1. Spotlights on Innovation and Entrepreneurship Support in Europe
by Heinz Fiedler
President, SPICE Group

2. Content  Innovation and Entrepreneurship  Examples
Spotlights on Business Incubation and Innovation
Content
 SPICE Group - A Short Introduction
 Business Incubation - Definition & Overview
 Innovation and Entrepreneurship
 Examples
 Summary and Conclusion

3. Who is SPICE Group? A short introduction
SPICE Group is a global informal network
representing 41 countries and 27 national and international associations

4. Who is SPICE Group? A short introduction
SPICE Group is a global network
of experts in business incubation, innovation centers, technology parks, regional economic development, technology transfer and entrepreneurship
Members of the SPICE Group
come from different professional and organizational backgrounds and therefore combine information, experience and skills from many different areas
SPICE Group is a joint initiative of professionals
from technology and science parks, business incubators and innovation centers as well as industry, banks and governmental institutions to secure the best possible flow of information
SPICE Group brings together the private and the public sector
for supporting innovation in economic and social development
SPICE Group is based on personal involvement and mutual trust
free of political and institutional influence in an open, creative atmosphere
SPICE Group is aimed at increasing knowledge and cooperation
in business incubation, international business promotion, economic policies and development, entrepreneurship as well as technology transfer

5. SPICE Group is different to other networks
Who is SPICE Group?
A short introduction
SPICE Group is different to other networks
The goal is not to develop membership by numbers
- the goal is personal engagement of members
Members are not organizations or institutions
- individual membership is the basis
of the network
Projects are not acquired and run by the SPICE secretariat
- individual members (or groups of members) are
responsible project partners
...and this is PUMBAA - the mascot of SPICE Group

6. “International Summit of Associations”
Good to know
“International Summit of Associations”
The “International Summit of Business Incubation Associations” is an informal network of national, regional and international business incubation associations.
This network began to develop from dinners hosted by NBIA at their annual conferences. The third Summit, held in San Jose, CA at the NBIA conference 2001 was the first resulting in a resolution.
The 10th Summit in New Delhi, India in October 2004 agreed to develop this initiative toward a Global Network of Business Incubation Associations.
The 12th Summit will be held in Sheffield, United Kingdom, in November 2005.

7. What is a business incubator ?
There is a globally accepted definition.
Adopted by the International Summits of Business Incubation Associations

8. What is a business incubator ?
The “simple definition”
adopted by the International Summit in New Delhi, October 2004
Business Incubator
(a business incubation environment)
Business Incubation (process)
Business incubation environment

9. What is a business incubator ?
The “simple definition”
adopted by the International Summit in New Delhi, October 2004
The (wider) Business Incubation Environment is the wider context which should be conducive to the sustainable nurturing of growth potential and the development of enterprises.
Business incubation (process) is a public and/or private, entrepreneurial, economic and social development process designed to nurture business ideas and start-up companies and, through a comprehensive business support program, help them establish and accelerate their growth and success.
The Business Incubator is a physical space or facility that accommodates a business incubation process.

10. Business Incubation Programs
Business Incubation - the actual situation
Business Incubation Programs
O are recognized as efficient tools for promoting entrepreneurship
and regional economic development in Europe and the United States of America, Australia, New Zealand, Latin America and Asia
O are following same principles - but are different by focusing more
- on innovation, technology, and knowledge based businesses in Europe and New Zealand
- on general entrepreneurship promotion in Developing Countries
O are following same principles - but are different reflecting the
economic and political environment with
- defined models of business incubation supported by national
governments (New Zealand or in Europe e.g. in France or Finland)
- a wide variety of approaches (no support of the national governments)
(in USA or in Europe e.g. Germany of United Kingdom)

11. Business Incubation globally
Business Incubation - the actual situation
Business Incubation globally
There is no comprehensive and reliable data available yet. The understanding (definition) of business incubation varies in the countries/regions of the world. However, in numbers the situation can be described as follows:
Business incubators in
- USA ca. 1,000
- Europe (EU) ca. 1,200 (incl. Germany: 320)
- Asia ca (incl. China: 450)
- Australia / New Zealand ca
- Eastern Europe/Central Asia ca (incl. Russia: 120)
- Latin America ca (incl. Brazil: 180)
- Africa ca ca
These numbers only give a general impression. To understand the situation such statistics must be related with population, market size, economic and scientific potential etc.

12. Business Incubation had different starting points
Business Incubation - the basis
Business Incubation had different starting points
O Business interest
- making use of existing (abandoned) facilities
(example: first business incubator in the USA)
O Economic development through innovation
- taking advantage of existing R & D results
(example: first business incubators in Germany were based on universities)
O Entrepreneurship promotion
- increasing the entrepreneurial potential and survival rate
(example: business incubators in Central and Eastern Europe)
O Supporting specific target groups and needs
- specialized business incubation programs, e.g. arts & kitchen incubators
(USA), regional revitalization (various regions in Europe)

13. Business Incubation means Innovation
Business Incubation - the basis
Business Incubation means Innovation
O Basis for new businesses: new products and services
- referring to local needs and potential
- international perspective if technology based
O Basis for new products & services:
- market demand
- research & development
O New businesses
- transfer inventions to innovations
- change use of technology and thereby work patterns and behavior
- generate new qualification needs
- create wealth and jobs
New businesses innovate - they change the economic and social environment

14. Innovation & Entrepreneurship
Backbones of economic and social development

15. Entrepreneurship & Innovation
Innovation & Entrepreneurship
Entrepreneurship & Innovation
Backbones of economic and social development

16. “Concept Business Incubation”
Innovation & Entrepreneurship
Main components of the
“Concept Business Incubation”
o Entrepreneurship the potential is determined by many factors, e.g.
- attitudes, habits,
- laws & regulations,
- local / regional potential in economy and science
o Innovation
- “innovation” - a relative term
- technological innovation - prerequisite for one specific type of business incubation
- social innovation - impact of the business incubation process

17. “Concept Business Incubation”
Innovation & Entrepreneurship
Main components of the
“Concept Business Incubation”
o Market(s) - with the focus on incubating (any) business the local market is sufficient
- talking about technology business incubation means aiming at international markets
o Networks - functioning local / regional networks are key to success
- for technology/knowledge based incubation networks need to be (inter-)national

18. Networking - the key to success of innovation and business incubation
Innovation & Entrepreneurship
Networking - the key to success of innovation and business incubation
Business Incubation & Innovation are based on partnership and cooperation
These processes need
- people in R & D to generate new products & services (researchers)
- people who want to start and develop businesses (entrepreneurs)
- people with money to finance innovation & new businesses (financiers)
- people to buy the products & services and generate new ideas (customers)
- people in politics & administration maintaining a supportive framework
... and a “mechanism” to make all these people work together
Innovation & Business Incubation are based on Networking

19. The spectrum is wide - some examples
BIG, Berlin Center for Innovation and New Enterprises
Technology Center Dortmund, Germany
Sophia Antipolis, France

20. Berlin Center for Innovation and New Enterprises, Germany
Examples
Berlin Center for Innovation and New Enterprises, Germany
1982 concept development for start-up support based on
innovation & technology transfer
opening of the business incubator (the first in Germany)
with 14 firms
1984 opening of first extension for the business incubator and
expansion of the concept towards a technology park
1985 opening of the Technology and Innovation Park Berlin
1986 foundation of “IZBM GmbH", as the managing company
for business incubation centres in Berlin
opening of business incubators in the Eastern part of
Berlin based on experience of the BIG
research institutes and 90 companies work in the TIP
th anniversary of the BIG firms graduated
* more information:

21. Berlin Center for Innovation and New Enterprises, Germany
Examples
Berlin Center for Innovation and New Enterprises, Germany
The concept for the BIG was developed on the basis of experience in technology transfer
1978 concept development for a systematic approach to technology transfer based on a university (Technical University of Berlin)
1979 establishment of “TU-transfer”, the first office for technology transfer of a German university.
Main activities: - “market pull” - contract development projects
- “technology push” - active marketing for
research results
- “personnel transfer” - qualified staff for SMEs
- “spin-off” - support for potential entrepreneurs

22. Berlin Center for Innovation and New Enterprises, Germany
Examples
Berlin Center for Innovation and New Enterprises, Germany
1980 first “spin-off” seminars to support scientists of the university starting their own company
1983 opening of the business incubator of the TU Berlin: BIG, Berlin Center for Innovation and New Enterprises
1986 establishment of IZBM GmbH as management company for business incubators in Berlin:
- “Berliner Innovations- und Gründerzentrum", BIG, 1983
- “Technologie- und Innovation Park Berlin", TIB, 1985
- “Innovations- und Greünderzentrum Adlershof”, IGZ, 1991
- “East-West Business Incubation Center”, OWZ, 1997

23. Technology Park, Dortmund, Germany
Examples
Technology Park, Dortmund, Germany
1985 beginning with a business incubator with 25 firms
1986 First company moves in and erects our building
1987 opening of first extension for business incubator
1988 Micro Chip producer decides to invest 30 million DEM
46 companies with 470 employees on site
1990 TechPark Dortmund decides to invest in sister park in
Dresden (not even one year after German unification)
1991 Third expansion building: 80 per cent let before being
ready. 18 hectares expansion land approved
th anniversary - now jobs in on site firms
1998 Max-Planck Institute moves into the park
2001 TechPark Dortmund develops regional incubator net
th Anniversary TechPark Dortmund
* data & picture taken from brochure of TechPark Dortmund

24. Technology Park, Dortmund, Germany
Examples
Technology Park, Dortmund, Germany
- the development of a Science Park
began with a business incubator

25. Sophia Antipolis, France
Examples
Sophia Antipolis, France
1960 First concept developed in (development zone)
1962 First institutes settled
1965 New university created in Nice
1974 Creation the Parc International d’Activités de Valbonne
decision: 2 / 3 of the 2300 hectares remain green
1977 Air France World reservation center
companies, 3,700 jobs
1983/ new companies with 1302 jobs move in
new companies with 1435 new jobs
...
th Anniversary of Sophia Antipolis
* data & picture taken from the Sophia Antipolis web site

26. Sophia Antipolis, France
Examples
Sophia Antipolis, France
- the development of a Science City
with a business incubator

27. There is more to see... business incubation plays an important role in
Examples
There is more to see...
business incubation plays an important role in
o fostering political and economic change in Central
and Eastern Europe (e.g. preparation for and
realization of integration into the European Union)
o contributing to realizing the political , economic, and
social change in Central Asia
o helping to create new companies and jobs in Latin
America

28. There is more to see... business incubation plays an important role in
Examples
There is more to see...
business incubation plays an important role in
o developing new businesses in Asia - think about in
China (with it’s unique approach) or the experience
developed in Japan and Korea
o Africa (led by South Africa and with unique
approaches like in Ghana) and other developing
countries
.... not to speak about the USA with about 1,000 business incubators or about the same number in the European Union

29. There is more to see... ...and much to learn...
Summary & Conclusion
There is more to see...
...and much to learn...
The success of the concept “Business Incubation”
o is based on integration and synergy by combining
- human, entrepreneurial components with
- economic potentials and
- innovative approaches (research & development)
o and consequently requires cooperation and networking
- locally within a city or community
- regionally and nationally
- internationally - as markets & technology require

30. The success of the concept “Business Incubation”
Summary & Conclusion
The success of the concept “Business Incubation”
o builds on flexibility and continuous development
- in adaptation to changing markets
- making use of technology based innovation
- reflecting social changes and needs
o is not possible without understanding, accepting
and integrating differences
- between the various “players” needed for the process
- between the regions of a country
- between the countries and nations

31. Therefore o there is no “one model fits all” for promotion of
Summary & Conclusion
Therefore
o there is no “one model fits all” for promotion of
innovation and entrepreneurship
o concepts need to be adapted
- to the specific needs
- the existing (and the “to be developed”)
potentials
- the agreed goals of the given environment

32. Summary & Conclusion
Conclusion
Business incubation is part of innovation promotion and support systems and has
o enhanced entrepreneurship in very different
environments, under very different conditions
o facilitated cooperation between business & finance,
research & development, and administration & politics
o enabled its environment by promoting innovation
and entrepreneurship

33. Summary & Conclusion
The variety of existing innovation promotion and business incubation experience in (almost) all regions of the world as well as the duration of successful work of business incubators is evidence and reason for the remaining and growing importance of this concept.
If understood as a concept, a state of mind, rather than a mechanism or a building, business incubation is far from having reached its potential.

34. Good to know
Attachments

35. The comprehensive definition
Good to know
The comprehensive definition
adopted by the International Summit in Richmond, USA, May 2003
A Business Incubation Program is an economic and social development process designed to advise potential start-up companies and, through a comprehensive business assistance program, help them establish and accelerate their growth and success. The main goal is to produce successful businesses that will leave the program, in a timely manner, financially viable and freestanding. These graduates create jobs, revitalize communities, commercialize new technologies and create wealth for local and national economies.
Critical to the success of a Business Incubation Program is:
Management that develops and orchestrates business, marketing and management resources and relationships tailored to the needs of the business clients
Shared services, training, technology support and equipment
Selection of clients and an acceleration process by which businesses become more independent and progress to graduation
Assistance in obtaining the financing necessary for business growth
Business Incubation Programs gain added value by providing access to appropriate rental space and flexible leases in an incubator facility.
Note: In this definition the term ”Business Incubation Program” may be replaced by the words ”Business Incubator”. Furthermore the Summit acknowledged that depending on the specific situation in a country the provision of appropriate rental space may be added to the critical success factors.

36. The Basics: Good to know
Main mandatory components of Business Incubators are
(1) Entrepreneurship promotion and start-up and business planning support
(2) Business development consulting, training and support
(3) Networks that provide access to specialized business consulting, technology commercialization and business financing resources
(4) Physical facilities (buildings, rooms to provide office, production or laboratory space for lease, flexibly according to the demand of client)
This statement expressly is not meant to rank business incubators without physical facilities lower than business incubators with them; it is aimed at securing the clear understanding of the concept.
(International Summit of Associations, Dortmund, Germany, November 2002)

37. Different Concepts & Approaches
Good to know
Different Concepts & Approaches
Concepts for science & technology parks cover a wide range of different approaches
creation of a new city (e.g. Sophia Antipolis, France)
developing a district of a city (e.g. WISTA Berlin, Germany)
green field development (e.g. TechnologieParkDortmund, Germany)
inner city s & t park (e.g. ASTON Science Park Birmingham, UK or BIG/TIB Berlin, Germany or “Svetlana”, St. Petersburg, Russia or Kanagawa, Japan)
company driven project (e.g. the Graphisoft Park, Budapest or busyInternet, Accra, Ghana)

38. Different Concepts & Approaches
Good to know
Different Concepts & Approaches
Business incubators are organized differently and serve a wide range of purposes
stand-alone incubators - general entrepreneurship promotion
university / science based - technology & innovation focused
science/technology park component - tenant generators
rural incubators - regional development
industry based incubators - innovation, technology transfer
virtual incubators - all purposes
Business Incubators are different - and have to be different

39. Different Concepts & Approaches
Good to know
Different Concepts & Approaches
The World is not homogenous. There are many differences in
history
traditions, habits
experience (with economy, industry)
economic, social conditions
Not even West European business incubators are the same
- Finland, France, United Kingdom, Germany...
“Eastern Europe” shows many differences too
- Central Europe: Poland, Czech Republic...
- Eastern Europe: Russia, Ukraine...
- Central Asia: Kazakhstan, Kyrgyzstan, Uzbekistan...
There is more than one way to do it well !

40. Good to know
The local environment and the mission (aims) determine the work of a business incubator
Everywhere valuable “local” know-how exists. This is the basis to build on.
there is no “best” practice, but good examples
toolkits are needed – not “magic formulas”
tools need instructions for use / adaptability to different environments
training programs must adapt to actual / local level
flexibility and continuous development are key to success
“Make is just as we do” does not work !

41. Key Factors for Success
Clear Mission
- and agreement about this mission with local players
Local Network
- integrating as many support partners as possible
People
- the right management team
Development Potential
- room for expansion and development (for graduated companies)
Time
- business incubation processes need (much) time to generate impact

42. Example : business incubators in Germany
Experience
Example : business incubators in Germany
o First Incubator opened in Germany 1983
BIG - Berlin center for Innovation and New Enterprises
initiated and operated by Technical University of Berlin
started with 14 companies (26 employees)
1986 expansion towards Technology and Innovation Park Berlin
until 2003: 280 companies incubated (ca jobs)
Two more incubators started in following six months: Aachen and Karlsruhe
both are university based incubators
different approaches: within university / in former factory
o : about 340 incubators in Germany

43. Experience

44. Example : business incubators in Germany
Experience
Example : business incubators in Germany
ADT, German Federal Association of Business Incubators