SScience & Technology Parks:cience & Technology Parks: A New Era for Sustainable Technology-Based Development

Presented at

IEEE Saudi Arabia Education Society Chapter

Venue: Chamber of Commerce & Industry, Eastern Province

By

Sadiq M. Sait Member, Prince Abdullah Bin Abdulaziz

Science ParkKing Fahd University of Petroleum & Minerals

KFUPM, DhahranTuesday, 1 March, 2005

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Presentation OutlinePresentation 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 Mission of the University

A Balance between three key elements:A Balance between three key elements:

• Generation of new knowledge.Generation of new knowledge.

• Passing on this knowledge to future Passing on this knowledge to future generations.generations.

• Serving the needs of industry Serving the needs of industry (business)(business) and the community. and the community.

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History and TrendHistory 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 Methods for Supporting Knowledge-Based Business Knowledge-Based Business

• Science CitiesScience Cities

• TechnopolisTechnopolis

• High Technology Industrial ParksHigh Technology Industrial Parks

• Science & Research ParksScience & Research Parks

• Business IncubatorsBusiness Incubators

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What is an Incubator?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 IncubatorsTypes 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 ProvidedServices 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?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 ParkBenefits 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: International Associations: Science ParksScience Parks

IASP: Int’l 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 Major International Science ParksParks

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 Major Science Parks in Muslim WorldWorld

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 Major Science Parks in GCC RegionRegion

Saudi Arabia: Prince Abdullah Bin Abdulaziz Science Park, KFUPM, Dhahran

Kuwait: HRD Int’l 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 Prince Abdullah Bin Abdulaziz Science ParkScience Park

The VisionThe MissionGoals/ObjectivesPASP SiteBenefits to KFUPMBenefits to TenantsSuccess Factors

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VisionVision

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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MissionMission

• 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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ObjectivesObjectives

Commercialization of University research

Providing incubator programs to young Saudis, and promoting emerging small-businesses

Utilizing the Kingdom’s industrial and market strengths

Generating employment opportunities in knowledge-based businesses

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Modes of Participation in Modes of Participation in Science ParkScience Park

• Single-unit building

• Multi-tenant building

• Incubator building

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PASP SITEPASP SITE

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Chronology of EventsChronology 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?What is in there for KFUPM?

Joint research projectsSharing of university laboratoriesCustom-designed courses for tenantsTenant 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?KFUPM Research Strengths?

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Other Benefits to KFUPMOther 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 FirmsBenefits 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 University’s intellectual property

Access to the University’s educational programs

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KFUPM Pilot and Demonstration KFUPM Pilot and Demonstration PlantsPlants

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KFUPM LaboratoriesKFUPM Laboratories

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Other Joint ActivitiesOther 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 FactorsCritical 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 III:Progress/StatusPart III:Progress/Status

1. What to Expect?

2. Major Companies Involved in KFUPM

3. Current and potential tenants of PASP

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What to Expect?What to Expect?

University will be surrounded by some of the world’s 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 Major Companies Collaborating with KFUPMwith KFUPM

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

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International Companies in PASPInternational 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 Int’l, Bahrain

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Proposal for Funding & FinanceProposal 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 & ManagementGovernance & 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 R&D– 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….Finally….

PASP is a strong statement of KFUPM’s 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 R&D.

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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AcknowledgmentsAcknowledgments

KFUPM

British Council

UNESCO

IASP

THANK YOUTHANK YOU