1. Prince Abdullah Bin Abdulaziz Science Park Prince Abdullah Bin Abdulaziz Science Park (PASP) A Presentation for H.E. The Rector Dr. Khaled S. Al-Sultan by PASP Project Committee 14 June 2003

2. 2 Members of the PASP Project Committee & Their Responsibilities Dr. Mohammad Abul-Hamayel Legal Issues and Governmental Regulations Dr. Mohammad Al-Ohali Conceptual Planning, International Science Park Practices Dr. Aymen Kayyal Technology Transfer, Incubator/Spin-off Program, and IP Management Dr. Sadiq M. Sait Conceptual/Detailed Planning, International Science Park Practices, and IT Related Activities Dr. Halim Hamid Redhwi Chairman PASP Project Committee Overall Coordination, Planning, & Petroleum/Petrochemical Related Activities

3. 3 RECOGNITION The committee recognizes the contribution of H.E. Dr. Abdulaziz Al-Dukhayyil, former Rector of KFUPM, for originating the idea of Science Park at KFUPM and fully supporting and guiding the activities of PASP project Thanks are also due to Dr. Fida Al-Adel who initiated the visit of UNESCO experts to KFUPM and had earlier organized a workshop on Science Park at KFUPM in 2000

4. 4 Presentation Outline Part I: A Brief Overview about Science Parks Part II: Plan of PASP Part III: Progress and Status

5. 5 What Are Science Parks? A property based initiative which: – Has operational links with universities and research centers – Is designed to encourage knowledge based industries – Has an element of technology transfer and job opportunities Over a thousand Science parks around the world: Australia, Dubai, Finland, Hong-Kong, Morocco, Brazil, UK, USA, and others IASP (International Association of Science Parks, 250+ membership almost half are University Parks) How Different from Research Institutes (RI)?

6. 6 Benefits from the Park Economic development of the country University to become skilled at industry collaboration Tenants forming associations with the University Commercialization of University research, including incubation facilities for start-ups Development of the region and creation of wealth and employment opportunities To earn income from ground rental to support University research

7. 7 What is an Incubator? An incubator generates and sustains the dynamic process of business enterprise development for individuals eager to start companies to build commercially viable products. It provides support of infrastructure, logistics, finance, training, and advice, until the businesses find their own place outside.

8. 8 Chronology of Events KFUPM Science Park Project Committee Formed: 19/05/2002 International Companies Contacted: 20/06/2002 Letters of Intent Received: 15/07/2002 Conceptual Plan (prepared by PASP Project Committee): 15/09/2002 PASP Website Created ( http://www.ccse.kfupm.edu.sa/~cadprj ): 01/10/2002 Foundation Stone by HRH Prince Abdullah Bin Abdulaziz: 20/10/2002 Saudi Economic Offset Program Approached:12/12/2002 British Council Official Visited:16/12/2002 UNESCO Experts Visit to KFUPM: 22-25/02/2003 PASP Plan Finalized: 25/03/2003 Schlumberger Contract Signed: 04/04/2003 Project Awarded for Layout/Infrastructure Planning: 09/04/2003 Marketing Campaign Launched: 15/04/2003 Presentation to HH Prince Saud Al-Saud, Chairman SABIC:26/04/2003 Preliminary Report on Layout/Infrastructure finalized: 27/04/2003

9. 9 Plan of PASP Plan of PASP The Vision The Mission Other issues

10. 10 Vision To make a significant contribution to the wealth & welfare of the Kingdom of Saudi Arabia through the development of knowledge based companies that will also strengthen the achievement of the mission of KFUPM to be a leading institution in the creation and dissemination of knowledge in its chosen fields of study

11. 11 Mission To develop financially self-sustaining physical and operational entity designed to create wealth through the commercialisation of scientific and technological knowledge from KFUPM; Development of an entrepreneurial culture amongst faculty, researchers, students, of KFUPM and providing technical, business, and financial advice to clients; Providing space in incubator and science park with access to university facilities and creation of a self sustaining and self supporting community of knowledge based companies.

12. 12 Objectives Commercialization of University research and to act as a vehicle for entrepreneurs by providing a strong point of presence for international companies; Providing incubator programs to young Saudis and promoting emerging small-businesses and enterprises; Utilizing the Kingdom’s industrial and market strength for the benefit of making KFUPM a focal point for attracting International R&D Personnel from Schlumberger, CIBA, Nippon, Microsoft, Bell, GE, etc.; Generating employment opportunities for students and graduates in these knowledge based business houses; To perform relevant and high quality R&D for transfer to industry, and provide a focal point of industry-University relationship;

13. 13 Proposal for Funding & Finance Given its ideal location and the explicit returns for the Industry, it is proposed that PASP-KFUPM Company be formed that is financed by:  KFUPM  Private Investments (VC)  Saudi Aramco, SABIC, and other Mega Companies The University would be a decision making member responsible for laying down standards for leasing tenants, while operation, maintenance and construction would be the responsibility of the company

14. 14 Governance & Management For effective management and governance it is suggested that PASP-KFUPM Company is formed based on the collaboration between three major parties: – University: knowledge and resources (and partial funding) – Industry: financing – Government: regulations and incentives Park managed as a commercial enterprise by a Park Manager, who heads the management team, and is overseen by a board of directors

15. 15 Part III Progress and Status

16. 16 UNESCO Experts Visit Date of Visit: 22-25 February 2003 UNESCO Expert Group on Science Park: 1) Dr. Harry Nicholls, Managing Partner, ADCAL, UK 2) Dr. Marco Baccanti, President of International Association of Science Park (IASP), Spain 3) Mr. Nur Youslan, UNESCO, France

17. 17 UNESCO Experts Consultation Objectives: – To discuss the status of the conceptual plan of establishing Science Park at KFUPM with PASP Project committee members, and KFUPM officials – To discuss the PASP plan for layout, and infrastructure and land development – To provide set of recommendations

18. 18 UNESCO Experts Consultation Comments: – Experts largely endorsed the conceptual plan prepared by the PASP committee – Expressed satisfaction that the direction and thinking invested thus far will lead to the success of the park – Provided some additional recommendations

19. 19 UNESCO Experts Recommendations Supreme aim is the development of a community that will create wealth and welfare in the Kingdom, and the creation of an entrepreneurial culture that maximises the commercialisation of ideas from KFUPM; A combination of patience compatible with the achievement of PASP’s Vision in the long-term (30 years); and a sense of urgency compatible with producing early visible performance

20. 20 UNESCO Experts (Recommendations, Contd.) An arms-length company separate from the University and Research Institute should manage the Park (PASP) The Board of PASP should be chaired by the Rector and should have members from the University, Government, tenants, and other key stakeholders HRH Prince Abdullah bin Abdulaziz could be approached for becoming the honorary President of the Board A Park Manager (CEO) should be appointed as soon as possible The site development plan of the Park should be completed and approved by the PASP Board

21. 21 First Tenant in PASP ( Schlumberger, USA) Schlumberger/KFUPM collaboration began in year 2000 Formal contract as park tenant signed in 2003 Schlumberger Foundation Stone Placed Site allocated in proposed PASP Site (2500 Square meters) Building design completed, construction work to begin Currently Schlumberger renting space in KFUPM Schlumberger employees working at KFUPM Conducting joint projects with KFUPM

22. 22 Potential Tenants in PASP (JCCP, Japan) Contract Duration: 1995-2005 HSFCC project foundation stone by HRH Prince Abdullah Bin Abdulaziz Utilizing RI laboratories for housing equipment and instruments Japanese researchers working full time at KFUPM HSFCC Lab Facilities developed in KFUPM and Ras Tanura More projects committed

23. 23 Potential Tenants in PASP (CIBA Chemicals, Switzerland) Contract Duration: 2002-Open-ended Using KFUPM laboratories for housing equipment and instruments Using KFUPM laboratory and field facilities for research projects CIBA researcher working full time at KFUPM Training KFUPM researchers for CIBA business related research work

24. 24 Interest of International Companies in PASP (Letters of Intent received from;) Idemitsu Kosan Company Ltd., Japan Cytec Industries, B.V., The Netherlands Institute France Petrole (IFP), France Membrana GmbH (a member of the ACORDIS Group), Germany DevCorp International, Bahrain

25. 25 Saudi Economic Offset Committee Saudi Economic Offset Committee was contacted for funding the land development of PASP A visit is anticipated and a presentation is being prepared DevCorp which is a parent company of Saudi Offset Ltd. Partnership (SOLP) contacted KFUPM and held several meetings

26. 26 Saudi Aramco and SABIC Participation Invitation letters sent to Saudi Aramco and SABIC for involvement and participation in PASP Potential Advantages Cited;  Availability of additional R&D laboratory space for expansion of R & D activities not covered in existing R&D facilities  Opportunity for Saudi Aramco employees with new and novel ideas to begin to exploit them in a separate atmosphere  Opportunity to come into direct contact with, and to evaluate, students who are potential new Saudi Aramco employees. SABIC has already contacted for clarifications

27. 27 PASP SITE

28. 28 Critical Success Factors Consensus on the factors that contribute to the success or failure of university-related science parks can be placed in two categories: 1. Factors associated with the site, (its size and location), the university’s inclination, and its research base to contribute and gain from such a relationship 2. Factors associated with the university’s administration and sponsoring of the project

29. 29 Critical Success Factors (Contd.) Factors that can greatly impact the development and growth are: 1. Planning, leadership, commitment and involvement of all concerned parties for effective implementation of the plan 2. The detailed plan should be based on clear objectives, well integrated with the long-term mission and goal of the university 3. Close interaction between the tenant firms and the University 4. A clear management structure with a Park Manager appointed at an early stage 5. Preference to companies in the general research strengths of the university

30. 30 Look Ahead Plan For Q3 & Q4, 2003 Site development Plan to be complete by October 2003 LOI from 5 new Potential Tenants Confirmation of involvement by Saudi Aramco and SABIC Drafting a Marketing Plan Public Awareness in Electronic- and Print-Media Visits to International Science Parks Attendance in related Conferences Visits of International Experts to KFUPM (British Council) Sub-Committee (Legal, Marketing, etc.) Initiate search for Park Manager

31. 31 Action Plan for 2004 Board of Directors Approved 10 Tenants Agreement Legal and Administrative Issues Resolved Clear Tenant Selection Criteria Site Developed Defining The Role of Faculty members, researchers and Students in PASP Incubator Program Launched

32. 32 Follow-Up Action Items Based on the directives of HE The Rector a brief document on Look Ahead Plan and Action Plan for 2004 will be formulated

33. 33 Finally … The PAASP is a strong statement of KFUPM’s determination to maintain its high standards in research, technological development and academic excellence. It is an initiative to couple the University’s research resources with the technological capabilities of the industrial sector, thereby creating a highly collaborative environment with vast potential for joint technological R&D.

34. 34 And.. With the establishment of this science park, KFUPM moves forward into its fiftieth year with a far-reaching initiative that will be a dynamic catalyst for technological development and collaboration between the university and the industry.

35. THANK YOU

36. Engineering Conference Presentation follows…. The following slides will be used if The Rector has more questions

37. 37 Members of the PAASP Project & Their Responsibilities Dr. Halim Hamid Redhwi Chairman PAASP Project Committee, Responsible for Overall Coordination, & Petroleum/Petrochemicals Related Activities Dr. Mohammad Abul-Hamayel Legal Issues and Governmental Regulations, and others Dr. Mohammad Al-Ohali Conceptual/Detailed Planning, International Science Park Practices, and others Dr. Aymen Kayyal Technology Transfer, Incubator/Spin-off Program, IP Management, etc. Dr. Sadiq M. Sait Conceptual/Detailed Planning and IT Related Activities, etc.

38. 38 Three Part Outline Part I: About Science Parks – Concept, Trends, Stakeholders, Motives, Benefits, etc Part II: Conceptual Plan of PAASP – Conceptual Plan, Proposed Site, Potential Tenants, Financing, Consultants, Look-Ahead Plan, etc Part III: General Discussions & Conclusion

39. 39 Part I About Science Parks

40. 40 About Science Parks What are they? History and Trends Stakeholders Motives Relevant Joint Activities The Incubator

41. 41 What Are they? Definitions and forms: A wide range A generally accepted definition includes: A property based initiative which: – Has operational links with universities, research centers, and/or other higher education institutions – Is designed to encourage the formation and growth of knowledge based industries on high-added-value firms – Has a steady management team actively engaged in the transfer of technology and business skills Science parks in other parts of the world: Australia, Dubai, Finland, Hong-Kong, Morocco, Brazil, UK, USA, everywhere, hundreds IASP (International Association of Science Parks)

42. 42 Different from an RI External Research projects at KFUPM departments and RI differ from Science Park concept At the Science-Park, companies conduct research independently for their own motives, by their own researchers, utilizing their own facilities, and may involve University researchers & facilities, without intervention of University It differs from funded project awarded to University faculty

43. 43 History and Trend Earlier, most (if not all) universities were reluctant to embrace collaboration with industry, and industry similarly was shy of academia Around 1980s, Universities began trying to contact industry (a little earlier in some industrialized countries such as the UK) The science park concept was an unfamiliar one and companies were mainly attracted to it by a desire to be near to the University's scientific research

44. 44 History and Trend Around 1994, Universities would contact companies through Science Parks (Research Parks) Now, there are networks of universities and networks of Science Parks With time, science from laboratories (with work on proof of concept, prototyping), via liaison offices, incubators, nurseries, science parks is making to industry

45. 45 Stakeholders The primary stakeholders in the development and sustenance of a Science Park are: – The University – Tenant firms and enterprises (industry component) – Investors and Private Start-up Companies Each of these stakeholders will play a vital role in the development and growth of the Science Park (PAASP)

46. 46 University’s Motives Economic development through industry linked projects University to become skilled at industry collaboration Tenants forming useful associations with the University in the pursuit of any aspect of the our University’s mission Opportunities for commercialization of University research, including via incubation facilities for start-ups To earn income from ground rental in support of University research

47. 47 Joint Activities Joint research projects, especially for graduate and doctoral students Work experience programs for undergrads (part- and full-time jobs for university students) Sharing of university equipment and laboratories Custom-designed education programs for tenants Many staff in tenant companies can enroll in our graduate programs Advice from tenants (companies) on the design of courses Adjunct appointments of industry experts to teach and research in the university

48. 48 Joint Activities Larger companies can have their research work contracted to the university. (The proximity with the academic departments producing hundreds of graduates in an area of expertise is a plus) Companies can donate equipment and tools, share expertise, etc., in return for using university labs, faculty, and students Tenants can also lend University valuable scientific equipment Senior staff of tenant companies can serve on University advisory boards Tenants can offer scholarships to postgraduate students

49. 49 Types There are several models, depending on the objectives It could be a park or a network or parks (a park can be a network of companies) For a Science Park linked to a University, collaboration is the key May or may not have an Incubator

50. 50 What is an Incubator? An incubator is a welcoming and supporting partner that generates and sustains the dynamic process of business enterprise development for individuals eager to start companies to build commercially viable products and services over innovative technologies; it provides support in terms of infrastructure, logistics, finance, training, advice, and offices, until the businesses find their own place.

51. 51 Part II Conceptual Plan of PAASP

52. 52 Conceptual Plan of PAASP The Vision The Mission Goals/Objectives Benefits Funding & Finance Governance & Management Some Critical Success Factors

53. 53 The Vision To create an environment within the university that will forge closer ties and enduring links between academia and the industry spanning a spectrum of research and development issues for technological and economic growth.

54. 54 The Mission Statement To institute a financially self-sustaining physical entity that would foster technological innovation and accelerate its commercial deployment through sustained collaboration with established companies as well as promote start-up enterprises through business incubator programs.

55. 55 Goals/Objectives The primary purpose of instituting a science park within KFUPM can be listed as follows: – To forge a strong collaboration between the university and industry in R&D – To promote small tech-specific businesses and start-ups through an incubator program – To direct significant technology-driven foreign investment and presence into the Kingdom – Commercialization of research – Providing a strong point of presence for major international companies and enterprises – Technology Transfer: Channeling new global technologies and practices into the Kingdom

56. 56 Benefits to KFUPM Close links and collaborative efforts between the science park’s businesses and tenants and the university’s faculty, researchers and students Attraction and retention from amongst the best faculty and researchers Industrial presence for the benefit of students The presence of International major companies will help keep the university abreast of the latest technological trends and developments Employment opportunities for students (during study and upon graduation)

57. 57 Benefits to Tenant Firms Tenant companies can have a significant point of presence in the region especially from an R&D perspective Availability of a highly skilled work-force pool from graduate and undergraduate student body Assistance in identifying university programs and resources that best relate to the tenant’s research Adjunct faculty participation from tenants Opportunity for commercial deployment of university’s proprietary patents and innovations Access to the university’s advanced educational and training programs

58. 58 Benefits to Investors Venture Capital Companies can get involved in developing infrastructure for PAASP and can go beyond it by managing the park as a commercially profitable enterprise Private start-up companies would have access to the incubator program at PAASP, which would provide a stable growth catalyst. This is in addition to other research and development facilities as available to other tenants Developing companies would benefit from the mentoring, investment and marketing support which established larger companies could provide

59. 59 Funding & Finance Given its ideal location and the explicit returns for the Industry, it is proposed that the park should be financed entirely by private investment rather than through government funding This would not only give the university independence from this huge task, but also would be a measure of the Industry’s interest and initiative in the project Under this model, the university would be a privileged decision member responsible for laying down standards and leasing tenants while maintenance and construction would be the responsibility of a private sector enterprise

60. 60 Funding & Finance Under the proposed financial system, the University will provide the land-area for the science park, entering into a lease agreement with a private enterprise for construction and development This enterprise may receive its returns from a percentage of the land and building rentals The PAASP Committee has been in contact with a private company which with its experience in funding and managing such projects has expressed interest to partner with the university and secure funding for the SOLP: – Development of the Concept as a Commercial Venture – Investment through SOLP in the Commercial Venture – Advisory role in the Project implementation

61. 61 Governance & Management The effective management and governance of the science park is based on the collaboration between three major parties: – university, knowledge and resources – industry: financing from the industry – government: regulations and incentives come from them Park managed as a commercial enterprise by a Park Manager, who heads the management team, and is overseen by a board of directors

62. 62 Part III General Discussions & Conclusion

63. 63 Fact Despite the considerable potential benefits, world-wide experience shows that genuine collaboration between universities and industry within science parks has been difficult to achieve. Companies in science parks are commercially oriented and need to be persuaded that the University offers attractions.

64. 64 A Comment & The Challenge Studies have concluded that many science parks are mainly a form of prestigious real estate development, physically isolated from the surrounding society and thus quite unlikely to generate productive synergies of any kind. (Phillimore et al, XV IASP World Conference Proceedings) KFUPM needs to accept this challenge and work hard to demonstrate its enthusiasm and ability to offer value to tenant companies

65. 65 Broader goals: Caution All future tenants must be capable of and willing to work with the University Provisions must be worked out to ensure that the Park achieves the University's aims and does not degenerate into just another business park University must attract organizations capable of 'forming any useful association with the University’

66. 66 What to Expect? The university will be surrounded by some of the world’s leading technology companies Industry participation in academia The university will build on its current strengths due to proximity with industry. Proximity will assist greatly in fostering relationship with tenants The research/teaching programs will concentrate on modern high technology, and university’s research will win recognition through grants and sponsorships

67. 67 How to Encourage Collaboration Involving faculty in planning & tenant selection RI and University Research Office can be tenants Appointing a Park Manager early The university having a stake in the parks ongoing development Offering tenants privileged access to university facilities Holding regular seminars and briefings, where university and tenant staff can mingle and make informal contacts Special scholarships for students to conduct their research projects in the Park Inviting senior staff of tenant companies to join university advisory boards

68. 68 Current Status Master plan is being created & approvals are being sought Legal issues are being looked into Offset program (SOLP) is being contacted both directly and via a private enterprise, and alternate modes of financing are investigated. Tenants are sending to the university their letters- of-intent (Idemitsu, Japan; Cytec, Italy; IFP, France, Membrana of Germany) Few have already moved in physically/virtually. Some will construct their own building with our specs (Schlumberger, France; CIBA, Switzerland; JCCP, Japan)

69. 69 Finally … The PAASP is a strong statement of KFUPM’s determination to maintain its high standards in research, technological development and academic excellence. It is an initiative to couple the university’s resources and talent with the technological capabilities of the industrial sector, thereby creating a highly collaborative environment with vast potential for joint technological research and development. With the establishment of this science park, KFUPM moves forward into its fiftieth year with a far-reaching initiative that will be a dynamic catalyst for technological development and collaboration between the university and the industry.

70. 70 Acknowledgments On behalf of the PAASP Project Committee I would like to extend thanks to all who contributed to making this presentation in terms of supplying material, editing text, preparing the layout, organization, etc. In particular Faheemuddin, Sanaullah, etc, (all in alphabetical order).