Multimedia & Hi Tech Investments – a „cutting edge” for innovation KOCICE INVEST 2010, October 19th PwC

Interactive multimedia systems may allow the developing countries to overpass the industralisation age Stan Shih, General Director Acer Group

1.A recognised academic/research center, similar to Stanford University, Cambridge or MIT. 2.A success story like Microsoft, Apple or Google history. 3.A right competence/talent in advanced technology and the ability to acquire it. 4.Financial capital accepting high risk investments, exemple Israel and Taiwan. 5.Infrastructure – South Korea, Singapur. 6.Right behavior – confidence with an appetite for risk. What we need to create a new Silicon Valley?

What is an Innovation in the interactive multimedia

Agenda What are the innovation drivers Where we stand in Hi Tech „cutting edge” innovation How to turn knowledge, capital and infrastructure into the development of a Region Multimedia City of Nowy Sącz – Case Study

Agenda What are the innovation drivers Where we stand in Hi Tech „cutting edge” innovation How to turn knowledge, capital and infrastructure into the development of a Region Multimedia City of Nowy Sącz – Case Study

What does it mean „innovation”? Innovation drivers Stimulation of the knowledge development Entrepreneurship and innovation INOUT Development and commercialisation of software and applications Intelectual property

Innovation indicators Innovation drivers 1.Engineer /high level graduates percentage 2.Life-long learning/Youth education 3.Broadband penetration Stimulation of the knowldege development 1.Public R&D expenditures (as % GDP) 2.Buisness R&D expenditures (as % GDP) 3.IT expenditures Enterpreunership and innovation 1.SMEs innovating in-house 2.Public-private co-publications/co-operation 3.Private credit Development and commercialisation of software and applications 1.Employment in knowledge-intensive services 2.High-tech manufacturing exports 3.SMEs introducing marketing or organisational innovations Intelectual property 1.Patents (per million inhabitants) 2.Community trademarks and designs 3.Reduced use of materials and energy INOUT

Innovation Index– current situation Indeks Innowacyjności Source: European Innovation Scoreboard 2009

Innovation indicators Innovation driversSKEU Average 1.Engineer /high level graduates percentage Life-long learning/Youth education Broadband penetration Stimulation of the knowledge development 1.Public R&D expenditures (as % GDP) Business R&D expenditures (as % GDP) IT expenditures Entrepreneurship and innovation 1.SMEs innovating in-house Public-private co-publications/co-operation Private credit

Innovation indicators – current situation Development and commercialisation of software and applications SKEU Average 1.Employment in knowledge-intensive services High-tech manufacturing exports SMEs introducing marketing or organisational innovations Intellectual property 1.Patents (per million inhabitants) Community trademarks and designs Reduced use of materials and energy

Slovakia is being seen by investors as a moderate innovator country with a substantial catching-up potential The country’s innovation performance is however below the EU average but at the same time the rate of improvement exceeds the EU average Main growth engines were coming from an increase in broadband access, community trade marks and design Main drawbacks are still in the area of R&D investments/expenditures by firms, education and access to graduates in high tech areas Slovakia and innovation viewed by investors

Agenda What are the innovation drivers Where we stand in Hi Tech „cutting edge” innovation How to turn knowledge, capital and infrastructure into the development of a Region Multimedia City of Nowy Sącz – Case Study

Where we stand for the Innovation? Source: European Innovation Scoreboard 2009 Innovation leaders Innovation followers Moderate innovators Catching-up countries

Kosice region Source: European Innovation Scoreboard 2009

Kosice statistics (based on: Guide to Investment in Kosice 2010) Between three biggest contributors to the Slovakia GDP 10% of total businesses registered in the city are industrial production, however new services, including IT and telecommunication are gaining its share More than 600 foreign businesses established in the Region with a growing number of capital flow Increasing support from state agencies for foreign investors Internationalisation and development of partnership

The Region is focusing on technical science while transfer of knowledge and information is becoming a key link between academic institutions and the industry Technical Sciences capture more than half of R&D expenditures More than 60% of these expenditures are founded by the state Kosice focuses on electronic services transformation and the institutional support for the development of information technologies is one of the priority Kosice statistics (based on: Guide to Investment in Kosice 2010)

Agenda What are the innovation drivers Where we stand in Hi Tech „cutting edge” innovation How to turn knowledge, capital and infrastructure into the development of a Region Multimedia City of Nowy Sącz – Case Study

Massachusetts Institute of Technology Technology transfer and commercialization 238 commenced patent proceedings (including 152 registered) in 2003 More than 90 licenses available commercially 17 starups launched in 2003 (the average in recent years is 22 startups) USD 31.7 m revenues from the available licenses (in 2001 revenues from licenses reached over USD 82 m) MIT as an entrepreneurship center Experience of academic staff in business E-Lab program, in which students work one day a week in a newly established commercial ventures (over 40 commercial ventures acquired to cooperate within the program) Providing a match of students’ profile and commercial ventures and also providing scholarship programs Conclusions Working closely with Venture Capital promotes the commercialization of business ideas Promoting the culture of entrepreneurship Using the force of Alumnus in all University initiatives Founded in 1865, now plays the role of one of the main centers supporting the development of new technologies More than students, nearly teaching staff, more than collaborating scientists and about employed researchers 10 Nobelists, over 50 affiliated research centers Expenditures on R&D amounted to USD 472 m in 2003, of which approximately 16% was obtained from private sponsors

Georgia Institute of Technology Technology transfer and commercialization 53 commenced patent proceedings in 2003, including 41 registered patents More than 70 commercially available licenses 12 startup ventures launched Venture Lab Georgia Institute of Technology has created an initiative called Venture Lab to facilitate the commercialization process of technology solutions developed at the university The initiative allows to make funds available for the development of commercial ventures, while ensuring control of university over their development by maintaining ownership of the developed solutions (patents) More than 100 comapnies formed (including 2 sold for more than USD 60 m each in 2003) Conclusions Very strong regional relations promoting local entrepreneurship, together with the financial commitment on the part of state institutions Well-established and proven financial support program (incubator) University with achievements of students and approximately 900 teaching staff Excellent example of cooperation with institutions of the state of Georgia

Stanford University Technology transfer and commercialization 334 commenced patent proceedings, including 117 obtained patents in 2003 In 2003 over 123 licenses were made commercially available with the revenue accounting to USD 45.4 m More than 170 startup ventures launched in Stanford Technology Venture Program Promoting entrepreneurship in business, both through educational programs and above all support in the development of the most interesting and promising research Many initiatives promoting and supporting the commercialization of scientific ventures (Entrepreneur Club, Venture Capital Club, High-Tech Club) Conclusions Use of government financial support in the early development works (doctoral programs) Relations with funds like Venture Capital Proximity of Silicon Valley The University was founded in 1891, almost students 17 Nobelists and 133 members of the National Academy of Science More than USD 639 m spending on R&D, including about 83% funds obtained from government grants

Cambridge University Technology transfer and commercialization Cambridge Entrepreneurship Center => supporting entrepneurship and commercialization of research Technology Transfer Office => support in the patent proceedings and in the commercial license sharing University Challenge Fund => organizational support of the commercial ventures University Venture Capital Fund => organizing commercial support for the commercialized ventures Operating results In years new patents and 38 licenses GBP 2.2 m revenue from commercially available licenses, and GBP 1.8 m revenues from consulting services 35 new commercial ventures December 2004 – first public offering of a company formed within University’s activity The University was formed in 1209, more than students, including 20% for foreign students More than 100 different courses and faculties and 80 Nobelists Revenue from the ongoing research work amounts to GBP 254 m

Agenda What are the innovation drivers Where we stand in Hi Tech „cutting edge” innovation How to turn knowledge, capital and infrastructure into the development of a Region Multimedia City of Nowy Sącz – Case Study

1.An academic/research center 2.A success story 3.A right competence/talent in advanced technology 4.Financial capital accepting high risk investments 5.Infrastructure 6.Right behavior From an idea to the implementation …

KEY POINTS:  State-of-the art infrastructure for multimedia productions,  Entrepreneur-friendly policies and business climate in the city and region,  Very well skilled workforce prepared by the best Business University in Poland,  Multimedia R&D facilities at the world class level,  Knowledge exchange – open structure of the organization,  Business Development services and funding,  A strong brand with international realm,  A permanent focus on INNOVATION! Multimedia City in Nowy Sącz (Poland) means:  R&D CENTER  TECHNOLOGY PARK  VENTURE CAPITAL  BUSINESS INCUBATOR  MULTIMEDIA CLUSTER

Multimedia City project in Nowy Sącz is an internationational center of innovation focused on development of multimedia products and services and information systems. Project is based on the resources of Nowy Sącz School of Business – National-Louis University and more than 50 already dedicated partners. The Multimedia City will consist of state-of-the-art multimedia laboratories cooperating with information architecture and application development section – coexisting on the basis of the most modern servers and solutions in field of data processing and transfer. Financial (financing) and legal (international law, patent protection and intellectual property management) support will be provided to create the „Innovation Management System/Policy”. Key FACTS about the Project:  Initial investment planned 30+ m euro  Initial knowledge-input partners = more then 50 companies  Full operating capacity – year 2012  Presence – global  Active cooperation with business and education – YES!

PARTNERSHIP POSSIBILITIES – what do we offer and what do we expect? Focus on innovation Strong brand/market leader in multimedia or associated industry R&D budgets and ideas about R&D projects in multimedia Ideas about synergies with other companies Believer of networks, openness and ability to provide network member benefits Strong belief and support from management Willingness to relocate/open a branch/ have some activity on MC-grounds Provide support to MC-organisation (people, money, time, and others)‏ Bring dynamism and entrepreneurship to the project! Our vision is that the Nowy Sącz Region will become, and be acknowledged globally, as one of the most innovative, creative and productive locations in Europe for Multimedia research, education, business, and investment by 2018 with the success of the Mutimedia City project.

THANK YOU Piotr Baranowski PricewaterhouseCoopers Director Advisory Technology Information Communication Entertainment