Science & Technology Parks:
A New Era for Sustainable Technology-Based Development
Presented at
IEEE Saudi Arabia Education Society Chapter
Venue: Chamber of Commerce & Industry, Eastern Province
By
Sadiq M. Sait
Member, Prince Abdullah Bin Abdulaziz Science Park
King Fahd University of Petroleum & Minerals
KFUPM, Dhahran
Tuesday, 1 March, 2005
Presentation Outline
 Part I: A Brief Overview of Science Parks
Business Incubators
 Part II: An Example of a Science Park
at a University in Saudi Arabia
 Part III: Progress and Status
2
Mission of the University
A Balance between three key elements:
• Generation of new knowledge.
• Passing on this knowledge to future
generations.
• Serving the needs of industry (business)
and the community.
3
History and Trend
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Earlier, most (if not all) universities were reluctant to
embrace collaboration with industry
Around 1980s, Universities began trying to contact
industry (a little earlier in some industrialized countries
such as the UK)
The science park concept was an unfamiliar one and
companies were mainly attracted to it by a desire to be
near to the University's scientific research
Around 1994, Universities began contacting companies
through Science Parks (Research Parks)
Now, there are networks of universities and networks of
Science Parks
With time, science from laboratories (with work on proof
of concept, prototyping), via liaison offices, incubators,
nurseries, science parks has made it to the industry
4
Methods for Supporting KnowledgeBased Business
• Science Cities
• Technopolis
• High Technology Industrial Parks
• Science & Research Parks
• 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)
• Value proposition they hope to create: (a) Capital,
(b) Ideation, (c) Development, i.e., building a
company
6
Types of Incubators
• IT Backed
• Government & Academic Institutes (to achieve
developmental, strategic, and economic objectives)
• VC Backed (VCs providing business acceleration services
in conjunction with funding)
• “Indie” (an incubator that has no affiliation with an IT
product, service firm or VC)
• Corporate (backed by traditional non-IT corporation)
7
Services Provided
• Leveraging contacts, strategy planning, business plan
evaluation, partner identification, business
infrastructure, branding, funding, board of directors
recruitment, PR, accounting services, legal services,
advertising, and others.
• Can be summarized as providing:
• Logistical Support (dedicated facilities, ready to move in office for
example, and shared facilities)
• Strategic Support (experienced network of advisors) &
• Operational Support (marketing, auditing, legal, technical services,
etc)
8
What Are Science Parks?
A generally accepted definition includes:
It is 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
creation of job opportunities
• Different from a Research Institute
9
Benefits from the Park

Development of the region, creation of
wealth and employment opportunities for
the Kingdom
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Enhancement of University skill at industry
collaboration
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Tenant-University associations are built
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Commercialization of University research
10
International Associations: Science Parks
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IASP: Int’l Association of Science Parks, Spain
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UKSPA: UK Science Park Association, UK
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AURP: Association of University Research Parks, USA
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APSTI: Associatione Parchi Scientifici E Technologici
Italiano, Italy
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TEKEL: Suomen Teknologiakeskusten Litto, Finland
11
Major International Science Parks

Number of science parks in the world is more than
1,000
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Most Science Parks are linked with Universities
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Major Science Parks are found in:
–
USA, UK, Canada, Russia, France, Finland
–
Japan, Hong Kong, China, Korea
–
Malaysia, Iran
–
Others
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Major Science Parks in Muslim World
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Bahrain:
Iran:
Kuwait:
Malaysia:
Morocco:
Nigeria:
Oman:
Saudi Arabia:
Tunis:
Turkey:
UAE:
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1
4
3
1
1
3
2
4
3
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Major Science Parks in GCC Region
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Saudi Arabia: Prince Abdullah Bin Abdulaziz
Science Park, KFUPM, Dhahran
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Kuwait: HRD Int’l Enterprise Center
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UAE: Techno Park, Dubai
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Oman: Knowledge Oasis Muscat
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Bahrain: Bahrain Technology Park
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Qatar: Science & Technology Park at Qatar
Foundation Education City
14
Prince Abdullah Bin Abdulaziz
Science Park
The Vision
 The Mission
 Goals/Objectives
 PASP Site
 Benefits to KFUPM
 Benefits to Tenants
 Success Factors

15
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
16
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
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Objectives
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Commercialization of University research
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Providing incubator programs to young Saudis, and
promoting emerging small-businesses
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Utilizing the Kingdom’s industrial and market
strengths
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Generating employment opportunities in
knowledge-based businesses
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Modes of Participation in Science Park
•
Single-unit building
•
Multi-tenant building
•
Incubator building
19
PASP SITE
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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
22
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
23
KFUPM Research Strengths?
24
Other Benefits to KFUPM
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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)
25
Benefits to Tenant Firms
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Tenant companies can have a significant point of
presence in the region
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Availability of a skilled work-force pool from the
student body
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Opportunity for commercial deployment of
University’s intellectual property
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Access to the University’s educational programs
26
KFUPM Pilot and Demonstration Plants
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KFUPM Laboratories
28
Other Joint Activities
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Large companies may choose to contract their
research work to the University
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Companies may donate equipment and share
expertise, etc.
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Senior staff of tenant companies may serve on
University advisory committees
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Tenants may offer scholarships to postgraduate
students
29
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
30
Part III:Progress/Status
1.
What to Expect?
2.
Major Companies Involved in KFUPM
3.
Current and potential tenants of PASP
31
What to Expect?
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University will be surrounded by some of
the world’s leading technology companies
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Industry participation in academia
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The University will build on its current
strengths due to proximity with industry
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Research & teaching programs will
concentrate on modern high-technology
32
Major Companies Collaborating with
KFUPM
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SABIC
Saudi Aramco
Schlumberger, USA
Japan Cooperation Center Petroleum
Ciba, Switzerland
Others
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International Companies in PASP
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Schlumberger (Construction in near completion)
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
34
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 PASPKFUPM Company
35
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 may 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.
36
Finally….
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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.
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Acknowledgments
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KFUPM
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British Council
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UNESCO
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IASP
38
THANK YOU