1. Settore Economia e Lavoro INCUBATORS IN METROPOLITAN AREAS: The Incubation Strategy of the Province of Milan and other experiences in the Milan area GIORGIO MONACI Vienna 2003

2. The Incubation Strategy of the Province of Milan The support to the start-up of new firms and the set-up of incubators is a strategic option of the Province of Milan This strategy:  is foreseen especially: by the “2 nd Strategic Programme for the Support of Innovation of the Province of Milan 2002-2004” by the “1 st Strategic Programme for the Support of Innovation of the Province of Milan 1999-2001”  has been put in place: with own financing of the Province of Milan with national financing (Law No. 236 for industrial crisis areas) with regional financing (Lombardy Region: Laws No. 30 and 35) with EU financing (programmes:Resider, Retex, Ob.2 and others)

3. Phases, Objectives and Actions of the Province of Milan Strategy PHASESOBJECTIVES PROGRAMMIN G INSTRUMENTS INCUBATOR S SET UP with the support of the PROVINCE OF MILAN INCUBATORS SET UP by other actors (UNIVERSITIE S and FIRMS) ACTIONS TO SUPPORT START- UPS carried out by the PROVINCE OF MILAN PHASE I 1997-2000 - launching of the establishment of the first incubators in the Milan area First Strategic Programme - incubator OMC (Officina Multimediale Concordia) - incubator Bottega di Leonardo - setting-up of IBAN (Italian Business Angels Network PHASE II 2001-2002 - implementation of existing incubators - setting-up of new incubators - implementation of relationships with the University and Research System First Strategic Programme Second Strategic Programme -incubator Euroimpresa (Legnano) -Acceleratore di Impresa Bovisa - incubator Biopolo - incubator Scientific Park S. Raffaele - Measure for financing women-based start-ups - Measure for financing innovative start-up - Measure to support patenting and IPR by SMEs PHASE III 2003- - Construction of the Incubators Network of the Milan area Second Strategic Programme - incubator LIB (Sesto S.Giovanni)

4. Incubators set up with the support of the Province of Milan NAMELOCATION PROMOTER AND MANAGER ORGANIZATION TIPOLOGY SETTING-UP FINANCING MANAGEMENT FINANCING INCUBATOR’S EXTERNAL RELATIONS OMC (Officina Multimediale Concordia) Located in an ex-industrial area of Sesto S Giovanni, a neighbor municipality of Milan City ASNM (Development Agency promoted by the Province of Milan) and BIC La Fucina (society shared by ASNM and the Province of Milan) It hosts firms of the Multimedia and ICT sectors -Province of Milan - Lombardy Region -Ministry of Labour - EU - Hosted firms - Province of Milan contributions The incubator also hosts two Masters of the public University of Milan (Università degli studi di Milano) Incubator Euroimpresa Located in an ex-industrial area of Legnano, a municipality at the north- west of the Milan area Euroimpresa (Development Agency promoted by the Province of Milan) It hosts firms from several productive sectors -Province of Milan - Lombardy Region -Ministry of Labour - EU - Hosted firms - Province of Milan contributions The incubator’s building forms part of the Tecnocity Alto Milanese complex (containing also laboratories, innovation centres, and already consolidated firms) LIB ( building construction finished; operative from March 2003) Located in an ex-industrial area of Sesto S Giovanni, ASNM and BIC La Fucina It will host mainly firms with high innovative content Province of Milan - Lombardy Region -Ministry of Labour - EU

5. NAMELOCATION PROMOTER AND MANAGER ORGANIZATION TIPOLOGY SETTING-UP FINANCING MANAGEMEN T FINANCING INCUBATOR’S EXTERNAL RELATIONS Accelerato re di impresa BOVISA Located in an ex-industrial area of Milan Politecnico di Milano and Politecnico Innovazione (liaison office of that university) It hosts firms from several innovative sectors -Politecnico di Milano - City Council of Milan -Hosted firms - University Politecnico di Milano The incubator is physically at the Bovisa University Campus Incubator Biopolo Located in an ex-industrial area of Bresso, a neighbor municipality of Milan City BIOPOLO is a non- profit consortium founded by Pharmacia & UpJohn, Lepetit Group, Zambon Group S.p.A., Primm and Hydra to promote ideas and initiatives in the biotech industry It hosts biotech firms - private financing - Hosted firms Framework Conventions with Università degli Studi, Milano (1996) and Università degli Studi, Milano- Bicocca (1999) Incubator Scientific Park San Raffaele Located in Segrate, a neighbor municipality of Milan City San Raffaele Biomedical Science Park It hosts biotech firms - private financing - Hosted firms Within the Park site are present: - the San Raffaele Hospital (the largest Italian private hospital) - research laboratories - the private University San Raffaele Incubators set-up by Universities or in collaboration with Universities

6. Measures to Support Start-ups of the Province of Milan After its contribution, in partnership with other public institution to the establishment of some incubators, the Province of Milan has developed new support activities to promote start-ups The goal of this strategy, included in the “Strategic Programme for Innovation 2002-2004”, recently approved, is based on: The involvement of all Milan Universities in the promotion of initiatives to favour the start-up of innovative firms, especially spin-offs and science-based start-ups. The promotion of initiatives in entrepreneurial education and training. The promotion of direct financing means for entrepreneur candidates to start up new companies Concerning this last topic, the most important actions launched in 2001-2002 by the Province have been: the financing scheme “ to foster women-based start-ups the financing scheme “to support the start-up of innovative firms”. the financing scheme “to support the European patent process of SMEs, public and private research centres and universities”

7. The Financing Scheme “TO SUPPORT THE START-UP OF INNOVATIVE FIRMS”  The measure foresees a total budget of 1,5 Million Euro to support start-up projects of new entrepreneurial activities, in any economic sector, and with a high innovative content in terms of product/service, process or management innovation.  Target groups are: Entrepreneur candidates (physical persons), committed to start up a small firm Small firms with strong innovative content started after 01.01.2002 Priority is given to entrepreneurial projects born from university or enterprise spin-offs.  For every enterprise the allowable aid consists in a financial contribution to cover 50% of the acceptable costs up to € 50.000,00. The admissible costs are those related to expenses to set up the firm  Total projects presented: 208  The entrepreneurial projects will be selected in January 2003 by an Assessment Committee composed by the Province of Milan, the Milan Universities and the Italian Venture Capitalists Association.

8. SWOT Analysis of the “Incubation Strategy” in the Milan Area STRENGTHS  strong spontaneous birth rate of firms  strong entrepreneurship predisposition within young people  high number of incubators in relation to the Italian situation  speed with which existing incubators have been set up WEAKNESSES  strong mortality rate of spontaneously born firms  relatively low innovative level of spontaneously born firms  insufficient number of existing incubators in comparison to other European experiences  insufficient number of University incubators (2 on 7 universities)  low level of Venture Capital participation THREATS  high management costs of incubators to provide real accompanying services to start-ups (counselling, managing assistance, etc.)  insufficient level of supporting services in the phase immediately successive to the start-up OPPORTUNITIES  strong interest in the topic from local authorities (Province of Milan, Lombardy Region, Chamber of Commerce)  strong scientific potential of the Milan area (universities and research centres)  new interest in the topic from the University  propulsive role of Development Agencies  networking among incubators

9. Province of Milan Economic Activities Department Viale Jenner 24/B – 20159 Milan - Italy e-mail:. economialavoro@provincia.milano.it Phone: + 39.02.7740.3288 – fax: +39.02.7740.3290 http://www.provincia.milano.it/economia