Jordan's National Technology Drive with MIT

Discussion with Dr. Khaled Wazani
Royal Court – Amman 2003

©2003 United Group Management Consultants
Proprietary and Confidential
Hashemite Kingdom of Jordan
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Current Situation
• His Majesty King Abdullah has taken bold and actionable steps in
developing the Information and Communication Technology,
namely through the REACH Initiative.
• REACH initiative
– Regulatory Framework
– Enabling Environment and Infrastructure
– Advancement of National IT Programs
– Capital and Finance
– Human Resources
• REACH Initiative Targets
– 20,000 ICT, and 10,000 ICT-Related jobs by 2004
– US $550 Million in annual exports by 2004
– US $150 Million in cumulative foreign direct investment by 2004

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Complication / Opportunity
• REACH has fell short of achieving its proposed targets
• Academic and Private Sector partnerships are still relatively weak
• Science and Technology Policy has been slow in achieving the
critical mass in Research and Development initiative required to
drive an IP-based growth in the technology sector.
• ICT companies have been unable to attract risk-finance
investments such as Venture Capital and Private Equity.
• Entrepreneurial driven growth has been weak and fragmented.

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Objective
• Achieve REACH’s targets through a more proactive and practical
approach by:
– Strengthen the Academic and Private Sector partnership.
– Launch an aggressive National Science and Technology (S&T) policy
that focuses on technology commercialization and research and
development.
– Achieve entrepreneurial-driven growth by building capacity amongst
entrepreneurs and SME development organizations.

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“Strengthen the Academic and Private Sector partnership”

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Academic and Private Sector Partnerships
• To date there have been very few initiatives that have truly capitalized on
this concept.
• The Higher Council for Science and Technology has taken an active
approach by launching the first truly integrated partnership through its ICT
Business Incubator.
• Capitalizing on the technology cluster that exists in Jubeiha, the ICT
Business Incubator partners include:
– Higher Council for Science and Technology (HCST)
– Jordan University (JU)
– Royal Scientific Society (RSS)
– Princess Sumaya University for Technology (PSUT)
• Incubator has been recognized by the World Bank and received a grant of
$350,000.
• The incubator was launched with a minimalist budget of JD 150,000.

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Actionable steps
• Identify other technology clusters where the HCST incubator
concept can be implemented.
• Expand the technology incubators concept to all Public
Universities.
• Integrate the incubator concept into University Faculty objectives,
and allow for a stronger private sector focus.
• Expand the budget for technology incubators to achieve the scale
necessary for driving the Academic / Private Sector partnership on
a National scale.

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“National Science and Technology (S&T) policy”

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National Science and Technology (S&T) policy
• R&D in Jordan is still secondary on the development agenda of the
Government.
• Lack of communication between Universities in Jordan has been
the root cause for redundant research projects.
• By-laws governing professor advancement within universities
promote basic research rather than applied Research and
Technology Development.
• Legislation within public universities limits and hinders the creation
of private sector centers for Research and Development with the
universities.

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Actionable steps
• Create a National research and development network to connect
researchers from all universities to completed research and new
research projects.
• Direct research and development to focus on National priorities,
and low capital investment research such that economies of scale
and research focus could be achieved.
• Strengthen technology commercialization departments within
Universities and public research institutions so that commercial
value could be achieved by the private sector.

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“Entrepreneurial-driven growth"

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Why is Entrepreneurship Important?
• “Evidence continues to accumulate that national level of
entrepreneurial activity has a statistically significant association
with subsequent levels of economic growth.”1
• Allows for democratized growth and puts the onus on citizens
rather than governments to spur on growth.
• Strengthens the private sector, and capitalizes on the under utilized
human capital in Jordan.
• Increases local direct investments through venture capital and risk
finance investments in successful startup activity.
• Entrepreneurial-driven economic growth has succeeded in many
developing countries such as China, Korea, India and Thailand.
1
Global Entrepreneurship Monitor – 2002 Executive report

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Why Now?
• There have been several fragmented initiatives taking place in
Jordan to support entrepreneurship and the high tech sector
– Young Entrepreneurs Association (YEA)
– Higher Council for Science and Technology ICT Incubator
– INTAJ
– JIB entrepreneur development and training programs
– Jordan Connect Initiative
– Aqaba Special Technology Initiative
– Funding Agencies (AMIR – Ryadi, NAFES, EJADA, JICA …)
• Few programs have targeted the best practices transfer from
leading organizations in Entrepreneurship.

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Actionable steps
• Focus energies on developing entrepreneurship by knowledge
transfer from leading organizations.
• Launch a government backed venture capital fund as proposed in
the REACH initiative and ensure the correct tax incentive schemes
for startup activities.
• Align the country to leaders in the field of entrepreneurial
development, specifically focusing on international clusters of
startups such as Silicon Valley and Route 128 in the US.
• Align Jordanian Universities with leading Business Schools and
Technology Universities such as the Harvard Business School, and
the Massachusetts Institute of Technology.

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Conclusion

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Summary of Key Areas
• Our approach focuses on implementation and delivery of results, by
achieving successive small success stories, and building on them rather
than launching costly “White Elephant” projects.
• Our firms believes in the transfer of best practices and know-how from
organizations that have been successful at achieving our objectives.
• Focusing on the three implementation areas that we believe will achieve
the REACH initiative:
– Strengthen the Academic and Private Sector partnership.
– Launch an aggressive National Science and Technology (S&T) policy that
focuses on technology commercialization and research and development.
– Achieve entrepreneurial-driven growth by building capacity amongst
entrepreneurs and SME development organizations.
• We have identified the Massachusetts Institute of Technology as key
implementation and strategic partner in successfully implementing the
projects mentioned above.

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Why MIT?
• In the first national study of the economic impact of a research university,
"The Impact of Innovation," the BankBoston Economics Department found
that graduates of MIT have founded 4,000 firms, translating their
knowledge into products, services, and jobs. These firms, in 1994,
employed over one million people and generated worldwide revenues of
$232 billion. 2
• In 2002 alone MIT reported 484 new inventions, and filed 245 patents.3
• MIT is the leading university in technology commercialization, and has the
strongest ties with the private sector.
• For the 14th consecutive year, MIT's School of Engineering's graduate
program is ranked first in the nation by US News & World Report.
• Massachusetts Institute of Technology Entrepreneurship Center is the
global leader in developing high-tech entrepreneurs.
3
Fiscal Year 2002 Statistics – Technology Licensing Office
2
MIT News – Mar 5, 1997

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Immediate Next Steps

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Immediate Next Steps
• Identify action-oriented members of the following organizations to partake
in the implementation of “National Technology Drive” to compliment the
REACH activities :
– Royal Court
– Ministry of Planning
– Ministry of Industry and Trade
– Ministry of ICT
– Ministry of Higher Education
– Jordan Investment Board
– Aqaba Special Economic Zone (ASEZA)
– Higher Council for Science and Technology
– Royal Scientific Society
– Young Entrepreneurs Association
– INTAJ
– Jordanian Universities
– Jordan Engineering Association
• Arrange a launch visit to MIT in Boston and partake in the MIT
Entrepreneurial Development program.

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Why go to Boston?
• “Engines of Economic Growth” is a detailed report on the economic and
social impact in 2000 and 2002 of Boston College, Boston University,
Brandeis University, Harvard University, Massachusetts Institute of
Technology, Northeastern University, Tufts University and University of
Massachusetts Boston
• In the year 2000 alone, the study found that the eight universities provided:
– a $7.4 billion boost to the regional economy;
– work for 48,750 university employees and 37,000 other workers in the region,
who pay millions of dollars in federal, state and local taxes;
– a talent pool of more than 31,900 graduates, many of whom stay in Boston;
– innovative research that resulted in 264 patents, 280 commercial licenses of
technology, and 41 start-up companies
– numerous programs to help local K-12 schools and individual students
• Boston's high-tech suburbs, known collectively as Route 128, are home to
the leading companies and startups in the biotech, bioninformatics,
software and telecom sectors.

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What is MIT’s Entrepreneurship Development Program (EDP)?
• Examines all aspects of the venture creation process from creating
ideas to developing viable businesses.
• Program places special emphasis on the nurturing roles played by
corporations, universities, government and foundations.
• Assists entrepreneurs and those involved in entrepreneur
development to transform good ideas into successful businesses.
• Provides attendees with:
– MIT’s unparalleled expertise in creating high-tech start-ups
– A powerful technology transfer system
– A rich entrepreneurial network.

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Networking and alliance building schedule (Jan 23 - 27th
, 2004)
• Depending on the participating organization attending, week 1 will
include networking and identifying potential partners for Jordan.
• Organization to be visited could include:
– Government Officials e.g. Massachusetts Board of Education
– University Faculty e.g. MIT Engineering Faculty
– University Administrators e.g. MIT’s Technology Licensing Office
– Research Laboratories e.g. Lincoln Laboratory
– Private Business e.g. Merck, Oracle
– Leading Business Schools e.g. Harvard Business School

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EDP Program Schedule (Jan 27 – 31st
, 2004)

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About United Group
UnitedGroup Management Consultants is one of the Arab World’s premier
corporate strategy, and operations firms. Our Firm helps leading companies,
new-economy shapers and start-ups to improve their strategies, organizations,
and operations. We also help a diverse group of governments, institutions, and
nonprofit organizations with their management challenges.
We provide independent, original problem-solving support, tailoring our
approach to each client's needs, goals, culture, and circumstances. But while
we insist on custom solutions, we follow a consistent approach to working with
clients, based on a diverse and accomplished team, and a proven
methodology of sustained value growth.
United Group’s success is based on maintaining an exceptional team of
consultants, with extensive knowledge and experience, and local
understanding of the Arab World.

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Contact Us
Faris S. Gammoh Mr. Kenneth Morse
Partner Senior Lecturer & Managing Director
United Group MIT Entrepreneurship Center
Management Consultants MIT Sloan School of Management
Office: +962.6.566.9954 Office: +1 617.253.8653
Fax: +962.6.566.7419 Fax: +1 617.253.8633
P.O.Box 840536 . Amman . 11181 . Jordan Room E40-196
One Amherst Street, Cambridge MA
http://www.united-group.com http://entrepreneurship.mit.edu

Jordan's National Technology Drive with MIT

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