Science & Technology Parks: Science & Technology Parks: A New Era for Sustainable Technology-Based Development Presented at IEP-SAC By Sadiq M. Sait Member, Prince Abdullah Bin Abdulaziz Science Park King Fahd University of Petroleum & Minerals KFUPM, Dhahran 16 December, 2004

2 Presentation Outline  Part I: A Brief Overview of Science Parks  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. Generation of new knowledge. Passing on this knowledge to future generations. Passing on this knowledge to future generations. Serving the needs of industry (business) and the community. Serving the needs of industry (business) and the community.

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

5 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)

6 What Are Science Parks? 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 job opportunities Different from a Research Institute

7 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

8 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

9 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

10 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

11 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

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

13 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

14 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

15Objectives 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

16 Modes of Participation in Science Park Single-unit building Multi-tenant building Incubator building

17 PASP SITE

18

19 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

20 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

21 KFUPM Research Strengths?

22 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)

23 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

24 KFUPM Pilot and Demonstration Plants

25 KFUPM Laboratories

26 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

27 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

28 Part III:Progress/Status 1. What to Expect? 2. Major Companies Involved in KFUPM 3. Current and potential tenants of PASP

29 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

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

31 International Companies in PASP Schlumberger (Construction in progress) 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

32 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

33 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 will 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.

34 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.

35 Acknowledgments KFUPM British Council UNESCO IASP

THANK YOU