Business Incubation Systems (Research project report presentation)

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Research Overview

Part 1: Business Incubators Role and Best Practices

Part 2: GAP Analysis and Needed Supporting Ecosystem Environment

Part 3: Role of S&T Policy

Research Overview

Research Problem

Research Key Questions

Research Methodology

Research Outputs

Research Key Results




Growing interest to establish business incubators in the Arab World.

Business incubators are viewed as key economic development tools.

Key Research problem:

Can these incubation programs be effective in their missionindependently or they need to be immersed and interconnected to awhole National Innovation System (NIS), influenced by a NationalS&T Policy, supporting entrepreneurship, innovation, andtechnology development and commercialization?!

What is the role of business incubators in economic development?And what are the best practices such systems should adopt?

What is the GAP for Egypt for the supporting ecosystemenvironment that should be in place for these systems?

How a National Science and Technology (S&T) Policy shouldinfluence building that supporting ecosystem?

1. A detailed presentation and report about business incubation systems.(Definition, Goals, Services, Process, sustainability models, and bestpractices) Submitted paper to SRO2008 fez, Morocco. Title: “Business Incubation - A

Strategic Perspective”.

2. A detailed presentation and report about “Entrepreneurship and IncubationActivities and Initiatives in Egypt”

3. 3 detailed presentations about UCFBIP field research trip. Submitted paper to IAMOT2009, Orlando, Florida, USA. Title: “UCF Business

Incubation Program - A Case study of the Entrepreneurship Ecosystem”.

4. Detailed research report accompanied with a CD of all materials.

A whole SME Business Support Strategy is needed to effectively advancethe economy through SMEs using business incubation systems.

Business incubators cannot graduate sustainable high-growth firms withouteffective integration with components of a mature National InnovationSystem (NIS).

The National S&T Policy is the formal tool to identify and build the NIS asoutlined in the research and identified in the GAP analysis.

Specific Societal Model Components should be taken into consideration toforecast the expected outcome of a proposed incubation system and to setthe right policies and procedures that enable it to effectively interact with itssurrounding business, research, and governmental environment

Research Overview


Role

Best Practices



2 Main Goals of Business Incubators

1. Enhancing economic development and/or reducingunemployment in a region by facilitating the start-up ofcompanies, increasing their survival rate and growth.

2. Stimulating firms involved in emerging technologies orcommercialization of research done in universities, researchinstitutes and firms.

IN 2005 ALONE, IT‘S ESTIMATEDTHAT NORTH AMERICANINCUBATORS ASSISTED MORETHAN 27,000 STARTUPCOMPANIES THAT PROVIDEDFULL-TIME EMPLOYMENT FORMORE THAN 100,000 WORKERSAND GENERATED MORE THAN$17B ANNUAL REVENUE.

NBIA 2006 Report: the state of business incubation industry.

SINCE 1999, UCFBIP HAS HELPED

MORE THAN 100 EMERGING

COMPANIES, CREATE OVER $500 MILLION IN ANNUAL REVENUE AND

MORE THAN 900 NEW JOBS WITH

AN AVERAGE SALARY OF $59,000.

NAMED THE TECHNOLOGY

INCUBATOR OF THE YEAR IN 2004.

RECENTLY NAMED AMONG TOP 10IN THE US.

UCBIP

UCF Business Incubation Program Supporting Partners

UCFBIP as Part of the UCF Office of Research and Commercialization

UCF Research Funding was

$122.9M in 2008

Detailed Interaction Models are in the IAMOT2009 Paper Slides

Client Handbook … Mature Process … Clear Performance Measures (KPIs)

Research Overview




1. Few entrepreneurship support initiatives missing performance measurementdata.

2. No central coordinating entity, resulting in duplication of efforts and isolatedislands (few partnerships do exist).

3. No national entrepreneurship support strategy from education to technologycommercialization.

4. The national innovation system is missing critical components as a strongresearch university sector, a strong industry research sector, and matureindustry-university linkage programs.

5. Local market demand on Technology R&D is immature.

6. Venture Capital and Angel Investor players are very few leaving micro-financing as the main investment support to entrepreneurs within incubationsystems

7. The culture doesn’t reward failure or encourage creativity or support the freetest of innovative ideas, and is still missing the IP related issues awareness.

8. No capacity building programs for local human resources working inincubation systems

9. Regulatory systems to establish SMEs are very bureaucratic andunsupportive

10. No tax incentives for new companies developing new technologies

11. Vocational education and support system doesn’t meet internationalstandard.

Research Overview




What is S&T Policy?

Main Focus Areas and Challenges

Scope of S&T Policy Priorities

Proposed Major Components of a National Innovation System

Recommendations for S&T Policy in Egypt

S&T policies are critical governmental tools for allocating governmental budgetary resources into S&T development initiatives that support specific technology development areas and cultural change programs towards embracing creativity, technology entrepreneurship and innovation.

Main Focus Areas of S&T Policies Major Challenges faced in Developing a S&T Policy

Government Research Labs

Research & Technology

Parks

Technology Incubators

Tech

Transfer

Offices

Research Universities

Industry

R&D Centers

Decision Support System

S&T Governance System

R&D Funding Programs

SME Support Programs

IPR Strong System

Technology VC/Angel Inv.

Tax Incentives for R&D

Industry-University Linkage Programs

International Collaboration Programs

1. The S&T governance in Egypt needs more reform and should be reinforced in a way that assures complete cooperation and coordination from all concerned ministries.

2. S&T governance reform must revamp research universities and research institutions supporting a local respected career in research.

3. All research universities must be equipped with technology transfer/licensing offices (TTOs).

4. The S&T policy in Egypt must focus on selected technology priority areas in order to integrate efforts and reach a target competitive positioning in these technologies.

5. There should be a target figure of Gross Expenditure on R&D (GERD) above 2% focused on real research activities and granted according to a competitive and merit-based grant programs.

6. Fiscal incentives such as direct funding and tax credits are critically needed to boost business R&D and innovation allowing local companies to start innovating new products and develop new technologies.

7. The S&T policy needs to re-think the multinational cooperation offices in Egypt in a way that assures sharing technology development and knowledge creation through the development of local expertise.

8. There should be more programs to support industry-university-public cooperation in the high priority technology areas outlined in the S&T policy.

9. The government should work hard to strengthen international R&D cooperation.

10. S&T policy should support social programs that introduce entrepreneurship, creativity thinking, and innovation to the youth through clear entrepreneurship support programs.

11. Dedicated programs to assure quality human resources in S&T must be a top priority.

12. The national innovation system should be detailed and reinforced by the S&T policy as outlined in this research’s gap analysis and NIS system.

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