KFUPM Science Park (PASP): A Special Presentation for H.E. The Rector Dr. Khalid Saleh Al-Sultan

1. KFUPM Science Park (PASP):A Special Presentation for H.E. The RectorDr. Khalid Saleh Al-Sultan By PASP Project Committee 14 June 2003

2. Members of the PASP ProjectCommittee & Their Responsibilities Dr. Mohammad Abul-Hamayel Legal Issues and Governmental Regulations Dr. Mohammad Al-Ohali Conceptual Planning, International Science Park Practices Dr. Aymen Kayyal Technology Transfer, Incubator/Spin-off Program, and IP Management Dr. Sadiq M. Sait Conceptual/Detailed Planning, International Science Park Practices, and IT Related Activities Dr. Halim Hamid Redhwi Chairman PASP Project Committee Overall Coordination, Planning, & Petroleum/Petrochemicals Related Activities

3. Presentation Outline • Part I: A Brief Overview about Science Parks • Part II: Plan of PASP • Part III: Progress and Status

4. What Are Science Parks? • A property based initiative which: • Has operational links with universities and maybe research centers • Is designed to encourage knowledge based industries • Has an element of technology transfer and business skills • Science parks in other parts of the world: Australia, Dubai, Finland, Hong-Kong, Morocco, Brazil, UK, USA, and others • IASP (International Association of Science Parks, 500+ membership) • How Different from Research Institutes (RI)?

5. University’s Motives & Benefits from the Park • Economic development of the country • University to become skilled at industry collaboration • Tenants forming useful associations with the University • Commercialization of University research, including via incubation facilities for start-ups • Development of the region and creation of wealth and employment opportunities • To earn income from ground rental to support University research

6. What is an Incubator? An incubator generates and sustains the dynamic process of business enterprise development for individuals eager to start companies to build commercially viable products. It provides support of infrastructure, logistics, finance, training, and advice, until the businesses find their own place.

7. Chronology of Events • KFUPM Science Park Committee formed: xx/xx/xxxx • International Companies Contacted: xx/xx/xxxx • Letters of Intent Received: xx/xx/xxxx • Conceptual Plan (prepared by PASP Project Committee): xx/xx/xxxx • Inauguration (by HRH Prince Abdullah Bin Abdulaziz): xx/xx/xxxx • Prince Abdullah Bin Abdulaziz Science Park (PASP) Active: xx/xx/xxxx • UNESCO Experts Visit KFUPM: 22-25/02/2003 • PASP Plan Finalized: xx/xx/xxxx • Schlumberger Contract Signed: xxxx • Project awarded for layout/infrastructure planning: xx/xx/xxxx • Marketing Campaign Launched: xx/xx/xxxx • Semi Final report on layout/infrastructure arrives: xx/xx/xxxx

8. Plan of PASP • The Vision • The Mission • Other issues

9. The Vision To make a significant contribution to the wealth & welfare of the Kingdom of Saudi Arabia through the development of knowledge based companies that will also strengthen the achievement of the mission of KFUPM to be a leading institution in the creation and dissemination of knowledge in its chosen fields of study

10. The Mission • To develop financially self-sustaining physical and operational entity designed to create wealth through the commercialisation of scientific and technological knowledge from KFUPM; • Fostering technology development and commercialisation from the laboratory to the marketplace;

11. The Mission (contd) • development of an entrepreneurial culture amongst faculty, researchers, students, of KFUPM; • Providing technical, business, managerial, and financial advice to clients; • Providing space in incubator and science park with flexible leases, and access to university facilities; • Creation of a self sustaining and self supporting community of knowledge based companies,

12. OBJECTIVES • Commercialization of research and to act as a spawning ground for technology entrepreneurs • Providing a strong point of presence for major international companies and enterprises. • Providing incubator programs to promote emerging small-businesses and enterprises

13. OBJECTIVES (Contd.) • Utilizing the Kingdom’s industrial strength for the benefit of making KFUPM a focal point for attracting International R&D Personnel. • Generating employment opportunities for students during their course of study and upon graduation in these business houses. • To perform relevant and high quality R&D for transfer to industry, and provide a focal point of industry-university relationship

14. Proposal for Funding & Finance • Given its ideal location and the explicit returns for the Industry, it is proposed that PASP-KFUPM Company be formed that is financed by: • KFUPM • Private Investments (VC) • Saudi Aramco, SABIC, and other mega companies • The university would be a decision member responsible for laying down standards and leasing tenants, while operation maintenance and construction would be the responsibility of the company

15. Governance & Management • The effective management and governance of the PASP-KFUPM Company is based on the collaboration between three major parties: • university, knowledge and resources (and partial funding) • industry: financing • government: regulations and incentives • Park managed as a commercial enterprise by a Park Manager, who heads the management team, and is overseen by a board of directors

16. Part IIIProgress and Status

17. UNESCO Experts Visit • Date of Visit: 22-25 February 2003 • UNESCO Expert Group on Science Park: • Dr. Harry Nicholls, Managing Partner, ADCAL, UK • Dr. Marco Baccanti, President of International Association of Science Park (IASP), Spain • Mr. Nur Youslan, UNESCO, France

18. UNESCO Experts Visit • To discuss the status and the prepared/submitted conceptual plan of establishing Science Park at KFUPM with PASP Project committee members, and KFUPM officials • To discuss the PASP plan for layout, and infrastructure and land development • To provide set of recommendations • Major Outcomes: • Experts were impressed by the conceptual plan prepared by the committee, • expressed satisfaction that the direction and thinking invested thus far will lead to the success of the park, and • provided some additional recommendations

19. UNESCO Experts Recommendations • PASP Vision, Mission, Objectives, and Goals should be clear and flexible with determined success criteria; • Supreme aim is the development of a community that will create wealth and welfare in the Kingdom, the creation of an entrepreneurial culture, that maximises the commercialisation of ideas from KFUPM; • A combination of patience compatible with the achievement of PASP’s Vision in the long-term (30 years); and a sense of urgency compatible with producing early visible performance

20. UNESCO Experts Visit(Recommendations, Contd.) • An arms-length company separate from the University and Research Institute should manage the Park (PASP). • Its function would be to be responsible for establishment and operation of the PASP on behalf stakeholders KFUPM, the Saudi Government, Chamber of Commerce, Saudi Aramco, etc.

21. First Tenant in PASP-Schlumberger

22. Interest of International Companies in KFUPM-JCCP, JAPAN

23. Interest of International Companies in KFUPM-CIBA, Switzerland

24. Interest of International Companies in KFUPM-Letters of Intent

25. Saudi Offset Committee

26. PASP xxxx Plan

27. Saudi Aramco and Sabic Role

28. Finally … • The PAASP is a strong statement of KFUPM’s determination to maintain its high standards in research, technological development and academic excellence. • It is an initiative to couple the university’s resources and talent with the technological capabilities of the industrial sector, thereby creating a highly collaborative environment with vast potential for joint technological research and development.

29. And.. With the establishment of this science park, KFUPM moves forward into its fiftieth year with a far-reaching initiative that will be a dynamic catalyst for technological development and collaboration between the university and the industry.

30. Look Ahead Plan • xxxx

31. Vision 2004 • xxxx

32. THANK YOU

33. Engineering Conference Presentation follows….

34. KFUPM Science Park (PAASP):A New Era for SustainableTechnology Based Development Sadiq M. Sait (0n behalf of PAASP Project Committee) 16 December 2002

35. Members of the PAASP Project& Their Responsibilities Dr. Halim Hamid Redhwi Chairman PAASP Project Committee, Responsible for Overall Coordination, & Petroleum/Petrochemicals Related Activities Dr. Mohammad Abul-Hamayel Legal Issues and Governmental Regulations, and others Dr. Mohammad Al-Ohali Conceptual/Detailed Planning, International Science Park Practices, and others Dr. Aymen Kayyal Technology Transfer, Incubator/Spin-off Program, IP Management, etc. Dr. Sadiq M. Sait Conceptual/Detailed Planning and IT Related Activities, etc.

36. Three Part Outline • Part I: About Science Parks • Concept, Trends, Stakeholders, Motives, Benefits, etc • Part II: Conceptual Plan of PAASP • Conceptual Plan, Proposed Site, Potential Tenants, Financing, Consultants, Look-Ahead Plan, etc • Part III: General Discussions & Conclusion

37. Part I About Science Parks

38. About Science Parks • What are they? • History and Trends • Stakeholders • Motives • Relevant Joint Activities • The Incubator

39. What Are they? • Definitions and forms: A wide range • A generally accepted definition includes: A property based initiative which: • Has operational links with universities, research centers, and/or other higher education institutions • Is designed to encourage the formation and growth of knowledge based industries on high-added-value firms • Has a steady management team actively engaged in the transfer of technology and business skills • Science parks in other parts of the world: Australia, Dubai, Finland, Hong-Kong, Morocco, Brazil, UK, USA, everywhere, hundreds • IASP (International Association of Science Parks)

40. Different from an RI • External Research projects at KFUPM departments and RI differ from Science Park concept • At the Science-Park, companies conduct research independently for their own motives, by their own researchers, utilizing their own facilities, and may involve University researchers & facilities, without intervention of University • It differs from funded project awarded to University faculty

41. History and Trend • Earlier, most (if not all) universities were reluctant to embrace collaboration with industry, and industry similarly was shy of academia • 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

42. History and Trend • Around 1994, Universities would contact 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 is making to industry

43. Stakeholders • The primary stakeholders in the development and sustenance of a Science Park are: • The University • Tenant firms and enterprises (industry component) • Investors and Private Start-up Companies • Each of these stakeholders will play a vital role in the development and growth of the Science Park (PAASP)

44. University’s Motives • Economic development through industry linked projects • University to become skilled at industry collaboration • Tenants forming useful associations with the University in the pursuit of any aspect of the our University’s mission • Opportunities for commercialization of University research, including via incubation facilities for start-ups • To earn income from ground rental in support of University research

45. Joint Activities • Joint research projects, especially for graduate and doctoral students • Work experience programs for undergrads (part- and full-time jobs for university students) • Sharing of university equipment and laboratories • Custom-designed education programs for tenants • Many staff in tenant companies can enroll in our graduate programs • Advice from tenants (companies) on the design of courses • Adjunct appointments of industry experts to teach and research in the university

46. Joint Activities • Larger companies can have their research work contracted to the university. (The proximity with the academic departments producing hundreds of graduates in an area of expertise is a plus) • Companies can donate equipment and tools, share expertise, etc., in return for using university labs, faculty, and students • Tenants can also lend University valuable scientific equipment • Senior staff of tenant companies can serve on University advisory boards • Tenants can offer scholarships to postgraduate students

47. Types • There are several models, depending on the objectives • It could be a park or a network or parks (a park can be a network of companies) • For a Science Park linked to a University, collaboration is the key • May or may not have an Incubator

48. What is an Incubator? An incubator is a welcoming and supporting partner that generates and sustains the dynamic process of business enterprise development for individuals eager to start companies to build commercially viable products and services over innovative technologies; it provides support in terms of infrastructure, logistics, finance, training, advice, and offices, until the businesses find their own place.

49. Part IIConceptual Plan of PAASP

50. Conceptual Plan of PAASP • The Vision • The Mission • Goals/Objectives • Benefits • Funding & Finance • Governance & Management • Some Critical Success Factors