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1. FEASIBILITY ASSESSMENT FOR A HIGH
TECHNOLOGY INCUBATOR IN THE SOUTH
AFRICAN BIOSCIENCES SECTOR
PRELIMINARY FINDINGS: BEST PRACTICES
11 March 2011

2. 1. Study overview

3. Study background
• eGoliBIO seeks to establish a physical high-tech start up and
business incubator in Biosciences:
– Goal:
• Foster innovation, commercialisation of technologies, and growth of
bioscience-related SMMEs
– Targeted activities:
• High tech activities in Biological Sciences (including biotechnology,
agro-processing, health and cosmetics)
– Targeted businesses:
• Domestic high-tech start-ups and businesses
• Foreign companies entering SA market
– Location:
• In close proximity to domestic research institutions and universities
• A feasibility assessment is required to inform the establishment
of the incubator

4. Study scope
• Feasibility analysis:
– Locational analysis
– Target market profiling
– Market viability assessment
• Operational model:
– Incubation model
– Operational requirements
– Human resource requirements
– Incubation services and soft-landing services
– Seed funding requirements

5. Study approach and progress
1. Project
inception
2.
Benchmarking
and best
practice
identification
3. Feasibility
assessment
4. Operational
requirements
analysis
5. Presentation
and finalisation
of report
Complete To be completed
Key findings
presentation

6. Defining the biosciences industry

7. Biosciences – high technology industry?
• Classification proposed by Steenhuis and Bruijn (2006)
Technology intensity
Product
complexity
Process
complexity
Development
rate
High-technology High High High
Medium-high technology
Low High High
High Low High
High High Low
Low-medium technology
Low High Low
Low Low High
High Low Low
Low technology Low Low Low
• R&D process for biotech companies is longer than for other sectors
• Biotech products involve long and complex development cycles
• Biotech products require specialised equipment
• Products involve complex manufacturing processes
• Biotech firms are typically founded by highly educated researchers

8. Biosciences – multifaceted industry
• Bioscience is not a single field of knowledge
• A multifaceted industry with myriad speciality areas
e.g.
– Biotechnology
– Bio-pharmaceutical
– Human and animal health
– Digital health
– Agribusiness
– Environment, etc.
• Bioscience business incubators must specialise
– Need to explicitly define their focus areas

9. Best practices key findings

10. Biosciences incubators throughout the world
Country Incubator Type Thrust areas
India
IITM Bioincubator Physical Incubator
Biotechnology: Diagnostics, Industrial
Biotech, Agricultural Biotech,
Therapeutics and Food Biotechnology,
Bio-informatics and NGS
University of Delhi TBI Physical Incubator
Industrial Microbiology &
Biotechnology
MITCON Biotechnology &
Pharmaceutical Center
Physical Incubator
Bio technology, Agriculture, Food
Processing, Ayurveda, Pharmaceuticals
Bannari Amman Institute of
Technology- TBI
Physical Incubator
Application of Biotechnology in Agro,
Industrial and Rural sectors
IKP Knowledge Park Life
Science Incubator
Hybrid Incubator
Pharmaceutical and biotechnology
related areas
Brazil
The Technological Incubator
of Biotechnology (TIB)
Physical Incubator Health, Agribusiness and Environment
Habitat/Biominas Physical Incubator
Life Sciences - Human & Animal Health,
Agribusiness, Biological Inputs,
Environment, and Digital Health

11. Biosciences incubators throughout the world
Country Incubator Type Thrust areas
Singapore Biofactory
Physical Bio-medical
Incubator;
Accelerator
Bio-medical Technology
Chile Bio paraiso
Physical Early-stage
Bioincubator;
Accelerator
Applied Biology fields
North America
Pasadena Bioscience
Collaborative Incubator
(PBCI)
Physical Biotech
Incubator
Life Sciences
Otradi bioscience incubator
Physical Bioscience
Incubator;
Accelerator
Biosciences
Bio-Science Centre
Hybrid Business
Incubator;
Accelerator
Bioscience and Life Sciences
UK MediCity/Biocity
Physical Incubator;
Accelerator
Consumer healthcare, Medical
technology, Diagnostics, and Beauty
products

12. Incubation services provided
• Infrastructure related services are critical
– All of the reviewed biosciences incubators offer physical
office and lab spaces
• Other bioscience incubators provide seed funding
– MITCON TBI & IKP Knowledge Park Life Science Incubator
in India
– MediCity in the UK
– Seed fund is provided to deserving incubatees
• Other popular services offered include:
– Technical assistance and entrepreneurial training, coaching
& mentoring
– Access to specialist business support services

13. Soft-landing services provision trends
• Aimed at providing a cost-effective market
entry for foreign companies, returned
expatriates
– China targets Chinese scholars located overseas
• Soft-landing services are often offered by
incubators with a proven track record
– Habitat (Managed by Biominas) in Brazil

14. Incubation period
• Biotech start-ups have longer gestation periods in business
incubators
– Average incubation period at the University of Delhi TBI (India) is 1 – 5
years
– Mini period for incubation at IITM Bioincubator (India) is 3 years
• Contract may be terminated if incubatee performs dismally or is ready to go
into the market
– The Technological Incubator of Biotechnology (TIB) in Brazil has an
incubation period of 3 years
• can be extended for 3 more years
– European biotech incubation period ranges from 1-5 years
• Incubation period or exit policy for bioscience incubators should be
realistic and flexible
– monitor progress of each start-up on a case-by-case basis to
determine a suitable exit time

15. Infrastructure and facilities offered
• Incubators require dedicated laboratory space
as well as office space
• Several incubators provide specialist facilities
and equipment such as wet labs.
• Shared equipment/infrastructure is critical in
bioscience incubation programmes

16. Location characteristics
INCUBATOR LOCATIONAL ASPECTS
IITM Bioincubator Located within an institution of higher learning and a research park
University of Delhi TBI Located within the University of Delhi
MITCON Biotechnology &
Pharmaceutical Center
Located within an institution of higher learning (i.e. at the Agriculture
College Campus)
Bannari Amman Institute of
Technology- TBI
Located within an institution of higher learning
IKP Knowledge Park Life
Sciences Incubator
Located within a knowledge park
The Technological Incubator of
Biotechnology (TIB)
Located within a federal university
Habitat/Biominas Incubator
Adjacent to a publicly funded, multi-disciplinary research laboratory
called CETEC
Biofactory Located at the heart of Singapore’s innovation hub
Otradi Bioscience Incubator Located in a bioscience hub
Bio-Science Centre Located in an uptown area
MediCity/Biocity MediCity is based within the Nottingham Enterprise Zone.

17. Size and structure of the incubator
INCUBATOR
INCUBATION
CAPACITY
INCUBATION AREA
IITM Bioincubator
4 incubatees
(currently)
 344m² in Phase I
o 65m² at the university
o 279m² at the research park
 Another 557.4m² to be added in Phase II of IITM
Research Park
University of Delhi TBI 6 incubatees 762m²
Bannari Amman Institute of
Technology- TBI
12 incubatees 1115m²
IKP Knowledge Park Life
Sciences Incubator
8 incubatees
 297m²
 Clients are given modules of 21m² with lab and
office space
Habitat/Biominas Incubator
16 incubatees
(currently)
Located on a plot of approximately 9,000m² with a
total built area of 3,000m²
Pasadena Bioscience
Collaborative Incubator (PBCI)
18 incubatees
 325m² available space (across 3 facilities)
 Each tenant uses about one-eighth of the total
available space
Otradi Bioscience Incubator Unknown 1561m² complex
Bio-Science Centre Unknown 1,812m² building

18. Eligibility criteria
• Similar to that of other high-tech incubators
• Popular aspects considered include:
– Bioscience focus
– Degree of product innovation
– Market viability
– Technical viability
– Age of start-up
– Intellectual Protection
– Regulatory aspects
– Competition Analysis
– Sales projections
– Ability to raise resources

19. Marketing activities
• Marketing activities employed
– Website
– social networks
– location of an incubator
– modern buildings and structures
– affiliations with universities
– linkages with domestic and foreign bioscience
related organisations

20. Finance models
• Several incubators operate on a non-profit
basis
– Primary goal being economic development
– Mainly funded and supported by governments
• Non-profit incubators should avoid being
dependent on one public funding source
• Incubators should strive to recover at least 2/3
of their operating costs from alternative
sources

21. Thank you
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