1. www.infodev.org March 17, 2010 Creating Sustainable Businesses in the Knowledge Economy

2. www.infodev.org About infoDev A research, capacity building and advisory service organization Focused on helping developing countries leverage innovation and ICTs effectively as tools for sustainable social and economic development Donors include Brazil, Finland, Germany, India, Korea, and the United Kingdom Managed by an expert Secretariat hosted by the World Bank Group in Washington, DC

3. infoDev’s Areas of Focus: Transform: Connect: Innovate: Enabling affordable access to ICTs and policy advice to governments and regulators Enabling use of ICT to increase efficiency and effectiveness, esp. in agriculture, disaster relief, education and governance Enabling the start-up and growth of innovative businesses

4. www.infodev.org infoDev’s Core Competencies Capacity building Cutting-edge research Communities of practice Catalyzing new approaches Convening a broad set of stakeholders Combining local and global know-how

5. www.infodev.org Innovate Enabling the start-up and growth of innovative enterprises

6. www.infodev.org Business Incubation Defined Business incubation is about nurturing growth-oriented start-up enterprises to grow and become competitive companies. Focus of incubators Incubated enterprises graduate when an agreed milestone has been reached The incubation period lasts on average 3-4 years

7. www.infodev.org 7 Economies of scale decreases the cost of starting a business Help with non-core business activities saves time and money Leveraging the credibility of the incubator & the portfolio of entrepreneurs to overcome financing gaps Learning, exchange of ideas, psychological support, partnerships, business relationships, Infrastructure: Office space, meeting rooms, electricity, phone, Internet, lab facilities, etc. Business Services: Registration, licenses, accounting, strategy advice, market research, export facilitation, etc. Financing: Brokering financial services and/or providing them i.e. equity, credit, guarantees, etc. “People Connectivity” Mentoring, coaching and interaction with fellow entrepreneurs (a micro cluster), market linkages ServicesValue to the Entrepreneur Business Incubation Services

8. 8 290+ incubators in over 80 developing countries The Poor; 70 Women; 80 Youth; 124 Enabling Innovation & Entrepreneurship Across Sectors… Information & Communication Technologies: 131 Agriculture: 57 Mixed: 82 Manufacturing: 63 Creating Opportunities for Human Empowerment… 38 47 72 24 23 80 Leverage: 70% leveraged the infoDev grant to secure funding from other sources (raising on average USD $150,000) Impact: 20,000+ small enterprises creating 222,000 new jobs 75% of the enterprises incubated continued to operate 3 years after graduating Incubators as ‘change agents’ infoDev’s Global Incubation Network Today

9. Why new models of financing need to be explored? Grants, MFIs, FFFs 0-50k 50-100k 100-500k 500k-2mil 2-3mil Proof of concept Seed finance IFC SME Funds SMEs in infoDev’s Incubator Network Venture Financing’s Limited Role in the US Less than.1% of start-ups in the US receive venture financing –More than 1M new business started in the US in 2007 of which 1,279 received venture financing Only 13% of US publicly-listed firms have received venture financing Brazil’s PRIME Program launched by the Ministry of Science & Technology and FINEP in 2009 will provide as much as R$1.3Bn (US $751M) over the next four years to foster the development of SMEs with a strong focus on innovation. The average financing for each enterprise should be in the region of R$240,000 (US $139K). 17 incubators have been selected to facilitate the implementation of the program and a total of 5,000 SMES are expected to benefit from the Program. Developing countries are recognizing these limitations and exploring new models of public intervention…

10. Type of Financing Required by SMEs in our Network Sector: Information Technology Product: Software development for Credit Management Employees: 12 Revenues: US$ 10,000, (‘03 – Founded), US$ 200,000 (‘09) Incubator: iPark – JIC www.ipark.jowww.ipark.jo Focus Solutions - Jordan Sector: Clean Technology Product: Tools for onsite recycling for home & industrial purposes Employees: 3 Revenues: US$ 10,000 (‘08), US$ 60,000 (‘09) Incubator: 3ie www.3ie.clwww.3ie.cl Geociclos – Chile Sector: ICT Services Product: Vehicular public telephone and GPS fleet management Employees: 15 Revenues: US$ 80,000 (‘08), US$ 372,000 (‘09) Incubator: Instituto Genesis, PUC-Rio www.genesis.puc-rio.brwww.genesis.puc-rio.br PV Inova - Brazil Graduated SMEs SMEs in an Incubator 1-2 X Revenues Potential Instruments Grants, soft-loans, etc Equity, Quasi- equity, convertibl e debt, etc

11. Technology Risk ImaginingImaginingIncubatingIncubating Market Entry Growth and Sustainab ility Pre-market products and services Market-ready products and services Adoption and Diffusion Demonstr ating Commercialization IFCIFCinfoDevinfoDev World Bank infoDev’s Business Incubator Network targets pre- commercial technologies and assists with the commercialization process GAP

12. Introduction: Climate Technology Program infodev.org/climate

13. www.infodev.org 13 For incubation and IT Park professionals and policymakers: Good practices, models Toolkits Monitoring and evaluation tools and analysis South-south working groups Bi-annual Global Forum for all stakeholders For incubators and technology parks: Regional networks and knowledge exchange. Training For policymakers: Regional roundtables and awareness raising For incubators and technology parks and their stakeholders: Tailored package of services including seed & innovation funding capacity building feasibility and replication assistance with strengthening the national eco-system CountryRegionalGlobal PROGRAMPROGRAM Competitive SMEs Jobs Innovations Empowerment Sustainable development Program Offering New: Internationalization and access to finance for technology entrepreneurs Expansion to climate technology and value added agribusiness

14. www.infodev.org infoDev’s Experience in Asia Over 100 Members Australia Bangladesh China Fiji India Indonesia Japan Malaysia Micronesia Mongolia Nepal Pakistan Philippines Sri Lanka Taiwan Thailand Vietnam Provide financial and technical assistance to scale-up existing incubators and to establish new incubators Established Asia-Pacific Incubator Network (APIN) www.incubationasia.comwww.incubationasia.com Incubating over 5,700 SMEs (creating over 80,000 jobs) Graduated nearly 2,000 SMEs (creating over 20,000 jobs) Deliver training to incubator managers Provide strategic advice to policymakers on innovation and entrepreneurship

15. www.infodev.org Connect Enabling Affordable Access to ICT and Providing Policy Advice to Governments and Regulators

16. Connect: Program Offering Regulatory research and policy advice –Telecom Regulation Handbook –ICT Regulation Toolkit Broadband –“Building Broadband” report (Jan 2010) –Broadband Strategies Toolkit –Client work in Egypt, and elsewhere Virtual Economy –New study on converting the virtual economy into development potential Role of ICTs in post-conflict reconstruction Digital TV www.infodev.org 16

17. www.infodev.org Transform Enabling the Use of ICT to Increase Efficiency and Effectiveness especially in agriculture, disaster relief, education and governance

18. Transform: Program Offering ICT for Education –Regional surveys in Africa, Caribbean and South Asia –Educational Technology Community of Practice (www.edutechdebate.org) ICT in Agriculture –ICT in Agriculture Sourcebook –Innovation Systems in Agriculture Sourcebook –ICT and Rural Livelihoods study Using GIS Tools –Study on GIS use in monitoring MDGs –Application of GIS to insurance risks for disaster management ICTs and Climate Change

19. www.infodev.org Asia Program 2010-2012 Creating Sustainable Businesses in the Knowledge Economy

20. Program Tracks o Track 1: Mobile Applications o Regional mobile applications labs in Africa, Asia and ECA o Social networking communities for Africa and ECA o Broadband competition and capacity-building in ECA o Track 2: Innovation and Entrepreneurship through Business Incubation o The first global co-incubation program o South-south working groups on agribusiness and ICT business incubation o Policy-makers summit on innovation and entrepreneurship o Regional programs in Africa, ECA and the Mekong o Country programs in Cambodia, Kenya, Mozambique, Nepal, Tanzania, Uganda and Vietnam, and in selected ECA countries o Track 3: infoDev Global Forum on Innovation and Technology Entrepreneurship, Helsinki, 2011 o Supporting Track: Agriculture Sourcebooks o ICT in Agriculture and Agricultural Innovation Systems

21. Program Highlights A Unique Public Private Partnership (PPP) –Linkages to Finland’s development agenda, Aid for Trade Initiative and Wider Europe Initiatives –Involvement of Nokia –Finnish private sector and the private sector of partner countries Three key areas of focus –Agribusiness –Mobile –Innovation, SME creation and technology entrepreneurs Innovating in the international development agenda –Social networking for mobile entrepreneurs –Business co-incubation scheme –Innovation “eco-system” approach –South-south exchanges between entrepreneurs, incubators and innovative SMEs

22. “Creating Sustainable Businesses in the Knowledge Economy” – An infoDev/Finland/Nokia Partnership Accelerate Innovative Early- stage Businesses in: –ICT, mobile applications in particular –Clean technology –Value added agriculture –and other sectors Facilitate Access to Finance Build Local Capacity in: –Business Incubation –Innovation & Entrepreneurship Policy- making Establish a mobile applications lab (location TBD) and social networks for Asian entrepreneurs in collaboration with Finland and Nokia. Evaluate the potential for establishing a business incubator in Nepal to focus on the agribusiness and/or ICT sector Develop and deploy on a virtual incubation program that targets SMEs and entrepreneurs in rural areas Evaluate incubator models that could be deployed in Vietnam beyond the urban centers of Hanoi and Ho Chi Minh City Establish a business incubator in Cambodia Host a venture showcase in Asia that assists in linking technology entrepreneurs and financiers (USD $50 – 500K ) Establish global working groups on agribusiness and ICT enterprise incubation Develop new training modules on agribusiness and ICT enterprises as part of infoDev’s Business Incubator Manager Training Program Evaluate the incubation needs of women entrepreneurs and provide a strategy for addressing these needs Assist in strengthen the national innovation system in Cambodia

23. www.infodev.org 23 The Global Forum on Innovation and Entrepreneurship New Delhi 2004 A bi-annual gathering of policymakers, financiers, incubation professionals and entrepreneurs to share good practices, discuss innovative solutions and explore partnerships. Hyderabad 2006 Florianopolis 2009 1,000 participants from 70 countries Helsinki 2011

24. www.infodev.org Thank You www. infodev.org/innovation www.idisc.net/asia