Science and Technology Parks (STPs) and Business Incubators play a vital role in helping diversify economies by stimulating the development of technology-based clusters. They bring together technology firms in a supportive commercial environment. Key drivers of success include building critical mass through entrepreneurial startups and attracting foreign firms. Critical success factors are having a clear business plan, marketing strategy, and support services for tenants. Challenges include initially attracting enough tenants and securing long-term funding; practical actions can strengthen STPs through cooperation across organizations and evaluation of programs.

1. Track – Demand, Innovation and Policy
Session 1.4
Science and Technology Parks and Business
Incubators for new business creation and
development
Charles Monck
Charles Monck & Associates
7 Dec 2016

2. 2
Around the world, Science and Technology Parks (STPs) and Business Incubators have
been developed to stimulate the development of clusters of technology based firms. This
is important as they play a vital role in helping to diversify national and local economies,
creating high value employment and above average GVA for the economy as a whole.
Drawing on experience round the world, the paper summarises the most important
drivers which influence the success of STPs, and highlights a number of critical success
factors and performance indicators. A key challenge in the initial phase of a developing
a new STP is to build up a critical mass of tenant companies and secure the benefits of
co-location.
Should take up be an issue in Saudi Arabia, the paper puts forward a number of
practical suggestions that can be taken to strengthen the network of STPs and Incubator
Centres and ensure that they are fully integrated with the country’s research, innovation
and economic development policies and programmes.
Abstract of the workshop

3. 3
1. Set out the role of Science and Technology Parks and business Incubators as
instruments to deliver polices designed to diversify local economies through the
formation and growth of technology based businesses
2. Key drivers of success of Science and Technology Parks
3. Some critical success factors and performance indicators
4. How to build up a critical mass of technology firms on an STP, particularly in
locations with limited development to date
5. Consider possible actions and next steps to strengthen the network of Science and
Technology Parks on KSA
Objectives of workshop

4. Track – Demand, Innovation and Policy
Session 1.4
Science and Technology Parks and Business
Incubators for new business creation and
development
Charles Monck
Charles Monck & Associates
7 Dec 2016

5. 5
1. Policy objective:
• The development of technology based firms in strategic sectors, creating high
quality jobs and additional GVA in specific local areas
1. How will this be achieved?
• Entrepreneurial technology start ups, drawing on local and internationally proven
technologies to meet local and regional markets
• Diversification of Indigenous firms into new technology products and services
• Attraction of technology based foreign firms to establish development
programmes in the country
1. Role of STPs and business incubators
• Bringing together a clusters of technology based firms in a single high profile
location
• A supportive commercial environment where entrepreneurs can plan and set up
technology based business
• Actively engaged in creating linkages with sources of technology, professional
business services and funds as well as firms on and of the STP
What are Science Parks and why are they important

6. 6
1. Key drivers
2. Critical success factors
• A well researched business plan with output targets
• Property development and funding strategy
• Added value support services for occupants
• Mechanisms to identify new technology/ business opportunities to meet market
needs
• Effective marketing and communications leading to good quality enquiries
• A team to market and manage the STP with flair and passion
• Stable ownership and funding structure with a Board with a balance of expertise to
champion the park
• A framework to monitor performance against relevant indicator
Key drivers and critical success factors
4. Financial
sustainability

7. 7
Securing a critical mass of tenants in the early development of the STP
• Building up the image, profile and reputation of STPs as relevant and important
players in helping to diversify the economy
• Securing the active engagement and backing of national and local policy makers
and national innovation, funding and foreign investment agencies
• Creating value added networks and linkages
• Active technology commercialisation, entrepreneurship and incubation programmes
• Experienced business development staff providing practical help to businesses at
an early stage in their development
• Deficit funding to cover operating costs until income from rents and services has
built up
• Boards and Senior management teams with a clear vision and a broad mix of skills
and experience to guide the development of the STP
Some key challenges for STPs

8. 8
1. Consider setting up a working group to bring together STPs with other key
organisations to discuss what actions should be taken to enhance the formation and
growth of technology based firms.
2. Set up a STP and Business Incubator Association to bring together organisations
engaged in supporting the development of technology based firms across country
3. Consider commissioning a series of countrywide reviews and studies to evaluate the
progress of STPs and business incubators with respect to:
– Their integration with other organisations supporting technology based firms
– Demand led innovation programmes to create new market opportunities for
technology based businesses
– Uptake and outcomes of the incubation and accelerator programmes
– Access to markets and funding by entrepreneurs and technology based
businesses at an early stage of their development
– Training and development of management teams of STPs
– Awareness, profile and reputation of STPs with technology based firms, foreign
investment promotion agency and overseas embassies
1. Development programmes to address the issues arsing from these studies
Actions to strengthen the network of STPs and incubators