High-Tech Business Incubators in Cyprus1 High-Tech Business Incubators in Cyprus George Michaeloudes Ministry of Commerce, Industry and Tourism Ministry of Commerce, Industry and Tourism

1

HighHigh--Tech Tech Business IncubatorsBusiness Incubators

in Cyprusin Cyprus

George MichaeloudesGeorge MichaeloudesMinistry of Commerce, Ministry of Commerce, Industry and TourismIndustry and Tourism

Ministry of Commerce, Industry and TourismThe Republic of Cyprus

Presentation OutlinePresentation Outline

Cyprus Manufacturing IndustryCyprus Manufacturing Industry

New Industrial PolicyNew Industrial Policy

Business IncubatorsBusiness Incubators

Programme for the creation of new enterprises of Programme for the creation of new enterprises of high technology and innovation through the institution high technology and innovation through the institution of business incubatorsof business incubators

2


Restructuring of Cyprus Restructuring of Cyprus Manufacturing IndustryManufacturing Industry

A number of problems facing the sectorA number of problems facing the sector

StrengthsStrengthsHigh percentage of graduatesHigh percentage of graduatesMany Cypriots employed at research centres Many Cypriots employed at research centres abroadabroadGeographic locationGeographic locationAccession to the EUAccession to the EU


The FutureThe FutureFocus on differentiated products or servicesFocus on differentiated products or services

•• market orientedmarket oriented•• knowledgeknowledge--intensiveintensive

•• less priceless price--sensitivesensitive

•• less susceptible to competitionless susceptible to competition

3


How is it achieved?How is it achieved?

Innovation

Entrepreneurship


New Industrial PolicyNew Industrial Policy

TargetsTargetsCreation of new high tech industriesCreation of new high tech industriesAttraction of Foreign Direct Investment Attraction of Foreign Direct Investment especially in knowledgeespecially in knowledge--intensive sectorsintensive sectorsThe restructuring and support of traditional The restructuring and support of traditional manufacturing industry manufacturing industry Improvement of ProductivityImprovement of Productivity

4


11stst Chapter Chapter of New Industrial Policyof New Industrial Policy

Two Programmes have been adoptedTwo Programmes have been adopted•• Programme for the creation and operation Programme for the creation and operation

of Business Incubatorsof Business Incubators

•• Programme for the creation of new Programme for the creation of new enterprises of high technology and enterprises of high technology and innovation through the institution of innovation through the institution of business incubatorsbusiness incubators


Business IncubatorsBusiness Incubators

Business incubators provide the necessary Business incubators provide the necessary support to inventorssupport to inventors to enable them to to enable them to develop innovative ideasdevelop innovative ideas, while at the same , while at the same time promote the creation of new companies time promote the creation of new companies for the for the commercialisationcommercialisation of the products of the products which will ensue. which will ensue.

High tech incubators aim at the High tech incubators aim at the commercialisation of research results. commercialisation of research results.

5


Basic services offered by the Basic services offered by the incubatorincubator

Assistance in assessing the prospects of the idea Assistance in assessing the prospects of the idea from a technological and commercial point of viewfrom a technological and commercial point of viewAssistance in the drafting of a business planAssistance in the drafting of a business planScientific and business supportScientific and business supportAssistance in securing financeAssistance in securing financeSecretarial and accounting supportSecretarial and accounting supportOffice services: space, basic furniture, telephone, Office services: space, basic furniture, telephone, fax, internet connection, electronic and conventional fax, internet connection, electronic and conventional mailmailUse of data bases and technology transfer networksUse of data bases and technology transfer networks


Programme for the creation and Programme for the creation and operation of Business Incubatorsoperation of Business Incubators

FourFour IIncubators ncubators signedsigned agreements with the agreements with the Ministry ofMinistry of Commerce, Industry and TourismCommerce, Industry and Tourism

Details Details / Contact persons at/ Contact persons at

http://cyprus.org/hightech

6


Programme for the creation of new Programme for the creation of new enterprises of high technology and enterprises of high technology and innovation through the institution of innovation through the institution of

business incubatorsbusiness incubators

Beneficiaries / Who can apply Beneficiaries / Who can apply

Individuals or small groups of individualsIndividuals or small groups of individuals

The submission of a complete business The submission of a complete business plan that satisfies the section criteria of the plan that satisfies the section criteria of the ProgrammeProgramme


Programme for the creation of new Programme for the creation of new enterprises of high technology enterprises of high technology (cont.)(cont.)

Acceptable activitiesAcceptable activitiesApplications may be accepted for Applications may be accepted for nonnon--pollutingpollutingactivities which lead to the development of a product, activities which lead to the development of a product, which can be classified in any of the sectors of which can be classified in any of the sectors of

manufacturing industry, manufacturing industry, information technologyinformation technology, , software development and other sectorssoftware development and other sectors, ,

provided that the following elements, which will provided that the following elements, which will constitute the basic criteria in the applications constitute the basic criteria in the applications evaluation, are satisfied:evaluation, are satisfied:

7



Evaluation criteriaEvaluation criteriaInnovationInnovationTechnological viabilityTechnological viabilityMarketability of the ideaMarketability of the ideaThe possibility to develop the idea within the The possibility to develop the idea within the budget and time framework described in the budget and time framework described in the project proposalproject proposalThe suitability and adequacy of the team with The suitability and adequacy of the team with regard to the scientific and business requirements regard to the scientific and business requirements of the projectof the project



Application procedureApplication procedureApplication to a suitable incubatorApplication to a suitable incubatorAbility of the incubator to support the development Ability of the incubator to support the development of the specific ideaof the specific ideaPatent searchPatent searchInIn--depth assessment of the idea by the incubatordepth assessment of the idea by the incubatorAgreement in relation to the terms of coAgreement in relation to the terms of co--operationoperationPreparation of a Business Plan and Research and Preparation of a Business Plan and Research and Development PlanDevelopment PlanSubmission of an official application to the Ministry Submission of an official application to the Ministry of Commerce, Industry and Tourismof Commerce, Industry and Tourism

8



Assessment ProcedureAssessment ProcedureAssessment by a 5Assessment by a 5--member Assessment member Assessment CommitteeCommittee

•• Ministry of Commerce, Industry and Tourism (2 Ministry of Commerce, Industry and Tourism (2 members)members)

•• Planning BureauPlanning Bureau•• Institute of TechnologyInstitute of Technology•• Foundation for the Promotion of ResearchFoundation for the Promotion of Research

Assessment by external assessorsAssessment by external assessors



After approvalAfter approvalCreation of a limited liability companyCreation of a limited liability company

•• Inventor Inventor at leastat least 50% + 1 share50% + 1 share

•• Associates Associates

•• IncubatorIncubator

Development of the idea within a Development of the idea within a two year periodtwo year period

9



GrantsGrants1.1. Grant towards operating expenses and purchase of Grant towards operating expenses and purchase of

equipment (aid covered by the de minimis rule)equipment (aid covered by the de minimis rule)It covers It covers 100% of the following eligible expenses:100% of the following eligible expenses:•• Wages and salariesWages and salaries•• EquipmentEquipment•• ConsumablesConsumables•• Rent and servicesRent and services

This This de minimisde minimis grant grant will not exceedwill not exceed the ceiling of the ceiling of ££57.00057.000 over a period of 3 years.over a period of 3 years.



Grants Grants (cont.)(cont.)2.2. Grant for Research and Technological Grant for Research and Technological

DevelopmentDevelopmentDepending on the stage of research (The grant is Depending on the stage of research (The grant is reduced the nearer to the market it gets)reduced the nearer to the market it gets)

Industrial research Industrial research 50%50%Technological development Technological development 25%25%

For SME’s For SME’s + 10%+ 10%Two at least independent partners in Cyprus and Two at least independent partners in Cyprus and one partner from a European Union Member State one partner from a European Union Member State a a further increase of 10%further increase of 10% will be given.will be given.

10



Grants Grants (cont.)(cont.)3.3. Grant for small and medium enterprises Grant for small and medium enterprises ––

Investment Grant Investment Grant for smallfor small--size enterprises size enterprises 15%15%for mediumfor medium--size enterprises size enterprises 7,5%7,5%

It covers the following eligible costs: It covers the following eligible costs: Initial investment expenses on equipmentInitial investment expenses on equipmentExpenses for acquisition of knowExpenses for acquisition of know--how how



The above grants will be provided subject to The above grants will be provided subject to the condition thatthe condition that

the total amount will not exceed CYthe total amount will not exceed CY££120.000120.000

the inventor and/or his associate will deposit an the inventor and/or his associate will deposit an amount of at least amount of at least ££10.000 as own capital10.000 as own capital..

11


Where do we go from here?Where do we go from here?

This is just the beginning.This is just the beginning.

The success of this endeavour requires a The success of this endeavour requires a continuous, intense and longcontinuous, intense and long--term effort. term effort.

If successful, the benefits to the participants If successful, the benefits to the participants and the economy are expected to be and the economy are expected to be invaluable.invaluable.


HighHigh--Tech Tech Business IncubatorsBusiness Incubators

in Cyprusin Cyprus

George MichaeloudesGeorge MichaeloudesMinistry of Commerce, Ministry of Commerce, Industry and TourismIndustry and Tourism

http://cyprus.org/hightech

Documents

High-Tech Business Incubators in Cyprus1 High-Tech Business Incubators in Cyprus George Michaeloudes Ministry of Commerce, Industry and Tourism Ministry of Commerce, Industry and Tourism