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Opportunities for Science and Technology Parks Development

in NišProf. Dragan Domazet

Dean, Faculty of Information Technology, Belgrade

Special Advisor of the Minister for Science and Technological Development

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• Good location– On Corridor 10– Airport– Railway– In the middle of the

Balkan

• Regional center• University• Industrial tradition

BeogradBeograd

NišNiš

Sofia

SkopjeSkopje

Why Science & Technology Parks in Niš?

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First STP Idea

• The idea was developed and sponsored by Ministry of Science and technology in year 2002/03

• It was Brownfield project based on large military casern facilities in centre of city of Niš.

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STP TESLA

• Area: 31.55 ha

• Location:

– Between technical faculties and colleges and the industrial zone

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GHIJKL

Fa kulte tski ko m p le ks

Istra ` iva ~ ki institut

Ra zvo jni c e nta r

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Re ze rvni p ro sto rRa zvo jno -p ro izvo d ni d e o

Pra te }i sa d r`a ji

C e ntra lni p a rking

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Sp o rt

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Za je d ni~ ki sa d r̀ a ji

A

A

A B

B

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BULEVAR 1 2 . FEBRUAR

D UVAN SKAIN D USTRIJ AN I[

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B U L E V A R N I K OL E T E S L E

TEHN I^ KE[KO LE

STUD EN TSKID O M

ELEKTRO N SKIFAKULTET

G RA\.-A RHITEKT.FAKULTET

M A[IN SKIFAKULTET

1 2 31 5 0 1 0 0 5 0 4 0 6

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Planned Functions for STP TESLA

• Incubator for 200 small start-up companies• R&D institutes & centers, design offices• Light and high-tech manufacturing• Software development and services• New faculties (life-sciences, mathematics,

informatics, etc)• Exhibition Hall and congress center• Residential area (384 apartments)

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Second Idea

• In the Year 2006, the consultant for the project of financial and corporative restructuring, ahead of privatization, of the Holding Corporation Electronic Industry from Niš (HC EI), proposed reactivation of the idea, but now based on large infrastructure of HC EI.

• The Serbian Ministry of Economy and regional development and the Agency for privatization, in year 2008, accepted proposed changes of privatization strategy for HC EI and commissioned to consultant the development of Concept for Strategic development of “Science and technology park TEHNIS” Niš, throughout continuing of restructuring of HC EI (The Concept).

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The Government Decision

• The CONCEPT, sponsored with Ministries of Economy and Science, was adopted by Government of Republic of Serbia via Decree No 023-4471/2009-1 from 23.07.2009. (Government’s decree).

• The Government has granted STP TEHNIS its full political and economical commitment to project aims and development requirements.

• The Government decree and the Concept define all strategic elements necessary for further development in full capacity.

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Founders

• Founders of Science and Technology Park TEHNIS Niš are – Government o the Republic of Serbia &– City of Niš

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Status

• Government decree appoints the Working group for overall implementation of the project. – Working group is assembled by the Ministry of Science and

Technology Development and the Ministry of Economy and Regional development.

• STP TEHNIS is categorized as STP of national importance

• STP TEHNIS is under legal frame of the Law on Innovations (2006) and the Law on Regional development (2009) – Main R&D stakeholders are the 3 technical faculties from the Niš

University( faculties of Mechanical Engineering, Mathematics and Electronics)

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Strategy and Mission

• Self sustainable public institution for substantial support for ICT technology oriented companies in R&D investments (NTBF creation: New Technology-based Firm).

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Competitive Advantages

• R&D, Innovative scientific and technological potentials of the three faculties from the Niš University

• Human resources in the region of Niš and EI HC

• Property of EI Holding Corporation• Pre-existing experience of electronic and

electrical industry in Niš• Geographical position of City of Niš on the pan

European corridor X and VII

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Infrastructure and Facility Development

• STP TEHNIS will be developed as mainly as Brownfield project on the office grounds and production facilities that will be derived from restructuring of EI HC.

– Total real estate area is 103.334 m2, spread across 14 separate buildings.

• Construction land for the development of Greenfield investment is 100.000m2.

– City of Niš will contribute with additional development land to the STP TEHNIS.

• Management will be professional, where one of main tasks is development of infrastructure

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The Council for the Development and Transfer of Technology

• The Council for the Development and Transfer of Technology will be formed as managerial support body of STP TEHNIS for identifying of R&D projects and technologies that will be preferentially prioritized for STP TEHNIS support.

• The Council will be formed by representatives of faculties, professional management and state(city of Nis and Republic of Serbia)

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Value-Added Services:

• These are mostly knowledge-based services. – management consulting, – IP consulting, – international marketing assistance, – technology brokerage, – financial consulting etc

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Investment Capabilities

• Investment Capabilities - based on self sustainability and profitability approach.

• STP TEHNIS will be able to stream line investment in to R&D and commercialization both in direction to academics or business communities.

• STP TEHNIS is designed to be subject of investment in to infrastructure or financial agent and facilitator between specialized investors and its tenants.

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New Technology-based Firm. Creation:

• We refer to the programs and mechanisms implemented by STPs to stimulate the transformation of good ideas and technologies into commercial companies, and in general any action aiming at fostering entrepreneurial spirit, incubation, spin-off programs, etc

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Marketing-existing Companies:

• We refer to the efforts that STP TEHNIS will make to attract existing companies towards the park, either totally or partially.

• A company moving from wherever is located to a STP should obtain competitive advantages by doing so.

• If they move to the STP to do exactly the same as they were doing in their previous location, the moving may not be justified.

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Sustainability & preferential benefits for

technology transfer and innovative investment • Incentives by the state and the city of Nis (employment

subsidies, tax exemptions classified by the technology type priorities etc.)

• Stipulation that will be defined only for STP users (space, infrastructure, services)

• Free customs zone will be defined in the STP. • Part, surplus, of the facilities will be leased to ordinary

companies based on commercial rates. – The income will be use to subsidize High-Tec companies and

NTBF, technology commercialisation and for investment needs of STP TEHNIS.

• STP TEHNIS will include Incubator for NTBF• Technical school will be placed in the premises of the

STP

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Current Status of the Project:

The project is managed with two parallel processes:

1. Continuing of financial and corporate restructuring that includes commercial debt liquidation, sales of surplus of assets not needed for STP TEHNIS, property-legal issues and debt to ownership conversion etc. – This process is managed by the Ministry of economy

and regional development. The process will be realized during year 2010.

2. STP TEHNIS development that will be managed by the Working group.

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Main Development Activities 1. Legal registration (with all statutory documents) of STP TEHNIS,

indicative cost 2. Set-up of the STP TEHNIS management3. Investments road map for STP TEHNIS ; 4. Detailed Design on current state of property; 5. Urban plan design for location of STP TEHNIS X6. Master design for refurbishing of STP TEHNIS’s facilities and

infrastructure. 7. Study on prioritized technologies to be supported by STP

TEHNIS.; 8. Preferential benefits and incentive plan, based on Study on

prioritized technologies, 9. Feasibility study for STP TEHNIS ; 10. 5 Years Business plan for STP TEHNIS ;

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PPP

• STP TEHNIS planes to enhance public private partnership in investments in premises and in R&D, innovations and commercialization, where STP TEHNIS plan to be investment partner and management hub.

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Expectations

• It is expected that the first development phase will be completed by July 2010, when the park will begin to operate.

• Before the official date, some of companies interested to be located in STP TEHNIS, will be accepted now and some of buildings will be leased in compliance to the Government decree and Concept.

• On this way STP TEHNIS will gain some of initial revenues that will speed up the project flow.

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STD Development

ConceptualizationPlanning and

Design

Establishment and Capacity

Building

Operating and management

Monitoring and Continuous

Improvement

Policy and Strategies

Investments

Promotion

Technology Transfer

Facility Development

Skills Development

Financial Services

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Project Phases

Phase 0Preparatory ActionsEvaluation of STP

conductive environment

Phase 0Preparatory ActionsEvaluation of STP

conductive environment

Phase 2.1Business Plan

Concept Plan &Strategic Direction

Phase 2.1Business Plan

Concept Plan &Strategic Direction

Phase 2.2Business Plan

Phase 2.2Business Plan

Phase 3Implementation ProjectManagement-Marketing

Phase 3Implementation ProjectManagement-Marketing

Current Status Studies& setting of framework

Logistical OrganizationSet Up Project Office

Action Plans & Timetable

Launch of Project

Evaluation of STPConductive environment

Implementation ofConcept Plan Studies& Deliverables

STRATEGIGRAMPositioning STP

Elaboration of Business& Operational Model

Spatial Planning &Architectural MasterPlan

Budgeting & FinancialAnalysis of Park

Detailed Business Plan

Preparation of TenderDocuments forConstruction Phase

Marketing Plan andStrategy

Project Management ofImplementation andPark Management

Preroad & Road Show

Project Management & Quality Control & Communication & Feedback

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STP Planning Approach

1. DESIGN PARAMETERS INDENTIFICATION

2. PROFILE OF THE NEW PARK

3. DESIGN PARAMETERS INDENTIFICATION

Developers (vision, expectationsEnabling environment involvementCurrent status

Models by STRAREGIGRAM analysis

• RESOURCING•TIMESCHEDULIG•MOBILIZATION OF ACTORS•MOBILIZATION OF FINANCES•NETWORKING AT INTERNATIONAL LEVEL•POEPLE / COMPANIES

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Risks

• Potential risks:– Too many decision making institutions

• Ministry of Economy and Regional Development• Ministry of Science and Technological Development• Niš Municipality

– Money and objects mainly expected for privatization, EIB money is uncertain (the loan is certain, but many requests)

– Low knowledge levels, but high expectations and different interests are present

• It is a very risky project