KFUPM Science Park (PASP): A Special Presentation for H.E. The Rector Dr. Khalid Saleh Al-Sultan

1
KFUPM Science Park (PASP) A Special
Presentation for H.E. The RectorDr. Khalid
Saleh Al-Sultan

• By
• PASP Project Committee
• 14 June 2003

2
Members of the PASP ProjectCommittee 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,
  Petroleum/Petrochemicals Related Activities

3
Presentation Outline

• Part I A Brief Overview about Science Parks
• Part II Plan of PASP
• Part III Progress and Status

4
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)?

5
Universitys 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

6
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.

7
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

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Plan of PASP

• The Vision
• The Mission
• Other issues

9
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

10
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

11
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,

12
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

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OBJECTIVES (Contd.)

• Utilizing the Kingdoms industrial strength for
  the benefit of making KFUPM a focal point for
  attracting International RD Personnel.
• Generating employment opportunities for students
  during their course of study and upon graduation
  in these business houses.
• To perform relevant and high quality RD for
  transfer to industry, and provide a focal point
  of industry-university relationship

14
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
  company

15
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

16
Part IIIProgress and Status
17
UNESCO Experts Visit

• Date of Visit 22-25 February 2003
• UNESCO Expert Group on Science Park
• Dr. Harry Nicholls, Managing Partner, ADCAL, UK
• Dr. Marco Baccanti, President of International
  Association of Science Park (IASP), Spain
• Mr. Nur Youslan, UNESCO, France

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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

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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 PASPs Vision in the long-term (30
  years) and a sense of urgency compatible with
  producing early visible performance

20
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.

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First Tenant in PASP-Schlumberger
22
Interest of International Companies in
KFUPM-JCCP, JAPAN
23
Interest of International Companies in
KFUPM-CIBA, Switzerland
24
Interest of International Companies in
KFUPM-Letters of Intent
25
Saudi Offset Committee
26
PASP xxxx Plan
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Saudi Aramco and Sabic Role
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Finally

• The PAASP is a strong statement of KFUPMs
  determination to maintain its high standards in
  research, technological development and academic
  excellence.
• It is an initiative to couple the universitys
  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.

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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

31
Vision 2004

• xxxx

32
THANK YOU
33
Engineering Conference Presentation follows.
34
KFUPM Science Park (PAASP) A New Era for
SustainableTechnology Based Development

• Sadiq M. Sait
• (0n behalf of PAASP Project Committee)
• 16 December 2002

35
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.

36
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

37

• 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

39
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

41
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

42
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

43
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)

44
Universitys 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 Universitys 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

45
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

46
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

47
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

48
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.

49
Part IIConceptual Plan of PAASP
50
Conceptual Plan of PAASP

• The Vision
• The Mission
• Goals/Objectives
• Benefits
• Funding Finance
• Governance Management
• Some Critical Success Factors

51
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.

52
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.

53
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 RD
• 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

54
Benefits to KFUPM

• Close links and collaborative efforts between the
  science parks businesses and tenants and the
  universitys 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)

55
Benefits to Tenant Firms

• Tenant companies can have a significant point of
  presence in the region especially from an RD
  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 tenants
  research
• Adjunct faculty participation from tenants
• Opportunity for commercial deployment of
  universitys proprietary patents and innovations
• Access to the universitys advanced educational
  and training programs

56
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

57
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 Industrys 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

58
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

59
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

60
Critical Success Factors

• Consensus on the factors that contribute to the
  success or failure of university-related science
  parks can be placed in two categories
• Factors associated with the site, (its size and
  location), the universitys inclination, and its
  research base to contribute and gain from such a
  relationship
• Factors associated with the universitys
  administration and sponsoring of the project

61
Critical Success Factors

• Factors that can greatly impact the development
  and growth are
• 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

62
Part IIIGeneral Discussions Conclusion
63
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.

64
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

65
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

66
What to Expect?

• The university will be surrounded by some of the
  worlds 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 universitys
  research will win recognition through grants and
  sponsorships

67
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

68
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
  letters-of-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)

69
Finally

• The PAASP is a strong statement of KFUPMs
  determination to maintain its high standards in
  research, technological development and academic
  excellence.
• It is an initiative to couple the universitys
  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.

70
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).