By Sadiq M. Sait Member, Prince Abdullah Bin Abdulaziz Science Park King Fahd University of Petroleum & Minerals KF

1. Science & Technology Parks:A New Era for Sustainable Technology-Based DevelopmentPresented atIEEE Saudi Arabia Education Society ChapterVenue: Chamber of Commerce & Industry, Eastern Province By Sadiq M. Sait Member, Prince Abdullah Bin Abdulaziz Science Park King Fahd University of Petroleum & Minerals KFUPM, Dhahran Tuesday, 1 March, 2005

2. Presentation Outline • Part I: A Brief Overview of Science Parks Business Incubators • Part II: An Example of a Science Park at a University in Saudi Arabia • Part III: Progress and Status

3. Mission of the University A Balance between three key elements: • Generation of new knowledge. • Passing on this knowledge to future generations. • Serving the needs of industry (business) and the community.

4. History and Trend • Earlier, most (if not all) universities were reluctant to embrace collaboration with industry • 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 • Around 1994, Universities began contacting 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 has made it to the industry

5. Methods for Supporting Knowledge-Based Business • Science Cities • Technopolis • High Technology Industrial Parks • Science & Research Parks • Business Incubators

6. What is an Incubator? • An incubator is for individuals who are eager to start companies • It provides financial, logistic, and intellectual support for a fixed period • Provides incubation to new entrepreneurs through the utilization of University resources (and sometimes funds from governments and agencies) • Value proposition they hope to create: (a) Capital, (b) Ideation, (c) Development, i.e., building a company

7. Types of Incubators • IT Backed • Government & Academic Institutes (to achieve developmental, strategic, and economic objectives) • VC Backed (VCs providing business acceleration services in conjunction with funding) • “Indie” (an incubator that has no affiliation with an IT product, service firm or VC) • Corporate (backed by traditional non-IT corporation)

8. Services Provided • Leveraging contacts, strategy planning, business plan evaluation, partner identification, business infrastructure, branding, funding, board of directors recruitment, PR, accounting services, legal services, advertising, and others. • Can be summarized as providing: • Logistical Support (dedicated facilities, ready to move in office for example, and shared facilities) • Strategic Support (experienced network of advisors) & • Operational Support (marketing, auditing, legal, technical services, etc)

9. What Are Science Parks? A generally accepted definition includes: It is a property-based initiative which: • Has operational links with universities and research centers • Is designed to encourage knowledge-based industries • Has an element of technology transfer and creation of job opportunities • Different from a Research Institute

10. Benefits from the Park • Development of the region, creation of wealth and employment opportunities for the Kingdom • Enhancement of University skill at industry collaboration • Tenant-University associations are built • Commercialization of University research

11. International Associations: Science Parks • IASP: Int’l Association of Science Parks, Spain • UKSPA: UK Science Park Association, UK • AURP: Association of University Research Parks, USA • APSTI: Associatione Parchi Scientifici E Technologici Italiano, Italy • TEKEL: Suomen Teknologiakeskusten Litto, Finland

12. Major International Science Parks • Number of science parks in the world is more than 1,000 • Most Science Parks are linked with Universities • Major Science Parks are found in: • USA, UK, Canada, Russia, France, Finland • Japan, Hong Kong, China, Korea • Malaysia, Iran • Others

13. Major Science Parks in Muslim World • Bahrain: 1 • Iran: 13 • Kuwait: 1 • Malaysia: 4 • Morocco: 3 • Nigeria: 1 • Oman: 1 • Saudi Arabia: 3 • Tunis: 2 • Turkey: 4 • UAE: 3

14. Major Science Parks in GCC Region • Saudi Arabia: Prince Abdullah Bin Abdulaziz Science Park, KFUPM, Dhahran • Kuwait: HRD Int’l Enterprise Center • UAE: Techno Park, Dubai • Oman: Knowledge Oasis Muscat • Bahrain: Bahrain Technology Park • Qatar: Science & Technology Park at Qatar Foundation Education City

15. Prince Abdullah Bin Abdulaziz Science Park • The Vision • The Mission • Goals/Objectives • PASP Site • Benefits to KFUPM • Benefits to Tenants • Success Factors

16. Vision To make a significant contribution to the wealth & welfare of the Kingdom of Saudi Arabia through the development of knowledge-based companies Keywords: Closer ties and enduring links between academia and industry

17. Mission • To develop a financially self-sustaining entity at KFUPM • Development of an entrepreneurial culture • Provision of space in the incubator and science park, and creation of self-sustaining facilities

18. Objectives • Commercialization of University research • Providing incubator programs to young Saudis, and promoting emerging small-businesses • Utilizing the Kingdom’s industrial and market strengths • Generating employment opportunities in knowledge-based businesses

19. Modes of Participation in Science Park • Single-unit building • Multi-tenant building • Incubator building

20. PASP SITE

22. Chronology of Events • KFUPM Science Park Project Committee Formed: 19/05/2002 • Conceptual Plan Prepared: 15/09/2002 • Foundation Stone by HRH Prince Abdullah Bin Abdulaziz: 20/10/2002 • UNESCO Experts Visit to KFUPM: 22/02/2003 • Project Awarded for Layout/Infrastructure Planning: 09/04/2003 • Schlumberger Construction started: 01/10/2003 • PASP company being formed: Now

23. What is in there for KFUPM? • Joint research projects • Sharing of university laboratories • Custom-designed courses for tenants • Tenant staff in graduate programs • Advice from tenants (companies) on course design • Adjunct appointments of industry experts in the University

24. KFUPM Research Strengths?

25. Other Benefits to KFUPM • Close links between tenants and the University community • Attraction of high-quality faculty and researchers • Multinational scientists in PASP will keep the University abreast of the latest trends and developments • Employment opportunities for students (during study and upon graduation)

26. Benefits to Tenant Firms • Tenant companies can have a significant point of presence in the region • Availability of a skilled work-force pool from the student body • Opportunity for commercial deployment of University’s intellectual property • Access to the University’s educational programs

27. KFUPM Pilot and Demonstration Plants

28. KFUPM Laboratories

29. Other Joint Activities • Large companies may choose to contract their research work to the University • Companies may donate equipment and share expertise, etc. • Senior staff of tenant companies may serve on University advisory committees • Tenants may offer scholarships to postgraduate students

30. Critical Success Factors • Planning, leadership, commitment, & involvement of everyone, for the effective implementation of the plan • Close interaction between the tenant firms and the University • A clear management structure, with a Park Manager appointed at an early stage • Preference to companies in the areas of general strength of the University

31. Part III:Progress/Status • What to Expect? • Major Companies Involved in KFUPM • Current and potential tenants of PASP

32. What to Expect? • 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 • Research & teaching programs will concentrate on modern high-technology

33. Major Companies Collaborating with KFUPM • SABIC • Saudi Aramco • Schlumberger, USA • Japan Cooperation Center Petroleum • Ciba, Switzerland • Others

34. International Companies in PASP • Schlumberger (Construction in near completion) • CIBA Specialty Chemicals, Switzerland • Japan Cooperation Council for Petroleum • Letters of Intent received: • Idemitsu Kosan Ltd., Japan • Cytec, The Netherlands • WIPRO, India • Institute Francais du Petrole (IFP), France • Membrana, Germany • DevCorp Int’l, Bahrain

35. Proposal for Funding & Finance • Given its ideal location and the explicit returns for the industry, the PASP-KFUPM Company is being formed with participation from: • KFUPM • Private Investments (Venture Capital) • Saudi major companies (Saudi Aramco, SABIC, possibly others) • The University would be responsible for establishment of standards for leasing, while the operation, maintenance and construction would be the responsibility of the PASP-KFUPM Company

36. Governance & Management • For effective management and governance, PASP-KFUPM Company will be formed based on the collaboration between three major parties: • University: knowledge and resources • Industry: financing and R&D • Government: regulations and incentives • The Park may be managed as a commercial enterprise by a Park Manager, who heads the management team, and will be overseen by the Board of Directors of PASP-KFUPM.

37. Finally…. • PASP is a strong statement of KFUPM’s determination to maintain its high standards. • PASP initiative will couple the University with industry, and will create an environment with vast potential for joint technological R&D. • With the establishment of PASP, KFUPM moves forward with a far-reaching initiative that will be a dynamic catalyst for technological development.

38. Acknowledgments • KFUPM • British Council • UNESCO • IASP

39. THANK YOU