L/O/G/O Brief Overview of The Baseline Study, and ASEAN Business Incubation Models Hadi K Purwadaria Project Coordinator ASEAN Team Study- Kemkop dan UKM,

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Brief Overview of The Baseline Study, andASEAN Business Incubation Models

Brief Overview of The Baseline Study, andASEAN Business Incubation Models

Hadi K PurwadariaProject Coordinator ASEAN Team Study-

Kemkop dan UKM, Division International [email protected]

ASEAN Workshop on Strengthening SME Business and TBI

Bogor, Indonesia, 14-15 June2013

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Institution of Technology Business Institution of Technology Business IncubationIncubation

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BACKGROUNDBACKGROUND

ASEAN Leaders Meeting, Hua Hin Thailand, 2009 :SME development in ASEAN will be enhanced through Business and Technology Incubators Assessment should be carried out for the progress and model of best Business and Technology Incubators for ASEAN

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ASEAN PROJECT OUTCOMES

ASEAN PROJECT OUTCOMES

ASEAN Business Incubation Models ASEAN Business Incubator Network

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RESPONDENTSRESPONDENTS

10 AMS @ 3-4 business incubators or institutions planning to establish business incubators (Cambodia, Laos PDR, Myanmar), and stakeholders Respondents also joined the Study Team to one AMS other than its country Design has intentioned to start the ASEAN network

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BRIEF OUTCOMES OF BASELINE STUDY

BRIEF OUTCOMES OF BASELINE STUDY

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1. ASEAN BUSINESS INCUBATOR MODELS : ICT BUSINESS INCUBATION MODEL PROCESSING BUSINESS INCUBATION MODEL: agriculture, bio-technology, manufacturing, general services VIRTUAL BUSINESS INCUBATION MODEL

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Characteristics of BUSINESS INCUBATION MODELS : Type of incubator, funding support, incubator clients, pre-incubation program, incubation period, delivery program, space for clients, other facilities, funding for clients, location

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Criteria Description

Type of Incubator For Profit or Not-for-Profit

Funding Support Private or government supported

Incubator Clients University graduates

Pre-incubation Program

A required part of the incubation model

Incubation Period 6 months to 5 years

Delivery Program Inside incubator building

Space for Clients Open space, or private room

Other Facilities Hi-speed internet network, office, meeting rooms, and get together spaces.

Funding for Clients Venture Capitals, angel investors, or government

Location On university campus, Techno or Science Park (TSP), or private building

ICT Business Incubation Model

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Processing Business Incubation Model

Criteria DescriptionType of Incubator For Profit or Not-for-ProfitFunding Support Private or government supportedIncubator Clients University graduates or general publicPre-incubation Program

Optional

Incubation Period 3-5 yearsDelivery Program Inside incubator buildingSpace for Clients Mostly private room, but some open

spaceOther Facilities Internet network, office, meeting rooms,

and get together spaces. Access to pilot plant, workshop, and laboratory

Funding for Clients Mostly government, some are angel investors.

Location On university campus, Techno or Science Park (TSP), or private building

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Virtual Business Incubation Model

Criteria DescriptionType of Incubator For Profit Funding Support Private Incubator Clients General publicPre-incubation Program

None

Incubation Period 3 months to 2 yearsDelivery Program Via internet networkSpace for Clients NoneOther Facilities Internet network, office, and meeting

rooms Funding for Clients Venture Capitals, and angel investors

Location Private building

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2. PROFILE ASEAN BUSINESS INCUBATORS: Developed : Malaysia, Singapore, Thailand Developing : Brunei Darussalam, Indonesia, Philippines, Vietnam Starting : Cambodia, Laos PDR, Myanmar

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Level No of Incubators

Existing Sci & Techno Park

Availability of Government Funding to Incubator & start-up

Developed Over than 80

1-3 Available

Developing 3-80 Seedling-2 Not available or limitedly available

Starting None-2 None None

Criteria for Level of Incubator Development

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Country No. of Incubators No. of Companies incubated

Brunei Darussalam 3 30 (estimate)

Indonesia 40 400 (estimate)

Cambodia 1 Less than 10

Laos PDR 1 Less than 10

Malaysia 110 2000

Myanmar None None

Philippines 10 100 (estimate)

Singapore 120 1800

Thailand 89 412

Viet Nam 11 47

Japan 190 2,375

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APPROACH OF DEVELOPED BUSINESS INCUBATOR DEVELOPMENT Full continuous support to business incubators is not cost centre. Treated as a profit centre in the long run : technology based growing enterprises, government income, employment provider, spin-off and multiplier effect , regional market share

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Examples of Government Full Support

Examples of Government Full Support

Singapore : The $30 million Incubator Development Programme (IDP) provides Incubators and Venture Accelerators a grant to enhance capability development programmes for innovative startups. IDP provides up to 70% grant support to incubators and venture accelerators in areas such as :Programmes To Nurture Start-ups Costs of introducing programmes that help start-ups develop new products/services, obtain business financing, improve market access, etc Mentoring Start-Ups Hiring mentors to provide management guidance to start-ups Operating Expenses Costs incurred to market services/events, hire incubator managers, train staff, provide shared services/equipment for start-ups, etc

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Singapore : The National Research Foundation (NRF), has Technology Incubation Scheme (TIS) for start-up companies. NRF-TIS will co-fund up to 85 percent of total investment per company, or up to S$500k (US$400k), with the rest topped up by the venture firm.  The incubators can choose to buy out NRF’s equity share within three years of investment, at a price of 1.1 times capital in the first two years, and 1.15 times capital in year three. The scheme is also provided to private incubators

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Examples of Government Full Support

Examples of Government Full Support

Thailand : NSTDA built and operated the Thai Software Park and incubator, and the Thai Science Park and incubator. NSTDA built and supported the operation of business incubators in the state universities all over Thailand NSTDA is building 5 more Science Parks including agricultural science Park in the provinces

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Examples of Government Full Support

Examples of Government Full Support

Thailand : In the anticipation of ASEAN 2015 regional market : launch program by Min. Education to provide soft loan to students and graduates (max 5 year after graduation) who submit business plan to selected 63 business incubators :gov. and privates. Amount soft loan 30 K USD per start-up company for 5000 grants in 2013, 10 thousand in 2014, 20 thousand in 2015, and 40 thousand in 2016. Soft loan with no interest, and paid back in 2-5 years.

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Examples of Government Full Support

Examples of Government Full Support

Malaysia : Government built and operated the Technology Park Malaysia, and Kulim Techno Park 2006 : Establish Growth Acceleration Fund for SMEs 2012 : SME Domestic investment Strategic Fund to spur the technological growth Built and operate Business Incubators for Handicraft in many states.

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BENCHMARKING OF ASEAN TBI TO JAPAN’S

BENCHMARKING OF ASEAN TBI TO JAPAN’S

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Business Environmental

JAPAN MALAY-SIA

SINGA-PORE

THAI-LAND

General :Population, MGDP x1000USD/capYear TBI startedNo. TBINational Asc

128.0536.3

1986

190JBIA

27.5616.9

1995

110NINA

5.0860.4

1996

120

68.710.1

2005

89Thai BISPA

GovernmentSupport :TBI Building & OperationSeed & Growth Fund for incubateesResearch & Technology Innovation Fund for incubateesTax Incentive for VC & Angel Investors

+

+

+

+

+

+

+

+

+

+

+

Only seed fund+

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Business Environmental

JAPAN MALAY-SIA

SINGA-PORE

THAI-LAND

Non-Government Support :Venture Capital & Angel InvestorsCommunity

+

+

+ + +

Funding Resource for TBI Operation :Space Rental Membership FeeInstitution OwnerIncubation ServicesGovernmentPrivate SectorCommunity

+++++++

++++++

++++++

++++++

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Business Environmental

JAPAN MALAY-SIA

SINGA-PORE

THAI-LAND

Establishment of Science & Techno Park

+ + + +

Other Supporting Institutions :Expert NetworkTechnology Licensing OfficeIPR OfficeStock Market

++

+Big and Small

++

+Big

+

+Big

+

+Big

Ministries Involved METIMEXT

MITIMOSTI

SPRING Min. TradeNRF

MOSTMin. EduMin. Ind

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Business Incubators in Pictures

Indonesia

Business Incubators in Pictures

Indonesia

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Bandung Digital Valley04/21/2327

Bandung Digital Valley

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SOLO TECHNOLOGY PARK

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Business Incubators in Pictures

ASEAN

Business Incubators in Pictures

ASEAN

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Small World Group, Private Business Incubator, Singapore

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hubsingapura

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Thai business incubator, Thai Science Park

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Inkubator Bisnis, ThaiSoftware Park

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MTDC business incubator, Malaysia

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Technology Park Malaysia

Cyberjaya

Kulim Hi-tech Park

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iCentre, Brunei Darussalam

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TechnoHub, private business Incubator and Techno Park, Philippines

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Saigon Hi-tech Business Incubator and Saigon Hi-

Tech Park, Vietnam

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Agricultural Hi-tech Business Incubator and

Tech Park, Vietnam

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3. ASEAN BUSINESS INCUBATOR NETWORK Future Recommended Program ASEAN Common Fund ASEAN Co-incubation Program Other Programs : data base information : mentors & experts, best practices model, success incubatees; training for incub. manager and start-up companies; annual meeting

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Thank You!Thank You!

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