Download - Proposed Business Plan for CPUT Incubator, incorporating a ...cornerstonetrust.co.za/wp-content/uploads/2017/02/... · 1.1. BACKGROuND tO Cput The Cape Peninsula University of Technology

Transcript

A

Cape Innovation (Pty) Ltd2016

creat ing futures

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

Cape Innovation (Pty) Ltd2016

1

Contents1. ExecutiveSummary 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. IntroductionAndBackgroundToCpuT 112.1. 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. TheIncubatorConcept 18 Bestpracticestudyaroundtheworld

3.1. Incubators around the world

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

4. KeyStakeholders 24 Externalstakeholderanalysis

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)

Internalstakeholderanalysys

4.8. Cput’s technology Stations4.9 Cape peninsula university of technology4.10 Cput Faculty of Business4.11 technology transfer Office (ttO) of Cput

5. TheIncubatorBuilding 355.1. physical infrastructure5.2 Building5.3 Services to be offered by the incubator

2

Cape Innovation (Pty) Ltd2016

6. BusinessModeloftheCpuTIncubator 406.1. Current status and track record of the Cput Incubator6.2. Overview of Incubator organisation and strategy6.3 Characteristics of the Cput Incubator6.3. Market segment of the Incubator6.4. Market trends that inform the Incubator6.5. Anchor tenants

7. Marketingplan 457.1. Defining the target Market 7.2. Marketing to External Customers (Attracting Business)

8. Operationalplan 478.1. Operational procedures8.2. Smme Graduation/Exit Strategy and post Incubation Strategy8.3. Business Location (Size & Capacity, Advantages & Disadvantages, Lease or Ownership Details)8.4. Details of Equipment, Furniture & Fixtures8.5. Future Expenditures and technology Requirements8.6. Development of partnerships and Networks

9. Administration,ManagementandOrganisationalplan 519.1. Organisational Structure

10.Financialplan 5410.1 Capital Investment

10.1.2 Equipment and Shop Fitting Costs10.1.3 Operating Costs

10.2 Sponsorship Funding Model10.3 Operating Budget

11.Conclusion 62

Appendices:Strategiesandfacilitiesatuniversitiesvisitedduringthestudy 63

Appendix1: Satakunta university of Applied Sciences (SAMK)Appendix2: university of uppsala Holding Company (uuAB) and uppsala Innovation Centre (uIC)Appendix3: universität Des Saarlandes, Kontactstelle für Wissens- und technologytransfer (KWt) (Starter Centre)Appendix4: Katolieke universitieit Leuven (Ku Leuven), Leuven R&D (LRD)Appendix5: Calgary Innovate, CanadaAppendix6: perth Incubator, AustraliaAppendix7: Innovation Showcase – thinking out of the Box.

Sources 95

3

List of insertsINSERt 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

4

AcronymsAdaptronics 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&MSETA

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) IpRAct

5

Institute of Sectorial Occupational Excellence ISOE

Industry Support programme (a DtI Supported programme) ISp

Katolieke universitieit Leuven R&D KuLEuVENLRD

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

6

Cape Innovation (Pty) Ltd2016

1Executive Summary1.1. BACKGROuND tO Cput

TheCapePeninsulaUniversityofTechnology(CPUT)isthebiggestuniversityintheWesternCapeandtheonlyuniversityoftechnologythatservesthewesternpartofSouthAfrica.The2014studentcountis33,000inawiderangeofdisciplinescoveredinexcessof60entryleveldegreeprogrammes.Theestimatedoutputis6,000graduatesperyearwhoenterthemarketasjobseekerswhileasignificantnumberofthesestudentshaveallthepotentialtobecomeenterprisecreators.

Within Cput, we train technologists in a very wide field of expertise with a strong emphasis on product and manufacturing development, a niche area as a university of technology. Other institutions tend to focus more on services development or very high technology niche areas such as

drug development and medical device development with very long turnaround times. Our very strong growth in the post-graduate sector that now comprises about 20% of our student body creates the ideal ecosystem for innovative product development.

to assist in the creation of new products, Cput is home to three technology stations funded by tIA where ideas are turned into prototypes and where early and middle stage innovation is turned into final products. Cput also has a world renowned design school and other technology incubators such as the Functional Food Research unit, to name only two schools, where the high volume of innovative product development and student throughputs support the critical mass required for an incubator. Cput has identified a gap in our system and we now wish to bridge the divide between a technologically highly competent graduate with a minimum viable product and an entrepreneur in a dedicated business with the commercial savvy to succeed – we firmly believe that this divide can be bridged with an incubator. this gap in our enterprise development value chain is graphically illustrated in Insert 1 below:

Insert1:Flowdiagram:Enterprisedevelopmentvaluechain

UNDERgRaDUaTE POSTgRaDUaTE MaSTERS/ DOCTORaTE

EXTERNaL ENTRaNT

TECHNICaL INCUBaTION

BUSINESS INCUBaTION

SPIN-OUT COMPaNY

TECHNICaL INCUBaTION

7

1.2. BACKGROuND tO tHE INCuBAtOR pROJECt

the Department of Science and technology (DSt) funded Cput to conduct a desk top feasibility study for an envisaged business incubator at Cput. Cput assembled a team specifically for this study to bring together organisations, stakeholders and individuals best positioned to deliver a high quality and relevant study. the multidisciplinary, multifaceted team has extensive knowledge and experience of local trade and industry, incubators, science parks, research and intellectual property with strong local and international knowledge and networks. DSt requested that the study must at least consider the following key areas but not be limited hereto:

• Sustainablejobcreation;• Involvementofstrategicstakeholders;• Alignmentofthebusinessplanwith

strategicobjectivesoftheWesternCapeprovincialGovernmentandtheCityofCapeTown;

• Theestablishmentofinnovation-basedcompaniesthroughincubationprocessesandtechnologytransfertosmallandmediumenterprises(SMME’s)intheWesternCape.

Internationally, great success has been achieved in the concept of business incubators that provide a home to entrepreneurs and new start-ups providing state of the art facilities that include services, connectivity, meeting spaces, affordable subsidised rental agreements, business support, support in securing finance, training courses ranging from intellectual property and starting a business to dealing with venture and other capital providers and exposure to mentors. the general view at these incubators are that the incubatee should be able to create a business enterprise within six months from entering

the incubator and exit with a going concern, employing four to five people after a further two and a half years. this view is shared as the most feasible for Cput in order to fulfil its mandate as enterprise creator.

the feasibility study eventually comprised of four key focus areas, i.e. i. Stakeholder engagement (understanding

the market needs in the Western Cape for a new incubator);

ii. Competitiveness of the incubator (understanding the regional challenges and Cput’s competitive advantages – this key area essentially ascertains if a market exists for an incubator);

iii. Strategy (the proposed strategy, business model and offering of the incubator) and;

iv. the Facility required (the proposed facility requirements and location of the incubator).

A thorough and wide-ranging assessment of the environment was done, including a strategic contextualisation of the incubator in the local and global setting to ascertain the financial and operational feasibility of the incubator. this ensured that the study will not be seen as an attempt to promote the academic objectives of Cput only but that the local trade and industry, local government and the broad community are the collective beneficiaries in terms of public access to the facility to enhance enterprise creation and the solutions that are developed.

the report presents an in-depth analysis of these focus areas, as well as proposals and recommendations to implement the strategy.

1.3. INCuBAtOR’S VISION AND VALuE ADD

the creation of an enabling environment for enterprise creation is considered the strongest response to unemployment and poverty alleviation whilst retaining the

8

Cape Innovation (Pty) Ltd2016

innovative expertise of our young people for the benefit of South Africa.

In the longer term, this envisaged facility will become a catalyst and a regional asset in creating multiple sources of economic value add to our society through the creation of sustainable start-up companies. A second tier of economic value add that follows the first round of support from the incubator is the amount of second round financing the spun out companies will attract in their growth phase, making a significant impact on the livelihood of many in our province and region. As a regional and national asset, this proposed incubator holds the potential to significantly impact on the innovation led enterprise creation initiatives of the Western Cape and South Africa.

1.4. KEY OFFERINGS OF tHE INCuBAtOR

the five key focus areas that will be part of

the incubator’s proposed offerings are (a) Cput’s own technology transfer Office (ttO) (ttO activities utilising Cput’s proprietary Ip), (b) SMMEs (supporting 3rd parties), (c) business creation, (d) business training and (e) events. these five focus areas are illustrated at the bottom of insert 3.

the incubator will primarily focus on the local manufacturing sector. the team is currently further doing an investigation into specific sectors such as marine and food processing.

1.5. NAMING RIGHtS, LEGAL ENtItY AND FINANCING REQuIRED

the proposal makes provision for DtI matching funding amounting to R10 million per annum for 3 years for a total of R30 million, thus enabling the provision of a facility of R60 million when matched funding from investors and strategic partners are included. to this end, the Business Incubator will operate as a private company a (pty) Ltd) to meet the DtI requirements and also to create a business environment that can interact and transact with the local, national and global enterprise sector. upon inception, Cput will be the sole shareholder and will operate the entity as a holding company out of which subsidiaries, start-up and spin out companies can be formed but to remain subsidiaries or associate companies of the holding company.

the funders can be given naming rights to the incubator. the name Cape Innovation (pty) Ltd is used but can be amended as need be.

Cput has an established technology transfer Office and it will take up an anchor role and be the key tenant of the Incubator as an office of Cput. the ttO will support the incubator professionally but will not be part of the (pty) Ltd and will remain a department of the university.

the main investment is currently sought from an industry partner(s) to the value of R10 million per year for 3 years to enable the creation and running of this incubator. In addition, anchor tenants and rental income from mature incubatees will contribute toward the sustainable operation of the incubator. It is planned to use current Cput property on which to locate the facility – this in-kind contribution is yet to be quantified. the task team is confident that the university Management will also stand good for some financial contribution.

Our vision is to create a business incubator to enable the start-up of viable technology and design based businesses in the manufacturing sector with growth and export potential that can create sustainable employment for the people of the Western Cape.

9

A breakdown of the total budget is as follows:

Capitalrequirement R45mShopfittingandequipment R5mOperationsrequirement R10m

A summary of the strategic plan for the incubator is in insert 2 below.

this strategy plan is graphcially depicted in Insert 3 below.

Note the five key business areas of the proposed incubator at the bottom of Insert 3. the incomestreams for each of these areas are:

CpuT’sowntechnologytransferactivities RoyaltiesTVETs/SMMEs(supporting3rdparties) IncubatorfeesorprofessionalservicesrenderedBusinesscreation IncubatorfeesorprofessionalservicesrenderedBusinessandentrepreneurshiptraining TrainingandfacilitationfeesEvents Eventhostingandorganisingfees

INSERT2:TABLE:STRATEGICpLANFORTHEINCuBATOR

MAINBuSINESS Cput’s own technology transfer activities (ttO with proprietary Ip)tVEts / SMMEs (supporting 3rd parties)Business creationBusiness and entrepreneurship trainingEvents(see bottom of Insert 3 for more detail on each offering)

NICHEMARKET: Manufacturing• Supporting Cput innovators to develop products.• Supporting tIA’s technology stations in Agrifoods-, Engineering, Design and

textile Sectors.• Supporting SMMEs from Western Cape (e.g. Marine, Food processing)• Supporting tVEt initiatives in the manufacturing sector (in collaboration with

False Bay College)

FACILITY 3,000m2

(Laboratories:1,000 m2 and office space 2,000m2, phased over three yearsLocation: Bellville campus

BuDGET Facility:R45 million over three yearsEquipment: R5 million over three yearsOperatingcosts: R10 million over three years

STRATEGICpARTNERSHIpS

CSIR (potential anchor tenant – commercial laboratory),WCpG Strategic projects and student incubatorproductivity SA Business development and trainingFalse Bay College Skills development for manufacturing sector

10

Cape Innovation (Pty) Ltd2016

CpuT’skeystatsandvision

33000Students;6000graduatesperyearRTIblueprintfor2020strategicplan

partnerships

Academicfulfilmentisinplace,butentrepreneurialchasmneedstobeaddressed

bymeansofinvolvingstrategicpartners

KEYSTAKEHOLDERS

INVESTORS

Tobeidentified

SMMEs

WesternCapeManufacturing

sector

TIATechnologyStationsatCpuT

AMTLAgrifoodClothingandTextiles

OtherCpuTDepartments

FunctionalFoodsUnitDesignSchool

Etc

STRATEGIC PARTNERSHIPS

CSIRTVETs

(FalseBayCollege)

productivitySA WCpG Localbusiness

Main Funding partner: to be identified

CPUT INCUBATOR(5focusareasoftheincubator)

TTO SMMEs Businesscreation Training Events

Cput’s proprietary Ip;Conventional tt activities such as licensing; contract research. this includes all aspects of securing a cash flow stream to the university emanating from royalties and equity in spin out companies. As the “Custodian” of the university’s intellectual property, it is the watchdog over Ip matters. Further revenue is based on contract work for university and non-university clients.

Ip owned by entrepreneurs and SMMEs. this includes the for profit provision of strategy and business consulting and mentoring, the customisation of the training courses and for profit assistance in prototype development and production.

Early stage and mature incubatees. For profit advisory services and customised workshops to assist in the formation of new enterprises.

Entrepreneurship training. Integration of courses with Cput’s mainstream curriculum. this includes a series of scheduled for profit short courses and customer workshops.

Ip and tt workshops, conferences, pitching sessions, competitions. For entrepreneur focussed conferences, innovator meets investor forums, trade shows attendance and presenting to generate leads.

CPUT’s INCUBATION STRATEGY

Insert3:Figure:StrategicplanofIncubator

2

11

TheincubatorfeasibilitystudyhasitscontextintheobjectivesoftheNationalDevelopmentPlan,Vision2030(2011:28-39)statingtheoveralltargetsoftheplanas:economyandemployment;economicinfrastructure;education,trainingandinnovation;healthcareforall;socialprotection;buildingsafercommunities;buildingacapablestate;fightingcorruptionandenhancingaccountability;andtransformingsocietyandunitingthecountry.

the importance of innovation is stressed in the National Development plan (110) under the heading National Systems of Innovation and Learning permeates society and business (110). the plan states that “South Africa’s competitiveness will rely on national systems of innovation, permeating the culture of business and society. Innovation and learning must become part of our culture. this will require interventions from the schooling system, through to shop floor behaviour to R&D spending and commercialisation. public policy should focus on R&D in existing areas of competitive advantage, where global markets are set to grow. these include high value agriculture, mining inputs and downstream processing, innovation to meet environmental and energy efficiency objectives and financial services, among others”.

It is within this changed paradigm that we are pursuing the creation of an enabling facility to foster innovation that creates financially sustainable businesses to deliver on the goals of the National Development plan but within a regional context.

the key value add anticipated from the creation of the incubator facility for the manufacturing sector is the creation of enterprises based on the generation of enough revenue to initially sustain the entrepreneur and enabling the growth of the enterprise. this will entail the creation of employment opportunities that invariably also benefit the families of the employees. the additional spending this will create in society is multiplied as demand is increased by the new salaries that contribute to consumption.

2.1. SHIFt FROM tRADItIONAL FuNCtIONS tO ENtREpRENEuRSHIp At uNIVERSItIES

Historically, universities have focused on teaching and learning. In the higher degrees, a large emphasis is placed on research and research publications that are handsomely supported from state coffers. this has attracted legitimate critique of knowledge for the sake of knowledge that is not adding value to society and not hiving off new enterprises that grow employment.

A significant intervention from the State’s side to alter this situation is seen in e.g. the passing of the technology Innovation Agency Act and the Intellectual property Rights from publicly Financed Research and Development Act (the IpR Act) in 2008 obliging universities to commercialise the research produced and support the creation of spin out companies. this is a major paradigm shift and is seen as the most beneficial state support for commercialisation ever experienced. this

2 Introduction and Background to Cput

12

Cape Innovation (Pty) Ltd2016

includes matching funding support via the Department of trade and Industry (DtI), support from the Department of Science and technology (DSt) via the technology Innovation Agency (tIA) as well as tangible support from the Western Cape provincial Government via its Department of Economic Development and tourism (DEDAt).

the practical implication of this shift is to extend the traditional university value chain that consisted of: undergraduate studies – post-graduate – master’s degree – doctorate degree studies, then publications to generate research income for the university. the obligation to focus on enterprise creation as an output requires an extension of the value

chain to include business incubation as a vehicle for enterprise creation. In most universities, early stage product development flows from the academic process but then stalls because inventors are very seldom business orientated, even after the development of demonstrators in faculties or technology stations. the result is that the innovation is lost or poached by Ip scouts for commercialisation in other business environments. to deliver on this new and extended value chain, dedicated interventions that include the provision of a conducive physical environment are imperative as our international study has shown. this desired extended value chain is graphically presented in insert 4 below:

Insert4:FlowDiagram:Extendedvaluechain

the rationale behind this drive is to address the significant levels of unemployment, including graduate unemployment that characterises our society. At the root lies a skills shortage, incorrect skills package or incomplete skills package, meaning that a graduate is technically excellently trained but unable to commercialise those skills, services and products due to a lack of business and entrepreneurial skills. this is not a new problem for graduates but the first time that a concerted effort to address it is being put forward at a national level.

UNDERgRaDUaTE POSTgRaDUaTEIntroduction to

Research

MaSTERS/ DOCTORaTE

New knowledge and business

idea cultivation, publication

TRaDITIONaL UNIVERSITY VaLUE CHaINEXTENDED VaLUE CHaIN TO SUPPORT

COMMERCIaLISaTION

TECHNICaL INCUBaTION

Early stage product development

in faculties and technology stations

BUSINESS INCUBaTION

Commercialisation, training, mentoring,

conductive environment

SPIN-OUT COMPaNIES/

LICENSE agREEMENTS

13

2.2. RESEARCH At Cput

In 2010, the Cape peninsula university of technology (Cput) adopted an overarching 10-year plan (Nhlapo, 2012, 5). It is aptly named Vision 2020 and seeks, inter alia, to strengthen research and foreground innovation and best practices effectively across the institution. the Cput Research and technology Innovation (RtI) blueprint underpins Vision 2020 and supports our transition from a “good” towards a “great” university of technology, as already evident from the growth in research as illustrated in insert 5.

Insert5:Figure:CpuT’sresearchoutputsoverthelast8years(Nhlapo,2013)

the blueprint is underpinned by six strategic imperatives, viz.• Excellence• Strategic partnerships• unlocking staff and student potential• Service and Research uptake• Multidisciplinary RtI focus areas, and• Continuous measurement and

evaluation.

Cput has numerous strengths and assets on which we can build in order to achieve the RtI vision.

these include:

• Strongrelationshipswiththeworldofworkandindustry

Our focus on the employability of graduates, including through research into work-integrated learning and student placement in industry, makes us more aware than many other higher education institutions of the day-to-day realities and wider strategic challenges faced by organisations. this serves as a solid base to succeed in providing applied research and in supporting innovative solutions to real-world problems.

• Appliedapproachtoresearch,technologyandinnovation

the nature of many of our faculties and research centres as well as the orientation of our researchers, ensure that we already have an applied approach to research. For example, our faculties – Applied Sciences, Business, Engineering, Education and Social Sciences, Health and Wellness Sciences, Informatics and Design – all incorporate applied research and/or production of tangible products and service outputs. Similarly, our technology Stations provide valuable practical research and technology support to industry and the SME and general public sector in providing technical product development support. Furthermore, at an executive level it was agreed during the week of 27 October 2014 to include benchmarks and require reporting on innovation activity as indicators of faculty and university success.

2016

• pocketsofexcellencethatarenationallyorinternationallyrecognised

Cput has various recognised areas of specialisation which can be built upon to form areas of focus and niche areas, all of which are tangible and or service focused product development for commercial application. Examples of these areas as at 2012 are amongst others: oxidative stress and rooibos; unmanned Aerial Vehicles (uAVs); space initiatives; food technology (including natural supplements and food enrichment); work-integrated learning research into knowledge and practice transfer between university and workplaces/communities; teaching methods (including multi-grade classroom learning techniques); community water supply and sanitation; environmental toxicity and remediation; bio-catalysis; low-cost housing; adaptronics; power systems; energy efficiency and solar water heating; renewable energy; instrumentation; material flow; clothing and textiles; tooling; tourism in Africa; sport; ergonomic technology; clinical epidemiology and healthcare in underserved communities; web search engine optimisation; ICt for development; e-government; green design and bio-mimicry; design for sustainability; computation and mathematical modelling.

these pockets of excellence support the key focus areas of the Cput RtI Blueprint, namely bio-economy and biotechnology; space science and technology; energy; climate change and environment; human and social dynamics, including issues related to service delivery; economic growth and international competitiveness and design for sustainability.

• Existingstrategicpartnershipsandrobustregional,nationalandinternationalcollaborations

Cput has built a strong base of partnerships and collaborations. there are many other pockets of excellence, details of which are contained in annual research reports of Cput.

Individual research centres already collaborate with public research institutions, all three spheres of government, other universities, and industry. An example of successful support for collaboration is the European union (Eu) supported Erasmus Mundus programme that enables academic exchange. A further example is close ties with False Bay tVEt college.

With our focus being at the heart of technology education and innovation in Africa, many of these partnerships are in Africa, including Botswana, Gabon, Kenya, Malawi, Mauritius, Namibia, Nigeria, Sudan, tanzania, uganda and Zimbabwe.

the work integrated learning model followed by Cput ensures the in-service placement of nearly all 3rd year students in industry for experiential learning, thereby proving a significant level of operational partnerships with local companies numbering around an estimated 6,000 work stations in local businesses.

• ResearchandinnovationstructureinCpuT

the range of research activities in Cput falls under the Deputy Vice- Chancellor (DVC) for Research, Innovation, technology and partnerships. to appreciate the position of the ttO, the structure is presented in insert 6 below:

14

Cape Innovation (Pty) Ltd

15

Insert6:Diagram:ResearchandInnovationstructure

2.3. tECHNOLOGY tRANSFER At Cput

TechnologyTransferOffice the aim of the technology transfer Office

(ttO) is to facilitate, protect and enhance the transfer of Intellectual property from Cput to the business sector to enhance commercialization for the upliftment of the communities we serve, while at the same time generating direct or royalty income for the university and the entrepreneur. this is done through the development of products and services to benefit the community that are rolled out through implementing agencies and companies beyond the capacity of the university.

the ttO’s role in complementing the work of the incubator is that it is the custodian of all Ip that belongs to Cput and enforces the requirements of the IpR Act for Cput. Furthermore the ttO manages all technology transfer related contracts for Cput and the incubator as an entity. It also provides the home within the university structure for the staff to be retained on the Cput payroll and seconded to the incubator to manage the incubator. this is a critical element to ensure the internal credibility of the incubator for staff to still deal with the

university, while external customers deal with the staff of the (pty) Ltd incubator, enabling a credible “double hat” situation.

the ttO is established to counsel and support the research units, centres and institutes and faculties of the university and to foster new entrepreneurial thinking by helping researchers to go beyond publication and into commercialization through technology innovation. the same service is also offered to industry to solve industry challenges, SMEs and entrepreneurs from the public sector.

Other functions of the ttO are to help foster research partnerships with the business sector when Ip is likely to be created through license agreements and to assist with the establishment of business units and spin off companies.

the ttO will bring in individuals from the business community to participate and network with university personnel to promote innovation in an effort to build cooperation and collaboration between the academic and business communities.

the ttO processes follow the innovation success model that is shown in insert 7 below.

DVC ReseaRCh, InnoVatIon, teChnology anD PaRtneRshIPs

CENTRE fOR POSTgRaDUaTE STUDIES

• Support of early stage research

• Focus is on student support

CPUT RESEaRCH OffICE

• Support of advanced and later stage research

• Focus is on staff research support

INTERNaTIONaL OffICE

• Support of international research exchange

• Focus is on staff exchange support

TECHNOLOgY TRaNSfEROffICE

• Support of commercialisation of research

• Focus is on staff, students, SMEs and public

16

Cape Innovation (Pty) Ltd2016

Insert7:Figure:CpuTInnovationModel the technology transfer Office is structured and professionally manned as follows as shown in insert 8 below:

17

of the communities we serve, while at the same time generating direct or royalty income for the university and the entrepreneur. This is done through the development of products and services to benefit the community that are rolled out through implementing agencies and companies beyond the capacity of the university. The TTO’s role in complementing the work of the incubator is that it is the custodian of all IP that belongs to CPUT and enforces the requirements of the IPR Act for CPUT. Furthermore the TTO manages all technology transfer related contracts for CPUT and the incubator as an entity. It also provides the home within the university structure for the staff to be retained on the CPUT payroll and seconded to the incubator to manage the incubator. This is a critical element to ensure the internal credibility of the of the incubator for staff to still deal with the university, while external customers deal with the staff of the (Pty) Ltd incubator, enabling a credible “double hat” situation. The TTO is established to counsel and support the research units, centres and institutes and faculties of the University and to foster new entrepreneurial thinking by helping researchers to go beyond publication and into commercialization through technology innovation. The same service is also offered to industry to solve industry challenges, SMEs and entrepreneurs from the public sector. Other functions of the TTO are to help foster research partnerships with the business sector when IP is likely to be created through license agreements and to assist with the establishment of business units and spin off companies. The TTO will bring in individuals from the business community to participate and network with university personnel to promote innovation in an effort to build cooperation and collaboration between the academic and business communities. The TTO processes follow the innovation success model that is shown in insert 7 below.

Insert 7 : Figure : CPUT Innovation Model

Insert8:Diagram:TTOStructure

DIReCtoR tto(PhD Electrical Engineering, B Proc, RTTP)

InnoVatIon oFFICeR(MSc)

ContRaCt ManageR(LLM, RTTP)

ContRaCt oFFICeR(LLM)

assIstant oFFICe ManageR

(BTech Cost Accounting)

oFFICe ManageR(Dip Edu)

BUsIness ManageR(MBA)

17

2.4. A BuSINESS INCuBAtOR FOR Cput

the proposed business incubator for Cput should be seen in terms of the stated vision for the incubator, namely unemployment and poverty alleviation whilst retaining the innovative expertise of our young people by creating a regional asset that fosters the development of spin out companies. this implies that the beneficiaries are all persons who have entrepreneurial aspirations and flair to be offered the opportunity and support structures unique to a university of technology.

the range of potential incubatees include students from Cput (home turf advantage), other universities, tVEt colleges, SMEs, and other enterprise creation focused organisations whilst industry challenges can be channelled through the incubator to potential businesses to develop solutions. As a regional and national asset, access to entrepreneurial opportunity will be the focus, offering business development opportunities.

the gap in our innovation eco-system that the envisaged incubator aims to fill is to bridge the technologically highly competent graduate into an entrepreneur with the commercial savvy to succeed.

Fortunately Cput’s stronger research focus and the growth in technology transfer activities point towards the establishment of an incubator to meet future growth and demands from its entrepreneurial students and researchers.

It is not the intention to duplicate the technical incubator facilities of the technology stations based at Cput by providing laboratory and workshop facilities. Laboratory ready facilities only will be provided with the basic infrastructure provided for incubatees and tenants to provide their own equipment.

the sources of entrepreneurial need input into the incubator is graphically shown in insert 9 below:

CPUt aCaDeMIC stReaMsND, B Tech, M Tech, D Tech

aCaDeMIC FaCUlty

teChnology statIons

sMes

InDUstRy seeKIng solUtIons

tVet Colleges

otheR UnIVeRsItIes

entRePReneURIal “WalK Ins”

CPUtBUsIness

InCUBatoR

sPIn-oUt CoMPanIes

Insert9:Figure:Inputsourcesintotheincubator

18

Cape Innovation (Pty) Ltd2016

the Incubator ConceptBESTPRACTICESTUDYAROUNDTHEWORLD

33.1. INCuBAtORS AROuND tHE

WORLD (see appendices)

the reader needs to appreciate that the study focuses on business incubators for the local manufacturing sector as opposed to a technology incubator or science park. Around the world, most business incubators are either part of a local science park or a division of a university’s technology transfer office – this study did not extend to investigating science parks or technology transfer offices per se but the team made a special effort to study best practice at a broad range of incubators. the incubators identified for the study we chose are based on their fields of expertise, track record

and range of academic universities and universities of technologies from countries known to be leaders in innovation. the list of incubators is endless and the team eventually had to exclude incubators from third world countries such as Brazil due to budget and time constraints.

Incubators visited by the team include the university of Satakunta in the town of Rauma, western Finland, the university of uppsala in Sweden, Saarland university in Saarbrucken, Germany and Leuven university in Belgium – these incubators are briefly discussed below and comprehensively reported on in Schedule 1.

universityofSatakunta,Rauma,Finland Entrepreneurship training is Integrated and standardised in all undergraduate courses. undergraduate entrepreneurship is credit bearing and subsidised as a core curriculum offering. Integration with and support of academics as part of the entrepreneurship development is recognised and teaching load is adjusted – yielding multi-disciplinary team support. Interestingly, all risk is passed to the student since the university is not considering itself as an enterprise.

19

universityofuppsala,Sweden In the model used at uppsala university, all innovative ideas start and are developed as far as possible within the university structures. the university Innovation Centre (uIC) was formed in 1999 applying traditional incubator models such as having anchor tenants to support the turnover of the incubator. this was however not successful and after a significant strategic review it was re-launched in 2004 with a new and unconventional business success model.

this model is based on the following pillars:• the removal of leasing agreements. this unties enterprises

from taking space where it was available to locating where it was best for the business.

• A shift from providing rental space to contributing vital business know-how.

• provision of counselling, seminars and business development networks.

Saarlanduniversity,Saarbrücken,Germany Saarland university operates in eight faculties with 18,100 students and 258 professors. particular strengths are in the fields of European priorities, namely computer science, nanotechnology, biomedical sciences and material science. the bulk of patents however emanate from the science and engineering faculties. Various institutes surround the university or are located on the university property, in effect doubling the resources available to the Starter Centre from both the university and these institutes.

CatholicuniversityofLeuven,BelgiumKu Leuven is one of the older European universities dating back to 1425, is home to approximately 54 519 students (15% international students). the university is ranked among the top 20 R&D universities in Europe. their technology transfer Office was created in 1972 and has celebrated 40 years of success including raising 500 million Euros of capital for spin out companies over the past seven year period. “technology transfer does not just happen. It requires a coordinated interplay between our researchers, the experts at our technology transfer office, and our partners”. “Ku Leuven has clearly demonstrated that scientific excellence can go hand in hand with positive results for society. Striving to combine excellence and societal benefit in such a way that reinforce each other has been our mission over the last 40 years”.

In summary, the key strategy and facility success factors at these incubators are summarised in insert 10 below.

20

Cape Innovation (Pty) Ltd2016

BESTpRACTICE:STRATEGY

• A systemic undergraduate entrepreneurship exposure programme, credit bearing in all disciplines and subsidy bearing as part of the core curriculum. A pre-ttO function as part of the curriculum system (Satakunta model).

• the need for a dedicated community of innovation in a standalone dedicated facility at arm’s length from the university but professionally interrelated. Academic “that” side of the road, innovation “this” side (public side) of the road as per the Saarland model. (Older universities are “painted” into a corner with older buildings from the pre-innovation era).

• physical accessibility and visibility is key in a professional business facility – for academics, students, public, external enterprises.

• Independent and autonomous operations in respect of finance and HR as a single gateway for all 3rd stream, research and contract income. (Leuven model)

• tiered business development programmes, network of business coaches, partners provide expert knowledge. the ttO has a neutral role and takes no ownership interest in companies, no brokering of premises - companies locate where they do business best, the ttO has clear and reciprocal requirements and continually evaluates the work of its companies (uppsala model).

• Active post-graduate, mainly phD cohort and professors are trained in marketing.

• Significant back office facility re accounting, legal, procurement etc.

• Success assessment of incubatees, based on a balanced scorecard including investment raised by spin off companies and longer time frames, research collaboration support, Ip rights support, spin-off innovation and finance, HR and logistic support provided as per the Leuven model.

• A standardised benefit sharing dispensation for members of staff and students.

BESTpRACTICE:FACILITIES

• the incubator building must be modern and visible with the appearance of a business park, not a university.

• Close proximity to academia.• Easy access for both external and internal

customers. • Adequate accessible parking.• A dedicated facility of around 3,000m2 is

in line with global standards.• A range of board rooms.• A range of smaller business unit cubicles.• Informal small lounges for business

meetings.• One focused reception area.• Display area for successful products.• Space to accommodate a full ttO staff of

at least 10 people.• Space to accommodate up to 40

back office support staff for finance, procurement and HR.

• One central and quite big canteen / cafeteria and recreation area for teas / lunches / presentations etc.

• A number of basic laboratory facilities for start-ups. this includes chemical requirements, 3 phase power, gas / oxygen connections and safe drainage for toxic waste. All connectivity is a given.

• Load bays.• Conference facilities for up to 50 to 60

persons with exhibition space for up to 12 3x3m stands – can be modular with removable dividers.

Insert10:Table:Incubatorbestpracticeregardingstrategyandrelatedfacilityrequirements.

21

COMPETITORANALYSIS

3.2. INCuBAtORS IN tHE EAStERN AND WEStERN CApE, SOutH AFRICA

there are currently two incubators that are

actively involved in the higher education sector in the Western Cape. the study did not consider incubators in other provinces, save for the incubator in East London, Eastern Cape province that has been studied and reported on in this paragraph 3.2. Also note that this paragraph should be read within the context of the international best practise assessment in the previous paragraph. paragraph 3.3 will analyse these incubators in comparison with Cput’s envisaged incubator.

Stellenboschuniversity-Launchlab Launchlab mainly focuses on the services

sector (InnovuS, 2014). It offers budding entrepreneurs infrastructure and network services as well as guidance from academic staff and leaders in the business world to help them launch their business ideas. the LaunchLab functions as a business accelerator and boosts entrepreneurship on campus by providing networking opportunities, mentoring and affordable rental rates in an entrepreneur-friendly environment. there is no direct link between LaunchLab and Stellenbosch university’s research outputs because most research at the university is conducted under sponsored research agreements where the industrial partner owns the Ip. Although LaunchLab mainly focuses on the ICt sector, biotech and engineering projects are also incubated, in which case LaunchLab is reliant upon the research facilities of the university.

BandwidthBarn Bandwidth Barn is a private incubator in

Cape town that mainly focuses on the ICt sector (Bandwidth Barn, 2014). It is required to run the rentals on a commercial basis and therefore cannot afford to provide true incubation space, given the flexibility and affordability issues of serving this market.

In the past it has also been involved with the Cape It Initiative (CItI) in providing government-funded incubation and pre-start up services.

the start-up capital requirements for both these incubators are in almost all cases skills orientated and neither of these two incubators nor their associates (VCs, etc) offer funding for manufacturing concerns.

CapeCraftandDesigninstitute(CCDI) CCDI (DEDAt, 2012) is a joint initiative of

the Western Cape Government and Cput and as such not a competitor, but rather a collaborator of the envisaged Cput incubator.

CCDI was established in 2001 to promote and grow the economic sustainability of the craft and design sector in the Western Cape. In 2012, CCDI under its Design Mandate developed a Design Strategy with numerous public and private partners, outlining the ways in which the Western Cape can use design as a tool to increase innovation and competitiveness. the CCDI has been mandated to implement various projects coming out of the strategy. One of these projects is to foster the growth of design competencies and skills in the sector. the CCDI offers business and product support to designers, craft producers and creative entrepreneurs.

the organisation has three core programmes:• product support: provides an environment

in which designers and craft producers can further develop their existing products and prototype new products.

• Business support: Develop skills in creativity, business and production management and marketing.

• Market support: Assist designers and craft producers to define and reach their targeted markets.

ShandukaBlackumbrellas Shanduka Black umbrellas (Goliath, 2014)

is a non-profit enterprise development incubation organisation partnering with the

22

Cape Innovation (Pty) Ltd2016

private sector, government and civil society to address the low levels of entrepreneurship and high failure rate of 100% black owned emerging businesses in South Africa. the programme focuses on promoting entrepreneurship as a desirable economic path and nurturing 100% black-owned businesses in the critical first three years of their existence through the provision of nationwide incubators.

Its main source of funding comes from

donations and then Shanduka Black umbrellas assist sponsors to get BEEE credits.

Shanduka Black umbrellas has a well-established list of mentors.

Only business services are offered at R5,600 per month.

picknpaySmallBusinessIncubator the transformation department under the

leadership of Suzanne Ackerman-Berman, has created pnp Small Business Incubator (Ackerman-Berman, 2014), a dedicated division to encourage and assist Small Black Businesses in becoming sustainable suppliers to the retail industry. pnp Small Business Incubator (SBI) provides ongoing mentorship at all levels of the business process for those who may not have been involved in this field before. pnp Small Business Incubator helps the new supplier understand and manage the industry demands – from health, safety and hygiene to ethical employment and accounting practices. SBI also mentor those who need assistance with accounts, marketing principles, buying and negotiating techniques, as well as basic life skills.

EastLondonIndustrialDevelopmentZone

this science park operates a business and limited technical incubator with the objective to produce spin off industries as a part of the ELIDZ (Liebenberg, S, 2014). the overall IDZ is a significant fully serviced plant site that has some significant uptake

from big businesses, providing sustainable employment and economic input into East London.

the incubator services are offered with the proviso that spinout companies must be settled in East London, preferably in the ELIDZ.

the Science park operates as a state enterprise that derives its revenue from donors (investors into the incubator) and rental of space by companies. No Ip or royalties are taken in the spin out companies, but they must be established in East London. Funding is solicited and received from the Small Enterprise Development Agency (SEDA). the East London Municipality has taken shares in the incubator which has the benefit of reduced electricity and water costs and ensures that no electricity supply blackouts occur. the focus is on tenants running the incubators and businesses within the Science park providing the enabling environment and not running the park as a business.

Contract suppliers run the incubators with a return on investment (ROI intent), i.e. the company experts run the incubators for their businesses, providing rental income and with the benefit that no incubation costs accrue to the incubator. the logic is that the specialists can do it better for their industries than an incubator “service” provision, making use of the available skills to run training centres. An example is the CSIR water quality laboratory in one of the units.

View  of  ELIDZ  facilities  

 

23

there is extensive lobbying of investors and sponsors to use the facility. this includes from provincial to European Mous. the IDZ management also puts out calls for tenders to attract prototypes over a two year development phase to try and develop their own tenants.

the ELIDZ Science park claims no Ip ownership or royalties in businesses incubated.

3.3. COMpEtItIVE ADVANtAGE OF Cput’S INCuBAtOR

After careful analysis of best practice around the world and the activities of incubators in the Western Cape region, the authors are of the view that Cput’s incubator will have a competitive advantage above other incubators as the focus is on MANuFACtuRED technology ready products. (Atkinson-Hope, 2014). See Appendix 7: Innovation Showcase – thinking out of the box.

the focus on incubating manufacturing companies is further supported by Cput’s existing technology stations in the fields of:• Engineering• Textiles• Agrifood• Design

Cput’s market attractiveness is graphically shown in insert 11 below. this market attractiveness vs competitiveness diagram was compiled by the project team after the workshop that was held and local stakeholders were consulted. the green quartile is inflated and areas in the red ignored for the purpose of this report.

Market attractiveness and Competitiveness were considered by posing the following questions, among others:

Market Attractiveness: CanCPUToperateinthismarketsegmentinasustainableandprofitablemanner? Market Attractiveness measures the profitability of the sector in monetary terms.

Competitiveness: CanCPUTcompetewithotherincubatorsinthesamemarketsegmentbyutilisingitsresourcessuchaslaboratories?Competitiveness compares competitors’ domination in a specific sector.

Insert11:Figure:MarketAttractivenessvsCompetitiveAnalysis

KEYSBu Shanduka Black

umbrellasBB Bandwidth BarnLL LaunchLabCCDI Cape Craft Design

Institutepnp pick and pay

Note: Only compete in the fourth quadrant and do not enter the market if in the first quadrant.

24

Cape Innovation (Pty) Ltd2016

Key Stakeholders EXTERNAL STAKEHOLDER ANALYSIS

44.1. DSt

TheDSTStrategicPlanfortheFiscalYears2011-2016reportcontainsanumberofstrategicplansforthepromotionofresearch,innovationandthedevelopmentofexpertiseinkeyareas.

the strategic objectives of DSt include a number of sub-programmes, inter alia:• to support research, development and

innovation initiatives in strategic research areas (i.e. space, energy, biosciences and innovation research) to enhance South Africa’s knowledge and skills base.

• to create and support multidirectional policy and institutional linkages between research and development and commercialisation to increase the commercialisation potential of research and development outcomes.

• Innovation instruments and planning drives strategic interventions that will enable South Africa to translate a greater proportion of its scientific knowledge outputs into commercial technology products and services. this is achieved through designing and creating policy and institutional structures that facilitate technology development and its progression into national and international markets.

the last objective in particular has relevance to this study.

4.2. DtI

TheDepartmentofTradeandIndustry(theDTI)hasinitiatedtheIncubationSupportProgramme(ISP),asub-programmeoftheEnterpriseInvestmentProgramme(EIP)designedtodevelopincubators,thuscreatingsuccessfulenterpriseswithapotentialtorevitalizecommunitiesandstrengthenlocalandnationaleconomies.

As part of a process of continuing to strengthen economic development through broadening participation in the economy, a new robust programme is thus provided in pursuit of ensuring that small, micro and medium enterprises (SMMEs) eventually graduate into the mainstream economy through the support provided by the incubators. the Incubation Support programme is one of the support measures to encourage partnerships between small and big business, with big business assisting SMMEs with skills transfer, enterprise development, supplier development and creating marketing opportunities, and for economic development through industry need driven product development in the incubator.

25

4.3. pROVINCIAL GOVERNMENt OF tHE WEStERN CApE

the provincial Government of the Western Cape (pGWC) believes that:• Economic growth is the foundation of all

successful development.• Growth is driven primarily by private

sector business operating in a market environment.

• the role of the state is (a) to create and maintain an enabling environment for business and (b) to provide demand-led, private sector-driven support for growth sectors, industries and businesses.

• the Western Cape should become an industrial solution destination more than just complimenting the area as a tourism destination.

In order to make investment possible, pGWC will develop an integrated infrastructure plan for the Western Cape and drive to completion several existing infrastructure projects, such as the Cape town Regeneration project.

TheCapeTownRegenerationproject In order to unlock and create wealth, the

pGWC has identified that the regeneration of the Cape town CBD is of the utmost importance – given the location of valuable property assets in the city centre. through the Cape town Regeneration project, existing underutilised properties of the pGWC, integrated and managed as a single asset, and combined with those of the City of Cape town, transnet, the national Department of public Works and Intersite will be made available for development. the mechanism to make such land available will be characterised by transparent, arms-length adjudication processes undertaken by engaging independent third parties in the decision-making process. the principles and practices of the regeneration project will also be modified where necessary and implemented in other parts of the city and province.

Acceleratecapetown A commercial initiative to make Cape

town known as an industrial hub, known as Accelerate Cape town which has as its vision “to continuously grow Cape town as a ‘global African City of inspiration and innovation’. together with our members, we want to continuously grow Cape town as an economic hub and globally recognised business destination in Africa. We achieve this in the following ways: networking, thought leadership and advocacy”.

Innovation is a key focus as indicated under the heading: “Stimulating innovation and creating collaboration of corporate business with SMEs”.

to grow the local and national economy, Accelerate Cape town works with corporate businesses and agencies such as the Stellenbosch Innovation District, Cape It Initiative and the Western Cape Economic Development partnership to develop symbiotic relationships with enterprises in the SME segment of the economy. Relationships with the region’s Higher Education institutions are focused on commercializing innovations, growing enterprises and leveraging the city’s status as Africa’s most innovative city”.

4.4. LOCAL MANuFACtuRING SECtOR

According to the June 2013 business plan of the Western Cape Metals and Engineering cluster, recently formed by the Western Cape government, the exact number of firms operating in the manufacturing sector is unknown but officially at least 337 firms employ more than 25,000 people, though it is likely that more than 600 firms are active (Business Day, 2014). the Western Cape’s manufacturing sector contributed R45bn or 15% to the South African manufacturing sector output of R300bn in 2012 Manufacturing is the second-biggest sector in the Western Cape after the financial services industry.

26

Cape Innovation (Pty) Ltd2016

the two ‘traditional’ manufacturing sectors in the Western Cape are processed agricultural goods and clothing and textiles – both currently also technology stations at Cput! In 2008-2009 the food and beverage value chain contributed an average of 51% of the real value of the province’s commodity exports. products included table grapes, wine, canned fruit, jams, dried fruit and Rooibos tea. the clothing and textile industry, which used to be an important part of the Western Cape economy is facing a decline nationally.

unfortunately job losses were recorded in the manufacturing (-26 000), retail (-15 000) and the construction (-9 000) sectors during this period (Lemboe, 2012).

Notably most of the small

and medium manufacturing companies in the Western Cape are situated in close proximity of CPUT – this strengthens our view that the CPUT incubator should focus on SMMEs in the manufacturing sector.

4.5. pRODuCtIVItY SA

INSERT12:Figure:productivitySAstrategicfocalareas

productivity SA is a Schedule 3A public Entity and its governance board comprises of representatives from labour, government and business (Bongani, 2013). productivity SA’s mandate is primarily to enhance the productive capacity of South Africa. productivity SA plays a key role in providing training through its productivity Organisational Solutions department. their strategic focus areas are summarised in insert 12.

training is provided to various establishments within government, business and labour. One of the primary objectives of the department is the development of Small, Medium and Micro Enterprises (SMMEs)

27

As regards to synergies with Cput, there is significant synergy and value add regarding business skills enhancement available, e.g. the Business management simulation package that is a major benefit.

productivity SA is strong in manufacturing and production facility assessment and can contribute to the Cput incubator by:• Looking at the feasibility of concepts.• If a production unit is efficiently

organised, to help in fixing basics and to help in the creation of new business.

• If a new facility needs to be set up, the design of new production facilities and health and safety requirements compliance.

• Assist in pulling in experts and mentors to close gaps.

• Assistance with feasibility studies.• Implementation of good business

practices.• A computerised package on business

decisions simulation in a simulated manufacturing type business environment. this is a 2 day programme and licence fees ex the uK need to be paid.

• Advice on the routes / instruments to do business registration.

• Business forms, funding sources, design and layout, coaching and mentoring.

• productivity SA has a MOu with the CSIR to support localisation and import replacement.

• productivity SA currently has good working relations with all three technology stations at Cput.

• Empowerment services.• their very neat board room is at Cput’s

disposal should our incubatees need to use it for client interaction sessions – free of charge.

4.6. FALSE BAY COLLEGE (FBC)

False Bay College offers quality, accredited, vocational, occupational and skills programmes in a range of fields, designed with Industry to meet the skills shortages of South Africa. It offers practical career paths to suit one’s passion in engineering, business, hospitality, information technology, safety in society, education studies, 2D animation, tourism and boat building. False Bay College, a leader in the public technical and Vocational Education and training (tVEt) Colleges sector has been rated as one of the top performing tVEt Colleges in South Africa (Kruger, 2014).

FBC indicated that they received DtI funding (Incubator support programme, ISp) to set up entrepreneurial units / incubators. Four colleges were selected nationally to roll out the project in association with the university of Johannesburg who are the fund holders. Funding is also leveraged from the SEtA. the four Colleges’ vision is to create a Centre for Entrepreneurship with the objectives of:• placing graduates on a 12 months

venture creation programme and to expose them to an incubator to learn to apply their knowledge to the commercial field.

28

Cape Innovation (Pty) Ltd2016

• Create advocacy in their own communities to “expose” artisans as enterprise developers.

• perform outreach to small businesses.

A need for collaboration was identified after initial discussions and the two institutions will in the near future enter into a MOu to address matters such as• Mutual skills capacity complementarity.• A range of first mover initiatives to create

incubators. • Cput can be an innovation “hub” for

tVEts in the Western Cape.• Joint support of the objective of

developing ideas to products.• Create partnerships on the product

development and commercialisation value chain.

• Collaborate on a regional approach.• Running joint entrepreneurial / innovation

competitions.• Sharing of entrepreneurial expertise.

4.7. tECHNOLOGY INNOVAtION AGENCY (tIA)

tIA was established in terms of the tIA Act 26 of 2008, with the objective of stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by

developing and exploiting technological innovations. the agency’s core business objective is to support the development and commercialisation of competitive technology-based services and products. It invests in the following technology sectors: Advanced Manufacturing, Agriculture, Industrial Biotechnology, Health, Mining, Energy and ICt.

tIA was formed through merging seven DSt entities that were previously tasked with supporting and promoting innovation in the country. these entities included the Innovation Fund, tshumisano trust, Cape Biotech trust, plantBio trust, LIFElab, BiopAD trust, and the Advanced Manufacturing technology Strategy (AMtS). Its mission is to support technology innovators to unlock South Africa’s global competitiveness and deliver socio-economic value. this is achieved by supporting the development and demonstration of technology based products, processes and services, and the commercialisation of technology innovations. the agency seeks to achieve its mandate by providing financial and non-financial support to its stakeholders, namely, science councils, public entities, higher education institutions, private research institutions and entrepreneurs.

INTERNAL STAKEHOLDER ANALYSYS

4.8. Cput’S tECHNOLOGY StAtIONS

tIA currently supports three technology stations at Cput with the objective to support SMEs with technical support which includes prototyping and design. this service includes the technical incubation of ideas to proof of concept, production of demonstrators and guidelines on production processes. they are not engaged in business process development and hence

form one of the feeder channels to the business incubator when proof of concept and demonstrators need to be taken to market. the technology stations are science and engineering based working on product development, not commercialisation as is required for taking products to market, fulfilling a distinct function in the innovation success model.

29

4.8.1. AdaptronicsAdvancedManufacturingTechnologyLaboratory(AMTL)

the tIA Adaptronics Advanced Manufacturing technology Laboratory (Adaptronics AMtL) was established in 2007. the primary objective of the unit is to specialise as a national manufacturing, research and educational resource centre for Adaptronic technologies in South Africa. Adaptronics is the technology that integrates sensor and actuator functions into materials, components and structures so that they may react to environment stimuli thus making them intelligent.

ResearchandTechnologyfocusareasofspecialisation

the unit focuses on the following research areas:• Adaptronic technology: Research

and technology projects into the development of intelligent structures, MEMS and Nano-Sensing Devices.

• unmanned platforms: Research and technology development of nano, micro, mini, and close/short range unmanned aerial vehicles for both military and civilian applications.

• Automotive technologies: Research and technology projects related to motorsport and alternative/green propulsion systems.

• Ocean Engineering: Research and technology projects related to maritime applications.

• universal Design: Research and technology projects providing access to physically challenged individuals.

these areas form the foundation of the Adaptronics AMtL’s Human Capital Development programme, and include student R&D projects ranging from Internships, Bachelors, Masters, Doctoral and post-Doctoral activities.

the AMtL also has a dedicated staff of technologists, technicians, and Artisans involved in industry related activities ranging

from design, prototyping, testing, and process and programme development.

IndustryContractResearchandpartnerships

Since its inception, the tIA Adaptronics

AMtL has been involved in many contract research and development and research and technology projects for South African Industries. these industries span sectors such as Oil and Gas, Boat Building and Ship Repair, textiles, Bio-Medical, Automotive, etc. the nature of these interventions included prototyping of new and existing products, reverse engineering, steel fabrication and manufacture, materials testing, and numerical analyses and testing.

the unit’s partnerships include a variety of Large Companies, SMME’s, Regional and National Government Departments, South African Research Facilities, as well as other universities. these include the Western Cape’s Department of Economic Development and tourism, DSt, Department of Environmental Affairs, tIA, AIRBuS (pty) Ltd, DENEL uAV Systems, DENEL Optronics, Solid State technologies, South African Kart Racing Academy, CSIR/DpSS Landward Sciences, South African Navy, Institute for Maritime technology and NRF/Ithemba Labs.

4.8.2. TechnologyStationforClothingand

Textiles(TSCT)

the technology Station in Clothing and textiles (tSCt) is located in the Faculty of Informatics and Design, Bellville Campus. the tSCt was established to provide innovation support to the clothing and textile industry to become more competitive. this would directly provide feedback into the teaching, learning and research at the university by engaging staff and students in its programmes and thus become responsive to industry needs.

30

Cape Innovation (Pty) Ltd2016

the following range of specific services is provided to the clothing, textiles and related sectors:

• Manufacturingadvisoryservices Manufacturing audits and assessment:

provide Industrial Engineering services for productivity improvement, including process layout; optimizing sewing methods and work-study; Implementation of improved production systems; Implementation of Quality Systems; Sewing technology Support.

• Technologyplatform A number of specialised machines

available for use of small business on an appointment basis; Electronic button-hole machine; Electronic button-sew on machine; Electronic bar-tacking machine; Electronic eyelet button-hole machine; Cover seam machine (elasticating); Merrow edge machine; Hemming machine, Embroidery machine and digitiser (for samples); Walking foot machine; ultrasonic Welding machine; Jet pocket machine; Feed off the arm machine.

• producttestingandanalysis Commercial textile and garment testing

laboratory - Woolworths accredited.

• Humancapitaldevelopment Offer a range of Short Learning

programmes. Fp&M SEtA (Fibre processing and Manufacturing Sector; Education and training Authority) ISOE (Institute of Sectoral Occupational Excellence).

• productdevelopment technical drawings pattern Development

(Gerber software); Mock up sample making; product assembly; pattern grading; Sample Embroidery textile specifications.

• Smartorganisation Clustering of small businesses; Network

Facilitation.

• Research product and process development;

Anthropometry (Body sizing using 3D body scanner); polymer textiles in water and air pollution abatement/electro spinning nano fibres.

4.8.3. AgriFoodTechnologyStation(ATS)

the mandate of the Agrifood technology Station (AtS) is to assist small and medium enterprises primarily but also all other appropriate companies as a secondary goal to improve their use of technology, implied improvement of efficiencies and also concomitant improved ability to employ more staff and empower such persons in terms of the field of technology in which it operates.

AtS offers a wide range of services that can assist food and related companies in developing, enhancing and maintaining safe, efficient and cost-effective food production and processing. the university has a host of highly qualified and experienced staff, including scientists, technologists and technical assistants to assist with delivering this service to companies. Where any specific expertise does not exist in the university, the academic and industrial networks of the above staff are also called in to assist on a consultancy basis.

AtS is well placed in a state of the art complex on the Bellville campus of Cput. this includes a pilot plant with five different processing areas: bakery, meat products, extrusion & milling, spray drying and heat processing. Besides general and cold stores, there are also a number of laboratory areas such as an R&D lab (for small-scale product development), Research Lab, Instrument Room, Chemistry Lab, Microbiology Lab and a physical Food properties Lab.

31

AtS is part of the Agro-Chemical cluster and associated with:• Agrofood technology Station (university

of Limpopo)• Downstream Chemicals technology

Station – Innoventon (Nelson Mandela Metropolitan university)

• technology Station in Chemicals (tshwane university of technology) and technology Station in Chemicals (Mangosuthu university of technology).

4.9 CApE pENINSuLA uNIVERSItY OF tECHNOLOGY

the mandate of the university is training,

community engagement and research,

which includes the transfer of technologies developed in the research process to the benefit of the broader community and economy. the responsibility to ensure that knowledge generation is transformed into goods and services that serve the common good, positions Cput as the key stakeholder in ensuring the success of the incubator. Cput has a very strong and growing applied research output with a focus on product development, making the availability of a dedicated incubator space an imperative to deliver on its mandate. the specialist research centres and units indicated in insert 13 below support the solution and product development capacity inherent in Cput as a foundation to build spin off companies:

INSERT13:TABLE:CpuTRESEARCHCENTRESANDuNITS

Bio-catalysis and technical Biology Research Group.

Centre for Computational and Applied technology Mechanics.

Centre for Distributed power and Electronic Systems.

Centre for Instrumentation Research.

Centre for Mechanics and technology (CMt).

Centre for power Systems Research (CpSR).

HVDC and Harmonic Analysis Computational Studies.

Centre for Real-time Distributed Systems.

Centre for Substation Automation and Energy Management Systems.

Centre for tourism Research in Africa (CEtRA).

Computational and Applied technologies Manufacturing.

Crystal Engineering.

Energy Institute.

Environmental toxicity and Remediation.

French South African Institute of technology (F’SAtI)

Flow process Research Centre (FpRC).

Functional Foods Research unit.

Human performance Laboratory.

Institute of Biomedical and Microbial Biotechnology (IBMB).

Molecular pathogenic Microbiology Research Group.

Obesity and Chronic Diseases of Lifestyle Research unit.

Oxidative Stress Research Centre.

product Lifecycle Management Competency Centre.

Radiochemistry and Ion Exchange Chromatography.

technology Institute: Community Water Supply & Sanitation.

Website Attributes Research Centre (WARC).

Work-Integrated Learning Research unit.

32

Cape Innovation (Pty) Ltd2016

4.10 Cput FACuLtY OF BuSINESS

the Cput Faculty of Business offers extensive entrepreneurial training expertise and capacity through the Department of Entrepreneurship, Marketing and Accounting enabling the in-house offering of short courses, structured tiered courses and mentorship support of innovators who have excellent products and innovations, but not the required business skills. Furthermore it offers the potential to create SME development teams of innovative staff and students to form multi-disciplinary teams as embryonic businesses.

4.11 tECHNOLOGY tRANSFER OFFICE (ttO) OF Cput

the university’s technology transfer Office is intimately engaged with the incubator and as the driving force for the creation and operation of incubator activities in the university. As the operational stakeholder, the ttO is and will remain closely engaged with the operations of the incubator. In practice, even though separate entities – the ttO as a department of the university and the incubator operating as a (pty) Ltd, the operational interaction between the incubator and the ttO will be seamless.

the innovation activities the ttO is already engaged in is reported below, reflecting the activity of the Cput ttO as key stakeholders as at June 2015. See Appendix 7: Innovation Showcase – thinking out of the box. this reflects the innovation of staff and students who are developing the following products and enterprises in the current Cput ttO incubator activity. this reflects the pipeline of innovation and enterprise creation activity created over the past two years and alludes to the need for a comprehensive incubator facility, suggesting that the proposed facility could already be fully occupied:

Studentproducts(examples)• TheBraaiTool (patented hinge mechanism),

redesigned braai tongs.• Snugpack (pCt filed), a backpack cover and

protection product.• Dehydrator, novel new food dehydrator.• personalcomputerstand.• Cookable, kitchen gear for disabled persons.• Manhoodunderwear (patent), post

circumcision assistive device.• Electricscooter, the WAtt.• In addition to the above, a backlog of some 15

products from earlier. • A further ±20 products expected from the

2015 industrial design B tech class.• Approximately 12 products from the 2015

innovation competition.

Staffproduct• Fish farm

TIAseedfundsupportedproducts–staff• Careerguidanceapplication.• OmegaCaro-Ecapsules, (patent, Health

Canada approval for export), new omega products include emulsion, pregnancy and veterinarian products.

• Fuelgelstove for use in townships to replace paraffin.

• Fuelgel for use in the stove above.• Driver’slicencecontrolunit for use in the

transport industry to validate drivers.• Cohere (completing SA patent) which enables

efficient sleep.• Wasteplasticreactorthat enables recycling

plastic to combustible gas.• Smartmeterthat enables reselling electricity in

mini-grids.• Bambaragroundnut that enables new food

products using this indigenous fruit.

NewTIAprojects• Rooibosteaproduct, new energy drink.• Nano-catalyst for use in textile industry waste

water.

33

CpuTInnovationFundproducts• DesignGarage, the creation of a dedicated

innovation product display shop.• Coastalbuoy, a dedicated smart marine buoy.• Nano-particleproducts for use in farming

effluent treatment.• unmannedaerialvehicles.

• Flow-Viz, (patent, uS and European patents pending), in-line flow visualisation system. this is a disruptive technology.

• Cubesat and satelliteradiomanufacture, for use in the space industry.

Considering that innovators will move into the incubator in the later stages of innovation development for a period of between one and three years, the estimate of having to accommodate up to 50 enterprises in the incubator – both physically and/or organisationally – confirms the need for the 3000m2 facility and support structure envisioned.

CONVERSIONRATE.Basedontheproductlistabove,itisanticipatedthatuptofouroftheseproductshaveahighprobabilitytobeconvertedtoprofitableenterpriseswithina12to18monthperiod,representinganestimated15%conversionrate[Thomas2007],butwithonlyafraction(<50%)oftheseprojectsactuallymakingmoneybeyondtheupfrontlicensefee.

pRODuCTpIpELINE. CPUTunderstandsthatthemainreasonforfailureoftechnologybasedstart-upsofisthattheconversionrateisverylowaroundtheworldandthereforeappreciatestheimportanceofawellorganisedandfullycapacitedpipelineofproductsfeedingtheinnovationsystematCPUTinanattempttoincreasetheconversionrate.Thepipelineforcontinuedinnovationtoresultintechnologytransferactivitiesismainlyprovidedby,amongothers,theCPUTCentreforPost-GraduateStudies,innovativeprofessorsinengineeringandscienceandaveryproductivefacultyofinformaticsanddesignproducingindustrialdesignproducts.Further,significantsourcesaretheannualstudentinnovationcompetitionyieldingatleast12productsannually,thecallforTIAseedfundingforstaffyieldinganaverageoffivenewproductsannuallyandtheCPUTinnovationfundyieldingonaverage3newproductsannually.CPUTisthusconfidentofanaveragepipelineof20productsthatwillcomeintothesystemeveryyear.MostofthesenewinnovationswillresultinrequiringIPprotection.Alltheseinnovativeprojectsareindireneedofearlystagesupportinordertomakeittotheincubator,hencetheproposedsupportfunctionsoftheincubatorincollaborationwiththeuniversity’sTTOasfurthersetoutinchapter8.

34

Cape Innovation (Pty) Ltd2016

the value added by the strategic partners identified are summarised in insert 14 below, indicating the full extent of support the Incubator needs to have at its disposal to offer a comprehensive service in closing the entrepreneurial chasm – taking the innovator beyond product to commercial thinking and success:

INCuBATORSuppORT

Inno

vatio

n su

ppor

t

Fund

ing

See

d Fu

nds

Reg

iona

l dev

elop

men

t

Inno

vatio

n pi

pelin

e

New

ent

erpr

ise

crea

tion

Em

ergi

ng p

rodu

ct u

ptak

e

Feas

ibilit

y st

udie

s

trai

ning

pro

toty

ping

pro

duct

dev

elop

men

t

STRATEGICpARTNER

DST X X X

DTI X

pGWC X X X

MANuFACTuRINGSECTOR X X

pRODuCTIVITYSA X X X X

FALSEBAYCOLLEGE X X X X X

TIA X X X

TECHNOLOGYSTATIONS X X X X X

CpuT X X

CpuTRESEARCHCENTRES X X

CpuTFACuLTYOFBuSINESS X X X X X

TTO X X X X X X X

Insert14:Table:CpuTstrategicpartnersandvalueadd

Insert15:Figure:StartupBusinessIncubatorinRoom1.24,DepartmentIndustrialDesign,CapeTownCampus(SponsoredbyDEDAT)

SMALLSCALEExpERIMENTALBuSINESSINCuBATOR

A small scale experimental business incubator is in operation on the Cape town campus as shown in insert 15. this facility will expand to a new venue to service the Cape town campus in the interim, mainly the design faculty.

5

35

5.1. pHYSICAL INFRAStRuCtuRE

Note: The assessment of the most appropriate site was done within the context of existing physical infrastructure development plans of CPUT. Notably the university considers the following alternatives, but is not limited hereto as shown in insert 16 below.

Architects’ impression of the proposed new CPUT incubator facility

Insert16:Table:Incubatorinfrastructureneed

5the Incubator Building

pROJECT SIZE pLACE puRpOSEANDCOMMENTS

Smallscaleexperientialbusinessincubator

50 m2 Cape town Stage one pILOt

Existing DEDAt initiative with R1.25m budget.

Small scale industrial design projects from students.

3-D printing and small technology projects

Thisproposal 3,000 m2

(three phases of 1,000m2 each)

Bellville High visibility customised facility dedicated to manufacturing business development

potential sites: Dedicated incubator building between Food technology Complex and Symphony Road, OR dedicated incubator building next to new Saratec building

36

Cape Innovation (Pty) Ltd2016

5.1.1. Incubator site In considering site selection for the incubator, a scenario planning methodology was used based on

the following weighting allocated to the criteria that were distilled from international best practice. these criteria are as follows and the results are shown in insert 17.

• proximity to a higher education institution (20%)• proximity to an airport (10%)• proximity to a large manufacturing precinct (10%)• proximity to social development needs (5%)• proximity to road and transport infrastructure (10%)• Accessibility and visibility (25%)• proximity to product and innovation development (20%).

Insert17:Figure:IncubatorLocationScenarios

Short listed scenarios interrogated include placing the incubator at the Bellville campus - Symphony Way; Bellville campus - off campus; Cape town - on campus; Cape town off campus; and Wellington campus.

the team identified two most feasible sites for the establishment of the facility:

CapeTown:offcampus

WellingtonCampus

25

20

15

10

5

0BellvilleCampusSymphonyWay

Bellville:offcampus

CapeTown:oncampus

I. Bellville – 3,000 m2 standalone facility on open land owned by Cput bordering onto Symphony Way, to produce an aesthetic and functional front entrance façade to the Cput Bellville campus. this facility will service the faculties of Applied Science, Engineering and Health and Wellness that account for 78% of innovation and knowledge generation in Cput. this site is shown in insert 18 opposite.

II. CapeTowncampus – 1,000 m2 facility integrated into the Cape town Design precinct on the West of District 6. this facility will service the commerce and design faculties of the university that accounts for 22% of innovation and knowledge generation. the Design precinct is a long term project in association with the City of Cape town.

37

Insert18:Figure:BellvilleCampussite

More specifically the following design criteria for the Bellville campus have been defined:• Fully serviced interior work stations, meeting rooms, training rooms, SME cubicles for up to four

people, security and 24/7 accessibility.• Architectural drawings for the planned facilities are compiled.• the support of Cput’s Facilities Management division to oversee the execution of the structural

work has also been secured.• A dedicated green infrastructure facility is foreseen for the Bellville campus in a building of 2,000 to

3,000 m2 that will need to accommodate the following spaces:- 20 workstations for companies at the start-up phase, i.e. one man business. - 18 rooms that accommodate office space for four to five people – businesses that start to grow

and employ more people, requiring office space before leaving at the end of three years. - Four small boardrooms to accommodate up to eight people.- A training room that can accommodate up to 80 people, but with dividers to split it into three

smaller training / board rooms.- A coffee shop and social “mall” area for up to 100 people.- An office facility for the technology transfer Office to accommodate up to 15 staff in individual

offices, reception area and board room for up to 20 people, to accommodate visiting experts in addition to ttO staff.

- Workshop facility for rapid prototyping, 3D printing and limited prototype development space.- Rental space of 1,000m2 for anchor tenants.- Dual entrance / reception hall – to provide access to the public from the street and from the

Cput campus. - parking for both public and Cput entrances.

38

Cape Innovation (Pty) Ltd2016

QuotesoncurrentconstructioncostisestimatedatR45million.

EquipmentandshopfittingisestimatedatafurtherR4.5million.

this need estimate correlates with international best practice as shown in insert 19 for the incubator in Muscat.

Insert19:Figure:Interestingcorrelating

datafromMuscatincubatorinOman,Gulf(Kabouri,2014)5.1.2. Incubatorconstruction

Insert20:Figure:Architect’simpressionofamodularbuildmodeloverthefundingperiod

No immediate plans are available for the

construction of the incubator. Construction will commence once Cput’s Facilities Management division has finalised the design and estimated construction costs. An architect’s impression showing the progress of a modular construction approach that can support the funding model over three years, is shown in insert 20 below.

39

5.1.3. EquipmentandFurniture Equipment and shop fitting is estimated at a further R4.5 million. As a business incubator, there is little

need for manufacturing and production equipment other than possibly a rapid prototyping facility, and equipment and shop fitting will be for the creation of a functioning business environment. the need for serious manufacturing and production facilities will draw on the facilities in the faculties and technology stations that are geared toward this end, ensuring that there is not a duplication of a technology station.

5.2 BuILDING

In line with the vision for the whole project, the envisaged building will provide an enabling eco-system with the necessary infrastructure, enterprise development and people support to significantly optimise the probability for incubatees to succeed in creating their own enterprises. With this focus, the facility’s design is green, professional and offers an environment where both students, incubatees, alumni, academics, investors and industry can mingle in an interactive business enhancing environment.

5.3 SERVICES tO BE OFFERED BY tHE INCuBAtOR

the range of services to be offered by the incubator are summarised in insert 21 below. the services will be offered in the incubator, the satellite incubator on the Cape town campus or at a venue convenient to the incubatees. It is envisaged that group work will mainly be on campus whilst individual work can be offered on a decentralised basis. All the Cput facilities are at the incubator’s disposal although academic imperatives will always take preference, limiting the access to facilities.

Insert21:Table:ServicesofferedbytheCpuTincubator.

STRATEGIC PARTNERSHIPSCSIR TVETs

(FalseBayCollege)productivity

SAWCpG Local

business

Main Funding partner: to be identified

CPUT INCUBATOR(5focusareasoftheincubator)

TTO SMMEs Businesscreation Training Events

this focus area mainly comprises of Cput’s portfolio, but third party Ip can also be commercialised through the ttO; Conventional tt activities such as licensing; contract research; support of staff and students with business ideas. this includes all aspects of securing a cash flow stream to the university emanating from royalties and equity in spin out companies. As the custodian of the university’s intellectual property it is the watchdog over Ip matters. Further revenue is based on contract work for university and non-university clients.

Support of entrepreneurs, people with business ideas and SMMEs accessing the incubator from outside Cput. this includes the for-profit provision of strategy and business consulting and mentoring services, the customisation of training courses and for profit assistance in prototype development and production.

Early stage & mature Incubatees. For profit advisory services and customised workshops to assist in the formation of new enterprises.

Entrepreneurship training, Integration of courses with Cput’s main stream Curriculum. this includes a series of schedules for profit short courses and customer workshops.

Ip and tt Workshops, Conferences, pitching sessions, competitions. For profit entrepreneur focused conferences, innovator meets investor forums, trade shows attendance and presenting to generate leads.

40

Cape Innovation (Pty) Ltd2016

Business model of the Cput Incubator66.1. CuRRENt StAtuS AND

tRACK RECORD OF tHE Cput INCuBAtOR

the incubator is a new initiative of Cput.

the proposed name of the incubator is Cape Innovation (pty) Ltd.

6.2. OVERVIEW OF INCuBAtOR ORGANISAtION AND StRAtEGY

Our objective is to create the environment, facilities and support structures required to give potential entrepreneurs of the Western Cape the platform to develop the necessary business and entrepreneurial skills. Entrepreneurs from Cput (students and members of staff) will be assisted to facilitate their transition from the academic world to the entrepreneurial, whilst entrepreneurs from the local SMME community, as well as from the tVEt feed and “walk ins” will also be assisted with specific needs.

In line with our vision to create a business incubator to enable the start up of viable technology based companies in the manufacturing sector with growth and export potential that can create sustainable employment for many people in the Western Cape, we have as a further objective to enable:• a large percentage of our postgraduate

compliment to become entrepreneurs, i.e. we need the capacity to incubate many entrepreneurs per annum to start up their own new enterprises.

• SMEs, tVEt students and “walk inns” with great ideas to exit from the incubator programme after two to three years.

Thenumberofjobscreatedwillnotnecessarilybethekeycriterion,butratherthatsustainablejobsarecreatedandinvestmentsecuredbySMMEstodevelopintheWesternCape.

to achieve this, a number of key elements need to be in place. these are:i. A fully constituted governance

and management system enabling commercial operations as a 100% Cput owned business entity.

ii. Suitable location for the incubator.iii. the forging of sound relations with

internal and other stakeholders that can feed into the incubator.

iv. Anchor tenants in the facility to support the financial viability of the incubator. the tenants will ideally display synergy with the university innovation activities to support the mutual commercialisation agenda of the business and the university innovators.

v. A range of largely standardised and accredited courses in entrepreneurship, cost and financial accounting, project management and people management, ideally in association with the Cput Faculty of Business.

vi. the provision of mentors, coaches and hands on experts to assist in optimising success by providing customised one on one support and guidance.

vii. Limited prototyping facilities (access to Cput’s workshops and 3D printing capacity).

41

Furthermore, to realise the creation of a business incubator, the team has developed a comprehensive feasibility proposal that

focuses on delivering on the following key performance areas:

• Stakeholdersupporto Obtained support for the creation of the incubator from the Cput executive management.o National support from e.g. tIA, DSt and DtI.o provincial Government of Western Cape and City of Cape town.o Local trade and industry.

• Manufacturingsector the nature of Cput’s academic offering, as well as the market segments where most of its

graduates find their way to trade and industry points to an early assumption that the incubator should focus on the manufacturing sector in the Western Cape. this assumption was verified after various consultations with stakeholders and potential tenants of the envisaged incubator (Lombard 2014).

• TVETs One logical extension of this focus area is the involvement of the tVEt colleges in the Western

Cape. this assumption was once again verified by consultations with stakeholders. the business plan of the incubator has therefore been designed to align efforts from the outset with tVEt objectives and to eventually grow the incubator to also serve that market, in collaboration with tVEt colleges.

6.3 CHARACtERIStICS OF tHE Cput INCuBAtOR

the incubator will operate as a 100% owned company of Cput with two key functions of:• providing incubator operations,

consisting of mentoring and training, the provision of back office support consisting of finance, HR, legal and logistic support and the smooth running of the incubator facility and its services to e.g. host industry specific events and

• provide support for spin-out companies.

university support will be a seamless interaction with the technology transfer Office and other relevant departments such as research and community engagement.

In its operation, the following considerations will apply:• In the incubator, a phased graduation

model is used to move people through to an exit point.

• Include in the design a hub to generate business ideas. this includes providing a library, meeting rooms and a canteen.

• Get others to equip the facility with demonstration gear that can be showcased in the commons, e.g. Siemens communication equipment that incubator users can use at the exhibitor’s expense.

• A learning space that gets around bureaucracy. It is imperative to not create a bureaucratic feel and to stay away from the “tick the box” mania.

• For entry into the incubator, use of an enabling selection filter, not a policing filter.

42

Cape Innovation (Pty) Ltd2016

the anticipated structure is shown in insert 22 below:

Insert22:Figure:Incubationsystemstructure

the operations of the incubator will follow the outline of the business plan and is as below.

6.2.1. TechnologyTransfer the technology transfer Office, as custodian

of the incubator will facilitate, protect and enhance the transfer of Intellectual property from Cput to the business sector to enhance commercialization for the upliftment of the communities we serve while at the same time generating royalty income for the university and the entrepreneur. technology transfer Office activities include all aspects of securing a cash flow stream to the university emanating from royalties and equity in spin out companies. As the custodian of the university’s intellectual property it is the watchdog over Ip matters. Further revenue is based on contract work for university and non-university clients.

6.2.2. SMMEs the focus on SMMEs and people with

innovative ideas includes the for-profit provision of strategy and business consulting and mentoring, the customisation of training courses and for profit assistance in prototype development and production.

6.2.3. BusinessFormation the focus on Business Formation includes

the for-profit advisory services and customised workshops to assist in the formation of new enterprises. Some of these

services may include:• Manufacturing and design advice.• Rapid prototyping. • project management services.• Accounting and administration.• HR services for the appointment of

contract staff.• Legal and Ip services.• Local patent attorney firms will be

approached to run an Ip desk at the incubator.

• Quality control (M&E, QA).• Market analysis surveys / statistics.• Marketing support for products

emanating from the incubator.

6.2.4. EntrepreneurialTraining the focus on Entrepreneurship training

includes a series of scheduled for profit short courses and customer workshops. Cput will adopt the general approach of Innovate Calgary to develop a custom made programme for Western Cape specific needs.

Innovate Calgary and Rocket Builders (Garret, 2014) have teamed up to help technology companies develop the skills needed to maximize successful execution in market entry, product launch and revenue growth by addressing market place challenges and focusing on strategy and implementation. the Innovate Calgary programme comprises of the following seminars shown in insert 23 below.

Cape Innovation (Pty) LtdCEO and BOaRD

CPUT

Technology Transfer OfficeIP, licensing, contracts

Community Engagement

100% EquityCPUT

Departments

Research Development

INCUBaTION OPERaTIONS(mentoring, training,

business information)

BaCK OffICE SUPPORT(accounting and finance,

procurement, HR, contract and legal, logistics)

INCUBaTOR faCILITY MaNagEMENT

(utilisation of space, services provision)

EQUITY HOLDINg aND gOVERNaNCE

engagemant in spin-out companies

43

SEMINAR 1“product-Market Fit”

Develop the key fundamentals of a marketing strategy such as market research, understanding your prospective customers and pricing strategy.

SEMINAR 2“Refining Your Marketing Strategy”

Learn to refine your market strategy through the use of channel partners, customer validation and competitive analysis and revenue targets.

SEMINAR 3“Leveraging Channels to Market”

Identify how to leverage channel partners, determine key criteria for partner evaluation, and the key steps in joint sales and marketing with partners.

SEMINAR 4“Lead Generation tactics”

Build a comprehensive communication strategy to engage prospective customers and partners. Examine various publicity and direct marketing methods that align with and provide the most value and results for your company.

SEMINAR 5“Sales Method and processes”

Learn how to design and implement the sales process through the understanding of “sales-ready” leads, pipeline management, buying influences, sales support and customer reference programs.

In addition, the following methods of entrepreneurial training are proposed to address the needs of the individuals or groups from the various feeder sources in the various phases of incubation:

• Academiccurriculummodules Multiple, sequential one-hour contact

sessions during a semester can be incorporated into the current curriculum of various undergraduate qualifications.

• Workshops Independent one- to eight-hour

facilitated activity-based contact sessions on various topics.

• Conferences presentations by researchers/

entrepreneurs on topics related to a specific area of study.

• Shortcourses/programmes Credit-bearing certificate courses on

various topics and presented over days or weeks. public courses will be offered at a for profit rate.

• Mentoring/coaching Relationship-based individual

consultations with experienced service providers.

• Internships Exchange of services for their experience

as a member of a project, team or organisation. It is envisaged that internship programmes may extend to exchange programmes with other local and international universities.

these sub-programmes group entrepreneurs with specific needs and take into account the goals of the incubator and the phases of specific projects that are being incubated. A substantial portion of the operational budget is allocated to develop Cput specific courses, but also to obtain the services of professional service providers.

Insert23:Table:TrainingprogrammesofferedbytheCalgaryincubator.

44

Cape Innovation (Pty) Ltd2016

6.2.5. Events this focus area on events includes for-

profit entrepreneur focused conferences, innovator meets investor forums, trade shows attendance and presenting to generate leads, pitching sessions to potential investors and mentors, and professional competitions to be organised in collaboration with VCs.

6.3. MARKEt SEGMENt OF tHE INCuBAtOR

the incubator will focus on incubation and entrepreneurial services that are tailor made for SMMEs and manufacturing companies in the engineering, textile and agrifood sectors.

6.4. MARKEt tRENDS tHAt INFORM tHE INCuBAtOR

According to the Bureau for Economic Research (Lemboe, BER, 2012), confidence in the local manufacturing sector is declining. this observation is supported by other reports of the pGWC (DEDAt, 2012) where substantial job losses in the textile industry is a major concern (also see paragraph 4.4 above). the Cput aims to address these market trends with its offering.

6.5. ANCHOR tENANtS

6.5.1. TTOprojects the ttO of Cput will be one of the anchor

tenants, together with entrepreneurial projects emanating from Cput’s research activities. these projects will be very early stage projects and will include student competitions and existing activities on campus.

Cput has studied best practice at other incubators to determine the best ratio of tenants – the incubator of Calgary university, Canada (Garret, 2013) seems to have found the ideal mix as indicated in insert 24.

Insert24:Figure:LifecyclestageoftenantsatCalgaryuniversity,Canada

6.5.2. TIATechnologyStations the three tIA technology stations all have

well equipped laboratories and established networks and are logical partners to enhance the commercialisation of products.

6.5.3. CSIR’sConsultingAnalyticalLaboratory BackgroundontheCSIR’sConsulting

AnalyticalLaboratory(CAS) the CAS Laboratories are run on a fully

sustainable commercial basis with no state funding in an open competition environment. the manager runs a range of businesses he has set up in addition to running the CAS Laboratories for the CSIR.

the CAS Lab managers are keen to come on board as a key tenant subject to the following needs to be addressed:• A physical facility of between 400 m2

to 500 m2 to house a laboratory that operates on a 24/7 basis as margins in the industry are thin and the capital equipment is expensive. A 24/7 service is also imperative to sustain a competitive edge over rivals.

• the CAS Laboratory prefers to be associated with the AgriFood technology Station and this is also a central role the CSIR wants to play.

• CSIR will provide details on laboratory design requirements and detail – they have set up numerous CSIR Labs, including the one in the ELIDZ.

Cput is of the view that the inclusion of a commercially run laboratory will add value to the total offering of the incubator.

LIFESTYLESTAGE

Development 17% Startup 31% Growth 45% Mature 7%

7

45

7.1. DEFINING tHE tARGEt MARKEt

Theenvironmentalscanandcompetitiveanalysisabove(paragraph3.2)clearlyindicatedthattheCPUTincubatorwillfocusitsattentiononthehighpotentialyetrelativelyun-servicednicheareasofbusinessincubationforthemanufacturingsectorintheWesternCape,namelythebroadfieldsofagrifood,engineering,productdevelopmentlaboratories,manufacturing,textilesdesignandindustrialdesignandtosomeextententrepreneurialtraining.

Cput has an extensive system of industry linkages comprising of a well-developed work integrated learning model requiring students to spend time in industry to obtain experience as academic pass requirement, all the linkages of the technology stations and contract research for industry. this market position has already earned Cput the reputation of training people who can produce in industry, providing a sound reputational platform to engage with industry.

7.2. MARKEtING tO EXtERNAL CuStOMERS (AttRACtING BuSINESS)

A range of clients need to be engaged with calling for a channel marketing approach for each of these. It is acknowledged that a client can manifest in more than one group.

Theclient’sgroupsidentifiedare:• partners identified as investors into the

incubator or individual enterprises and or mentors to support and assist the entrepreneurs. these clients will be identified and approached individually, mainly on referral based on past performance and reputation.

• Stakeholders identified as investors and people / companies who can influence or can be influenced by the operations of the incubator. these clients will be identified and approached individually, mainly on referral based on past performance and reputation. A multi-disciplinary approach engaging the Advancement Department, Marketing and Communication Department and the Executive Management of Cput.

• Investors identified as investors into the incubator, venture capital and investment capital providers as well as banks. these clients will be identified and approached individually in conjunction with legal scrutiny and Executive Management.

• Incubatees emanating from the traditional university source, are identified as early, intermediate and late stage entrepreneurs and who can mostly be reached as groups who meet from time to time.

• Early stage entrepreneurs will typically be at the National Diploma / B tech level / M tech level and are reached by innovation competitions where they are identified for their entrepreneurial potential.

• An intermediary group identified is the cohort of D tech candidates that are identifiable via the Centre for postgraduate Research where they are administered.

7Marketing plan

46

Cape Innovation (Pty) Ltd2016

• A more advanced group is the cohort of academic researchers who produce research outputs and earn credit income for the university and who are administered by the research office.

• Later stage entrepreneurs are advanced researchers and staff that develop higher technology products and who are more acquainted with the work of the ttO. Academic staff, identified as the lecturing staff of the university. these academics are reached by talks and presentations given to faculty meetings, encouraged by the Deans who now have to report on innovation stimulation in their faculties.

• Incubatees emanating from the community or industry, ie not via the linear university system, can also be early, intermediate and late stage entrepreneurs who have viable and often novel ideas developed over years of experience and concepts developed from an enquiring mind to the point where initial experimentation at a range of levels of sophistication seeks support to take the ideas into profitable ventures. Industry beneficiaries, identified as industries that approach Cput seeking solutions for industry challenges. Contacts and enquiries are relayed to the relevant academic department after taking care of Ip ownership and protection issues.

• General public, identified as the broader community is reached by feeding stories to the Marketing and Communication office for general pR and medial liaison usage.

the selection criteria for incubatees will be determined by the incubator management, but will include considering the quality of the concept/ products presented, the probability of a market size, the openness of the incubatee to learn and the individual’s motivation to succeed.

Allactivitieswillbemirroredontheincubatorwebsiteandsocialmediaplatforms.

It is the intent that the incubator services will include non-Cput entrepreneurs e.g. from the tVEt sector and public to ultimately grow into a regional incubation asset.

8

47

8.1. OpERAtIONAL pROCEDuRES

Proceduresforreachingobjectivesincluding;incubation,recruitment,pre-incubationandassessment;incubationperiod

the operationalization of the incubator consists of four main focus areas, namely governance, strategy, the service rendered in the incubator and the provision of the physical enabling environment whilst a pre-incubator phase to stimulate innovation also needs to be systemically integrated into the core undergraduate and graduate curricula.

pre-incubation Drawing on the experience of the Satakunta

university of Applied Science (SAMK), the university should be known for its integrated entrepreneurship programmes that are systemically integrated into all the years of study as a standardised course for all disciplines. this ties in with the rationale to develop both entrepreneurs and intrapreneurs to build the economy, and can be implemented as follows adapting the model to the Cput environment (Note: the equivalence of Finnish and RSA credits is not clear):

8Operational plan

Entrepreneurship studies are intended for all degree students. Basic entrepreneurship is included in common compulsory basic studies of all degree programmes. In addition, Developing a Business idea, 5 credits and developing an Enterprise, 5 credits, should be available in Elective Studies. They support the student’s entrepreneurial growth in all degree programmes and they can be elected as part of all degree programmes.

If other goals are reached, the students are also able to complete field placement related to degree studies in their own enterprise either partly of completely if they want to. In total this practice can consist of 30 credits. Also, the student can conduct his or her B Tech thesis in his or how own accelerator enterprise. The extent of the B. Tech thesis is 15 credits.

In total, Entrepreneurship Studies can include 60 credits at SAMK.

”Governance

Governance is comprehensively covered in chapter 9 below.

Thebusinessstrategy Global best practice as developed by

internationally acclaimed incubators over time, informs the strategy proposed for the Cput incubator:

48

Cape Innovation (Pty) Ltd2016

1. Tooffertieredbusinessdevelopmentprogrammesforcompanies

a. in the early orb. later phases of development and

providing continued access to the Cput networks and coaching after completing business development programmes.

2. Todevelopabroadnetworkofbusinesscoacheswithbusinessexperienceandwhohaveapassiontohelpentrepeneurs.Thecoachesneedtoberemuneratedtodedicatecontacthourstoincubateesovera:

a. two to three years period; b. providing monthly deviation reports,

quarterly reports and half-yearly reconciliations on the progress of incubator companies. the coaches also provide strategy and sound boarding inputs whilst the costs of coaches is

c. recorded until the start-up company can repay the costs incurred. All coaching fees to be repaid within five years from leaving the programme.

3. TorecruitpartnercompaniestoprovidebothexpertknowledgeandfinancialsupporttotheCpuTincubator,alsooffertraining/mentoringservicesrelatingtobanks,insurance,property,law,accounting,technologydevelopment.Thesepartnersareserviceproviderstopotentialspinoffthatreceivefreecounselling.

4. TheCpuTincubatorshouldplayaneutralroleinsupportingcompanies,betheyspinoutsorheldbytheuniversityitself.

a. Furthermore companies should be encouraged to locate where they do business best and not be forced to reside in the incubator.

b. Cput has clear and reciprocal requirements and continually evaluates the work of its companies ensuring that roles are clearly defined, performance of coaches and coaching is monitored and to ensure that regular financial and quality audits are conducted.

5. Incubatorservices Incubatorservicesfallmainly

intotwocategories,namelytheenablingbusinessdevelopmentsupportservicesandthebackofficeadministrativesupportservices.

a. Enabling business development support services. these services focus on the training and empowerment of entrepreneurs through tiered training programmes, individual mentoring, expert knowledge sharing, facilitating industrial liaison, events, guest speakers, public relations, marketing, sales, patent and intellectual property training and assistance.

b. Back office administrative support. the incubator must provide a single entry point for all technology transfer services and operate on a high level of budgetary and HR autonomy. the provision of a sound back office service is a key to the success of an incubator.

the incubator should provide a full virtual bank and financial reporting and account systems for every project. All funds in the professor’s or business account is at the discretion of the project leader who is in charge of the account and who can access the account for payments to and procurement from the account with a very short turnaround time – minimising university procurement systems that can be onerous. Where the market is not big enough to accommodate a spin out company, it is kept in-house and the service offered as contract work.

49

this structure requires a business entity for which a full set of financial and bookkeeping records is kept and for which all invoicing and procurement is done. All contracts are also managed by the incubator and must be signed off by the incubator manager.

All university policies are followed

especially regarding human resource management and financial systems, but they can process requests for payment following the university’s policies without going through the formal university system.

6. physicalenablingenvironment Theprovisionofacustomdesigned

physicalfacilitytoenabletherangeofincubatoractivitieswithoutcompetingforphysicalspaceandservicessupportwiththeuniversityisacriticalenablingfactor.Specificationshavebeenexpoundedinchapter5aboveandreflectbestpracticeinSouthAfrica.proximitytoacademiaiscriticalwithoutbeing“inside”theuniversity.Thefinancialplanandimplicationsarediscussedinsection10below.

the facility will be equipped with all the services required of a modern green low maintenance cost building, including water supply, three phase electricity provision for workshop and laboratory areas, ventilated areas and facilities for chemical gas extraction, green waste water management, provision for gas and oxygen supply, air conditioning, biometric security and access control systems, full cable and wireless internet and Wi-Fi facilities, equipped workstation and work / board rooms with computers, data projectors, smart blackboards, recreation and kitchen areas, conference facilities etc.

8.2. SMME GRADuAtION/EXIt StRAtEGY AND pOSt INCuBAtION StRAtEGY

throughput and output from the incubator is critical to prevent entrepreneurs from staying long term. the principle of fail fast and leave is applied to filter out the would-not-be entrepreneurs and to make space for newcomers.

Entrepreneurs will be screened for entry into the facility’s service provision – they may be located elsewhere – based on a presentation that firstly has to prove the need, then the potential market, then the potential technology of their product or innovation. upon admission, the candidate will sign a three month support and probation agreements with the incubator specifying responsibilities and duration of support. the incubatee then decides where to reside and if in the incubator, is allocated a workstation and a mentor.

progress is assessed by the mentor and after a successful probation period, a further 3 month agreement is put in place with a milestone that the entrepreneur must have registered a company by the end of month 6. the entrepreneur is granted a further 2 years to build a business that is financially sustainable and employs 4 persons including the entrepreneur, ready to exit the system.

Costs incurred for mentorship are accrued from after the first 3 months and repayable once the new enterprise’s cash flows allow it. Rental for the incubation space starts at around 10% of market value from after the first 3 months increasing to more than market value at the end of year 3, gently persuading the entrepreneur to exit the incubator.

Royalty and licencing fees are agreed in accordance with negotiations between the Incubator and the incubatee.

50

Cape Innovation (Pty) Ltd2016

8.3. BuSINESS LOCAtION (SIZE & CApACItY, ADVANtAGES & DISADVANtAGES, LEASE OR OWNERSHIp DEtAILS)

the physical needs and location of the incubator is documented in paragraph 5.1 above. the building of not more than 3,000 m2 will be located on the Bellville campus of Cput. the land is owned by Cput. the incubator will enter into a service level agreement with Cput to account for water, electricity, maintenance and strategic matters such as free access for students.

8.4. DEtAILS OF EQuIpMENt, FuRNItuRE & FIXtuRES

Refer to the schedule detailing the budget

for operational requirements in the budget section.

8.5. FutuRE EXpENDItuRES AND tECHNOLOGY REQuIREMENtS

With a strong focus on the manufacturing sector, the incubator will inevitably run into manufacturing space and expensive equipment challenges within two years.

the strategic plan to address this challenge is to partner with SMMEs and local manufacturing companies from the outset and to develop exit strategies for each incubatee that will enable them to expand their business at facilities in close vicinity of the incubator, laying the foundation for a potential future science park.

8.6. DEVELOpMENt OF pARtNERSHIpS AND NEtWORKS

Apart from the envisaged Memorandum of understandings (MOus) envisaged to be signed with productivity SA, DEDAt, the City of Cape town, the CSIR and False

Bay College; the incubator will continue to develop partnerships in the Western Cape.

Furthermore, because the incubator is not in direct competition with other incubators such as LaunchLab and Bandwidth Barn, collaboration will initially be focused on access to mentors, entrepreneurial training programmes and activities on a pre-competitive level.

9

51

9.1. ORGANISAtIONAL StRuCtuRE

BoardRepresentation It is proposed that Cput initiates the

election and incorporation of a governing body for the incubator, who will then appoint a Board of Directors. the proposed members of the Board of Directors are one representative from each of the following stakeholders:

• Strategicpartner• provincialGovernmentoftheWestern

Cape• Industryrepresentative(tobe

nominatedbytheTIAtechnologystationsofCpuT)

• CpuT(Director:TTO)• TIAtechnologystationrepresentative

orrepresentativeofFalseBayCollege• Thechiefexecutiveofficerofthe

incubatorwillhaveanon-votingseatonthegoverningbody

(the board will elect a chairperson).

IncubationAdvisoryBoard the Board of Directors may also consider

introducing an Incubation Advisory Board. Such advisory board should include diverse expertise and help to develop quality business assistance services for the incubation programmes, embed the programme in the broader community, market the incubator and provide effective

programme oversight. the advisory board should include the following types of professionals: representative of a graduate company; experienced entrepreneur; local economic development officer; corporate executive; representative of the finance community; business lawyer (and in some cases, intellectual capital protection legal assistance); university officer and chamber of commerce representative. Ideally the advisory board should meet annually.

Governance the Board of Directors will be mandated

to put in place an appropriate legal entity, governance structures, statutes and operational systems as proposed in this report.

the following arrangement is proposed:

• the Board of Directors to exercise their function in terms of the Companies Act, 2008 (Act 71 of 2008), also taking into account the latest recommendations of the KING Reports.

• the university to open a dedicated financial entity within its financial system. the Board of Directors shall have the mandate to open a bank account, to approve a budget and expenditure, including rapid procurement and staff appointment procedures but within the university’s financial and human resource policies, rules and regulations.

• the university’s suite of finance and human resource policies will ipso facto be adopted and ratified as the finance

9Administration, Management and Organisational plan

52

Cape Innovation (Pty) Ltd2016

and HR policies for the independent entity.

• An arrangement will be made with the university to provide the financial and HR support functions as service provider to the independent entity.

• All business and financial risk will be transferred to the independent entity.

proposedLegalEntity:(pty)Ltd the structure of the innovation development

ecosystem in Cput will consist of:• the technology transfer Office

functioning as a department of the university. this will enable grants and donations to be received as it is part of the university, which is an Article 18(a) institution in terms of the Income tax Act and also a registered public benefit organisation (Reg. no 18/14/7/261).

• the Incubator will be a registered for profit company, Cape Innovation (pty) Ltd and will operate as an independent legal entity with its own governance structures, policies (that mimic the university policies) and bank account, i.e. responsible for all its independent fiduciary duties. the entity will be wholly owned by the university and will operate as the holding company for spin out companies as well as to offer the required incubation support services.

• the incubator will initially be 100% owned by Cput. Should dilution be considered in future to accommodate an investor, Cput will as matter of principle retain at least 52% of the company.

• the incubator will be a holding company for all Cput spin out companies and will manage any Cput shareholding and interest in future spin-out enterprises.

• the beneficiaries and clients of the company will primarily be:o Residents of the Western Cape

provinceo Rural communities of the Western

Cape provinceo Cput and False Bay College, but not

to the exclusion of other teaching and research Institutions in the Western Cape province

o trade and industry (provided their main activities are in the Western Cape province)

o Entrepreneurs who want to establish businesses in the Western Cape province.

• the financial management (including external auditing) and human resource management of the company will for the time being be conducted by Cput (this arrangement will mitigate the financial risks associated with the establishment of a new company).

ChiefExecutiveOfficer(CEO) the Board of Directors should as a first

priority appoint a suitable CEO to manage the incubator in accordance with the recommendations made in this report. the CEO’s main duties may include the following, but not limited hereto:• Liaise with stakeholder organisations• Secure funding• put in place the necessary operating

structures and HR capacity• Facilitate the implementation of the

physical infrastructure plan• Develop criteria for the financial support

of innovation programmes• Manage the capacity building

programme• Integrate the innovation initiatives at the

respective stakeholders• Ensure that technology transfer is

managed in co-operation with the ttO of Cput.

9.1.1. Officesupportstaffincludingaccounting the ttO will assume the duties of office

support staff until such time that the budget allows for additional staff to be employed.

Accounting services however, will be assumed by Cput’s finance department until such time that appropriate governance structures are put in place to the satisfaction of Cput and the Board of the incubator.

9.1.2. Mentors the sourcing and appointment of mentors

will depend on the nature of incubatees

53

and the respective stages of development of such projects (in respect of technology and staff). Mentors may also be sourced from within Cput, other incubators in the Western Cape, productivity SA, from elsewhere in South Africa or internationally.

9.1.3. Externalserviceproviders the incubator will make available office

space for external service providers to consult with incubatees on a pro bono basis. thereafter, the incubatees may elect service providers of their own choice and subject to budget allocations, make use of their services.

the incubator will specifically engage with patent attorneys and accounting firms and negotiate preferred rates. It is envisaged that the incubator will soon have a substantial list of accredited service providers in a broad range of fields of specialisation.

the approach above is supported by data obtained from poland. According to the poland Benchmark report (Holum-Iwan, 2014), there is a natural tendency for consulting firms to open offices at science parks, whereas venture capital firms stay away, as shown in insert 25 below.

Insert25:Figure:profileofprofessionalserviceprovidersatscienceparksandincubatorsinpoland

54

Cape Innovation (Pty) Ltd2016

Financial plan10TorealisethevisionasespousedforCapeInnovation(Pty)Ltd,thefinancialplanandthebudgetcomponentispresentedintwoparts,firstlythecapitalexpenditurerequiredfortheerectionoftheincubatorfacility,phasedoverthreeyearsandsecondlyanestimated

incomestatementandcashflowmodelfortheincubatorbasedoninferencesofcurrentexperience.Thisinformsthefinancialstrategythatisputforwardforthefacilityaspresentedinthearchitect’simpressionshownininsert26below.

Insert26:Figure:Architect’simpressionoftheincubatorfacility

the facility envisioned is a green building and the plan is to construct it on the Bellville Campus

the highest probable option to realise the facility, is to make use of the DtI’s scheme of matching funding to support the development of enabling vehicles to create enterprises. the rationale is the development of products and production lines and beneficiation with the view to reduce, replace or reverse import trends. to reach this goal, the

DtI matching funding scheme makes available three tranches of R10 million each over a three year period. this funding must be matched by private investments and specifically exclude state or parastatal, i.e. any publicly funded organisation’s support. this includes support from the university in terms of direct investment in the “bricks and mortar” and land made available towards the investment. After three years, a further trance of 3 X R10 million over three years could be considered. Once the matching funding is received, the DtI will pay over

55

the matching funds within 60 days. Funding can be used for both capital and operating costs.this serves as a clear pointer in the financial strategy, namely the recruitment of a private donor / company to the value of R30m over three years, securing operating cost support from the university

developing revenue generation streams through offering paid services, consultancy and rental space with the objective of operating a zero based budget.

the overall estimated cost of the facility over three years are summarised in insert 27 as follows:

Insert 27: Table: Overall estimated costs

10.1 CApItAL INVEStMENt

the capital expenditure of the incubator consists of two main groupings namely the physical construction costs, and the estimated equipment cost, summarised as follow in insert 28:

Insert28:Table:Capitalexpenditurefortheincubator

Capitalinvestment physical construction of the building, estimated R 45 430 000

Equipment and shop fitting cost, estimated R 4 522 250

Operatingcost Operating costs R 10 003 350

TOTAL PROJECT COST R59955600

physical construction of the building, estimated R 45 430 000

Equipment and shop fitting cost, estimated R 4 522 250

TOTAL R59955600

10.1.1physicalconstructioncostimplication the construction costs of the physical

facility, the bricks and mortar component, is based on the floor surface as informed by international best practice and allowing for a degree of blend between office / business only space and limited manufacturing space where technology based start-ups will require this. the second aspect is the current building costs with the indication

that South Africa’s building inflation in 2015 is likely to be around 12.5%. the raising of matching funding will determine the pace of development; the planning as it stands is to construct the facility over three years to synchronise the building operations with the DtI’s rate of releasing matching funds. Estimated construction costs are shown in insert 29 below.

56

Cape Innovation (Pty) Ltd2016

ESTIMATEDCONSTRuCTIONCOSTS uNITCOST uNITS TOTAL

Architecturaldrawingsfortheplannedfacilitiesarecompiled.

R 6 930 000

AdedicatedgreeninfrastructurefacilityisforeseenfortheBellvillecampusasabuildingof3,000m2.

R 10 500 2000 m2 R 21 000 000

Laboratoryreadyspace/rentalspace R 17 500 1000 m2 R 17 500 000

TOTAL R45430000

INTERIOR unitcost units Total

Incubator reception shop fitting. Dual entrance / reception hall – to provide access to public from the street and from the Cput campus.

R 20 000 1 R 20 000

20 workstations for companies at the start-up phase, i.e. one man business - shop fitting

R 12 000 20 R 240 000

Computers for 20 workstations R 8 000 20 R 160 000

Insert29:Table:Estimatedconstructioncosts

Includedinthefloorspaceabovearethefollowing:• Fully serviced interior works stations, meeting rooms, training rooms, SME cubicles for up to

four people, security and 24/7 accessibility.• An office facility for the technology transfer Office to accommodate up to 15 staff in individual

offices, reception area and board room for up to 20 people, to accommodate visiting experts in addition to ttO staff.

• A training room that can accommodate up to 80 people, but with dividers to split it into three smaller training / board rooms.

• A coffee shop and social “mall” area for up to 100 people.• Workshop facility for rapid prototyping, 3D printing and limited prototype development space.• Rental space of 1,000m2

• the support of Cput’s Facilities Management division to oversee the execution of the structural and shop fitting work has also been secured.

10.1.2Equipmentandshopfittingcosts the incubator will be home to the

incubatees, the university’s technology transfer Office, anchor tenant, service providers to the incubator such as venture capital companies and the incubator management. Accordingly, the estimated shop fitting and equipment required list

makes provision for these diverse needs around a central multi-purpose area and recreation space. As a dedicated business incubator, limited provision is made for laboratory equipment as incubatees and tenants will be required to provide their own equipment. the detailed anticipated inventory is as shown in insert 30:

57

INTERIOR unitcost units Total

SHOpFIttING: 18 rooms that accommodate office space for four to five people – businesses that start to grow and employ more people, requiring office space before leaving at the end of three years.

R 15 000 18 R 270 000

Computers for 72 workstations. (Single office and multiple staff incubation office workstations)

R 8 000 72 R 576 000

Shopfitting: Four small boardrooms to accommodate up to eight people.

R 15 000 4 R 60 000

Data projectors for board rooms R 8 000 4 R 32 000

Chairs for training room R 700 80 R 56 000

tables for training room R 2 000 80 R 160 000

Data projectors and sound equipment for training room, 3 sections

R 11 000 3 R 33 000

Kitchen area 20m2 R 5 000 20 R 100 000

tables for mall area R 700 100 R 70 000

Chairs for mall area R 2 000 100 R 200 000

Shop fitting ttO offices R 2 000 15 R 30 000

ttO chairs R 750 15 R 11 250

ttO computers / laptops R 8 000 20 R 160 000

ttO boardroom shop fitting R 8 000 1 R 8 000

ttO boardroom chairs R 750 20 R 15 000

ttO boardroom table R 2 000 3 R 6 000

ttO reception shop fitting R 15 000 1 R 15 000

3D printer R 400 000 1 R 400 000

parking for both public and Cput entrances. R 6 000 200 R 1 200 000

Security system – biometric access control R 300 000 1 R 300 000

telephone exchange R 400 000 1 R 400 000

TOTAL R4522250

Insert30:Table:Estimatedequipmentandshopfittingcosts

58

Cape Innovation (Pty) Ltd2016

10.1.3Operatingcosts Operating costs are projected for a three

year period after which such costs will be offset by revenue from the incubator and CSI funds raised towards providing incubation empowerment services. the full range of services is the availability of competent incubation support officers, the use of external suppliers offering specialist business operations training, most of which operates under a licence from local and foreign providers. A key need is to be able to retain innovators in the innovation system through living stipends, i.e. to be able to keep them engaged in enterprise creation activities and not be forced to take up employ, result in the innovations and business opportunities being lost because they need to earn to live. With

limited past funding, this approach has proved beneficial and a maximum of a 12 month living stipend has produced good results. Entrepreneurial skills training courses are in the process of being agreed upon with the Cput Faculty of Commerce to draw on the expertise of the Cput academic departments of entrepreneurship, accounting and marketing in a mutually beneficial arrangement regarding tiered formal training courses, work integrated learning for commerce students to work on the creation of real businesses and to provide mentorship capacity beyond the ttO’s capacity – at no or minimal cost the Incubator, therefore not reflected as a cost item below. An estimated allowance is made for basic service provision to the incubator facility as shown in insert 31.

10.1.4FinancingtheIncubationecosystem(physicalconstruction,shopfitting,equipmentandsupportservices)

It is assumed that Cput will secure 50% of the cost from an external company, whilst a DtI application will be made to provide the balance. Because the grantor presumably

has no expectations to be paid back, the model merely reflects the cash flow position.

Assumptions the following assumptions were made for

the grant based financial model, details of which are shown in Insert 32.

Totalcost

Costitems Number unitcost Year1 Year2 Year3

Appointment of incubation officers X 2

2 R 400 000 R 800 000 R 848 000 R 898 880

Incubator administrator 1 R 120 000 R 120 000 R 127 200 R 134 832

Business simulation training, licence fees, 40 X R2500

40 R 2 500 R 100 000 R 106 000 R 112 360

Accounting business game, licence fees, 40 X R2500

40 R 2 500 R 100 000 R 106 000 R 112 360

Innovation stipends for 25 persons at R5000 per month for 12 months

23 R 60 000 R 1 380 000 R 1 462 800 R 1 550 568

Operational (cleaning etc.) R 454 300 R 454 300 R 454 300

Water and electricity R 227 150 R 227 150 R 227 150

ANNuAL R 3 181 450 R 3 331 450 R 3 490 450

TOTAL ESTIMATED OPERATING COST R10003350

Insert31:Table:Estimatedoperatingcosts

59

DTIGrant R30million, paid as R10m per annum for 3 years

Funder R30million, paid as R10m per annum for three years

Size 3,000 m2 incubator (including 1,000 m2 laboratory space)

Rent provision was made for rental income from anchor tenants, incubatees and SMMEs

Cost provision was made for maintenance, water & electricity and general operating cost

Rate/m2 Rental rates start at R90/m2

10.2 SpONSORSHIp FuNDING MODEL

the income plan for the funding of the facility is shared on a 50:50 basis between

a sponsor and the DtI incubation support programme as shown in insert 33 below:

CASHFLOWSTATEMENT TotalY1(Construction)

TotalY2 TotalY3 CumulativeTotal:Y1,Y2,Y3

INCOME R20000000 R20000000 R20000000 R60000000

CApEx

1. DTI Grant - capex R 8 332 775 R 8 332 775 R 8 332 775 R 24 998 325

2. Funder - capex R 8 332 775 R 8 332 775 R 8 332 775 R 24 998 325

1. DTI Grant - operational costs R 1 667 225 R 1 667 225 R 1 667 225 R 5 001 675

2. Funder - operational costs R 1 667 225 R 1 667 225 R 1 667 225 R 5 001 675

ExpENSES R3181450 R7453700 R3490450 R14125600

Appointment of incubation officers X 2

R 800 000 R 848 000 R 898 880 R 2 546 880

Incubator administrator R 120 000 R 127 200 R 134 832 R 382 032

Business simulation training, licence fees, 40 X R2500

R 100 000 R 106 000 R 112 360 R 318 360

Accounting business game, licence fees, 40 X R2500

R 100 000 R 106 000 R 112 360 R 318 360

Innovation stipends for 23 persons at R5000 per month for 12 months

R 1 380 000 R 1 462 800 R 1 550 568 R 4 393 368

Maintenance

Operational (cleaning etc.) R 454 300 R 454 300 R 454 300 R 1 362 900

Office equipment R 0 R 4 522 250 R 0 R 4 522 250

Water and electricity R 227 150 R 227 150 R 227 150 R 681 450

NETTCASHINCOME R16818550 R12546300 R16509550 R45874400

CApITALExpENDITuRE(BuildingCost)

R 15 143 333 R 15 143 333 R 15 143 333 R 45 429 999

CASHFLOW:IN(+)/OuT(-) R1675217 R-2997033 R1366217 R44401

Insert33:Table:Sponsorshiprequirementforincubatorsystem(buildingofR45m,shopliftingandoperationalcosts)

Insert32:Table:Grant-basedassumptions

60

Cape Innovation (Pty) Ltd2016

10.3 OpERAtING BuDGEt

10.3.1Operatingrevenuemodel the operating revenue model is based on

the assumptions that current revenue trends and indicators of sustainable revenue trends will remain unchanged. this includes the salary component for current ttO staff that will remain employees of Cput and could be seconded to the incubator. the revenue model is derived from international best practice and considers revenue streams from royalties, salary generation, short courses, workshops, competitions and prototypes / design and consists of the following five activity groups that are aligned with the incubator’s business model as described in Insert 3 of this report.

1 TechnologyTransferOfficeactivities. this includes all aspects of securing a cash flow stream to the university emanating from royalties and equity in technology based spin out companies. As the “custodian” of the university’s intellectual property, it is the watchdog over Ip matters. Further revenue is based on contract work for university and non-university clients.

2 SMMEs.this includes the for-profit provision of strategy and business consulting and mentoring, the customisation of training courses and for-profit assistance in prototype development and production.

3 Businessformation. For-profit advisory services and customised workshops to assist in the formation of new enterprises.

4 Businesstraining.this includes a series of scheduled for-profit short courses and customer workshops.

5 Events. For-profit entrepreneur focused conferences, innovator meets investor forums, trade shows attendance and presenting to generate leads.

10.3.2projectedrevenue the projected revenue is based on the

probability that current trends of product development and commercialisation activity will bear fruit as spin out companies and that start-up time for the Cape Innovation (pty) Ltd has been factored in. the projections include the maintenance of current Cput salaries (indicated as an income, but is immediately offset as an expense) because the technology transfer Office of Cput will operate as an integral part of the incubator. the operational cost includes provisions for the salaries of two incubation officers, outsourced training, innovation stipends and general operational maintenance costs. In conjunction with the Cput ttO activities will include Incubation activities (feasibility studies; business development; market assessment; financial assessment; business plans; cost-benefit); Ip and tt Workshops; Conferences; pitching sessions; competitions; travel (local and international); Marketing; Financial / payroll / Admin; consumables; prototypes and designs, contingency. Direct university responsibilities will be Ip protection costs (patents after NIpMO rebate); It; audit; back office management capacity.

As with any new start-up, Cape Innovation (pty) Ltd will manage growth within the limitations of revenue generated. the reality, however, is that cost will be project specific.

As a dedicated business incubator, minimal provision is made for equipping laboratories. the spaces dedicated to laboratory activities will be laboratory ready with gasses, power and toxic drainage facilities that can be connected by tenants or incubates at own expense.

the anticipated income statement for the incubator is shown in insert 34 with tables detailing income from the revenue focus areas below.

61

INCOMESTATEMENT:CApEINNOVATION Year1 Year2 Year3 3Yeartotal

INCOME R4134450 R4324450 R4489450 R12748350

A.FuNDING R3334450 R3334450 R3334450 R10003350

1. DTI Grant R 1 667 225 R 1 667 225 R 1 667 225 R 5 001 675

2. Funder R 1 667 225 R 1 667 225 R 1 667 225 R 5 001 675

B.INCuBATORpROJECTS R800000 R990000 R1155000 R2745000

1. TTO R 200 000 R 250 000 R 300 000 R 750 000

2. SMMEs R 150 000 R 180 000 R 210 000 R 540 000

3. Business formation R 200 000 R 250 000 R 275 000 R 525 000

4. Business Training R 100 000 R 130 000 R 160 000 R 390 000

5. Events R 150 000 R 180 000 R 210 000 R 540 000

COSTOFGOODSSOLD R1150000 R1198000 R1248880 R3596880

trainers and venue R 800 000 R 848 000 R 898 880 R 2 546 880

Venue R 100 000 R 100 000 R 100 000 R 300 000

prototypes and designs R 250 000 R 250 000 R 250 000 R 750 000

GROSSMARGIN R2984450 R3126450 R3240570 R9351470

ExpENSES R2670000 R2970200 R3258712 R8898912

personnel R 920 000 R 975 200 R 1 033 712 R 2 928 912

Ip Cost (patents) R 500 000 R 545 000 R 575 000 R 1 620 000

Incubation activities (Feasibility studies; business development; market asessment; financial assessment; business plans; cost-benefit)

R 500 000 R 550 000 R 600 000 R 1 650 000

Ip and tt Workshops; Conferences; pitching sessions; competitions

R 400 000 R 500 000 R 600 000 R 1 500 000

GENERAL(travel, marketing, admin, QA, audit) R 350 000 R 400 000 R 450 000 R 1 200 000

NETTpROFIT R314450 R156250 R-18142 R452558

NETTENDCASH R314450 R470700 R452558 R1237708

Note: third stream income is conservatively projected

Insert34:Table:Incomestatementfortheincubatoranddetailedassumptions

62

Cape Innovation (Pty) Ltd2016

Conclusion11Thedeparturepointinthisfeasibilitystudyisthevisionandvalueaddintentforthecreationoftheincubatorsystem,statedas

In the longer term, this envisaged facility will become a catalyst and a regional asset in creating multiple sources of economic value add to our society through the creation of sustainable start-up companies. A second tier of economic value add that follows the first round of support from the incubator is the amount of further round financing the spun out companies will attract in their growth phase, making a significant impact on the livelihood of many in our province and region.

this vision compliments the vision of the National Development plan as well as the shift towards the development of entrepreneurship focussed universities in South Africa. this trend is supported by international best practice where economic development, wealth and employment creation is largely stimulated by university innovation initiatives.Consultation with a wide range of international, external and internal stakeholders and partners of

Cput confirms the need for an incubation system operating from a facility dedicated as an innovation space. With a range of products and services under one roof it creates a hothouse effect in spawning ideas. the number of incubation products

currently in the pipeline will already ensure a high occupancy rate and international experts have advised that it will fill up as fast as companies spin out.

Activities will centre on supporting innovation from within Cput and SMMEs, support in business creation, the provision of entrepreneurship skills training and mentorship as well as market exposure events. Cput’s incubator will support the areas of Cput’s competitive strength of product development within the Western Cape’s incubation ecosystem.

the incubator will function as a (pty) Ltd company with its own

governance and management structures, as is required to qualify for the DtI’s Incubator Support programme. Funding the venture requires a 50:50 contribution from a funder and the DtI, where the DtI grant is based on 3 X R10m over three years. the costing makes provision for the construction of the physical facility to the value of R45m, equipment for R5m and operating costs to launch the operations of R10m for a total of R60m. From the outset of operations, activities will assume a for-profit nature to work towards offsetting the operations grants at the end of three years, including recruiting and accommodating anchor tenants.

As a leader in product development innovation, Cput is confident that the output of the incubator will meet and exceed the vision espoused above to become a key player in enterprise creation in the Western Cape, South Africa and our continent.

Our vision is to create a business incubator to enable the start-upof viable technology and design based businesses in the technology product / services sector with growth and export potential that can create sustainable employment for the people of the Western Cape.

63

AppENDIx1:SAtAKuNtA uNIVERSItY OF AppLIED SCIENCES (SAMK)

Appendices: Strategies and facilities at universities visited during the study

• Entrepreneurship training is Integrated and standardised in all undergraduate courses.

• undergraduate entrepreneurship is credit bearing and subsidies as core curriculum.

• Open accessibility is a key success factor.• Integration with and support of academics

as part of the entrepreneurship development is recognised and teaching load is adjusted – yielding multi-disciplinary team support.

• All risk is passed to the student – university is not an enterprise.

Keyfacilitytake-outsfromSAMK• ttO situated on the ground floor entrance

foyer of the faculty building, directly next to the library

• the ttO can be construed as the reception for the faculty.

• totally open plan walk-in facility where teppo Lundel has his desk in the student area.

• Adequate seating for casual sitting for students as well as a boardroom table in the open area that also serves as a student common area.

• Glass walls.• A games room with tV, darts and pool table

is available for students who interact with the ttO

• ttO library.• Coffee machines.• A community of learning slipping in innovation

in a very accessible but subtle way.• Adequate parking

ContextSAMK focuses on three year degrees for business study students and 4 year degrees for engineering students, but no Masters’ or Doctoral courses are offered. the focus is on applied academic development, also when staff gets involved in research it is applied work.

Signpost at SAMK building housing the TTO Faculty building housing TTO in the entrance foyer

64

Cape Innovation (Pty) Ltd2016

Signpost at SAMK building housing the TTO

Foyer outside TTO, small boardroom, coffee station in TTO, TTO student recreation room

65

AppENDIx2:uNIVERSItY OF uppSALA HOLDING COMpANY (uuAB) AND uppSALA INNOVAtION CENtRE (uIC)

Keytake-outsfromuuABanduIC• A winning and proven 6 point strategy.• Focus on the skills needed and address

these, not facilities.• Start with the need, not the prototype / pOC.• Mentors and partners are key to success.• A community of innovation.• Separation of university and holding company

risk.

KeyfacilitiesfromuuABanduIC

• uIC and uuAB (the ttO) are housed in a Second World War military barrack on the second floor.

• Visibility is not good if you do not know where to look for them.

• the ttO is one of numerous tenants in the building ranging from the local municipality, start-up companies, contractors, service providers, lawyers etc.

• One central reception serves all the tenants.

• One central catering and restaurant facility with active coffee stations serves all the tenants and there are fixed tea times – creating a community of innovation.

• About 30 individual offices / one or two person businesses facilities are provided.

• About 6 bigger board rooms are available with all connectivity and presentation / conferencing facilities.

• physical proximity to the academic departments is walking distance roughly in the middle of the campus.

• parking is a challenge.

ContextIn the model used in uppsala universities, all innovation starts and is developed as far as possible within the university.

the university Innovation Centre (uIC) was formed in 1999 on traditional methods of anchor tenants to support the turnover of the incubator. this was however not successful and after a significant strategic review it was re-launched in 2004 with a new and unconventional business success model. this model stands on the following pillars:

• the removal of leasing agreements. this unties enterprises from taking space where it was available to locating where it was best for the business.

• A shift from providing rental space to contributing vital business know-how.

• provision of counselling, seminars and business development networks.

• provide a large number of business coaches from industry rather than uIC provided business coaches.

• Incubator companies are matched directly to business coaches.

• Formal links with financiers.• Comprehensive monitoring and reporting on

incubator company development.• uIC remains independent and takes no

equity – avoiding clash of interest issues.

TheimplementationoftheuICstrategyconsistsofawell-developedsystemicapproachwiththefollowingkeypoints:

• tiered business development programmes

• Network of 60 business coaches

• partners provide expert knowledge

• uIC has neutral role and takes no ownership interest in companies.

• No brokering of premises. Companies locate where they do business best.

• uIC has clear and reciprocal requirements and continually evaluates the work of its companies.

66

Cape Innovation (Pty) Ltd2016

Meeting rooms

Older building, single modern reception

Central recreation area / caTVETeria / coffee station

Reception, passage of incubation offices, incubation office, informal lounge

67

Dedicated incubator facility complex. Incubator business units left, meeting facilities right.

AppENDIx3:uNIVERSItät DES SAARLANDES, KONtACtStELLE FÜR WISSENS- uND tECHNOLOGYtRANSFER (KWt) (StARtER CENtRE)

Keytake-outs• A dedicated standalone facility provides a

focus for entrepreneurs and industry.• Systemic integration and proximity to

academia.• Systemic integration into business / industry

in the area and beyond.• Separation of university and holding company

risk.• Structured training.• Outsourced support re mentors.

Keyfacilitytake-outsfromSaarland• A dedicated 3 storey building of around

4000m2.• the facility is situated on the university ring

road that runs around the campus, but on the outside of the ring road.

• Good visibility as a featured building.• One central reception for the whole complex.• A range of open plan meetings rooms with

glass walls to give an open feeling.• About 40 one to two person business units

over the three floors.• A key feature is the provision of laboratory

space with basic extractor facilities for chemical start-ups. No equipment is provided.

• Once central cafeteria / kitchen / recreation area, including a pool table is provided.

• the feel of a professional business park.• Rental at lower than market value but no

give-away. • Campus parking is available, but not freely

available.

ContextSaarland university operates in 8 facultieswith 18,100 students and 258 professors.

particular strengths are in the fields of European priorities, computer science, nanotechnology, biomedical sciences and material science. the bulk of patents however emanate from the science and engineering faculties.

Various institutes surround the university or are located on the university property, in effect doubling the resources available to the Start Centre from both the university and these institutes.

68

Cape Innovation (Pty) Ltd2016

Foyer and central reception area

Meeting rooms and recreation area

69

AppENDIx4:KAtOLIEKE uNIVERSItIEIt LEuVEN (Ku LEuVEN), LEuVEN R&D (LRD)

Keytake-outs• Full autonomy within the university systems,

policies and procedures.• the creation of an own VC fund is a key

success factor.• Value adds to the university and ttO.• Success measurement in terms of investment

funding raised by spin-offs. • Marketing focuses on the phD cohort.• Sound management processes to both stay

within the university system and eliminate bureaucratic university process that hampers innovation.

Keyfacilitytake-outsfromLeuven• As a training / administration focused ttO, it

consists of rental space from the university to accommodate some 80 staff members – see details below.

• A number of bigger board rooms are provided.• Once central reception area that is upmarket

in spite of the more medieval building they are housed in.

• A key feature is a high tech display area linking onto the reception area with display units for patents / innovations that have gone global / been successful.

• Incubation facilities are decentralised to the laboratories of the various professors and when commercialising, they move directly into one of the universities’ science parks where the relevant facilities are available. Effectively this provides the meeting rooms, incubation start-up offices provided in dedicated facilities.

• Based on the turnover of incubated units, it is estimated that in this decentralised model some 3000 m2 to 4000m2 will be required.

• parking is a challenge.

ContextKu Leuven is one of the older European universities dating back to 1425, is home to some 54 519 students (15% international) and home to 154 nationalities and covering 12 university colleges / 14 faculties including an academic hospital, 9050 FtE staff of which 1004 professors, 4939 FtE researchers and 3107 FtE administrative and technical staff.

the university is ranked among the top 20 R&D universities in Europe. the technology transfer office was created in 1972 and has celebrated 40 years of success including raising €500 million Euro of capital for spin out companies over the past seven year period.

“Technology transfer does not just happen. It requires a coordinated interplay between our researchers, the experts at our technology transfer office, and our partners” “KU Leuven has clearly demonstrated that scientific excellence can go hand in hand with positive results for society. Striving to combine excellence and societal benefit in such a way that reinforces each other has been our mission over the last 40 years”.(40 years of fostering innovation and high-tech entrepreneurship, 3).

KuLeuvenspecialisedinthefollowingtechnologydomains:• Lifesciences. Clinical excellence,

drug development, nutrition and health, bioelectronics, neuro-electronics.

• Nano-technology. Materials, solar panel efficiency.

• Mechatronicsandsmartsystems. • Cleantech. Smartgrid research, sustainable

manufacturing, sustainable structural materials.

70

Cape Innovation (Pty) Ltd2016

Entrance and foyer

Invention displays in foyer Meeting areas and meeting rooms

71

AppENDIx5: CALGARY INNOVAtE, CANADA

InnovateCalgaryandRocketBuilders(Garret,2014)haveteameduptohelptechnologycompaniesdeveloptheskillsneededtomaximizesuccessfulexecutioninmarketentry,productlaunchandrevenuegrowthbyaddressingmarketplacechallengesandfocusingonstrategyandimplementation.

the following methods of entrepreneurial training are proposed to address the needs of the individuals or groups in the various phases of incubation:

• Academiccurriculummodules Multiple, sequential one-hour contact sessions during a semester can be incorporated into the current curriculum of various undergraduate qualifications.

• Workshops Independent one- to eight-hour facilitated activity-based contact sessions on various topics.

• Conferences presentations by researchers/entrepreneurs on topics related to a specific area of study.

• Shortcourses/programmes Credit-bearing certificate courses on various topics and presented over days or weeks. public courses will be offered at a for profit rate.

• Mentoring/coaching Relationship-based individual consultation with experienced service providers.

• Internships

Exchange of services for experience as member of a project, team or organisation. It is envisaged that internship programmes may extend to exchange programmes with other local and international universities.

SEMINAR1“product-Market Fit”

Develop the key fundamentals of a marketing strategy such as market research, understanding your prospective customers and pricing strategy.

SEMINAR2“Refining Your Marketing Strategy”

Learn to refine your market strategy through the use of channel partners, customer validation, competitive analysis and revenue targets.

SEMINAR3“Leveraging Channels to Market”

Identify how to leverage channel partners, determine key criteria for partner evaluation, and the key steps in joint sales and marketing with partners.

SEMINAR4“Lead Generation tactics”

Build a comprehensive communication strategy to engage prospective customers and partners. Examine various publicity and direct marketing methods that align with and provide the most value and results for your company.

SEMINAR5“Sales Method and processes”

Learn how to design and implement the sales process through the understanding of “sales-ready” leads, pipeline management, buying influences, sales support and customer reference programs.

Main building of Calgary Innovate, Canada

72

Cape Innovation (Pty) Ltd2016

AppENDIx6:pERtH INCuBAtOR, AuStRALIA

Perth Incubator, Australia

Social area

Start up room and common area

Start up offices

Large boardroom and training area

Inside start up office

Reception

73

AppENDIx7:INNOVAtION SHOWCASE – tHINKING Out OF tHE BOX

A

thinkingOUTOF THEBOX

TECHNOLOGYTRANSFER

OFFICEINNOVATION SHOWCASE2015

presents

74

Cape Innovation (Pty) Ltd2016

B

CPUT vision

vision RESEARCH,TECHNOLOGY AND INNOVATION

Unlocking the potential of staff, students and partners to excel in research, technology and innovation that offers solutions to the needs of society.

To be at the heart of technology education and innovation in Africa

#WeAreCPUT

Est. 2005 creating futures

75

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

1

Knowledge is the currency of Higher Education Institutions. Therefore, its management and all intellectual assets are critical in the knowledge economy.

The Cape Peninsula University of Technology (CPUT) is alive to the fact that innovation is a national competence and truly a survival issue. CPUT believes in the notion of universities being marketplaces for ideas and thus providing fertile grounds for the creative processes that produce new knowledge.

The establishment of our Technology Transfer Office (TTO) in 2010 was an “epoch defining moment”. Our institution is seriously embarking on a process of commercializing research emanating from within. We relish the key and critical role the TTO plays in support of our quest as a beacon of innovation.

We believe it is our obligation to change lives, enhance lives, and save lives through the commercialization of our research outputs and foster research uptake to address the millennium development goals.

The TTO is the catalyst that enables us to create a conducive environment for the exploitation of our intellectual property within the purview of the Intellectual Property Rights from Publicly

Financed Research and Development Act (51)2008.

The TTO protects, manages and facilitates technology transfer. It advises and educates the university community on which intellectual property merits further commercialization and exploitation. It is through this office that we have created a “one stop shop” to support innovations and inventions —that will evolve into the next generation of inventions.

Harvesting the new ideas from laboratory to the marketplace is mission critical to a university of technology like us.

DR CHRIS NHLAPO

Deputy Vice-Chancellor for Research, Technology, Innovation and Partnerships

Financed Research and Development Act (51)2008.

The TTO protects, manages and facilitates technology transfer. It advises and educates the university community on which intellectual property merits further commercialization and exploitation. It is through this office that we have created a “one stop shop” to support innovations and inventions —that will evolve into the next generation of inventions.

Harvesting the new ideas from laboratory to the

76

Cape Innovation (Pty) Ltd2016

2

The Innovation Showcase is the result of a dedicated five year strategy to institutionalise innovation in the institution.

Although there are still many challenges, the showcase serves as a witness to the creativity

of our staff and students who have gone the extra mile to turn their ideas into innovative

products.

The range of products display a wide response to societal needs ranging from very high

disruptive technologies to innovative consumer goods and social innovations. Some of the

innovations are at advanced stages of development and ready for commercialisation while

a number are already operating as (Pty) Ltd start-up companies.

We ask you to consider investment in these products to assist us in bridging the gap from

university innovation to full commercialisation.

PROF GARY ATKINSON-HOPE

Director TechnologyTransfer and Industry Linkages

university innovation to full commercialisation.

PROF GARY ATKINSON-HOPE

77

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

3

TECHNOLOGY TRANSFER OFFICE

The Technology Transfer Office (TTO) opened its doors in 2010, with the new Intellectual Property Rights from Publicly Financed Research and Development Act 51 of 2008 (IPR Act) coming into full operation on 1 August 2010.

The aim of the TTO is to facilitate, protect and enhance the transfer of Intellectual Property

(IP) from CPUT to the business sector, in order to enhance commercialisation, for the

upliftment of the communities we serve, while at the same time generating royalty income

for the university and the applicant.

It also counsels and supports the research units, centres, institutes, and faculties of the

university, as well as fosters new thinking, by helping researchers to go beyond publication

and into commercialisation through technology innovation.

Other functions of the TTO are to help foster research partnerships with the business

sector when IP is likely to be created through licence agreements, and to assist with

the establishment of business units and spin-off companies. It further encourages

new thinking, offering assistance to researchers to ‘go beyond publication and into

commercialisation through technology innovation’.

78

Cape Innovation (Pty) Ltd2016

4

TECHNOLOGY READINESS LEVELS

The term Product Readiness Level reflects the development stage of a product. All products in the catalogue are classified in terms of these levels to give investors insight into the development stage of the product being showcased. The Product Readiness Levels are explained below for easy reference.

LEVEL STEP CHARACTERISTIC ACTIVITY

1 New idea This is where the brainwave occurs Initial experimentation with the ideaInitial results point to “here is something” that can make money

2 Proof of concept

Start to produce crude working drawingsStart to produce crude working models Refining of models and testing in the laboratorySolicit innovation funds to further experiment and build / prove a working prototypeInitial IP protection – innovation disclosure

3 Technology development

Testing of prototypes New iterations on prototypes New techniques/ methods developed and refinedNew technology is establishedIf proven novel, IP protection in relevant jurisdictions

4 Application identification

Identification of commercial usageInitial potential customer interaction to flight the ideaExperimentation with the technology with the potential customer Commence market research Produce short run for testing in the marketCommence market sensitisation

5 Application development

Bridge innovation chasmApparent market evaporates/ remains elusiveBig funding neededDoubt in own productOwn financial risk appetite is testedNeed for business acumen is at a premium, no longer only the technologyCritical IP decisionsDecision – under conditions of uncertaintyDevelop own production lineSell licence/ use of licence to potential buyer with big R&D budget and marketing footprintBlend of aboveAbandon altogether Maintaining motivation and momentumTime challenge and tenacity to keep going when facing the odds of failurePressure on self-esteem and financial pinch

79

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

5

LEVEL STEP CHARACTERISTIC ACTIVITY

6 Technology transfer

Early adopters of new technology/ productEarly sales Growing order bookGrowing cash deposits Referrals from new client baseLow product inventory levels under pressurePressure to produce more than what pilot scale plant can manage Refinancing

7 Commercial scale up

Establishment of business entity, Pty Ltd

Governance, policies, accounting, audit procedures

Appointment of governance board

Open bank account, policy re banking

Agreements with suppliers

Agreements with buyers

Appointment of staff for production, finance, HR, quality control, marketing etc

Procurement of plant/ facilities

Outsourcing decisions

8 Market development

Development of partnershipsMarketing spendProduction planning to meet anticipated demandDecision making under conditions of uncertaintyThird round of funding to build plant, expand capacity

9 Self-sustaining Pty Ltd

Breakeven achieved around year 3Product and other diversification to reduce riskControlled growth to not exceed 15% paCash flow and re-investment management

80

Cape Innovation (Pty) Ltd2016

6

PRODUCT CATALOGUE

HIGH TECH

PRODUCT NAME

OMEGA CARO-E KIDZ (Patent and trade mark protected)

DESCRIPTION

Omega Caro-E Kidz is an emulsion formulated for preschool children who are not able to swallow capsules. The emulsion supplements the diet with omega-3 fatty acids, carotenes, vitamin E and minerals known to be deficient in this population group.

PRODUCT READINESS LEVEL

Early stages of commercialization

COMMERCIAL INTEREST SOUGHT

Consumer groups who can buy and utilise the products e.g school feeding programmes, NGOs, geriatric feeding programmes etc.

CONTACT PERSONPROF SPINNEY BENADETel: +27 21 953 8676 Email: [email protected]

PROF MARETHA OPPERMANTel: +27 21 953 8677Email: [email protected] [email protected]

PRODUCT NAME

OMEGA CARO-E (Patent and trade mark protected)

DESCRIPTION

Omega Caro-E is a health supplement developed at CPUT, which is marketed in major pharmacies in South Africa. Omega Caro-E consists of a unique combination of high quality omega oils, as well as 11 types of carotenes and 5 different forms of vitamin E, which supports and maintains brain, heart and general health. It made a recent entrance to the Canadian health supplement market.

PRODUCT READINESS LEVEL

9

COMMERCIAL INTEREST SOUGHT

Consumer groups

CONTACT PERSONPROF SPINNEY BENADETel: +27 21 953 8676 Email: [email protected]

PROF MARETHA OPPERMANTel: +27 21 953 8677Email: [email protected] [email protected]

PRODUCT NAME

NUTRI CARO-E (Patent and trademark protected)

DESCRIPTION

Nutri Caro-E is a nutritional supplement premix with various applications in food and beverages. It supplements the diet with carotenes, vitamin E and minerals known to be deficient in groups of people consuming only starchy staples with minimal intake of fruit, vegetables and nutrient dense food. Current applications include fortified biscuits, porridge and peanut butter.

PRODUCT READINESS LEVEL

Early stages of commercialization

COMMERCIAL INTEREST SOUGHT

Consumer groups who can buy and utilise the products e.g school feeding programmes, NGOs, geriatric feeding programmes etc.

CONTACT PERSONPROF SPINNEY BENADETel: +27 21 953 8676 Email: [email protected]

PROF MARETHA OPPERMANTel: +27 21 953 8677Email: [email protected] [email protected]

81

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

7

PRODUCT NAME

UNMANNED AERIAL SYSTEMS (Patent protected)

DESCRIPTION

Unmanned Aerial Systems comprise of the manufacture of unmanned aerial vehicles in the under 65kg class for shorter range aerial reconnaissance work. The system also incorporates ground stations for pilots to control the vehicles remotely and monitor data feedback.

PRODUCT READINESS LEVEL

8/ 9

COMMERCIAL INTEREST SOUGHT

Clients

CONTACT PERSONPROF OSCAR PHILANDERTel: +27 21 959 8436Mobile: + 27 82 335 8300Email: [email protected]

PRODUCT NAME

FLOW-VIZ FLUID VISUALIZATION AND CHARACTERIZATION SYSTEM (Patent protected)

DESCRIPTION

Flow-Viz is an innovative fluid visualization and characterization system. It has the following features:• Multipoint measurements are made in-line and in real-time • Visualize complete flow profiles in high resolution • Characterize in detail the flow behaviour and fluid properties (rheology) • Applicable to opaque, non-Newtonian industrial fluids and suspensions • Non-invasive and hygienically safe • Flow-Viz software – complete on-line and off-line data processing package • Provide continuous feedback to your process for enhanced efficiency and productivity

PRODUCT READINESS LEVEL

8/ 9

COMMERCIAL INTEREST SOUGHT

BuyersPilot plant installations

CONTACT PERSONFlow Process and Rheology Centre Tel: +27 21 460 3049/ 3512 Email: [email protected] [email protected]

Flow-Viz AB Technical InstrumentsTel: +46 10 516 6668 +46 70 26 8794 Email: [email protected]

PRODUCT NAME

OCEAN OBSERVER SMART BUOY (Patent protected)

DESCRIPTION

The Ocean Observer Smart Bouy is a compact modular buoy platform configurable for a range of coastal water applications. It has the following features:• Obtain data in real time by radio, satellite or GSM telemetry• Modular design for increased operational efficiency• Compact design enabling operational procedures from small craft• Flexible sensor configuration tailored to your requirements• Low operational cost

PRODUCT READINESS LEVEL

6/ 7

COMMERCIAL INTEREST SOUGHT

Clients

CONTACT PERSONDIRK MULLERMobile: +27 79 367 2593Email: [email protected]

82

Cape Innovation (Pty) Ltd2016

8

HIGH TECH

PRODUCT NAME

NANOSATELLITES AND CUBESATS

DESCRIPTION

The production of customised nanosatellites for earth observation, safety at sea, pollution and weather monitoring, communication between secluded areas and the ‘outside’ world.

PRODUCT READINESS LEVEL

7/ 8

COMMERCIAL INTEREST SOUGHT

ClientsCONTACT PERSONPROF ROBERT VAN ZYLTel: +27 21 959 6925Mobile: +27 83 303 5487Email: [email protected]: www.cput.ac.za/fsati

PRODUCT NAME

CUBESAT S-BAND TX PATCH ANTENNA (Patent protected)

DESCRIPTION

The STX is a compact S-Band transmitter designed for CubeSat missions. It is ideal for space missions where a high data rate downlink is required. It has the following features:• It is compatible with the CubeSat standard, with a CubeSat Kit PC/104 form factor. • The STX implements QPSK modulation with transmission data rates of up to 2 Mbps. • It uses an open network encoding scheme based on the IntelSAT IESS-308 specification which

allows this product to be used with low-cost commercial satellite receivers. • A nadir facing S-Band patch antenna can also be incorporated into the CubeSat design.

PRODUCT READINESS LEVEL

8/ 9

COMMERCIAL INTEREST SOUGHT

Clients

PRODUCT NAME

S-BAND TRANSMITTER

DESCRIPTION

The STX is a compact S-Band Transmitter designed for CubeSat missions. It has the following features:• Compatible with the CubeSat standard• Compatible with a CubeSat Kit PC/104 form factor• The STX implements QPSK modulation with transmission data rates of up to 2 MbpsIdeal for space missions where a high data-rate downlink is needed• Uses an open network encoding scheme based on the IntelSAT IESS-308 specification which

makes this product compatible with low-cost commercial receivers

PRODUCT READINESS LEVEL

8

COMMERCIAL INTEREST SOUGHT

Clients

CONTACT PERSONPROF ROBERT VAN ZYLTel: +27 21 959 6925Mobile: +27 83 303 5487Email: [email protected]: www.cput.ac.za/fsati

CONTACT PERSONPROF ROBERT VAN ZYLTel: +27 21 959 6925Mobile: +27 83 303 5487Email: [email protected]: www.cput.ac.za/fsati

83

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

9

PRODUCT NAME

CUBESAT VHF/ UHF TRANSCEIVER

DESCRIPTION

The CubeSat VHF/ UHF Transceiver is a compact telemetry and command radio designed for CubeSat missions. It is compatible with the CubeSat standard with a CubeSat Kit PC/104 form factor. It has the following features:• Implements full-duplex GMSK uplink and downlink communications. • A combination of AFSK and GMSK provides full-duplex comm-unications with data rates of 1200 and

9600 bps respectively. • Does not operate in full-duplex mode exclusively. • Ideal for amateur space missions where a low data–rate uplink or downlink is required. • Can be used as a robust lower data-rate back-up radio for a higher data-rate radio.

PRODUCT READINESS LEVEL

8/ 9

COMMERCIAL INTEREST SOUGHT

Clients

CONTACT PERSONPROF ROBERT VAN ZYLTel: +27 21 959 6925Mobile: +27 83 303 5487Email: [email protected]: www.cput.ac.za/fsati

PRODUCT NAME

AUTOMATED SOLAR COOKER (Winner at the International Renewable Expo in Germany)(Patent protected)

DESCRIPTION

The Automated Solar Cooker is a unique PLC controlled solar cooker that has a full heat control system allowing for normal cooking adjustments.

PRODUCT READINESS LEVEL

4/ 5

COMMERCIAL INTEREST SOUGHT

Investors

CONTACT PERSONDR WILFRED FRITZTel: +27 21 959 6784Email: [email protected]

PRODUCT NAME

SOLAR TREE™ SOLAR CHARGER

DESCRIPTION

The Solar Tree is a solar charger designed to power mobile devices.

PRODUCT READINESS LEVEL

3

COMMERCIAL INTEREST SOUGHT

InvestorsCONTACT PERSONDEON KALLISTel: +27 21 959 6465Email: [email protected]

84

Cape Innovation (Pty) Ltd2016

10

HIGH TECH

PRODUCT NAME

REACTOR FOR THE TREATMENT OF TEXTILE WASTEWATER USING A LOCALLY DEVELOPED NANOPHOTOCATALYST (Patent protected)

DESCRIPTION

The development of a reactor that uses nanoparticles for treatment of waste water in the textile industry. Re-use of the water will result in significant savings in water costs and industrial environmental impact.

PRODUCT READINESS LEVEL

2/ 3

COMMERCIAL INTEREST SOUGHT

Early stage investment to upscale from laboratory to operational pilot plant.

CONTACT PERSONPROF VERUSCHA FESTERTel: +27 21 460 3055Mobile: +27 83 638 6300Email: [email protected]

PRODUCT NAME

WASTE PLASTIC GASIFIER™

DESCRIPTION

Plastic waste generated from the power industry provides a valuable energy resource. Utilising the Waste plastic gasifier™ method, the high energy content of the plastic can be extracted using an infrared radiation-based reactor. Through the gasification process, syngas fuel is produced. This can be fed to generators to produce electricity. This process provides a means of energy storage and can be converted later when energy is required.

PRODUCT READINESS LEVEL

3

COMMERCIAL INTEREST SOUGHT

Early stage investment to upscale from laboratory to operational pilot plant.

CONTACT PERSONDR MARCO ADONISTel: +27 21 959 6246Mobile:+27 83 655 6745Email: [email protected]

PRODUCT NAME

SMART METER™

DESCRIPTION

The AI9 development is an advanced energy-saving/ metering solution in the space of commercial and industrial building/ business parks which consume approximately 40% of the world’s energy. The AI9 Smart Metering system captures all energy-relevant power consumption information from a client’s premises, by using several miniaturised kwh motes that can be seamlessly installed in existing building reticulation without major circuit interruption. The installed system platform then provides an analysis of that information on a central location and offers management and clients saving opportunities and more accurate billing. Information can be accessed by clients securely anywhere in the world.

PRODUCT READINESS LEVEL

3

COMMERCIAL INTEREST SOUGHT

Early stage investment to upscale from laboratory to operational pilot plant.

CONTACT PERSONPROF MTE KHANTel: +27 21 959 6208Mobile: +27 82 043 3495Email: [email protected]

85

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

11

PRODUCT NAME

DRIVER’S LICENSE CONTROL UNITDLCU™

DESCRIPTION

The primary objective of the Driver’s License Control Unit (DLCU) is to provide a method and system which can assist in restricting unauthorised access to motor vehicles, from persons who do not have a valid South African driver’s license or who are unqualified to operate a particular type of vehicle. Complementing the driver’s license control feature is a fingerprint and password authentication feature, which ensures that only an authorised person can drive a motor vehicle. The goal of the DLCU device is to curb accidents on South Africa’s roads, as well as to reduce thefts and hijackings of motor vehicles in RSA.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Investors

CONTACT PERSONGARNET GABRIELSMobile: +27 82 200 6677Email: [email protected]

Mobile: +27 76 540 4896 Email: [email protected]

Mobile: +27 82 955 0917Email: [email protected]

PRODUCT NAME

NICKY’S DRIVE (Patent protected)

DESCRIPTION

Nicky’s drive is a unique automotive system designed to enable people living with disabilities to safely operate a motor vehicle. The system consists of an individualised electronic control system integrated into the mechanical operation of the vehicle, enabling a physically disabled driver full mobility with a motor vehicle.

PRODUCT READINESS LEVEL

6

COMMERCIAL INTEREST SOUGHT

Investors

PRODUCT NAME

CPUT FORMULA RACING CAR

DESCRIPTION

CPUT has participated in the Silverstone student racing event for a number of years. This entails the development of a racing vehicle as well as participation in the racing event. The output is the development of a significant pool of automotive expertise to assist in addressing automotive design and development challenges using an integrated multi-disciplinary team.

PRODUCT READINESS LEVEL

6

COMMERCIAL INTEREST SOUGHT

Investors

CONTACT PERSONEUGENE ERFORT Tel: +27 21 959 6549Mobile: +27 82 202 0697Email: [email protected]

CONTACT PERSONEUGENE ERFORT Tel: +27 21 959 6549Mobile: +27 82 202 0697Email: [email protected]

86

Cape Innovation (Pty) Ltd2016

12

PRODUCT NAME

COHERE (Patent protected)

DESCRIPTION

Cohere is a product designed to help people who suffer from sleep deprivation to wind-down through a mindfulness based interaction using biofeedback technology. When going to bed, the user wears a device that measures his breathing and heart-rate. Specially designed imagery and audio to aid the process of winding-down are then projected into the user’s environment from a device. The visuals and sounds then interact with the user’s breathing and heart-rate in real time to complete the experience. This process is known as biofeedback. In this way the product assists the process of winding down by providing a supportive environment for it to take place within.

PRODUCT READINESS LEVEL

2/ 3

COMMERCIAL INTEREST SOUGHT

Investors to develop further and take to market.

CONTACT PERSONLUCIANO WEGMERSHAUSMobile: +27 79 350 6331Email: [email protected]

JOHAN VAN NIEKERKEmail: [email protected]

CONSUMER

PRODUCT NAME

TBT – THE BRAAI TOOL (Patent protected)

DESCRIPTION

TBT – The Braai Tool is a multifunctional braai utensil. It incorporates five key braai utensils into one highly functional and sleek product. TBT achieves its multiple functions through the use of its now patented (provisional patent) magnetic hinge and groove system.

PRODUCT READINESS LEVEL

8/ 9

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSONSEBASTIAN BOSMANMobile: +27 82 370 [email protected]: www.thebraaitool.co.za

PRODUCT NAME

THE WATT ELECTRIC SCOOTER (WATT)™

DESCRIPTION

The Watt Electric Scooter (WATT) is an innovative inner-city transportation solution designed anddeveloped for South Africa. The WATT features the following:• A proprietary battery technology that has been built into the frame, and a highly efficient dual

speed in-hub electric motor in the back wheel. • A top speed of 25 km/ h and a range of about 20 km per charge. • The battery pack has been designed to be able to adapt quickly to new battery technology which

will improve the range significantly. Currently there is no local direct competition in South Africa and all international competitors areextremely expensive.

PRODUCT READINESS LEVEL

4/ 5

COMMERCIAL INTEREST SOUGHT

Investors

CONTACT PERSONDARYN MOLENAAR Tel: +27 21 460 3670Mobile: +27 76 033 8337Email: [email protected]

87

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

13

PRODUCT NAME

PIVOT™

DESCRIPTION

The Pivot is a smart key organiser allowing users to connect accessories such as keyrings, security tags, gate remotes and lanyards. The outside face of the profiles can be utilized for branding purposes.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSONIMAGINATEMobile: +27 79 504 2371Email: [email protected]

PRODUCT NAME

BAMBARA GROUNDNUT CULTURED BEVERAGE (Patent protected)

DESCRIPTION

BamPro is a natural, great tasting, lactose and cholesterol free yoghurt-like drink. It is naturally low in fat, but rich in protein, fibre and anti-oxidants with added probiotics for maintaining good balance and composition of intestinal flora. The product is a healthy alternative to dairy yoghurt.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Investors to take the product to market.

CONTACT PERSONPROF VICTORIA JIDEANITel: +27 21 953 8749Mobile: +27 78 839 1615 Email: [email protected]

CONTACT PERSONPROF VICTORIA JIDEANITel: +27 21 953 8749Mobile: +27 78 839 1615 Email: [email protected]

PRODUCT NAME

BAMBARA GROUNDNUT INSOLUBLE DIETARY FIBRE (Patent protected)

DESCRIPTION

Natural BamFibre-I is a highly absorptive functional food for human consumption and has commercial and nutritional advantages. As an ingredient in dough, it increases volume and works as a fat replacer by binding water. It is gluten, lactose and cholesterol free. The health benefits include lowering of cholesterol levels, levelling out of blood glucose and source of insoluble dietary fibre.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Investors to take the product to market.

CONTACT PERSONPROF VICTORIA JIDEANITel: +27 21 953 8749Mobile: +27 78 839 1615 Email: [email protected]

PRODUCT NAME

BAMBARA GROUNDNUT SOLUBLE DIETARY FIBRE (Patent protected)

DESCRIPTION

BamFibre-S is a natural source of soluble fibre, which is gluten, lactose and cholesterol free with potential as a stabiliser, thickener and gelling agent as well as cryoprotectants in frozen products. It also facilitates the excretion of waste, aiding detoxification and is suitable for high temperature applications such as baking. The health benefits include lowering of cholesterol levels, levelling out of blood glucose and detoxing aid.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Investors to take the product to market.

88

Cape Innovation (Pty) Ltd2016

14

CONSUMER

PRODUCT NAME

ONs™

DESCRIPTION

ONs is a set of rechargeable lights manufactured from high-quality beech wood, featuring a frosted resin cover. The lights are charged by placing them on a charger base.

PRODUCT READINESS LEVEL

4/ 5

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSON LÚM CREATIVE LIGHTING DESIGNS Carla BekkerMobile: +27 82 711 1330

Lala QuailMobile: +27 84 896 1585Email: [email protected]

CONTACT PERSONMIKHAIL AYMESMobile: +27 73 150 2725Email: [email protected]

PRODUCT NAME

STRAIGHT-OUT-OF-CAMERA™

DESCRIPTION

The SOOC Studio is an all-in-one portable photography studio. The product is manufactured from durable fabrics that enhance both the aesthetic and function of the preinstalled advanced LEDs, ensuring high quality photographs.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSONRYAN HIGGOMobile: +27 83 452 9400Email: [email protected]

PRODUCT NAME

SNUGPACK (Patent protected)

DESCRIPTION

Snugpack is a day-pack attachment, facilitating a comfortable and safer resting option for backpackers in transit. The Snugpack is wrapped around a backpack that is strapped to the front of an individual’s body, allowing the individual to slide their hands and arms into a pocket for comfortable support.

PRODUCT READINESS LEVEL

8

COMMERCIAL INTEREST SOUGHT

Buyers

89

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

15

CONTACT PERSONWAYNE VAN DIEMENTel: +27 21 951 3312Mobile: +27 72 445 1407Email: [email protected]

PRODUCT NAME

DRYWAY™

DESCRIPTION

DryWay is s a portable, lightweight clothes drying rack designed for small areas. The simplistic construction allows for plenty of air flow around each garment causing them to dry in no time.

PRODUCT READINESS LEVEL

4/ 5

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSONEmail: [email protected]: www.lettucedesign.co.za

PRODUCT NAME

UPRIGHT MONITOR STAND™

DESCRIPTION

The Upright Monitor Stand™ is a hand crafted device that allows users to obtain the correct screen height. It is has five adjustable heights, storage space for a keyboard and upper storage space. The device is crafted from natural products and brings an organic feel to the workspace.

PRODUCT READINESS LEVEL

7/ 8

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONSUMER/ SOCIAL INNOVATION

CONTACT PERSONMUSA MORGAN Mobile: +27 78 474 0612Email: [email protected]

PRODUCT NAME

UYINDODA MMC UNDERWEAR (Patent protected)

DESCRIPTION

The Uyindoda MMC Male Medical Circumcision Underwear is a supplementary device to enable quick and comfortable recuperation after male circumcision. It keeps the penis in an upright position to prevent blood seepage and reduce infection of the open wound.

PRODUCT READINESS LEVEL

7/ 8

COMMERCIAL INTEREST SOUGHT

Buyers

90

Cape Innovation (Pty) Ltd2016

16

SOCIAL INNOVATION

PRODUCT NAME

MODULAR SOLAR POWERED AQUAPONICS (Patent protected)

DESCRIPTION

The Modular Solar Powered Aquaponics system uses renewable energy sources such as solar, thermal, and photovoltaic energy to create a healthier small scale modular aquaponics system. The system consists of fish tanks for the raising of fish and a growth bed for the planting of vegetables on a scale to benefit all communities.

PRODUCT READINESS LEVEL

3/ 4

COMMERCIAL INTEREST SOUGHT

Investment to upscale from laboratory to operational pilot plant.

CONTACT PERSONFAREED ISMAILTel: +27 21 953 8734Mobile: +27 83 461 9242Email: [email protected]

PRODUCT NAME

COOKABLE™ (Copyright protected)

DESCRIPTION

Cookable is a multi-purpose modular system, designed to aid both able and disabled individuals to prepare food. This includes individuals with only one arm, those who are partially sighted and arthritis sufferers, to name a few.

PRODUCT READINESS LEVEL

3/ 4

COMMERCIAL INTEREST SOUGHT

Buyers/ investors

CONTACT PERSONPROF MUGENDI M’RITHAATel: +27 21 469 1027Email: [email protected] [email protected]: +27 79 350 6331

PRODUCT NAME

GEL FUEL BURNER AND FUEL GEL (Registered functional design)

DESCRIPTION

The Gel Fuel Burner and Fuel Gel offer a safer method for individuals to cook food. Use of it will lead to the significant reduction of fires in informal settlements. It features:• 25% greater heating efficiency.• No odour or paraffin taste.• Greatly improved safety features on the burner.• Greatly improved safety features on the gel.• Rigid design. • Fuel can be produced and sold in communities.

PRODUCT READINESS LEVEL

5

COMMERCIAL INTEREST SOUGHT

Investment to commercialise.

CONTACT PERSONEUGENE ERFORTTel: +27 21 953 8652Mobile: +27 82 202 0697Email: [email protected]

91

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

17

SOCIAL INNOVATION

PRODUCT NAME

THE PENINSULA BUSINESS CLUB™

DESCRIPTION

The Peninsula Business Club is a business development organization dedicated to advancing entrepreneurship for undergraduates, focussing on innovative enterprise. Their goal is to support and empower student entrepreneurs by linking them to people and the resources they need to promote their ideas that are aimed at improving the economy.

PRODUCT READINESS LEVEL

3/ 4

COMMERCIAL INTEREST SOUGHT

Business partners

CONTACT PERSONTSHITSO MOSOLODI Tel: +27 21 959 6368Mobile: +27 84 200 1214 Email: [email protected]

BENNY MOJAMobile: +27 79 028 0303Email: [email protected]

PRODUCT NAME

TSHEDZAAPP™

DESCRIPTION

The mobile app, TshedzaApp, is a virtual career coach. It allows users to interact with coaching professionals as well as find and access information on tertiary courses and bursaries.

PRODUCT READINESS LEVEL

7/ 8

COMMERCIAL INTEREST SOUGHT

Market growth, financing, sales, technology development.

CONTACT PERSONMABOGO MBAVHALELO Mobile: +27 78 662 1738 Email: [email protected]

SOCIAL INNOVATION/ SERVICE

PRODUCT NAME

FISH-DRYING PROCESS

DESCRIPTION

The Fish-Drying Process is developed for rural communities to add value to by-catch and also retain products for domestic consumption. The project also aims to develop a cheap drying drum and packaging material to enable distributed consumption. This process is suited to marine by-catch as well as fresh water exotic species. A simple pictographic manual will be used to train individuals in fishing communities through the mediation of a client viz. Envirochoice Project Management. Presently Cape Nature Conservation and other legal role-players are also part of the bigger collaborative. The drying process has been validated in terms of food safety while a mould for the special bins is being made in order to produce such locally. Already contracted to the client.

CONTACT PERSONSUNE HENNING Tel: +27 21 959 6776Email: [email protected]

LARRY DOLLEYTel: +27 21 959 6276Email: [email protected]

92

Cape Innovation (Pty) Ltd2016

18

PRODUCT NAME

AGRIFOOD TECHNOLOGY STATION

DESCRIPTION

The Agrifood Technology Station offers a wide range of services that can assist food and related companies in developing, enhancing and maintaining safe, efficient and cost-effective food production and processing. The following services are offered:• New product and process development• Micro-incubation services using the Pilot Plant• Niche analytical services• Sensory evaluation• Shelf-life evaluation• Labelling• Small-scale trials• Training• Auditing of food premises• Free-standing research projects• Miscellaneous

COMMERCIAL INTEREST SOUGHT

SMEs and clients

CONTACT PERSONLARRY DOLLEY Tel: +27 21 959 6276Email: dolleyl @cput.ac.za

PRODUCT NAME

TECHNOLOGY STATION IN CLOTHING AND TEXTILES

DESCRIPTION

The Technology Station in Clothing and Textiles (TSCT) offers services to the clothing, textiles and related sectors. The services offered include the following:• Manufacturing advisory services• Technology platform• Product testing and analysis• Human capital development• Product development• Smart organization• ResearchThe TSCT is based on the Bellville Campus.

COMMERCIAL INTEREST SOUGHT

SMEs and clients

CONTACT PERSONSHAMIL ISAACSTel: +27 21 959 6826Email: [email protected]

SERVICE

93

TECHNOLOGYTRANSFER OFFICE

INNOVATION SHOWCASE2015

19

PRODUCT NAME

TIA ADAPTRONICS ADVANCED MANUFACTURING TECHNOLOGY LABORATORY

DESCRIPTION

The TIA Adaptronics Advanced Manufacturing Technology Laboratory specialises in manufacturing and research in Adaptronic Technologies in South Africa. Adaptronics is the technology that integrates sensor and actuator functions into materials, components and structures so that they may react to environmental stimuli thus making them intelligent. The unit focuses on the following areas:• Adaptronic technology• Unmanned platforms• Automotive technologies• Ocean engineering• Universal design

COMMERCIAL INTEREST SOUGHT

SMEs and clients

CONTACT PERSONPROF OSCAR PHILANDERTel: +27 21 959 8436Email: [email protected]

MR EUGENE ERFORTTel: +27 21 953 8652Email: [email protected]

PRODUCT NAME

TECHNOLOGY STATION IN CLOTHING AND TEXTILES

DESCRIPTION

The Technology Station in Clothing and Textiles (TSCT) offers services to the clothing, textiles and related sectors. The services offered include the following:• Manufacturing advisory services• Technology platform• Product testing and analysis• Human capital development• Product development• Smart organization• ResearchThe TSCT is based on the Bellville Campus.

COMMERCIAL INTEREST SOUGHT

SMEs and clients

94

Cape Innovation (Pty) Ltd2016

20

Technology Transfer Office

www.cput.ac.za Symphony Way (off Modderdam Road)Bellville, 7560

DIRECTOR Prof Gary Atkinson-Hope Tel +27 21 959 6431 Email [email protected]

BUSINESS MANAGER Chris Lombard Tel +27 21 959 5871 Email [email protected]

CONTRACTS MANAGER Marlin Fransman Tel +27 21 959 5605 Email [email protected]

CONTRACTS OFFICER Louise Groenewald Tel +27 21 959 5895 Email [email protected]

COORDINATOR Halimah Rabiu Tel +27 21 959 6879 Email [email protected]

PROJECT ADMINISTRATOR Karen Martin Tel +27 21 959 6044 Email [email protected]

ASSISTANT TTO OFFICER Nomaphelo Ndindwa Tel +27 21 959 6044 Email [email protected]

#CPUTInnovationShowcase#WeAreCPUT

creating futures

95

SOuRCES

Acceleratecapetown [Available on http://acceleratecapetown.co.za/about/vision/, accessed 30 October 2014]

Ackerman-Berman S, pnp Enterprise Development Fund application http://www.picknpay.co.za/funding-guidelines, 2014

Atkinson-Hope, G et al, Cput Incubator workshop, 2014

Bandwidth Barn, www.bandwidthbarn.org , accessed 2014

Bongani Coka, productivity SA Corporate profile, 2013

COFISA, Mapping triple helix innovation networks in the Western Cape, October 2009

Driving Competitive Advantage In the Western Cape, A strategy for design to unlock innovation, DEDAt, 2012

Garret, p, Calgary Innovate, 2014 Report to the Community, 2014

Goliath, D, Cape town Information Brochure, Shanduka Black umbrellas, 2014

InnovuS, www.innovus.co.za , accessed 2014

Jonsson, L and Santurio M.: Interview, uppsala university Holding Company, uppsala, Sweden, 25 November 2014

Khabouri, A Dr, Innovation park Muscat at a glance, www.ipm.om, 2014

Krȕck, J.: Interview, Saarland university Starterzentrum, Saarbrucken, Germany, 26 November 2014

Kruger, Cassie (principal and CEO), False Bay College, 2014

Lemboe C, Quarterly Report for DEDAt, Bureau for Economic Research (BER), 26 July 2012

Liebenberg, S, Interview, East London Industrial Development Zone, 2014

Lombard, Chris (Business Manager, Cput), Ms Halimah Rabiu (Co-ordinator, Cput), Mr Gerard Verhoef (technology transfers Consultant), Internal Reports on Interviews with Stakeholders (False Bay College, productivity SA, CSIR, ELIDZ, Cput, 2014

Lundel, t and tanhua, D.: Interview, Satakunta university of Applied Sciences, Rauma, Finland, 24 November 2014

Manuel, t. (editor): National Development plan, Vision for 2013. pretoria, 2011

Nhlapo, C, Research, technology Innovation, and partnerships (RtI), Cput 10-Year Blue print, 2012

Holum-Iwan J, Benchmarking of technology parks in poland, polska, 2012

Satakunta university of Applied Sciences, Curriculum of Entrepreneurship Studies, 2014

Ms Stina thor, S and Olde, L.: Interview, uppsala Innovation Centre, uppsala, Sweden, 25 November 2014

Van Dun, p.: Interview, Ku Leuven Research and Development, Leuven, Belgium, 28 November 2014

Western Cape opens arms to manufacturing growth, Business Day, Staff Writer, July 18 2014

96

Cape Innovation (Pty) Ltd2016

NOTES

98

creat ing futures

#WeAreCput

+27 21 959 6767

[email protected]

@Cput

@wearecput

www.facebook.com/cput.ac.za

www.cput.ac.za