as Legal issues, Master Plan
  development, etc. )

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Conclusion