Transcript KFUPM Science Park (PASP): 14 June 2003 By PASP Project Committee

KFUPM Science Park (PASP):
A Special Presentation for
H.E. The Rector
Dr. Khalid Saleh Al-Sultan
By
PASP Project Committee
14 June 2003
Members of the PASP Project
Committee & Their Responsibilities
Dr. Mohammad Abul-Hamayel
Legal Issues and Governmental Regulations
Dr. Mohammad Al-Ohali
Conceptual Planning, International Science Park Practices
Dr. Aymen Kayyal
Technology Transfer, Incubator/Spin-off Program, and IP Management
Dr. Sadiq M. Sait
Conceptual/Detailed Planning, International Science Park Practices, and IT
Related Activities
Dr. Halim Hamid Redhwi
Chairman PASP Project Committee
Overall Coordination,
Planning,
Activities
&
Petroleum/Petrochemicals
Related
2
Presentation Outline

Part I: A Brief Overview about Science Parks

Part II: Plan of PASP

Part III: Progress and Status
3
What Are Science Parks?

A property based initiative which:
– Has operational links with universities and maybe research
centers
– Is designed to encourage knowledge based industries
– Has an element of technology transfer and business skills

Science parks in other parts of the world: Australia, Dubai,
Finland, Hong-Kong, Morocco, Brazil, UK, USA, and others

IASP (International Association of Science Parks, 500+
membership)

How Different from Research Institutes (RI)?
4
University’s Motives & Benefits from
the Park






Economic development of the country
University to become skilled at industry collaboration
Tenants forming useful associations with the University
Commercialization of University research, including
via incubation facilities for start-ups
Development of the region and creation of wealth
and employment opportunities
To earn income from ground rental to support
University research
5
What is an Incubator?
An incubator generates and sustains the
dynamic process of business enterprise
development for individuals eager to start
companies to build commercially viable
products.
It provides support of infrastructure,
logistics, finance, training, and advice, until
the businesses find their own place.
6
Chronology of Events
•
•
•
•
•
•
•
•
•
•
•
•
KFUPM Science Park Committee formed: xx/xx/xxxx
International Companies Contacted: xx/xx/xxxx
Letters of Intent Received: xx/xx/xxxx
Conceptual Plan (prepared by PASP Project Committee): xx/xx/xxxx
Inauguration (by HRH Prince Abdullah Bin Abdulaziz): xx/xx/xxxx
Prince Abdullah Bin Abdulaziz Science Park (PASP) Active: xx/xx/xxxx
UNESCO Experts Visit KFUPM: 22-25/02/2003
PASP Plan Finalized: xx/xx/xxxx
Schlumberger Contract Signed: xxxx
Project awarded for layout/infrastructure planning: xx/xx/xxxx
Marketing Campaign Launched: xx/xx/xxxx
Semi Final report on layout/infrastructure arrives: xx/xx/xxxx
7
Plan of PASP
The Vision
 The Mission
 Other issues

8
The Vision
To make a significant contribution to the wealth &
welfare of the Kingdom of Saudi Arabia through
the development of knowledge based companies
that will also strengthen the achievement of the
mission of KFUPM to be a leading institution in the
creation and dissemination of knowledge in its
chosen fields of study
9
The Mission
•
To develop financially self-sustaining physical and
operational entity designed to create wealth
through the commercialisation of scientific and
technological knowledge from KFUPM;
•
Fostering
technology
development
and
commercialisation from the laboratory to the
marketplace;
10
The Mission (contd)
•
development of an entrepreneurial culture
amongst faculty, researchers, students, of KFUPM;
•
Providing technical, business, managerial, and
financial advice to clients;
•
Providing space in incubator and science park with
flexible leases, and access to university facilities;
•
Creation of a self sustaining and self supporting
community of knowledge based companies,
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OBJECTIVES

Commercialization of research and to act as
a
spawning
ground
for
technology
entrepreneurs

Providing a strong point of presence for
major
international
companies
and
enterprises.

Providing incubator programs to promote
emerging small-businesses and enterprises
12
OBJECTIVES (Contd.)

Utilizing the Kingdom’s industrial strength for the
benefit of making KFUPM a focal point for
attracting International R&D Personnel.

Generating employment opportunities for students
during their course of study and upon graduation
in these business houses.

To perform relevant and high quality R&D for
transfer to industry, and provide a focal point of
industry-university relationship
13
Proposal for Funding & Finance

Given its ideal location and the explicit returns for
the Industry, it is proposed that PASP-KFUPM
Company be formed that is financed by:
 KFUPM
 Private Investments (VC)
 Saudi Aramco, SABIC, and other mega companies

The university would be a decision member
responsible for laying down standards and leasing
tenants, while operation maintenance and
construction would be the responsibility of the
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company
Governance & Management

The effective management and governance of the
PASP-KFUPM
Company
is
based
on
the
collaboration between three major parties:
– university, knowledge and resources (and partial funding)
– industry: financing
– government: regulations and incentives

Park managed as a commercial enterprise by a
Park Manager, who heads the management team,
and is overseen by a board of directors
15
Part III
Progress and Status
16
UNESCO Experts Visit

Date of Visit: 22-25 February 2003

UNESCO Expert Group on Science Park:
1) Dr. Harry Nicholls, Managing Partner, ADCAL, UK
2) Dr. Marco Baccanti, President of International
Association of Science Park (IASP), Spain
3) Mr. Nur Youslan, UNESCO, France
17
UNESCO Experts Visit

To discuss the status and the prepared/submitted conceptual plan
of establishing Science Park at KFUPM with PASP Project committee
members, and KFUPM officials

To discuss the PASP plan for layout, and infrastructure and land
development

To provide set of recommendations

Major Outcomes:
–
Experts were impressed by the conceptual plan prepared by the
committee,
–
expressed satisfaction that the direction and thinking invested
thus far will lead to the success of the park, and
–
provided some additional recommendations
18
UNESCO Experts Recommendations
•
PASP Vision, Mission, Objectives, and Goals should be
clear and flexible with determined success criteria;
•
Supreme aim is the development of a community that
will create wealth and welfare in the Kingdom, the
creation of an entrepreneurial culture, that maximises
the commercialisation of ideas from KFUPM;
•
A combination of patience compatible with the
achievement of PASP’s Vision in the long-term (30 years);
and a sense of urgency compatible with producing early
visible performance
19
UNESCO Experts Visit
(Recommendations, Contd.)
•
•
An arms-length company separate from the University
and Research Institute should manage the Park (PASP).
Its function would be to be responsible for establishment
and operation of the PASP on behalf stakeholders KFUPM,
the Saudi Government, Chamber of Commerce, Saudi
Aramco, etc.
20
First Tenant in PASP-Schlumberger
21
Interest of International Companies in KFUPMJCCP, JAPAN
22
Interest of International Companies in KFUPMCIBA, Switzerland
23
Interest of International Companies in KFUPMLetters of Intent
24
Saudi Offset Committee
25
PASP xxxx Plan
26
Saudi Aramco and Sabic Role
27
Finally …

The PAASP is a strong statement of KFUPM’s
determination to maintain its high standards in
research, technological development and
academic excellence.

It is an initiative to couple the university’s
resources and talent with the technological
capabilities of the industrial sector, thereby
creating a highly collaborative environment with
vast potential for joint technological research
and development.
28
And..
With the establishment of this science park,
KFUPM moves forward into its fiftieth year
with a far-reaching initiative that will be a
dynamic
catalyst
for
technological
development and collaboration between the
university and the industry.
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Look Ahead Plan

xxxx
30
Vision 2004

xxxx
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THANK YOU
Engineering Conference
Presentation follows….
KFUPM Science Park (PAASP):
A New Era for Sustainable
Technology Based Development
Sadiq M. Sait
(0n behalf of PAASP Project Committee)
16 December 2002
Members of the PAASP Project
& Their Responsibilities
Dr. Halim Hamid Redhwi
Chairman PAASP Project Committee, Responsible for
Overall Coordination, & Petroleum/Petrochemicals Related Activities
Dr. Mohammad Abul-Hamayel
Legal Issues and Governmental Regulations, and others
Dr. Mohammad Al-Ohali
Conceptual/Detailed Planning, International Science Park Practices, and
others
Dr. Aymen Kayyal
Technology Transfer, Incubator/Spin-off Program, IP Management, etc.
Dr. Sadiq M. Sait
Conceptual/Detailed Planning and IT Related Activities, etc.
35
Three Part Outline

Part I: About Science Parks
– Concept, Trends, Stakeholders, Motives, Benefits, etc

Part II: Conceptual Plan of PAASP
– Conceptual Plan, Proposed Site, Potential Tenants,
Financing, Consultants, Look-Ahead Plan, etc

Part III: General Discussions & Conclusion
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Part I
About Science Parks
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About Science Parks






What are they?
History and Trends
Stakeholders
Motives
Relevant Joint Activities
The Incubator
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What Are they?
Definitions and forms: A wide range
 A generally accepted definition includes: A property based
initiative which:
– Has operational links with universities, research centers, and/or
other higher education institutions
– Is designed to encourage the formation and growth of
knowledge based industries on high-added-value firms
– Has a steady management team actively engaged in the transfer
of technology and business skills
 Science parks in other parts of the world: Australia, Dubai,
Finland, Hong-Kong, Morocco, Brazil, UK, USA, everywhere,
hundreds
 IASP (International Association of Science Parks)

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Different from an RI
External Research projects at KFUPM departments
and RI differ from Science Park concept
 At the Science-Park, companies conduct research
independently for their own motives, by their own
researchers, utilizing their own facilities, and may
involve
University researchers & facilities,
without intervention of University
 It differs from funded project awarded to
University faculty

40
History and Trend
Earlier, most (if not all)
universities were
reluctant to embrace collaboration with industry,
and industry similarly was shy of academia
 Around 1980s, Universities began
trying to
contact industry (a little earlier in some
industrialized countries such as the UK)
 The science park concept was an unfamiliar one
and companies were mainly attracted to it by a
desire to be near to the University's scientific
research

41
History and Trend
Around
1994,
Universities
would
contact
companies through Science Parks (Research Parks)
 Now, there are networks of universities and
networks of Science Parks
 With time, science from laboratories (with work
on proof of concept, prototyping), via liaison
offices, incubators, nurseries, science parks is
making to industry

42
Stakeholders

The primary stakeholders in the development and
sustenance of a Science Park are:
– The University
– Tenant firms and enterprises (industry component)
– Investors and Private Start-up Companies

Each of these stakeholders will play a vital role in
the development and growth of the Science Park
(PAASP)
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University’s Motives





Economic development through industry linked
projects
University to become skilled at industry
collaboration
Tenants forming useful associations with the
University in the pursuit of any aspect of the our
University’s mission
Opportunities for commercialization of University
research, including via incubation facilities for
start-ups
To earn income from ground rental in support of
University research
44
Joint Activities







Joint research projects, especially for graduate and
doctoral students
Work experience programs for undergrads (part- and
full-time jobs for university students)
Sharing of university equipment and laboratories
Custom-designed education programs for tenants
Many staff in tenant companies can enroll in our
graduate programs
Advice from tenants (companies) on the design of
courses
Adjunct appointments of industry experts to teach and
research in the university
45
Joint Activities





Larger companies can have their research work
contracted to the university. (The proximity with the
academic departments producing hundreds of
graduates in an area of expertise is a plus)
Companies can donate equipment and tools, share
expertise, etc., in return for using university labs,
faculty, and students
Tenants can also lend University valuable scientific
equipment
Senior staff of tenant companies can serve on
University advisory boards
Tenants can offer scholarships to postgraduate
students
46
Types
There are several models, depending on the
objectives
 It could be a park or a network or parks (a park
can be a network of companies)
 For a Science Park linked to a University,
collaboration is the key
 May or may not have an Incubator

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What is an Incubator?
An incubator is a welcoming and supporting
partner that generates and sustains the
dynamic process of business enterprise
development for individuals eager to start
companies to build commercially viable
products and services over innovative
technologies; it provides support in terms of
infrastructure, logistics, finance, training,
advice, and offices, until the businesses
find their own place.
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Part II
Conceptual Plan of PAASP
49
Conceptual Plan of PAASP







The Vision
The Mission
Goals/Objectives
Benefits
Funding & Finance
Governance & Management
Some Critical Success Factors
50
The Vision
To create an environment within the university
that will forge closer ties and enduring links
between academia and the industry spanning a
spectrum of research and development issues for
technological and economic growth.
51
The Mission Statement
To institute a financially self-sustaining physical
entity that would foster technological innovation
and accelerate its commercial deployment
through sustained collaboration with established
companies as well as promote start-up enterprises
through business incubator programs.
52
Goals/Objectives

The primary purpose of instituting a science park
within KFUPM can be listed as follows:
– To forge a strong collaboration between the university and
–
–
–
–
–
industry in R&D
To promote small tech-specific businesses and start-ups
through an incubator program
To direct significant technology-driven foreign investment and
presence into the Kingdom
Commercialization of research
Providing a strong point of presence for major international
companies and enterprises
Technology Transfer: Channeling new global technologies and
practices into the Kingdom
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Benefits to KFUPM
Close links and collaborative efforts between the science
park’s businesses and tenants and the university’s faculty,
researchers and students
 Attraction and retention from amongst the best faculty
and researchers
 Industrial presence for the benefit of students
 The presence of International major companies will help
keep the university abreast of the latest technological
trends and developments
 Employment opportunities for students (during study and
upon graduation)

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Benefits to Tenant Firms






Tenant companies can have a significant point of presence
in the region especially from an R&D perspective
Availability of a highly skilled work-force pool from
graduate and undergraduate student body
Assistance in identifying university programs and resources
that best relate to the tenant’s research
Adjunct faculty participation from tenants
Opportunity for commercial deployment of university’s
proprietary patents and innovations
Access to the university’s advanced educational and
training programs
55
Benefits to Investors
Venture Capital Companies can get involved in
developing infrastructure for PAASP and can go
beyond it by managing the park as a commercially
profitable enterprise
 Private start-up companies would have access to
the incubator program at PAASP, which would
provide a stable growth catalyst. This is in
addition to other research and development
facilities as available to other tenants
 Developing companies would benefit from the
mentoring, investment and marketing support
which established larger companies could provide

56
Funding & Finance
Given its ideal location and the explicit returns for
the Industry, it is proposed that the park should be
financed entirely by private investment rather
than through government funding
 This
would not only give the university
independence from this huge task, but also would
be a measure of the Industry’s interest and
initiative in the project
 Under this model, the university would be a
privileged decision member responsible for laying
down standards and leasing tenants while
maintenance and construction would be the
responsibility of a private sector enterprise
57

Funding & Finance



Under the proposed financial system, the University will
provide the land-area for the science park, entering into a
lease agreement with a private enterprise for construction
and development
This enterprise may receive its returns from a percentage
of the land and building rentals
The PAASP Committee has been in contact with a private
company which with its experience in funding and
managing such projects has expressed interest to partner
with the university and secure funding for the SOLP:
– Development of the Concept as a Commercial Venture
– Investment through SOLP in the Commercial Venture
– Advisory role in the Project implementation
58
Governance & Management

The effective management and governance of the
science park is based on the collaboration
between three major parties:
– university, knowledge and resources
– industry: financing from the industry
– government: regulations and incentives come from them

Park managed as a commercial enterprise by a
Park Manager, who heads the management team,
and is overseen by a board of directors
59
Critical Success Factors

Consensus on the factors that contribute
to the success or failure of universityrelated science parks can be placed in two
categories:
1. Factors associated with the site, (its size and
location), the university’s inclination, and its
research base to contribute and gain from such a
relationship
2. Factors
associated
with
the
university’s
administration and sponsoring of the project
60
Critical Success Factors

Factors that can greatly impact the development
and growth are:
1.
2.
3.
4.
5.
Planning, leadership, commitment and involvement of all
concerned parties for effective implementation of the plan
The detailed plan should be based on clear objectives, well
integrated with the long-term mission and goal of the
university (UNESCO Team coming to assist and consult, and
also British Council is involved)
Close interaction between the tenant firms and the university
(openness)
A clear management structure with a Park Manager
appointed at an early stage
Preference to companies in the general strengths of the
university
61
Part III
General Discussions & Conclusion
62
Fact
Despite the considerable potential benefits,
world-wide experience shows that genuine
collaboration between universities and
industry within science parks has been
difficult to achieve. Companies in science
parks are commercially oriented and need to
be persuaded that the University offers
attractions.
63
A Comment & The Challenge


Studies have concluded that many science parks
are mainly a form of prestigious real estate
development, physically isolated from the
surrounding society and thus quite unlikely to
generate productive synergies of any kind.
(Phillimore et al, XV IASP World Conference
Proceedings)
KFUPM needs to accept this challenge and work
hard to demonstrate its enthusiasm and ability
to offer value to tenant companies
64
Broader goals: Caution



All future tenants must be capable of and
willing to work with the University
Provisions must be worked out to ensure
that the Park achieves the University's
aims and does not degenerate into just
another business park
University must attract organizations
capable of 'forming any useful association
with the University’
65
What to Expect?




The university will be surrounded by some of the
world’s leading technology companies
Industry participation in academia
The university will build on its current strengths
due to proximity with industry. Proximity will
assist greatly in fostering relationship with
tenants
The
research/teaching
programs
will
concentrate on modern high technology, and
university’s research will win recognition through
grants and sponsorships
66
How to Encourage Collaboration








Involving faculty in planning & tenant selection
RI and University Research Office can be tenants
Appointing a Park Manager early
The university having a stake in the parks ongoing
development
Offering tenants privileged access to university facilities
Holding regular seminars and briefings, where university
and tenant staff can mingle and make informal contacts
Special scholarships for students to conduct their
research projects in the Park
Inviting senior staff of tenant companies to join
university advisory boards
67
Current Status





Master plan is being created & approvals are being
sought
Legal issues are being looked into
Offset program (SOLP) is being contacted both
directly and via a private enterprise, and alternate
modes of financing are investigated.
Tenants are sending to the university their lettersof-intent (Idemitsu, Japan; Cytec, Italy; IFP, France,
Membrana of Germany)
Few have already moved in physically/virtually.
Some will construct their own building with our
specs (Schlumberger, France; CIBA, Switzerland;
JCCP, Japan)
68
Finally …



The PAASP is a strong statement of KFUPM’s
determination to maintain its high standards in
research, technological development and academic
excellence.
It is an initiative to couple the university’s resources
and talent with the technological capabilities of the
industrial sector, thereby creating a highly
collaborative environment with vast potential for joint
technological research and development.
With the establishment of this science park, KFUPM
moves forward into its fiftieth year with a far-reaching
initiative that will be a dynamic catalyst for
technological development and collaboration between
the university and the industry.
69
Acknowledgments
On behalf of the PAASP Project Committee I
would like to extend thanks to all who
contributed to making this presentation in
terms of supplying material, editing text,
preparing the layout, organization, etc. In
particular Faheemuddin, Sanaullah, etc,
(all in alphabetical order).
70