1. From Technology to Knowledge Development in UAE Dr. Eesa Mohammed Bastaki Chairman, Emirates Science Club 13 December 2012 2nd International Platform on Integrating Arab e-Infrastructure In a Global Environment, eAGE2012 December 12-13, 2012, Zayed University, Dubai, UAE

2. Contents Introduction… What is Venture Capital? Patents Registered in the Arab World ICT Economy Driving Forces ICT Incubation Center.. A VC Requirement Research & Business Development (R&BD) An Initiative to Create an Eco-System through Funding ICT value chain Appendix

3. INTRODUCTION…

4. 4 Introduction: Silicon Valley: Recipe of Success.. The Success Recipe of Silicon Valley: 1.Universities and R&D: Stanford University & UC Berkeley 2.Skilled Knowledge Workers: Graduates of the aforementioned universities 3.Early Adopters: US military were too willing to buy new and unproven products 4.Service Infrastructure: Interconnected network of firms such as law firms, investment banks, recruitment agencies, marketing agencies, accountancy firms and other highly specialized service providers 5.Available Venture Capital: By 1974 there were more than 150 VC firms in Silicon Valley 6.Complementary Organizations: Outsourcing is easy & possible Source: “Sand to Silicon,” Jeffrey Sampler & Saeb Eigner

5. © Copyright ICT Fund 2011 Intellectual Capital Incubating Innovative Ideas Smart Research Nurturing Start- ups Technology Leadership What should be done to achieve a Knowledge- Based ICT sector for the UAE?

6. © Copyright ICT Fund 2011 “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it” “Wealth flows directly from innovation… not optimization… wealth is not gained by perfecting the known” "Never underestimate the value of an idea. Every positive idea has within it potential for success if it is managed properly” VC’s are Looking for great ambitions for innovation… “You miss 100% of the shots you didn’t take” “Fortune Favors the Bold” by Lester Thurow

7. Strategic Vision: After Oil  Strategic Vision “Achieve a long-term sustainable, prosperous & productive lifestyle after oil for UAE’s next generations through ICT innovation and creativity” 7

8. PATENTS REGISTERED IN THE ARAB WORLD

9. Patents Registered in the Arab World 9 Data Source: Arab Human Development Reports Number of patents registered in the United States from Arab countries during the period 1980-2000 CountryNumber of patents registered in the United States from Arab countries during the period 1980-2000 Bahrain6 Egypt77 Jordan15 Kuwait52 Oman5 Saudi Arabia171 Syria10 UAE32 Yemen2

10. Patents Registered in the Arab World 10 Data Source: World IP Organization (WIPO) CountryNumber of patents administered in the WIPO from Arab countries in 2011 Saudi Arabia147 UAE39 Egypt33 Morocco17 Tunisia8 Syria5 Algeria & Kuwait4 each Jordan, Lebanon & Yemen1 each WIPO – administered Patent Cooperation Treaty (PCT) set a new record in 2011 with 181,900 applications – a growth of 10.7% compared to 2010 and the fastest growth since 2005. China, Japan and the US accounted for 82% of the total growth.

11. ICT ECONOMY DRIVING FORCES

12. Economy Driving Force Technology drives the economy  Information, Communications & Technology  Telecom revenue: $1,325B in 2007 & grew to $1,403B in 2008 and grew from $1,478B in 2009 to $1,560B in 2010  Intelligent Systems  Intelligent systems continue to develop, where in the US alone the costs to deploy new technologies were nearly $210B in the year 2011  Security Systems  Gartner predicts that revenue from security products and related service markets will increase from $55 billion in 2011 to over $71 billion by 2014

13. Economy Driving Force Regio nal IDI Rank Europe Glob al IDI Rank Asia & Pacific Glob al IDI Rank Americ as Glob al IDI Rank Arab States Glob al IDI Rank CIS Glob al IDI Rank Africa Glob al IDI Rank 1Sweden1 Korea (Rep) 2 United States 17UAE32Russia50 Seychel les 57 2Denmark3 Hong Kong, China 11 Canad a 19 Bahrai n 42Ukraine51 Mauritiu s 62 3 Netherla nds 4Japan12 Argenti na 47Qatar44Belarus54 South Africa 87 4Iceland5 Australi a 14Chile48 Saudi Arabia 55Moldova68 Cape Verde 105 5Norway6 Singapo re 15 Urugua y 49 Kuwai t 57 Kazakhst an 69Gabon107 ITU’s Ranks in ICT Development Index (IDI)

14. Top Worldwide Smartphone Operating System Markey Share Worldwide smartphone operating system (OS) market share in 2009-2015, according to Gartner Smartphone OS market share and compound annual growth rate 2011- 2015, according to IDC OS (listed alphabetically) 2009 market share 2010 market share 2011 market share 2015 market Share 2011 market share 2015 market Share 2011-2015 CAGR Android 3.9%22.7%38.5%48.8%39.5%45.4%23.8% BlackBerry 19.9%16.0%13.4%11.1%14.9%13.7%17.1% iOS 14.4%15.7%19.4%17.2%15.7%15.3%18.8% Symbian 46.9%37.6%19.2%0.1%20.9%0.2%-65.0% Windows Phone/Mobile 8.7%4.2%5.6%19.5%5.5%20.9%67.1% Others 6.1%3.8%3.9%3.3%3.5%4.6%28.0% Total smartphones sold 172 million 297 million 468 million 631 million450 millionN/A19.6% Source: Gartner (April 2011) Source: IDC (March 2011) via: mobiThinking

15. Wireless Revolution Voice Yesterday- 1999 Millions of Millions of wireless devices SMS Last Year- 2011 Billions of Billions of wireless devices Email Mobile TV Video Internet WiFi ICT Economy Driving Force Source: Dr. Khaled Ben Letaief, HKUST, 2009

16. Wireless Everywhere Tomorrow 100s of billions of Wireless devices VariousInfo/Media New Mobile Devices Distributed Environmental & Bio Sensing Smart RFID People to People People to machines Machines to Machines Next generation phones Medical applications Security ICT Economy Driving Force Source: Dr. Khaled Ben Letaief, HKUST, 2009

17. Economy Driving Force CountryKEI (Knowledge Economy Index) [2009] Algeria3.22 Bahrain6.04 Djibouti1.47 Egypt4.08 Jordan5.54 Kuwait5.85 Lebanon4.81 Mauritania2.36 Morocco3.54 Oman5.36 Qatar6.73 Saudi Arabia5.31 Sudan1.78 Syria3.09 Tunisia4.42 UAE6.73 Yemen2.2 Data Source: World Bank KEI (Knowledge Economy Index) [2009] KEI (Knowledge Economy Index): The knowledge Economy Index takes into account whether the environment is conducive for knowledge to be used effectively for economic development. The KEI is calculated based on the average of the normalized scores of a country or region on all four pillars related to knowledge economy - economic incentive and institutional regime, education, innovation and ICT. (0 is the lowest score and 10 is the maximum score). Four pillars related to knowledge economy: 1.Economic incentive and institutional regime 2.Education 3.Innovation 4.ICT

18. ICT as an Enabler Future of ICT Oil and gas Smart fields Sensing and exploration technologies Reservoir management technologies Nanotechnology Manufacturing Real-time manufacturing Automation Miniaturization Computer assisted design Nanotechnology Education E-learning Virtual real-time coaching and assessment Auto-learning content development Real time content rating Environment & Biological Resources Remote sensing 3D imaging & modeling Environmental forecast Real time data gathering and transmission Bioinformatics Health Molecular imaging Robotics Non-invasive technology Nanotechnology Future ICT Scenarios

19. ICT INCUBATION CENTER.. A VC REQUIREMENT… © Copyright ICT Fund 2012

20. Why Incubation in UAE? An ICT Incubation Center for UAE  Creating an R&BD culture is one of the three paths to:  Diversifying UAE economy  Creating advanced technology  Enabling knowledge-based economy  Enabling knowledge transfer requires incentives due to the fact that  All VCs are multinationals  They are willing to relocate to areas that offer either innovative or financial advantage  Success stories open doors to Emirati VCs who are interested in entering into the ICT area of innovation

21. Incubation & Entrepreneurship Services Offered By BAC Marketing Business Development Sales Support Accounting Legal Entrepreneurship Training Mentoring Soft Skills training VC Access Strategic Partner Access Recruitment & HR IP Management Technology support Incubation Model

22. RESEARCH & BUSINESS DEVELOPMENT (R&BD)

23. R&BD: A Value-Added Concept Element One Element Two Element Three Academia Culture Industry Identify the constituents Plan for activities and events to adapt the R&D culture Find research areas applicable to all the constituents Collaborate with local & international institutes for technical creation Set mechanisms for knowledge transfer initiatives (e.g labs, R&D, TIC, etc) Identify industrial needs & requirements Link them with the academia Create the R&BD Culture: Through well prepared Strategic plans & actions R&BD Constituents Private Element Four Government is a very essential constituent to initiate funds and create the culture Government Element Five The private sector should play the role of what is known in the industry as: VC or CSR (Corporate Social Responsibility)

24. AN INITIATIVE TO CREATE AN ECO-SYSTEM THROUGH FUNDING ICT VALUE CHAIN © Copyright ICT Fund 2007

25. ICT Fund Eco-System – Business Model 25 Scholarships

26. © Copyright ICT Fund 2007 www.bastaki.ae www.bastaki.com www.bastaki.net www.bastaki.org IF YOUR AMBITION MATCHES OUR INTEREST…COME TALK TO ME!

27. APPENDIX © Copyright ICT Fund 2007

28. Some ICT Incubation Statistics

29. Incubation Statistics In 2010 there were 7,000 incubators worldwide, 80 per cent of which are located in developing countries, 2,000 in the US, 1,800 in Europe and more than 750 in China. Between 1980 and 2007, 500,000 jobs were created through the incubators initiative in the US alone. In the UAE, where 90 per cent of all businesses are SME’s, investments in start-up IT companies are growing and are predicted to reach 50 per cent of the total expenditure of the industry by 2015. Some of the regional success stories in the ICT industry include cobone.com, gonabit.com, souk.com. maktoob.com and bayt.com.

30. Green ICT… Smarter technology use could reduce global emissions by 15 per cent and save global industry US$800 billion in annual energy costs by 2020 ICT sector’s carbon footprint is about 2% of global emissions and will grow about 6%per year (CAGR) PC ownership will quadruple between 2007 and 2020 to four billion devices; emissions will double over the same period, with laptops overtaking desktops as the main source of global ICT emissions (22 per cent) Carbon footprint of Internet is around 300m tons of CO2 per year Sources: Climate Group, Global e-Sustainability Initiative (GeSI) & Gartner

31. Key Global Telecom Indicators

32. 32 THANK YOU Dr. Eesa Bastaki Chairman, Emirates Science Club eesa@bastaki.ae