bridging synergistic partnership towards technopreneurship development

outline Incubation Scenario in Malaysia Incubation in Technology Park Malaysia Co-incubation in Malaysia: Our Experience Way Forward: Building a Synergistic Partnership towards Technopreneurship Development Soft Landing Cross Fertilisation APEC’s Angels Chapter

INCUBATION IN MALAYSIA: Status & Statistics 106+ active incubators (infoDev-World Bank Case Study on Malaysia, Oct 2010) 24 (23%) 3rd Generation, 44 incubators 2nd Generation, 38 incubators 1st Generation. To date, 4 have evolved into 4th Generation (SIRIM, KTPC, TPM & MTDC) Mostly are technology-based incubators 97 out of 106 are Government-linked / Government-funded incubators Incubation has been earmarked as a crucial vehicle in developing innovative SMEs – more emphasis in Malaysia’s economic policies

Incubation scenario in malaysia Type of Incubators # National Incubation Network Association (NINA) Members (Tech-based Incubators) 25 Council for Bumiputera Development 18 Banks State Economic Development Corporations 17 Malaysia Agricultural Research and Development Institute (Agro-based) 10 Handicraft Incubators 9 Universities 4 Ministry of Entrepreneurship and Cooperatives Development / Ministry of Rural and Regional Development 2 Others 3 Total 106 Source: NINA Incubation Blueprint / Malaysia Incubation Country Case Study, infoDev

technology park malaysia technology and science park 686 acres Focuses on ICT, Biotech and Engineering clusters owned by Ministry of Finance Inc., under purview of Ministry of Science, Technology and Innovation incorporated in Sept 1996 1 main park, with 2 regional offices for biotech cluster

EVOLUTION OF INCUBATION IN TECHNOLOGY PARK MALAYSIA Development 1st Generation Incubation 2nd Generation Incubation 3rd Generation Incubation MSC & Bionexus Status 4th Generation Incubation Space (Land & Building) for Lease Space (Land & Building) for Lease + Shared-Facilities & Technical Advisory Space (Land & Building) for Lease, Shared-Facilities, Technology Labs, Production Facilities + Amenities & Business & Technical Advisory Space (Land & Building) for Lease, Shared-Facilities, Technology Labs, Production Facilities, R&D Labs & Commercialisation + Amenities & Comprehensive & Integrated Technopreneurship Program Pre-Bukit Jalil era Technology Focus: Engineering Technology Focus: Engineering + ICT Technology Focus: Engineering, ICT + Biotech 1996 - 2001 2002 - 2007 2008 - Now Time Time Pre-Incubation / Pre-seed

TPM’s EXPERIENCE: PROVIDING THE RIGHT ECO-SYSTEM CREATION & DEVELOPMENT OF INNOVATIVE TECHNOLOGY-BASED COMPANIES ENGINEERING BIOTECH ICT INFO-STRUCTURE INFRASTRUCTURE SUPPORT SERVICES

TPM’s EXPERIENCE: PROVIDING THE RIGHT ECO-SYSTEM TPM Engineering Sdn Bhd TPM Biotech Sdn Bhd TPM IT Sdn Bhd TPM College Sdn Bhd Engineering design, CNC machining, rapid prototyping & manage engineering-related projects + producing innovative engineering products & solutions. Product development, contract research, lab services, contract manufacturing & commercialisation of nutraceutical & biopharmaceutical + process & manufacture for Biotech products. Provision of broadband services, data centre, project management, consultancy services, manage operations & maintenance of ICT infrastructure in TPM Provide tertiary education & specialized training programs. Offers Diploma & Degree Programs in Life Sciences Engineering, Languages etc. Centre for Technology Commercialisation (CTC) Innovation Incubation Centre (IIC)

TPM’s EXPERIENCE: supporting technopreneurs from idea to market SUPPORT SERVICES FOR TECHNOPRENEURS Assessment Tools Handholding-Business Coaching, Mentoring, Consultancy & Training Integrated Financial Assistance Researchers & Experts Technology Help Desk Market Linkages

TECHNOPRENEURS DEVELOPMENT in TPM For start up companies & technopreneurs One Reference Centre Modern facilities Fully supported administration services Furnished offices Coaching, mentoring, consultancy & training programs e.g.. Enhancing business skills Integrated, Handholding Programme Government funding programs e.g.. SME Bank & Cradle Fund Sdn Bhd Rental incentives TPM Subsidiaries MOSTI-related agencies (MIMOS & SIRIM) Support facilities Government Private Comprehensive & integrated funding Technology IPR-related matters Facilitated with experts Local International incubation service providers Business networking

KEY ACTIVITIES & PROGRAMMES Tracking and monitoring SME Competitiveness Rating for Enhancement Psychometric tests Market access activities: Business matching, networking events, exhibitions, seminars and forums Funding access Seminars, workshops, pitch to VCs, one-to-one coaching IP-related matters Access to IP experts, funding and specialised workshops and coaching

Co-incubation in malaysia – funding access There are more than 70 agencies under more than 16 ministries collaboratively providing financial support to SMEs, either in form of grants or soft loans. Among others are: Cradle Fund, MDeC, SME Bank Malaysian Technology Development Corporation Ministry of Science, Technology and Innovation Ministry of International Trade and Industry (SME Corporation, MATRADE, etc) SEED START-UP GROWTH EXPANSION MATURITY 2010: 296 programmes ~USD 3.3 billion 2011: 219 programmes ~USD 2.0 billion INCUBATEES INCUBATORS INCUBATEES

Co-incubation in malaysia – support services There are more than 70 agencies under more than 16 ministries collaboratively providing support services, including capacity building in both technical and soft skills. Among others are: Soft skills training Technical training Equipment and machinery facilities Product testing, prototyping Coaching, mentoring & consultancy Technical training Product testing Equipment and machinery facilities Certification TPM SIRIM INCUBATEES 1-InnoCERT SCORE BAP Training grants for SMEs Branding experts MTDC SME CORP Availability of commercialisation-ready R&D consultancy

Benefits, challenges & way forward Extensive Government supports Various options available for incubatees Challenges Limited funding for incubators Little private funding initiatives, e.g. venture capitals and angels Way Forward Promote greater resource-sharing between incubators, government agencies and financing institutions Encourage private sector participation

PROPOSED CO-INCUBATION INITIATIVES Soft Landing Zones Cross-Fertilisation Programme APEC Angel Chapter

Strengthening of soft-landing zones “Window” for incubatees / start-ups to break into the international market and get access to latest technologies. Mutual recognition by incubators within APEC economies in providing soft landing services Allow for well-facilitated cross-region movement of incubatees for: Market access Technology transfer Experts Funding Coaching and mentoring services

benefits The soft landing initiative can be successfully implemented if all participating incubators are adopting a standardized range of support services. This is to ensure that fair, internationally recognized services are offered to both parties. Successful implementation of soft-landing zone will greatly enhance internationalization of start-ups

CROSS FERTILISATION PROGRAMME Placement of external incubator managers at established participating incubation centres to enable these managers to learn and benchmark the best practices of these incubators.

implementation Sharing of experience Adopt best practices Week 1 Week 4 Week 8 Sharing of experience Sharing of knowledge e.g. local market studies, networks Benchmark best practices Adopt best practices

A community of standardised incubators in APEC benefits Enables incubator staff to benchmark themselves against the best practices and adopt the same practices A community of standardised incubators in APEC

Creation of a network of angels across APEC economies Apec angel chapter Creation of a network of angels across APEC economies Pool of funds through APEC Angel Chapter Funding to incubatees across APEC economies

Suggested implementation Incubator’s existing networks of industry players Incubator alumni - good level of trust has been established - a higher chance of them to be more receptive of this initiative. Network of angel investors Determined through an agreement between the investor and investee, in which the amount of involvement can be spelled out clearly. Contribution to pool of funds under the Chapter The extent of angel’s involvement Companies with good business, well-defined team and equity structure, good risk analysis Criteria of companies to be invested in

Issues and benefits An independent body must be incorporated to manage the resources, among others: To identify and compile the pool of angels and potential start-ups To manage the resources from the angels Benefits: Start-ups would have the additional financing options The angels will have more venues to channel their investment Angels’ investment risks are partially mitigated through incubator’s managers involvement Wider opportunities for angels to invest in various industries, globally.

THANK YOU MR. ‘AZRA’I SHU’IB INCUBATION AND TECHNOPRENEURS DEVELOPMENT TECHNOLOGY PARK MALAYSIA +603 8998 4025 azrai@tpm.com.my