University) Technology Parks Toolkit: Knowledge Transfer and Innovation The Tecnológico de Monterrey Experience

2013 IEEE International Technology Management Conference & 19th ICE Conference, The Hague, The Netherlands

(University) Technology Parks Toolkit:

Knowledge Transfer and Innovation -

The Tecnológico de Monterrey Experience

Arturo Molina, David Romero

Tecnológico de Monterrey, Mexico

[email protected], [email protected]

Abstract

This paper conceptualizes a set of guidelines to develop a technology park under the Anglo-Saxon Model where

the technology park development is initiated and operated by an education institution or a research organization.

The empirical research work provides a toolkit for the development of technology parks based-on the experience of

Tecnológico de Monterrey University. The toolkit includes the following frameworks, guidelines and checklist for

developing a technology park: (1) The definition of strategic industries, (2) Strategic intent for regional development,

(3) Regional assessment for a technology park creation, (4) Logic models for a technology park strategic

management, and (5) Guidelines and checklist for a technology park development. Up till today, the Tecnológico de

Monterrey University has designed, developed and launched 14 technology parks in Mexico.

Keywords

Technology Parks, Landing, Business Incubators, Business Accelerators, Technology Transfer, Academy

1 Introduction

This paper conceptualizes a set of guidelines to develop a technology park under the Anglo-Saxon model [Thierstein & Wilhelm, 2001] where the technology park development is initiated and operated by an education institution or a research organization. This type of academic-related technology parks are actively engaged in transferring research and development activities, spinning-off university research efforts, providing faculty with research opportunities, and alumni, faculty and associated groups with start-up business opportunities [Petree et al, 2000]. In this context, based-on the definition of Link & Scott [2006], a (university) technology park can be defined as “a cluster of technology-based organizations that are located on or near-by a university campus in order to benefit from the university’s knowledge base and on-going research. The university not only transfers knowledge but expects to develop knowledge more effectively given the association with the tenants in the park”. Moreover, a technology park aims to facilitate the development, transfer and commercialization of technologies by forging synergies among research centers, education institutions and technology-based companies [Petree et al, 2000].

Nowadays, (university) technology parks are emerging more and more as strong sources of entrepreneurship, talent and economic competitiveness according to the Association of University Research Parks. Furthermore, (university) technology parks are property-based ventures that promote a university’s research and development activities as well as economic development. This type of academic-related technology parks can aid in the transfer of technology and business skills between university and industry teams, encourage the creation of start-ups, and promote technology-led economic development for a community.

This work presents the experience of a leading network of (university) technology parks operated by the Tecnológico de Monterrey University, aimed for the capitalization of the awareness of researchers and alumni, the creation of environments that encourage entrepreneurs and innovation, incubation and acceleration of new businesses, and the attraction of high value businesses, among others.


2 Technology Parks’ Definitions

“A technology park is an organization managed by specialized professionals, whose main aim

is to increase the wealth of its community by promoting the culture of innovation and

the competitiveness of its associated businesses and knowledge-based institutions. To enable

these goals to be met, a technology park stimulates and manages the flow of knowledge and

technology amongst universities, research and development institutions, companies and markets;

it facilitates the creation and growth of innovation-based companies through incubation and

spin-off processes; and provides other value-added services together with high quality space and

facilities” [IASP].

“A technology park is an economic and technological development complex that aims at

fostering knowledge-based economies by bringing together scientific research, business and

governmental organizations in one physical location, and supporting interrelationships between

these groups. In addition to providing space for knowledge-based products, technology parks can

house centers for scientific research, technological innovation and incubation, training,

forecasting, as well as facilities for fairs, exhibitions and market development. They are formally

linked (and usually physically close) to centers of technological excellence, universities and/or

research centers” [UNESCO].

“A technology park is an organization established in one or more buildings within a specially

designed environment, integrating companies, research centers, incubators, accelerators,

academic activities, and a range of services designed to promote business competitiveness

based-on innovation and high value-added activities” [Tecnológico de Monterrey].

3 Technology Parks’ Aims and Added-Value Services

Most of the (university) technology parks aim to provide: (1) access to faculty and staff on a

consultative basis; (2) access to graduate and undergraduate students through internships and

co-operation arrangements; (3) access to university facilities and proprietary technology and

intellectual property; (4) contractual use of university owned scientific, engineering and

computing equipment; (5) access to the university library system; (6) the ability to receive on-site

customized training and education offerings, as well as access to regular and continuing

education offerings on the university campus; and (7) adjunct faculty positions for employees of

park tenants [Petree et al, 2000].

In addition to the above university-specific services, university-linked technology parks can also

develop services providing support in the areas of: (1) scientific, engineering, financial, tax,

managerial and business planning; (2) copy, fax facilities, telephone answering and on-site fiber

optics; and (3) shipping and receiving capabilities [Petree et al, 2000].

Furthermore, some of the previous services mentioned and some others may be classified

according to their service providers within a technology park, for example: (1) Landing services -

allowing foreign technology-based companies, with activities that demand specialized talent and

resources, to establish in a region in an organized, secure and flexible way; offering services and

an environment that significantly reduces the risk of a bad experience in its inclusion into

the region. Detailed landing services in this regard include in addition to the appropriate physical

space, location of adequate human capital, suitability to the region, relational capital, counseling

in fields of legal, labor, among others. (2) Business incubation services - supporting start-up

businesses in conducting financial, technological and marketing feasibility studies and

in preparing a business plan for consolidating their business ideas. During the incubation process,

entrepreneurs and businessmen will receive physical facilities suitable for carrying out their

projects, professional and managerial guidance and direction, specialized consulting (business

administration, marketing and sales, finance and accounting, international commerce, legal,

technology), business training and liaisons, and links to potential financial parties and investment

funds as well as to the university’s research centers and laboratories. (3) Business accelerator


services - offering consultancy in three corporate pillars: (a) company’s vision - in order to

advise on strategic plans and actions regarding international commerce, marketing, logistics,

value chain management, public relations and benchmarking towards a broaden corporate vision

and market expansion; (b) innovation - in order to revise the company’s business model,

production processes, new product developments and managing practices to generate new

initiatives to become more competitive in the domestic and international markets; and

(c) financing - in order to improve the financial administration and establish an adequate fiscal

strategy by implementing corporate governance as well as establish a strategy to obtain venture

capital and other sources of funding to maintain the grow rate of the company. (4) Technology

development services - including (a) technological services for new product developments;

(b) technology transfer services for evaluation of new and emerging technologies, identification

of marketing channels for new technologies, promotion of inventions and prominent technology

projects, and advice and support in intellectual property protection; and (c) industry liaison

services for networking with industry clusters to create a value-added network for an emerging

technology or inserting a new technology (start-up) in its industry value network. (5) Science and

academic services - offering tenant companies a pool of highly-trained human capital in a win-

win situation for the industry and the academia (researchers and alumni) to work together in

the development of R&D projects based-on real industrial needs and standards [Molina et al,

2011].

4 A Technology Parks Toolkit

Considering the natural, economic, demographic, political and social characteristics that may

exist in different regions, the Tecnológico de Monterrey University has developed a toolkit

to design, develop and launch (university) technology parks. The (university) technology park

development process includes a toolkit with the following methodologies: (1) The definition of

strategic industries, (2) Strategic intent for regional development, (3) Regional assessment for a

technology park creation, (4) Logic models for technology park strategic management, and

(5) Guidelines and checklist for a technology park development (see Figure 1).

Figure 1: Technology Parks Development at Tecnológico de Monterrey

4.1 The Definition of Strategic Industries

Using the approach of Lester [2005], four types of strategies can be pursued for regional

development to create industries that can drive the socio-economic development of a region:

(1) Indigenous creation of new industry, (2) Importation/transplantation of new industry into

the region, (3) Diversification/transformation of existing industry into technologically-related


new industry, and (4) Renovation/upgrading of existing industry (product and process

improvements, service enhancements, technology infusion). Figure 2 describes what industrial

sectors have been defined for the creation of strategic industries, for example, in Mexico.

Figure 2: Definition of strategic industries (e.g. in Mexico)

4.2 Strategic Intent for Regional Development

Based-on the definition of strategic industries, each region where a (university) technology park

seems to be a good alternative for regional development has to undertake an exercise to define

the strategic intent for the regional industry development [Molina et al, 2008]. The strategic

intent includes: (1) the definition of each industry development strategy (creation, importation,

diversification and renovation) to promote an industrial sector, (2) identification of technological

megatrends that might underpin the industrial sector(s) development [see OET], and (3) selection

of specific technologies to design and create new products, diversify existing product portfolios

and/or improve commodity products (see Figure 3).

Figure 3: Strategic Intent for Regional Development (e.g. in Mexico)


4.3 Regional Assessment for a Technology Park Creation

Each region has to be assessed to evaluate the potential for a successful technology park creation.

The methodology used for this activity is based-on the framework developed by Chiesa &

Chiaroni [2004], which includes the assessment of four driving forces dimensions based-on

actionable and context factors of the target region (see Figure 4):

1. Financial driving forces: All financial mechanism available at regional level.

2. Industrial driving forces: Industry based and competences.

3. Scientific driving forces: Science and technology capabilities and capacities.

4. Supporting driving forces: Enabling mechanism - legal, services, infrastructure.

This activity is very important and has to be undertaken with regional stakeholders such as:

government officials, academy, industry and society; the famous quadric-helix.

Figure 4: Regional assessment for Technology Park Creation

[Adapted from Chiesa & Chiaroni, 2004]

4.4 Logic Models for a Technology Park Strategic Management

The Tecnológico de Monterrey University has developed a typology of four technology park

models to approach different regional realities. These models are based-on best practices around

the world [Molina et al, 2011]:

Model I - Technology parks for high-value employment development: These technology parks

are designed to accommodate companies seeking for human resources for high-value activities,

and whose primary activities do not involve science and research. These technology parks offer a

good way to provide specialized talent to technology-based companies in closer setting to a

university. Immediate feedback from companies is needed to enrich the educational model

to improve the profile of the graduates.

Model II - Technology parks for the attraction and development of businesses: These technology

parks are mainly combinations of high-technology incubators (to accommodate technology-

based start-ups) and landing centers to accommodate foreigner technology-based companies

establishing operations in the region. These technology parks rely heavily on consulting and

advisory services, technology management, networking and a specialized brokerage of

the university’s R&D capabilities in order to support the tenant companies. These technology

parks do not include R&D activities per se, but possess a highly trained staff of technology

brokers and managers.


Model III - Technology parks for companies with research activities: This model has similar

characteristics to the Model II, but includes specialized laboratories in order to serve highly

sophisticated business needs of companies that require a constant access to R&D facilities.

Model IV – Technology parks for regional innovation: These technology parks are the more

widespread model, built in large extensions of land, with a university campus-like setting, and

diverse R&D centers, universities and companies sharing a common space and encouraging

business relationships. These are mostly regional projects financed by governments, given their

high cost and scope.

Based-on a logic models structure, four management frameworks have been developed for each

of the (university) technology park models previously introduced, as valuable tools for

technology park managers to design/evaluate their operations [see Molina et al, 2011]. These

technology parks’ logic models are composed by five main components (activities, results,

effects, impacts and benefits) in order to visualize the way a technology park is supposed

to operate and what goals are expected to be accomplished taking into account the activities/

services provided. Moreover, these logic models aim to guide a technology park’s performance

assessment and allow a technology park manager to track changes in activities deviate from

the strategic and operational plans. Table 1 presents a generic logic model for a technology park

strategic management.

Table 1: A Generic Logic Model for a Technology Park Strategic Management

Activities Results Effects Impacts Benefits

Infrastructure

development to land/

host high-tech

companies.

Development of

intra- and inter-

collaborative

networks among

tenant companies

and with the

university.

Demarche of

governmental

resources (financial).

Attraction of high-

tech companies for

landing.

Brokerage services

in expansion beyond

networking such as

professional,

technical,

administrative and

legal assistance.

Brokerage services

between R&D

groups/ networks

and industrial

projects.

High value

employment

recruitment.

Business

acceleration.

Business incubation

and university spin-

offs.

Development of

regional industry

clusters for high

value activities.

Physical

infrastructure

(offices, meeting

rooms, common

areas).

Highly specialized

labs.

Managers qualified

in key areas for the

target industrial

sector.

Patents in key

technologies of

relevance for the

target industry

sector.

Global companies

landed/hosted at

the technology park.

Joint R&D projects

executed between

the university and

the tenant

companies.

Services provided to

tenant companies.

Local recruiting by

the tenant

companies.

New products and

services launched

to the market.

Improved services

provided by

the Government

to the tenant

companies of


Better positioning

of the region in

the forefront of

technology.

Faculty awareness of

latest trends and

industry needs in

target sectors.

Highly focused and

specialized human

capital recruiting

process.

Governmental

support to leverage

the emergence of a

new high-tech

industry sector or

activity.

Business awareness

of university’s

resources

(infrastructure,

human capital).

Interdisciplinary and

multidisciplinary

projects.

High participation of

alumni as interns in

tenant companies.

Fast growth of a

technology

entrepreneurial

business spirit at the

university.

Fast growth of

innovation-based

business

opportunities in the

community.

Use of university’s

technology patents

in the industry

(technology transfer

and licensing

agreements).

New technology

ventures created.

Joint R&D projects

between the

university and the

tenant companies.

Patents developed at

local labs.

Amount of financial

resources attracted

(investment capital,

funds, and grants)

by the tenant

companies.

Revenue streams

based-on R&D

projects.

Creation of high

value employments.

New infrastructure

development in

support of the tenant

companies by the

Government.

Increase of highly

trained human

capital in the region:

researchers, science

and engineering

graduates, etc.

Increase of the per

capita income in the

region.

Superior industrial

productivity due to

innovation.

Higher foreigner

direct investment in

high-tech

companies.

Development of new

industry clusters in

high added-value

sectors.

Growing number of

community high

value services

(education, trade,

leisure,

transportation).

Increase of

infrastructure to

support technology

intensive activities.

Exports of high

value national

products and

technology.

Faster evolution to a

digital society.


Furthermore, a key success factor for a (university) technology park is the creation of strategic

alliances between the university and the tenant companies. For this purpose, the Tecnológico de

Monterrey University has developed a collaboration maturity model between industry and

academia (see Table 2).

Table 2: Technology Park’s University-Industry Collaboration Maturity Model

Awareness Relationship Support Sponsorship Strategic Alliance

Human

capital

development

for

the future

Recruitment

Job bank

Job fairs

Internships

Guided tours to

corporate

facilities

Business clinics

Engineering

projects

Curricula co-design

Seminars &

workshops

Internships

Joint certifications

Scholarships funds

Internship

Strategic

collaboration

Human

capital

development

for local

recruitment

Open training

programs

Closed training

programs

Graduate

programs online

Executive

education

Specialist programs

High potential

talent development

Graduate programs

High level

executives

Joint certifications

International

programs

High specialized

academic programs

Corporate

university

Technology

Transfer

Identification of

opportunity

areas for

collaboration

Marketing

innovation

Ad-hoc projects

Business model

innovation

Corporate chairs

Process innovation

Process consulting

Engineering

projects

Product and service

innovation

Specialized

consulting

R&D Awareness of

university’s

R&D

competences.

Specific R&D

projects

R&D internships

Testing of new

concepts and

prototypes

National R&D

projects

Joint R&D

investments

Joint investment

funds

International R&D

projects

Visiting researcher

on corporate site

Joint R&D

laboratories

Joint design,

engineering and

manufacturing

centers

Fellowships

Research

fundraising

4.5 Guidelines and Checklist for a Technology Park Development Strategy

Any (university) technology park development should take into consideration the following

recommendations based-on the Tecnológico de Monterrey University experience…

A (university) technology park should be seen since its beginnings as socio-economic

development tool for its future hosting region, in where a university must be its champion,

driving its strategic and business planning, as well as responsible for consolidating a group of

committed stakeholders/founders for its development. The (university) technology park should

involve at least one university, and businesses and R&D centers wishing to establish or

consolidate links with that leading university, and of course if possible the support of

the Government. Furthermore, the proper selection of a (university) technology park model will

depend greatly on the resources available for its development, on the founding strategic alliances

that are formed, and on the strengths of the particular hosting region.

Moreover, a (university) technology park must be an entity capable of capitalizing the knowledge

generated by academia (universities and R&D centers) and then transform it into social and

economic wealth (industry and society) for its hosting region. A (university) technology park

should become a fundamental element of the local-regional entrepreneurial and innovation

system. Hence, a (university) technology park must be an efficient instrument for technology

transfer as well as for the creation and attraction of technology-based companies to a region.

An important expectation to be set clear at this point is that technology transfer and

commercialization do not happen overnight, so it may take some time (allow a minimum of five

years) to start realizing a (university) technology park achievements. Considering this long-tail,

any (university) technology park monitoring and performance measurement system as a best

practice should include ‘process indicators’ to follow-up on the activities carried out and show

the gradual progress made towards the aimed goals and ‘impact variables’ that will show

the benefits achieved in the long-run. It is recommended to carry out at least one annual

survey of all park tenants for monitoring and performance evaluation.


A (university) technology park development must be properly designed based-on a strategic

plan, including its infrastructure requirements and professional park management services to be

needed. Warning - unless a (university) technology park is well planned, it may become a

property development and not a catalyst for technology transfer and commercialization.

Feasibility studies and initial plans detailing planning and engineering elements may be costly

but definitively worth in order to reduce risk and increase success for the technology park

development.

Regarding the initial capitalization of a (university) technology park, funding options may vary

from federal and state governments, science and research bodies, combined with private sector

investment. Further capitalization and sustainability of a (university) technology park should be

planned based-on different revenue streams related to services.

Lastly, the following checklist has been defined as additional assisting mean for a (university)

technology park development strategy:

1. Defining the technology park model. During this first design phase, the future technology

park founders will define the technology park model according to the opportunities detected

at the diagnosing phase. The technology park model should be shaped based-on the region’s

vocation, focused on high value added niches or industrial sectors, stakeholders interests,

key industrial activities and needed entrepreneurial, research and technological services.

2. Setting an operational model, running mechanism and location-infrastructure. During

this second design phase, the technology park’s strategic, business and operational models

will be defined together with its territorial location and dimension, and infrastructure

characteristics and space distribution.

3. Development of business units. During this third design phase, the technology park’s

business units or services will be defined e.g. landing, business incubation, business

acceleration, technology development services, science and academic services, etc.

4. Construction of the technology park. During this building phase, special attention will

be provided to construction project management of the technology park, and some of

the business units may start operations in order to attract/recruit the first tenants of


5. Operations kick-off. During this last phase, all technological park management processes

defined will start running and all services will become available for the tenants.

5 The Tecnológico de Monterrey Experience

Following the toolkit presented in this paper, the Tecnológico de Monterrey University has

successfully created 14 technology parks that are addressing the challenges of creating a

knowledge-based economy [Molina & Hernández, 2011] in different regions and cities of

Mexico (see Figure 5).

Figure 5: Network of Technology Parks at Tecnológico de Monterrey


The 1st technology park created by Tecnológico de Monterrey was launched in April 2005 [see

Molina et al, 2011]. An action-research approach has been used to learn from each technology

park development and all of the 14 technology parks have followed the logic model for strategic

planning and management presented in Section 4.4. Therefore, even some adjustments were

made to the original methodology; the lessons learned from each individual technology park

were more related to the following:

How to align government-industry strategy with technology park strategic areas. A long

facilitation process took place between state government and Tecnológico de Monterrey

deans and presidents for each technology park development.

How to involve all the important stakeholders (government, academy, industry and society). A critical success factor was the inclusion of local authorities and private and public

universities.

How to negotiate the creation of a technology park at each Tecnológico de Monterrey University Campus and to keep the ownership and governance of the technology park.

How to finance the technology park investment. All the technology parks have received

financial support from Federal and State Government, and this strategy promoted

the creation of a Federal Government special fund to support the creation of technology

parks in Mexico.

One more technology park, the 15th, is currently under development focus on agro-business and

information and communication technologies at the state/campus of Veracruz.

6 Technology Park’s Final Development Recommendations

Based-on its experience on developing (university) technology parks, the Tecnológico de

Monterrey University has listed the following final recommendations for the establishment of

a technology park:

Clearly define the technology park’s vocation and its role in the local-regional economy.

Select founding tenants that subscribe to the technology park’s vocation/mission.

Generate support from the quadric-helix (government, academy, industry and society).

Win and land anchor global companies that may attract is value network.

Involve investment clubs and leading businessmen of the region.

Select a site for the technology park close to a University.

Develop a feasibility study on the technology park model.

Prepare a strategic, business and operational model based-on the services to be provided.

Develop a business incubator, a business accelerator and a technology transfer office.

Establish a managing directors’ board for the technology park.

The infrastructure is as equal of importance as the technology park management and its landing strategy (market the park).

The methodology presented here has been applied to other technology parks developed in

México, and has been shared to different universities in Latin America. However, there is no

experience of how has been applied to other countries. Future work could include the follow-up

of experiences of its application to other national contexts.

Acknowledgements

The research presented in this document is a contribution to the Tecnológico de Monterrey, Vice-presidency for

Research and Innovation. Special recognition and appreciation to all researchers, deans and presidents that have

contributed to the Tecnológico de Monterrey technology parks network creation and development.


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University) Technology Parks Toolkit: Knowledge Transfer and Innovation The Tecnológico de Monterrey Experience

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