IIT MADRAS RESEARCH PARK

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IIT MADRAS RESEARCH PARK

• Prof. M. S. ANANTH
• Director Indian Institute of Technology Madras
• CHENNAI 600 036

12/11/2009
MSA
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TECHNOLOGY AND RESEARCH PARKS

• Creating opportunities for chance to meet
  prepared minds
• Entrepreneurship and Innovation
• Types of Research Parks
• AP, MH, UP and TN
• Other IITs, IISc initiatives
• The IITM Research Park

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THE CAPITALISATION OF KNOWLEDGE

• Multiple reciprocal linkages at different stages
  are captured by the Triple Helix paradigm
• Innovation is a non-linear system integration
  and networking process
• Competitive success depends on localised
  concentrations of skilled people and technology
• Universities should be direct contributors to
  wealth creation/ develop entrepreneurship

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INNOVATION

• Two kinds managed by two very different
  approaches Magic Garden Idea Factory
• The first hire brilliant minds, provide the
  atmosphere, leave them alone and .pray!
• The second bring unlike minds together and
  create opportunities for interaction
• Louis Pasteur, ..discovery results from chance
  meeting a prepared mind

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ENTREPRENEURSHIP

• Entrepreneurship flourishes in the vicinity of
  high quality educational institutions Eg
  Stanford/ MIT/ North Carolina
• Localised concentrations of unlike minds and
  technology
• Faculty encompassing advanced knowledge
• Students spirit to conquer the world/ ignorant
  of the impossible
• RD personnel convert ideas into marketable
  products

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OBJECTIVES OF RESEARCH PARKS

• Promote and foster the spirit of innovation
• Create physical infrastructure and support
  systems necessary for competitive RD
• Incubate early stage entrepreneurial ventures
  based on technology and innovation.
• Facilitate networking with professional resources
  for the incubatee companies.
• Identify technologies/innovations which have
  potential for commercial ventures
• Indian tech parks not generally associated with a
  university so far.

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TYPES OF SCIENCE PARKS

• Alliance-driven Science Park
• University-driven Science Park
• Company-driven Science Park
• Cluster-driven Science Park

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Andhra Pradesh Biotech Parks

• Shapoorji Pallonji (SP) Biotech Park Pvt Ltd a
  PPP venture near Hyderabad 140100 acres/ about
  17 companies with an investment of about Rs 4 bn.
  
• Marine Biotech Park on 218-acres near
  Visakhapatnam in association with the Andhra
  University to focus on marine resources, marine
  foods, nutraceuticals and fisheries
• ICICI Knowledge Park focused on facilitating
  business-driven RD 200 acres near Hyderabad/ Rs
  420m invested / 13 companies

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Andhra Pradeshs Agro Park

• Agri Science Park on 200 acres in the
  International Crops Research Institute for the
  Semi-Arid Tropics campus
• The Park comprises an Agribiotech Park, Agri
  Business Incubator, a Hybrid Seeds Consortium,
  and SAT Ecoventure.
• Three ventures have come up in the Agri-Biotech
  Park. Amongst them is a facility for testing
  aflatoxin contamination in food crops.

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Maharashtras Biotech Park

• International Biotech Park - a joint venture
  project between the Maharashtra Industrial
  Development Corporation (MIDC) and TCG Urban
  Infrastructure Holding Ltd (TCGUIH), a Chatterjee
  Group company.
• Total investment of Rs 2.5 bn, 110- acre park
  near Pune 3 companies

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Uttar Pradeshs Biotech Park

• Set up in collaboration with the Council of
  Scientific Industrial Research, universities
  and industries in Lucknow.
• Shantha Biotechnics, Biotechnology Consulting
  Research Inc., IQRA Biotech Services -
  Neurosciences Physiotheraphy Centre, Clintech
  Research LLC, New Jersey, Green Path Bio Herbs
  Industries, and Software Technology Park of India
  and (Bio Alliance, Germany)

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Tamil Nadus Bio Parks

• Ticel Bio Park promoted by the Tamil Nadu
  Industrial Development Corporation (2004) on a
  five-acre land at a cost of Rs 625 m/ 3
  occupants technical collaboration from Cornell
  University
• Golden Jubilee Biotech Park for Women (2001) -
  first biotech park exclusively for women
  entrepreneurs on 20 acres/13 units Created a
  database of over 500 technologies or projects
  covering about 150 research institutions

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The Society for Innovation Development,
IISc-Bangalore

• SID registered in 1991 under the Karnataka
  Societies Act, with a symbiotic relationship with
  IISc Bangalore.
• Participant companies include ViZiPhar
  Biosciences B.V.B.A Satyam Computer Services
  Tata Motors Cranes Software International MI
  RD Centre India Cadila Pharmaceuticals Sir
  Dorabji Tata Centre for Tropical Diseases
  Unichem Laboratories Biosciences R D Centre

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Society for Innovation and Entrepreneurship, IIT
Bombay

• SINE set up in 2004 on IITB campus
• Business incubator spread over 10000 sq.ft
• Aided by
• Department of Science Technology and Technology
  Development Board
• National Entrepreneurship Network,
• IIT Bombay alumni
• The Ministry of Communication and Information
  Technology

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The Foundation for Innovation Technology
Transfer, IIT-Delhi

• Industry Interface of IIT Delhi established on
  the campus as a Registered Society in 1992
• Technology Business Incubator conceived,
  programmed and implemented by FITT provides
• Infrastructure and techno-managerial support
• Funding source data for the bridge-capital for
  the start-up companies
• Networking with Venture companies for funding of
  incubatee companies

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SIDBI Innovation Incubation Centre, IIT Kanpur

• Incubation to try out a novel technological idea
  for up gradation to a commercial proposition,
  scaling up a laboratory proven concept, and
  setting up a technology business enterprise in
  RD partnership with  the IITK in 3 Tiers
• Tier I  Nursery incubation project
• Tier II  Technology-based start up company
• Tier III  Technology/RD unit of an existing SME
  desiring close technology interface with IITK

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UNIVERSITY DRIVEN RESEARCH PARKS

• Country Acres No Cos Emp Inv
• China 10000 100 10000 1 m 110b
• Singapore 75 2 6.4b
• USA 400 100 150 40k 2.8b
• UK 15 70 1000 75 k 3.4m
• Hungary 179 1000 170k
• France 1000 6k 500m
• India 10 1 100 5k 60m

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IIT MADRAS RESEARCH PARK

• An independent section 25 company promoted by
  IITM support from Govt and alumni
• Outside the campus but within cycling distance
• 1.2 m sq.ft in three phases
• House RD of companies wanting to work with IITM
  as well as companies to be incubated
• Eventually 5000 high quality Development
  engineers
• Finishing schools in the Park for large number of
  engineering graduates eventually 5000 students/
  year

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SYNERGY

• Leveraging University expertise and knowledge
• Higher education opportunities for its employees
• Attracting highly qualified individuals for RD
• Work towards making India a Design House
• high quality products
• joint participation in International Standard
  bodies
• promoting IPR
• 5 of RD personnel to participate in teaching as
  adjunct faculty/ permanent faculty
• 10 to register for part-time Masters and PhD

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SOME FEATURES

• Infrastructure for such start-ups, VC,
  Consultancy and prototype firms in vicinity
• 15 space reserved for Start-ups and for Facility
  and Training companies at concessional or
  deferred rental
• 85 space to Companies leveraging University for
  its RD on rental or long term lease basis
• Minimum Credits to be earned for interaction with
  IITM to stay in Park

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ROLE OF GOVERNMENT

• 11.5 acres land and infrastructure like approach
  road, electricity
• Concessions for the Park Special Economic Zone,
  Tariff concessions for Electricity, Sales tax,
  Excise and Custom Duty, FSI, Approach roads
• Interest free long term loan from Central Govt of
  about Rs 100 crores

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Phasing1.2 million sq ft Built-up area 400K
in year
Full occupancy by 2009
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THE CREDIT SYSTEM!

• Each type of interaction is given credits
• RD projects in IITM (credits per Rs 1M)
• Consultancy to IIT Faculty (credits per Rs 1M)
• Royalty (credits per Rs 100K)
• Sponsored Ph.D / Masters Students (per year)
• Adjunct faculty (per year)
• Teaching by Industry personnel per hour
• Joint guidance PhD/ MS/B.Tech (per year)
• Part-time employment PhD/MS/BTech (per mo)
• Companies should earn a pre-specified minimum
  credits per year per square foot leased area

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DRAFT FINANCIAL PROPOSAL

• Cost of land/ construction Rs millions Total
• Land cost 650
• Cost of Construction (1.2 m sqft)
  1690 2340
• Contribution from IIT/Research Park
• LT lease of 6.5 acres ( Rs100m/acre) 650
• IIT contribution - subordinated debt 100
• Lease Deposits / Advances 230
• Internal Accruals 160 1140
• Debt financing required in three Phases 1200
• Terms 18 month moratorium, 1200 8.5
  interest, repayment over 120 mo

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METRIC AND MEASURES

• Economic outcomes should be measured
• Success is socially mooted
• Quality measures are clearly important
• As-reported audit is not useful
• Have to be transparent, material and contextually
  appropriate

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IMPORTANT ISSUES

• Government support (National, Regional and
  Municipal) critical for the success of Research
  Parks in terms of (a)policy and incentives, (b)
  resources and infrastructure and (c) funding and
  investment.
• Changing nature of science
• Sustainability
• Endless funds for infrastructure investments
• Resources
• Long Term Plan
• Local framework to support RD
• Innovative models for incubation

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ACTION NEEDED TO ACHIEVE SUCCESS

• Number of key actions necessary for science park
  success
• Think globally, not just regionally. Become a key
  component of the 'innovation eco-system'.
• Integrate the park into the region's development
  plans.
• Appoint a board and engage senior management of
  the highest quality.
• Act on the basis that the science park is a
  gateway (process) not a destination(location).

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ACTION NEEDED TO ACHIEVE SUCCESS (Contd.)

• Manage the park so as to optimise serendipity.
  This is a function of the overall ambience and
  culture of the park, the services provided, the
  networking opportunities, etc.
• Manage the park as a sustainable business.
• Use part of surplus for services or incubation
  support.
• Develop the built environment of the park under a
  carefully designed, attractive and
  environmentally sustainable masterplan.

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ACTION NEEDED TO ACHIEVE SUCCESS (Contd.)

• Develop a strong two-way relationship between the
  industries and the associated university.
• Build active networks of all kinds and at all
  levels, and measure their effectiveness.
• Establish an understanding of each tenant's needs
  and provide access to networks and services to
  help meet them.
• Offer incubation facilities either directly or
  indirectly.

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• Thank you for your patience