1. L/O/G/O Brief Overview of The Baseline Study, and ASEAN Business Incubation Models Hadi K Purwadaria Project Coordinator ASEAN Team Study- Kemkop dan UKM, Division International AIBI hadi_purwadaria@yahoo.com ASEAN Workshop on Strengthening SME Business and TBI Bogor, Indonesia, 14-15 June2013 10/7/20151

2. Institution of Technology Business Incubation 10/7/2015 2

3. L/O/G/O BACKGROUND  ASEAN Leaders Meeting, Hua Hin Thailand, 2009 : SME development in ASEAN will be enhanced through Business and Technology Incubators  Assessment should be carried out for the progress and model of best Business and Technology Incubators for ASEAN 10/7/20153

4. L/O/G/O ASEAN PROJECT OUTCOMES  ASEAN Business Incubation Models  ASEAN Business Incubator Network 10/7/20154

5. L/O/G/O RESPONDENTS  10 AMS @ 3-4 business incubators or institutions planning to establish business incubators (Cambodia, Laos PDR, Myanmar), and stakeholders  Respondents also joined the Study Team to one AMS other than its country  Design has intentioned to start the ASEAN network 10/7/20155

6. L/O/G/O BRIEF OUTCOMES OF BASELINE STUDY 10/7/20156

7. L/O/G/O 1. ASEAN BUSINESS INCUBATOR MODELS :  ICT BUSINESS INCUBATION MODEL  PROCESSING BUSINESS INCUBATION MODEL: agriculture, bio-technology, manufacturing, general services  VIRTUAL BUSINESS INCUBATION MODEL 10/7/20157

8. L/O/G/O Characteristics of BUSINESS INCUBATION MODELS :  Type of incubator, funding support, incubator clients, pre-incubation program, incubation period, delivery program, space for clients, other facilities, funding for clients, location 10/7/20158

9. 9 CriteriaDescription Type of IncubatorFor Profit or Not-for-Profit Funding SupportPrivate or government supported Incubator ClientsUniversity graduates Pre-incubation Program A required part of the incubation model Incubation Period6 months to 5 years Delivery ProgramInside incubator building Space for ClientsOpen space, or private room Other Facilities Hi-speed internet network, office, meeting rooms, and get together spaces. Funding for Clients Venture Capitals, angel investors, or government LocationOn university campus, Techno or Science Park (TSP), or private building ICT Business Incubation Model

10. 10/7/201510 Processing Business Incubation Model CriteriaDescription Type of IncubatorFor Profit or Not-for-Profit Funding SupportPrivate or government supported Incubator ClientsUniversity graduates or general public Pre-incubation Program Optional Incubation Period3-5 years Delivery ProgramInside incubator building Space for Clients Mostly private room, but some open space Other Facilities Internet network, office, meeting rooms, and get together spaces. Access to pilot plant, workshop, and laboratory Funding for Clients Mostly government, some are angel investors. LocationOn university campus, Techno or Science Park (TSP), or private building

11. 10/7/201511 Virtual Business Incubation Model CriteriaDescription Type of IncubatorFor Profit Funding SupportPrivate Incubator ClientsGeneral public Pre-incubation Program None Incubation Period3 months to 2 years Delivery ProgramVia internet network Space for ClientsNone Other Facilities Internet network, office, and meeting rooms Funding for Clients Venture Capitals, and angel investors LocationPrivate building

12. L/O/G/O 2. PROFILE ASEAN BUSINESS INCUBATORS:  Developed : Malaysia, Singapore, Thailand  Developing : Brunei Darussalam, Indonesia, Philippines, Vietnam  Starting : Cambodia, Laos PDR, Myanmar 10/7/201512

13. LevelNo of Incubator s Existing Sci & Techno Park Availability of Government Funding to Incubator & start-up DevelopedOver than 80 1-3Available Developing 3-80Seedling-2Not available or limitedly available StartingNone-2None Criteria for Level of Incubator Development 10/7/201513

14. CountryNo. of IncubatorsNo. of Companies incubated Brunei Darussalam330 (estimate) Indonesia40400 (estimate) Cambodia1Less than 10 Laos PDR1Less than 10 Malaysia1102000 MyanmarNone Philippines10100 (estimate) Singapore1201800 Thailand89412 Viet Nam1147 Japan1902,375 10/7/201514

15. L/O/G/O APPROACH OF DEVELOPED BUSINESS INCUBATOR DEVELOPMENT  Full continuous support to business incubators is not cost centre.  Treated as a profit centre in the long run : technology based growing enterprises, government income, employment provider, spin-off and multiplier effect, regional market share 10/7/201515

16. L/O/G/O Examples of Government Full Support Singapore :  The $30 million Incubator Development Programme (IDP) provides Incubators and Venture Accelerators a grant to enhance capability development programmes for innovative startups.  IDP provides up to 70% grant support to incubators and venture accelerators in areas such as : Programmes To Nurture Start-ups Costs of introducing programmes that help start-ups develop new products/services, obtain business financing, improve market access, etc Mentoring Start-Ups Hiring mentors to provide management guidance to start-ups Operating Expenses Costs incurred to market services/events, hire incubator managers, train staff, provide shared services/equipment for start-ups, etc 10/7/201516

17. L/O/G/O Singapore :  The National Research Foundation (NRF), has Technology Incubation Scheme (TIS) for start-up companies.National Research Foundation (NRF)Technology Incubation Scheme (TIS)  NRF-TIS will co-fund up to 85 percent of total investment per company, or up to S$500k (US$400k), with the rest topped up by the venture firm.  The incubators can choose to buy out NRF’s equity share within three years of investment, at a price of 1.1 times capital in the first two years, and 1.15 times capital in year three.  The scheme is also provided to private incubators 10/7/201517

18. L/O/G/O Examples of Government Full Support Thailand :  NSTDA built and operated the Thai Software Park and incubator, and the Thai Science Park and incubator.  NSTDA built and supported the operation of business incubators in the state universities all over Thailand  NSTDA is building 5 more Science Parks including agricultural science Park in the provinces 10/7/201518

19. L/O/G/O Examples of Government Full Support Thailand :  In the anticipation of ASEAN 2015 regional market : launch program by Min. Education to provide soft loan to students and graduates (max 5 year after graduation) who submit business plan to selected 63 business incubators :gov. and privates.  Amount soft loan 30 K USD per start-up company for 5000 grants in 2013, 10 thousand in 2014, 20 thousand in 2015, and 40 thousand in 2016. Soft loan with no interest, and paid back in 2-5 years. 10/7/201519

20. L/O/G/O Examples of Government Full Support Malaysia :  Government built and operated the Technology Park Malaysia, and Kulim Techno Park  2006 : Establish Growth Acceleration Fund for SMEs  2012 : SME Domestic investment Strategic Fund to spur the technological growth  Built and operate Business Incubators for Handicraft in many states. 10/7/201520

21. L/O/G/O BENCHMARKING OF ASEAN TBI TO JAPAN’S 10/7/201521

22. 10/7/201522 Business Environmental JAPANMALAY- SIA SINGA- PORE THAI- LAND General : Population, M GDP x1000 USD/cap Year TBI started No. TBI National Asc 128.05 36.3 1986 190 JBIA 27.56 16.9 1995 110 NINA 5.08 60.4 1996 120 68.7 10.1 2005 89 Thai BISPA Government Support : TBI Building & Operation Seed & Growth Fund for incubatees Research & Technology Innovation Fund for incubatees Tax Incentive for VC & Angel Investors ++++++++ ++++++ ++++++ + Only seed fund +

23. 10/7/201523 Business Environmental JAPANMALAY- SIA SINGA- PORE THAI- LAND Non-Government Support : Venture Capital & Angel Investors Community ++++ +++ Funding Resource for TBI Operation : Space Rental Membership Fee Institution Owner Incubation Services Government Private Sector Community ++++++++++++++ ++++++++++++ ++++++++++++ ++++++++++++

24. 10/7/201524 Business Environmental JAPANMALAY- SIA SINGA- PORE THAI- LAND Establishment of Science & Techno Park ++++ Other Supporting Institutions : Expert Network Technology Licensing Office IPR Office Stock Market + Big and Small + Big + Big + Big Ministries InvolvedMETI MEXT MITI MOSTI SPRING Min. Trade NRF MOST Min. Edu Min. Ind

25. L/O/G/O Business Incubators in Pictures Indonesia 10/7/201525

26. 10/7/201526

27. Bandung Digital Valley 10/7/201527

28. Bandung Digital Valley 10/7/201528

29. SOLO TECHNOLOGY PARK 10/7/2015 29

30. L/O/G/O Business Incubators in Pictures ASEAN 10/7/201530

31. Small World Group, Private Business Incubator, Singapore 10/7/201531

32. hub singapura 10/7/201532

33. Thai business incubator, Thai Science Park 10/7/201533

34. Inkubator Bisnis, Thai Software Park 10/7/201534

35. MTDC business incubator, Malaysia 10/7/201535

36. Technology Park Malaysia Cyberjaya Kulim Hi-tech Park 10/7/2015 36

37. iCentre, Brunei Darussalam 10/7/201537

38. TechnoHub, private business Incubator and Techno Park, Philippines 10/7/201538

39. Saigon Hi-tech Business Incubator and Saigon Hi- Tech Park, Vietnam 10/7/201539

40. Agricultural Hi-tech Business Incubator and Tech Park, Vietnam 10/7/201540

41. L/O/G/O 3. ASEAN BUSINESS INCUBATOR NETWORK Future Recommended Program  ASEAN Common Fund  ASEAN Co-incubation Program  Other Programs : data base information : mentors & experts, best practices model, success incubatees; training for incub. manager and start-up companies; annual meeting 10/7/201541

42. L/O/G/O Thank You! 10/7/201542