Transcript Track 1 Unique Characteristics of Developing Countries

ESCWA
Expert Group Meeting
Enhancing Competitiveness through the promotion of
Innovative Approaches in SMEs
Manama, 10-12 June 2002
New technology-based institutional forms
as instruments to enhance innovation and
competitiveness of SMEs
Omar Bizri and Mansour Farah
Technology Section
ESCWA
20-Jul-15
NTIFs as instruments to enhance innovation and competitiveness in SMEs
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Contents
• Introduction
• What are NTIFs?
• Technology parks and SMEs
- What? Why?
- Tenants; Roles
- Examples
• Technology incubators and start-ups
- What? Facilities and services
- Modalities; Roles; Organization
- Examples
• Conclusion
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Introduction (1)
• Innovation leads to productivity, competitiveness and
economic growth
• Dynamic system of national innovation and S and T
policies to focus on:
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Dissemination of new technologies
Incentives for SMEs to innovate
Lifelong learning
Investment in innovative inputs
Adequate institutional structures and networks
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Introduction (2)
• Robust cost-effective participatory approaches
between capacity building institutions
(universities, research centers, industry,
government, investors) are needed
• New technology-based institutional forms
proved to be effective in creating strong bonds
between complementary institutions
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What are NTIFs?
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Technopoles
Technology parks
Science/research parks
Science cities
Centers of excellence
Technology incubators
Innovation centers
…
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Technology Parks
What?
• Property-based initiatives with formal links to
universities and research institutions
• Encourage formation and growth of knowledgebased businesses
• Actively support technology brokering and
enhance business skills in tenant firms
• Provide assistance and advice for new
technology-based firms
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Technology Parks
Why?
• Catalyst for local development and employment
• Hasten technology transfer to SMEs
• Facilitate formation of networks/linkages based
on mutual needs and benefits
• Provide access to research facilities
• Constitute a center of innovation
• Give prestige and status to tenant firms +
collective identity
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Technology Parks
Tenants
• Firms: diverse in size, business interest, technological
status and future ambitions; including start-ups
• Research institutions
• Universities: branches for education and training; may
host the park
• Incubators: related to research on the park
• Standardization/calibration and testing labs
• Services: gov. agencies, finance institutions, conference
services, business center, …
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Technology Parks
Roles
• Technological support to SMEs
• Business linkages
• Counseling services (financial, administrative,
technical, legal, …)
• Technology transfer
• Local development: catalyst for enterprises
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Technology Parks
Example: Malaysia Multimedia Super Corridor
• Established starting in 1996 – Multimedia
Development Corporation
• 15 km wide X 50 km long zone
• Hosting high technology firms
• Excellence in multimedia applications
• Modern infrastructure with “smart” homes,
schools, cards and partnerships
• Test-bed for inventions
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Technology Parks
Example: Dubai Internet City
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Launched in October 1999
Free-trade zone
Hosting international ICT firms
Modern infrastructure
Web-based businesses
E-commerce regional cluster
100% foreign ownership, 50 year land leases, tax
exemptions
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Technology Parks
Example: India’s Software Technology Parks
• Flourishing Indian software industry (over $5 billion
export and local market)
• Thousands of SMEs engaged in software development
• Government initiative (1986): Software Technology
Parks (STPs) initiative launched
• Nearly 20 STPs established, providing:
– Modern infrastructure, incl. high speed int’l gateway
– Assistance in project approvals, imports/exports and
bonding certification
– Incubation schemes
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Technology incubators and start-ups
What?
• Creation and nurturing of new technology-based
enterprises
• Means for promoting innovative firms and
commercialization of research results
• Job creation through start-up companies
• Increase the chances of new firm survival and
growth
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Technology incubators
Facilities and Services
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Shared physical facilities and infrastructure
Management support
Access to basic business related services
Technology expertise
Guidance and support for venture capital
Legal assistance
Market information
Networking
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Technology incubators and start-ups
Modalities
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Technology incubators
Roles
• Overall economic development
• Development of entrepreneurial culture
• Promotion of SME productivity and
competitiveness
• Transforming research results to products and
services
• Dissemination of technical skills
• Strengthening public-private cooperation and
effective utilization of capital
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Technology incubators
Organization
• No single organizational format: flexibility,
versatility and dynamism are the key criteria
• Management is responsible for policy,
strategy and regulatory aspects
• Main considerations:
– Networking and resources
– Occupancy period, rent, etc.
– Graduation and follow-up
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Technology incubators
Example: Malaysia’s SIRIM incubator
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Launched by SIRIM Berhard Institute in 1986
Entrepreneurial and SME development
Focus on classical technologies first
Moved to advanced technologies: mechatronics,
CAD/CAM, robotics, multimedia, polymers, …
• Incubation process: from technical conception to
commercialization over period of 1-2 years
• Expansion to 8 locations
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Technology incubators
Example: Israel’s technology incubator programme
• Started in 1990 to create a sheltered environment for
nurturing innovative ideas, employ qualified immigrants
and boost Israeli exports
• 1990: $1.8m & 50 projects - 1999: $30m & 200 projects
• Incubators: 10-15 projects each
• Projects: innovative ideas leading to products, an
entrepreneur with 3-6 developers
• In 2000: 900 professionals employed
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Technology incubators
Example: Egypt’s Tala incubator
• Launched in 1998 by the Social Fund for Development
• Tenants working in various fields: metal sheet works,
automotive parts, fiberglass, computer training and software
development, assembly of electronic components, …
• Business plan required for projects
• Services provided: counseling, training, marketing,
information provision and pro-active support of graduates
• Challenges: delivery mechanisms, financial sustainability,
customer-focused projects
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Conclusion (1)
• NTIFs proved to be effective instruments to
implement S and T policies and strategies through:
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Accelerating technology transfer
Reforming education
Facilitating knowledge acquisition by SMEs
Enhancing innovation and competitiveness of SMEs
• NTIFs needed in ESCWA member countries to
face socioeconomic challenges
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Conclusion (2)
• NTIFs require adaptation to technological maturity
level of member countries
• Partners in NTIF initiatives: government, NGOs,
professional societies, academic institutions, …
• Great care needed in planning, design and
implementation of NTIFs
• Feasibility studies, demand-side considerations,
proper management, partnerships are crucial
elements for NTIF success
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