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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

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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

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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