Rooyesh ICT Incubator 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 Casablanca techno park First Regional Forum on Business Incubation

Rooyesh ICT Incubator 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)

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

Rooyesh ICT Incubator Some Key Issues The target of this program is active SMEs’ in various fields of ICT sector (no support for individuals) 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 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 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 Government contribution is considered as a seed money and paid as a research grant

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

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

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

Rooyesh ICT Incubator To achieve a competitive environment, for each project up to 3 companies are accepted for receiving the grant 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 private companies allow to use the grant Only SMEs allow to use the grant (HCI grade below 500) 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 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 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 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 The technical committee has the task of both mentoring and monitoring the project Some key points in the program

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

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

Rooyesh ICT Incubator Thank you for your attention

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