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    Cape Innovation (Pty) Ltd2016

    creat ing futures

    Proposed Business Plan for CPUT Incubator, incorporating a desk top feasibility study

  • Cape Innovation (Pty) Ltd2016


    Contents 1. Executive Summary 6

    1.1. Background to Cput 1.2. Background to the incubator project 1.3. Incubator’s vision and value add 1.4. Key offerings of the incubator 1.5. Legal entity and financing required

    2. Introduction And Background To CpuT 11 2.1. Shift from traditional functions to entrepreneurship at universities 2.2. Research at Cput 2.3. technology transfer at Cput 2.4. A business incubator for Cput

    3. The Incubator Concept 18 Best practice study around the world

    3.1. Incubators around the world

    Competitor analysis 3.2. Incubators in the Eastern and Western Cape, South Africa 3.3. Competitive advantage of Cput’s incubator

    4. Key Stakeholders 24 External stakeholder analysis

    4.1. DSt 4.2. DtI 4.3. provincial government of the Western Cape 4.4. Local manufacturing sector 4.5. productivity SA 4.6. False Bay College (FBC) 4.7. technology Innovation Agency (tIA)

    Internal stakeholder analysys

    4.8. Cput’s technology Stations 4.9 Cape peninsula university of technology 4.10 Cput Faculty of Business 4.11 technology transfer Office (ttO) of Cput

    5. The Incubator Building 35 5.1. physical infrastructure 5.2 Building 5.3 Services to be offered by the incubator

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    Cape Innovation (Pty) Ltd2016

    6. Business Model of the CpuT Incubator 40 6.1. Current status and track record of the Cput Incubator 6.2. Overview of Incubator organisation and strategy 6.3 Characteristics of the Cput Incubator 6.3. Market segment of the Incubator 6.4. Market trends that inform the Incubator 6.5. Anchor tenants

    7. Marketing plan 45 7.1. Defining the target Market 7.2. Marketing to External Customers (Attracting Business)

    8. Operational plan 47 8.1. Operational procedures 8.2. Smme Graduation/Exit Strategy and post Incubation Strategy 8.3. Business Location (Size & Capacity, Advantages & Disadvantages, Lease or Ownership Details) 8.4. Details of Equipment, Furniture & Fixtures 8.5. Future Expenditures and technology Requirements 8.6. Development of partnerships and Networks

    9. Administration, Management and Organisational plan 51 9.1. Organisational Structure

    10. Financial plan 54 10.1 Capital Investment

    10.1.2 Equipment and Shop Fitting Costs 10.1.3 Operating Costs

    10.2 Sponsorship Funding Model 10.3 Operating Budget

    11. Conclusion 62

    Appendices: Strategies and facilities at universities visited during the study 63

    Appendix 1: Satakunta university of Applied Sciences (SAMK) Appendix 2: university of uppsala Holding Company (uuAB) and uppsala Innovation Centre (uIC) Appendix 3: universität Des Saarlandes, Kontactstelle für Wissens- und technologytransfer (KWt) (Starter Centre) Appendix 4: Katolieke universitieit Leuven (Ku Leuven), Leuven R&D (LRD) Appendix 5: Calgary Innovate, Canada Appendix 6: perth Incubator, Australia Appendix 7: Innovation Showcase – thinking out of the Box.

    Sources 95

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    List of inserts INSERt 1: Flow diagram: Enterprise development value chain 6

    INSERt 2: tABLE: Strategic plan for the incubator 9

    INSERt 3: FIGuRE: Strategic plan of Incubator 10

    INSERt 4: FLOW DIAGRAM: Extended value chain 12

    INSERt 5: FIGuRE: Cput’s research outputs over the last 8 years 13

    INSERt 6: DIAGRAM: Research and innovation structure 15

    INSERt 7: FIGuRE: Cput Innovation model 16

    INSERt 8: DIAGRAM: ttO Structure 16

    INSERt 9: FIGuRE: Input sources into the ttO 17

    INSERt 10: tABLE: Incubator best practice re strategy and facility requirements 20

    INSERt 11: FIGuRE: Market Attractiveness vs Competitive Analysis 23

    INSERt 12: FIGuRE: productivity SA strategic focal areas 26

    INSERt 13: tABLE: Cput research centres and units 31

    INSERt 14: tABLE: Cput strategic partners and value add 34

    INSERt 15: FIGuRE: Start-up Business Incubator in Room 1.24, Department Industrial Design, Cape town Campus 34

    INSERt 16: tABLE: Incubator infrastructure needs 35

    INSERt 17: FIGuRE: Incubator location scenarios 36

    INSERt 18: FIGuRE: Bellville campus site 37

    INSERt 19: FIGuRE: Interesting correlating data from Muscat incubator in Oman 38

    INSERt 20: FIGuRE: Architect’s impression of a modular build over the funding period 38

    INSERt 21: tABLE: Services offered by the Cput incubator 39

    INSERt 22: FIGuRE: Incubation system structure 42

    INSERt 23: tABLE: training programmes offered by the Calgary incubator 43

    INSERt 24: FIGuRE: Lifecycle stage of tenants at Calgary university, Canada 44

    INSERt 25: FIGuRE: profile of professional service providers at science parks and incubators in poland 53

    INSERt 26: FIGuRE: Architect’s impression of the incubator facility 54

    INSERt 27: tABLE: Overall estimated costs 55

    INSERt 28: tABLE: Capital expenditure for the incubator 55

    INSERt 29: tABLE: Estimated construction costs 56

    INSERt 30: tABLE: Estimated equipment and shop fitting costs 56

    INSERt 31: tABLE: Estimated operating costs 58

    INSERt 32: tABLE: Grant-based assumptions 59

    INSERt 33: tABLE: Sponsorship requirements for incubation ecosystem 59

    INSERt 34: tABLE: Income statement for the incubator and detailed assumptions 61

  • Cape Innovation (Pty) Ltd2016


    Acronyms Adaptronics Advanced Manufacturing technology Laboratory AMTL

    Agrifood technology Station ATS

    Agricultural Research Council ARC

    Black Economic Empowerment BEE

    Bureau for Economic Research (Stellenbosch university Associated) BER

    Consulting Analytical Laboratory CAS

    Cape Craft and Design Institute CCDI

    Cape town Regeneration project CTRp

    Cape It Initiative CITI

    Consulting Analytical Laboratory (CSIR Associated) CAL

    Centre for Rapid prototyping and Manufacturing CRpM

    Council on Higher Education CHE

    Council for Scientific and Industrial Research CSIR

    Companies and Intellectual property Commission CIpC

    Corporate Social Responsibility and Investment CSRI

    Centre for technology Commercialisation CTC

    Department of Economic Development and tourism DEDAT

    Department of Science and technology DST

    Department of trade and Industry DTI

    Deputy Vice-Chancellor DVC

    Enterprise Investment programme EIp

    East London Industrial Development Zone ELIDZ

    European union Eu

    False Bay College FBC

    Fibre processing and Manufacturing Sector; Education and training Authority Fp&M SETA

    technical Vocational Education and training TVET

    German Agency for technical Cooperation GTZ

    Incubation Support programme ISp

    Industrial Development Corporation IDC

    Industrial Development Zones IDZ

    Information and Communication technology ICT

    technology transfer Office of the university of Stellenbosch Innovus

    Intellectual property Ip

    Intellectual property Rights from publicly Financed Research and Development Act, 2008 (Act 51 Of 2008) IpR Act

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    Institute of Sectorial Occupational Excellence ISOE

    Industry Support programme (a DtI Supported programme) ISp

    Katolieke universitieit Leuven R&D Ku LEuVEN LRD

    universität Des Saarlandes, Kontactstelle Für Wissens- und technologytransfer KWT

    Incubator of the university of Stellenbosch LaunchLab

    Monitoring and Evaluation M&E

    National Advisory Council On Innovation NACI

    National Development plan NDp

    National Intellectual property Management Office NIpMO

    National Research Foundation NRF

    Non-Government Organisations NGO’S

    provincial Government of the Western Cape pGWC

    Quality Assurance QA

    Research and Development R&D

    Research and technology Innovation, ten Year Cput Blueprint RTI

    Registered tEchnology transfer professional RTTp

    Satakunta university of Applied Sciences SAMK

    Small Business Incubator SBI

    Small Enterprise Development Agency SEDA

    Support programme for Innovation in Industry SpII

    South African Venture Capital Association SAVCA

    Small, Medium Enterprises SMME

    technology transfer (Office) TT(O)

    technology Innovation Agency TIA

    technology and Human Resources for Industry programme THRIp

    technology Station TS

    technology Station in Clothing and textiles TSCT

    unmanned Aerial Vehicles uAVs

    uppsala Innovation Centre uIC

    university of uppsala Holding Company uuAB

    Western Cape WC

    World Intellectual property Organisation WIpO

    World trade Organisation WTO

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    Cape Innovation (Pty) Ltd2016

    1Executive Summary 1.1. BACKGROuND tO Cput

    The Cape Peninsula University of Technology (CPUT) is the biggest university in the Western Cape and the only university of technology that serves the western part of South Africa. The 2014 student count is 33,000 in a wide range of disciplines covered in excess of 60 entry level degree programmes. The estimated output is 6,000 graduates per year who enter the market as job seekers while a significant number of these students have