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A Public Private Partnership Program Lessons from a pilot plan in IRAN: Financial Aid Support Program for SMEs’ in ICT

First Regional Forum on Business Incubation. A Public Private Partnership Program Lessons from a pilot plan in IRAN: Financial Aid Support Program for SMEs’ in ICT Sector. Habib Asghari Rooyesh ICT Incubator February 2006 - Casablanca techno park. Overview (The Fourth Development Plan).

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A Public Private Partnership Program Lessons from a pilot plan in IRAN: Financial Aid Support Program for SMEs’ in ICT

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  1. First Regional Forum on Business Incubation A Public Private Partnership Program Lessons from a pilot plan in IRAN: Financial Aid Support Program for SMEs’ in ICT Sector Habib Asghari Rooyesh ICT Incubator February 2006 - Casablanca techno park

  2. Overview(The Fourth Development Plan) We need to increase the ICT companies from 1000 (now) to 7500 in the end of fourth 5-year Development Plan (2009)

  3. Major Goals of the Program • To create new products/services in ICT market • To upgrade existing products/services • To establish and create new ICT companies • To upgrade existing ICT companies • Internationalization of Iranian ICT companies The first step toward “incubators without wall”

  4. Some Key Issues • The target of this program is active SMEs’ in various fields of ICT sector (no support for individuals) • The final projects should definitely result in a marketable product/service • Up to 50% of fund needed for developing a product/service is supported by the government • Government contribution is considered as a seed money and paid as a research grant

  5. Program Segmentation • Computer networks • (Hardware, BMS, Digital Radio, cache servers, IPv6) • Educational and entertainment softwares • (Training, electronic games, contents, art, entertainment, education) • Security systems • (Antivirus, IDS, PKI, Hardware locks, Firewalls) • Artificial intelligence • (speech processing, image processing, TTS, Automatic translators) • Electronic commerce • (smart cards, CRM, E-banking ) • Information systems • (ERP, Office Automation, Archive soft wares)

  6. Agent #1 Agent #2 ROOYESH ICT Incubator Isfahan Science and Technology Town Computer Networks Educational and entertainment softwares Security systems Artificial Intelligence Electronic Commerce Information Systems Committee # 1 Committee # 2 Committee # 3 Committee # 4 Committee # 5 Committee # 6 ICT SME ICT SME ICT SME ICT SME ICT SME ICT SME Organization Chart of the Program Management and Planning Organization Stream Committee Project Secretariat

  7. Collecting Ideas from all ICT companies • Select the proper ideas • Apply modifications • Project duration • Required budget • Technical specifications Final Selection Based on priorities (Technical committee) (Stream committee) (Secretariat) (Announcement) Call for ideas Evaluating the business plan Contract with the accepted companies • Apply for projects (Secretariat) (Technical committee) (Agent Organizations) (Announcement) Call for proposal Program Workflow

  8. Some key points in the program • To achieve a competitive environment, for each project up to 3 companies are accepted for receiving the grant • Only private companies allow to use the grant • Only SMEs allow to use the grant (HCI grade below 500) • The Intellectual property of the final product/service is completely belong to the companies • The companies that fail the projects are put in a black list • After evaluating the final project, the winners in the final festival will take additional grant • The technical committee has the task of both mentoring and monitoring the project

  9. Outcome of the programThe first phase (Feb 2004 – Feb 2005) • $ 2.6 million of seed funding ($ 5.2 million private + public) • More than 1600 ideas were collected • 44 new products/services generated • 251 companies applied for the projects • 120 proposals accepted (120 companies supported) • Average grant for each company is about $22000 • 17 companies failed • 11 companies won the festival and took additional grant

  10. Trend for the second phasefrom sept 2005 • Establishing regional technical committees in all Science and Technology Parks (STPs) in Iran • Consider an annual sustainable budget for all STPs • Allocating a special grant budget ($ 7,800,000) for the ICT sector in 2006 • Extend the scope of the program to other technology areas

  11. Thank you for your attention

  12. Latest News In Iran - Jan 2006 Incubators in Iran; An overview Time Interval : first of 2004 up to first of 2006 Number of Incubators in Iran : 42 Number of Incubators Staff : 243 Total Number of Tenant Companies: 674 (ave. 16 per incubator) Staff in Companies: 2469 graduates Average Turnover in each company: $45000 / year

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