2. Status Report To HE The Rector of KFUPM By Committee on PAASP 4 November 2002 Prince Abdullah Bin Abdulaziz Science Park (PAASP) (PAASP Committee Thanks HE The Rector For Associating The Name of Prince Abdullah with KFUPM Science Park)

3. 2 Committee Members and Their Responsibilities Dr. Mohammad Abul-Hamayel Legal Issues and Governmental Regulations Dr. Mohammad Al-Ohali Detailed Planning Dr. Sadiq M. Sait Conceptual Planning and IT Related Activities Dr. Aymen Kayyal Technology Transfer and Intellectual Property Management Dr. Halim Hamid Redhwi Overall Coordination and Petroleum/Petrochemicals related Activities

4. 3 Outline of Presentation  Conceptual Plan  Proposed Site  Potential Tenants  Role of DevCorp  UNESCO Expert Visit  Other Items  Directives Needed From HE The Rector  Look-Ahead Plan

5. 4 Conceptual Plan

6. 5 Conceptual Plan Outline  The Vision  The Mission  Goals and Objectives  Strategic Directions  Stakeholders & Benefits  Funding & Finance  Governance & Management  Some Critical Success Factors

7. 6 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.

8. 7 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.

9. 8 Goals The primary goals of instituting a science park within KFUPM are:  To forge a strong collaboration between the university and industry in the areas of research and development.  To promote small technology-specific businesses and start-up enterprises through an incubator program.  To direct significant technology-driven foreign investment and presence in the eastern province and the Kingdom.

10. 9 Objectives These goals can be visualized through the following objectives:  Commercialization of research.  Providing a strong point of presence for major international companies and enterprises.  Providing incubator programs to promote emerging small-businesses and enterprises.  Utilizing the industrial presence for the benefit of students.  Generating employment opportunities for students during their course of study and upon graduation in these business houses.  And others.

11. 10 Joint Activities The above goals and objectives can be achieved through a wide sphere of activities and joint ventures between the industry and the university:  Work experience programs for undergraduate students  Industry research projects for graduate and doctoral students  Mentoring opportunities for management students  Sharing of equipment and laboratories  Inclusion of senior management & technical personnel from these tenant firms into the university advisory boards  Adjunct appointments of industry experts as faculty and researchers in the university

12. 11 Strategic Directions From the goals and objectives that were outlined in the previous section three primary areas of strategic thrust can be identified:  Collaboration between university and industry  Nurturing start-up companies and enterprises  Channeling new global technologies and practices into the Kingdom

13. 12 Stakeholders The primary stakeholders in the development and sustenance of the science park are:  The University  Tenant firms and enterprises  Investors and Private Start-up Companies Each of these stakeholders will play a vital role in the development and growth of the science park.

14. 13 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.  The presence of International major companies and enterprises will help keep the university abreast of the latest technological trends and developments.  Significant student absorption into these business houses, both during their course of study and upon graduation.  And several others.

15. 14 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 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

16. 15 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.

17. 16 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.

18. 17 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.  One of the major companies that the Science Park Planning Committee has been in contact with is DevCorp, which with its experience in funding and managing such projects has expressed interest to partner with the university and secure funding for the offset program.

19. 18 Governance & Management The effective management and governance of the science park is based on the collaboration between three major parties: the university, industry, and the government. The prerogatives of each of these entities as per their relation to the science park are as follows:  Regulations and incentives from the government  Knowledge and resources from the university  Financing from the industry

20. 19 Governance & Management It is proposed that the park be managed as a commercial enterprise in which the above three entities would have a share.  The university will provide the land-area for the science park.  The park’s management would be overseen by a board of directors.  A management team headed by a park manager would play the intermediary role between the tenants and the administration and would report to the board of directors.  The management team would exercise sufficient power and control to allow for flexibility and easy adaptation to change.

21. 20 Governance & Management Science Park Board of Directors Science Park Committee Science Park Manager Function 2Function 1

22. 21 Critical Success Factors There is a broad consensus among experts on the factors that contribute to the success or failure of university-related science parks. These can be placed in two categories:  Factors associated with the site, its size and location. This also includes the university’s inclination and research base to contribute and gain from such a relationship.  Factors associated with the university’s administration and sponsoring of the project.

23. 22 Critical Success Factors From these two categories, the various factors that can greatly impact the development and growth of the science park are:  Leadership, ownership, commitment and involvement of all concerned parties for effective implementation of the plan.  The plan should be based on clear objectives, well integrated with the long-term mission and goal of the university.  The location of the science park should allow for close interaction between the tenant firms and the university.

24. 23 Critical Success Factors  A clear management structure with a Park Manager appointed at an early stage of development with significant authority on park affairs would allow for considerable flexibility in management.  The administration and the park manager should promote interaction between the personnel and university scientists and engineers through regular seminars and briefings.

25. 24 Finally …  The PAASP is a strong statement of KFUPM’s determination to maintain these 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 industrial sector

26. 25 Proposed Site Map  Map to be inserted

27. 26 Proposed Site Contacts  Dr. Abdelqadir Amir (Contacted)  Mr. Mansoor Sabir (Contacted)

28. 27 Potential Tenants 1.Schlumberger, France 2.CIBA, Switzerland 3.JCCP, Japan 4.Idemitsu, Japan (LOI) 5.Cytec, Italy (LOI) 6.IFP, France

29. 28 DevCorp’s Role  Participation Through Saudi Offset Limited Program (SOLP)  Role envisaged for DevCorp/SOLP in the developmental effort – Development of the Concept as a Commercial Venture – Investment through SOLP in the Commercial Venture – Advisory role in the Project implementation

30. 29 UNESCO Experts Visit Objectives “UNESCO Expert Group will Review the Conceptual Plan already submitted (but still evolving) and will assist the PAASP Committee in Developing a detailed Plan. Moreover, Group will share their Experience in Establishment, Operation, and Critical Success Factors of Science Parks”

31. 30 UNESCO Expert Group Members 1.Datuk Dr. Mohamad Salleh Ismail, President & CEO of Technology Park, Malaysia 2.Dr. Marco Baccanti, President of International Association of Science Park (IASP) and Director Centuria Parco Scientifico Technologico, Italy 3.Mr. Harry Nicholls, President ADCAL, UK 4.Mr. Nur Yuslan, UNESCO, Paris, France

32. 31 UNESCO Expert Group One Week Program 1.Meeting With HE The Rector and Vice Rectors 2.Daily Meeting with The PAASP Committee 3.Three Presentation by Experts to KFUPM Faculty and Researchers (Organized by the Departments) 4.Presentations by PAASP Committee Members 5.Meeting with Representative of Schlumberger, DevCorp, SAGIA, SABIC, and S. Aramco 6.Finalizing of the Plan 7.Social Activities

33. 32 Other Activities By Committee Members  Visit To Rio Science Park  Visit to IT Parks  Meeting With The SABIC VP for R&T  Meeting with Representatives of Japanese and other International Companies

34. 33 Directives Needed From HE The Rector  Jurisdiction of Ministry Of Industries  Benefits of Having Prince Abdullah’s Name  Bandwidth Availability and direct access for Internet  PAASP Int’l Advisory Committee  Governance of PAASP  Housing Availability  Presentation of Dr. F. Al-Adel in Riyadh  Lease Document

35. 34 Look Ahead Plan For Q4  Presentations about PAASP in Local, Regional, and International Forums  Interviews and articles in eMedia and Print Media for Public Awareness  Visits to International Science Parks and attendance in related Conferences  Visits of International Experts to KFUPM  Sub-Committee and Group formation for Sub-Tasks Related PAASP (Such as Legal issues, Master Plan development, etc. )

36. 35 Conclusion