ADOC 2.0 WEEK 2009 Case of Technological Institute of Sonora (ITSON University): SonoraSoft Software Technology Park VIETNAM PAPUA NEW GUINEA INDONESIA CHILE PHILIPPINES PERU THAILAND MEXICO MEXICO OCTOBER 2009 1 ADOC Week 2009 Backgrounds In 2005 begins the project to create a Technology Park as part of one innovation ecosystem with the purpose to generate an confident environment and sense of community for a cluster of development software enterprises (SMEs) that give them opportunities of learning and innovation, 2 ADOC Week 2009 Backgrounds knowledge transfer and improve their performance as key elements for the competitiveness, employment generation, wealth creation and regional development, giving as result SonoraSoft Technology Park which was opening in November 2007. 3 ADOC Week 2009 SonoraSoft Localization CIUDAD OBREGON, SON. SonoraSoft Software Technology Park Itson 4 o ADOC Week 2009 Actors for propelling Economic and Social Growth Old model Government leads economic growth through decisions and incentives in public policy. New model Economic development is a Collaborative Process that involves government (3 levels), enterprises, university and research centers among others such as institutions for collaboration. Politics for economic development based in clusters Development of internal markets Regional Development 5 ADOC Week 2009 Public Policy for clusters: An OCDE perspective with applications for the case of Mexico Innovation and regional development Public Policies Before Now To the industries and businesses •General programs to promote selected branches •Subsidies or tax breaks to private companies Generals Conditions of competitiveness Innovation • Emphasis on basic research •Subsidies to private enterprise technology projects Better balance between research (basic and applied) and technology transfer or diffusion Support for collaborative efforts • Transfers and subsidies to lagging regions •Uncoordinated sectorial programs •Investment in infrastructure Boosting the competitiveness according to the characteristics of each region. Multi-sectorial interventions appropriate to each region Provision of public properties in eneral Regional Development Coordination of policies • National government Support for SMEs Coordination between national 6 and state governments with private ADOC participation and Week social 2009 Public policies for innovation Priority matter between OCDE countries. Horizontal strategy, several researches are running. • National and regional level (Mexico, etc,) • Regional level : North of England (United kingdom), Piamonte (Italy) 7 ADOC Week 2009 Public policies for innovation Implementation of policy instruments about: Education for all levels. Formation of entrepreneurs Incubation of technological base enterprises Financing and income taxes incentives Regulations and competition Intellectual property. 8 ADOC Week 2009 Public policies for innovation Analysis about collaboration and organization forms among important actors Different levels of government and among organizations of each level Private sector (enterprises, clusters, financial intermediary, consultants) Universities, research centers. Consolidation of regional innovation systems 9 ADOC Week 2009 The relevant factors in the creation of SonoraSoft The software industry has one of the most growing rates at world level. Sonora respect to others States of Mexico, has a very well rate in the state level based in the knowledge economy, its rated is in the first six places. The federal and state governments have public policies to support the ICTs with the PROSOFT program. 10 ADOC Week 2009 The relevant factors in the creation of SonoraSoft The excellent geographic position of the state and the country respect the biggest software market in the world, USA. The regional companies are willing to support the promotion and creation of the software industry for the economy reconversion. Availability of human capital by the universities of the region. 11 ADOC Week 2009 Involvement in the Regional Development National Plan for Development • Promotion for the productivity and competitiveness • Small and medium enterprises • Rural area Government • Tourism • Integral regional development Sonora’s Plan for Development • Competitiveness • Regional development • Organizational effectiveness • Articulation and coordination • Research and alliances and partnerships Academia Private enterprises Strategic projects in cooperation ITSON Planning for regional development 12 ADOC Week 2009 5 ITSON´s Strategic Model Improve of results of the vision: Survival, health, Self-sufficiency and social welfare Ecosystems of innovation Market Novutek CeIDE CUDE C CIIB AA PMSE E Acceleration and Incubation Businessman Managers Professionals Enterprises of social impact Technologi cal Support Strategic Projects CA y LGA Consultoría Programas de Doctorado Programas de Extensión, Educación Continua y Vinculación Programas de Investigació n Programas de Maestría Academic Development (academic programs, R & D, Consultant…) Programas de Licenciatura CRIDA Incubadora Logistic Support VU CETT PTSw DIAP Strategic Initiatives PATT E Financial Support Social Capital 13 ADOC Week 2009 SonoraSoft Objectives To be a key factor in the economic transformation of the region Producing world-class software with business vision, business and social conscience. Build on the industry, demand for professionals aligned with the training capacity of universities in the state. 14 ADOC Week 2009 SonoraSoft Objectives Set up the profiles of university graduates to industry needs in order to minimize time and cost of the learning curve. Design, build and consolidate a model of interrelation between the companies, allowing everyone in the industry work together efficiently by means of a cluster, in projects that require it. 15 ADOC Week 2009 SonoraSoft Objectives Incubation of technology-based companies Share knowledge and technology among universities, research centers, government, business and market. Sonora Mexico has a position as a leader in the software industry To be a high quality employment source 16 ADOC Week 2009 SonoraSoft Operative Model to suport the cluster (SMEs) Advising, offering strategies for financing and conect with investors. Support the comercialization services for the product and services. This area will be in charge of intelligence of the market, value info. Financial center Business Incubator Broker Accelerator Maturity level, protencially successful for national and international markets Administartion Center for Strategic Studies Is the first development software enterprise established in the park Provide support to generation of new enterprises of IT BASED, providing techical support, space Competencies Development center Novutek (as the Anchor Enterprise) Services of applied reserch and technology transference to new products development for organizations established in the park Innovation and development center Share services center This provide financial support services: payroll managment, accounting, payable etc. Provide services: organización development, competencies performance evaluation, recruting talents 17 ADOC Week 2009 Growing Plans $ $ $ Innovations Solutions Development with focus process Custom development Specialized Software 1 year 2 years 3years 18 ADOC Week 2009 Achievements Investment phase 1: 105mp (3has of urbanization. Construction of productive building 6327mt2 services, parking, and green areas) Investment phase 2: 90mp. (Second productive building 8000mt2, green areas) Second building to start construction fall 2008 and it will be finished this 2009. Partners in the Park: IMPULSOR (government), ITSON, and TI Sonora, 19 ADOC Week 2009 Achievements Tenants: Hosting about 200 professionals employments. Status. First building occupied 90%. Two new incubated enterprises of technological base. SMEs have clients in USA 20 ADOC Week 2009 Achievements and Experience to the SMEs RELATED TO THE PRODUCTS MARKET SCALE AND FLEXIBILITY: SMEs combine installed capacity to satisfy at comparatively low cost, quickly and reliable to the changing demand. LEARNING AND INNOVATION: the cluster facilitate the detection of new needs and market trends, delimiting the unfair competition 21 ADOC Week 2009 Achievements and Experience to the SMEs POSITIONING AND RECOGNITION: Today they have a greater presence and more visible to customers in the market, even commercial, cultural or geographically distant. Is easier to get business certification in this industry in CMMI, this is because the government support as a cluster. 22 ADOC Week 2009 Experience of internationalization for Mexican enterprises Mexico is preparing to play an important role in the knowledge economy through the international program business acceleration technology is currently offered in Silicon Valley, Austin, Montreal, Madrid, Michigan and Arizona Novutek Software Factory (ITSON) provides specialized software products for domestic and international markets, using world-class certified processes (CMMI) 23 ADOC Week 2009 Achievements and Experience to the SMEs RELATED TO THE MARKET FACTORS OF PRODUCTION LABOR MARKET: It has accelerated training and certification of skills through government support. 24 ADOC Week 2009 Achievements and Experience to the SMEs FINANCIAL MARKET: credit agents are provided with the measurement of systematic risk, this ones can be commercial or technological ECHNOLOGY MARKET: It is giving the generation and transfer of knowledge applied and available commercially 25 ADOC Week 2009 Achievements and Experience to the SMEs RELATED TO THE AUTHORITIES PRESENCE AND KNOWLEDGE: It is promoting the achievement of regulations, technical standards, development programs, more realistic in which businesses operate as a group. 26 ADOC Week 2009 Achievements and Experience to the SMEs ACCESS TO INFORMATION AND WIDER STRATEGIC VISION: It participates with strategic character in the diagnosis of opportunities and challenges of general or regional competitiveness, and gets feedback on several levels of the government to the design of public politics more suitable to increase the income and social welfare. 27 ADOC Week 2009 Challenges of SonoraSoft Attracting national and international companies Generation of international alliances Greater involvement of the SMEs with the university The focus of the cluster towards a niche market opportunity 28 ADOC Week 2009 Challenges of SonoraSoft Increased international marketing to the U.S. market Increased attention to critical success factors such as: national and international transportation means (flights), professional human resource, bad economic situation. etc 29 ADOC Week 2009 Impact of the crisis in Mexico Currency flow (Millions of US Dollars) 2008 2009 % oil 43,324 22,301 -48.5 Money remittance from USA 25,137 22,121 -12.0 R&D 21,950 13,074 -40.4 Turism 13,289 10,631 -20.0 103,700 68,127 -34.3 30 ADOC Week 2009 Future plans Consolidation of the research entities, innovation, strategy studies and of human resources through formal alliances with the university Creation of a state board to support the software industry 31 ADOC Week 2009 Future plans Generation of a national and international marketing promotion plan of SonoraSoft Consolidation of the model business incubation and acceleration through alliances with international incubators such as I3P Polytechnic Institute of Torino Italy and interchange of technology with The III of Taiwan. 32 ADOC Week 2009 THANKS FOR YOUR ATTENTION 33 ADOC Week 2009