Current Status of Technology Incubators and Parks in Pakistan

A. Current state of affairs in Pakistan The major aim of the technology business incubators is to help the entrepreneurs get off the ground through mentoring, funding and facilities. One of the objectives of such incubators is the commercialization of research and development output by linking the academia with industry. To this end, science and technology innovation is an important component. Governments, industries, universities, and other research and development organizations play crucial roles in the innovative approach and acting as agents of the change. In Pakistan, the informal rural technology incubators are functional since centuries as mailas, horse and cattle shows, livestock markets i.e., maila mandi mawaishian, mall mandi, animal sports, industrial expos, fairs and exhibitions, etc. The idea of formal technology incubators/parks was, however, conceived and realized at government level after the establishment of Higher Education Commission in year 2002. Therefore, efforts were made to develop academia-industry linkages at the HEC and at some universities. A campaign was launched among the academia and industry for loud thinking in this area. Numerous intellectual exercises with the academia and industry led to the consensus for increased funding in the science and technology and higher education sectors in Pakistan. A multi-prong approach was followed by the MoST and HEC to develop a competitive human resource and infrastructure to meet the challenges of knowledge based economy. At present, the following organizations/institutes are involved in technology incubation by one or the other way: 1. Small and medium enterprise authority (SMEDA) SMEDA has played an important role in technology incubation through motivation and start up financial help in power loom up-gradation, auto part vendors, carpet weaving program, agri-mall, agriculture credit services, ginning sector, ceramic and pottery sectors, etc. 2. Technology Incubation Centre (TIC) The first Technology Incubation Center (TIC) in Pakistan was established by the National University of Science and Technology. The TIC is divided into three sectors: Engineering, ICT, and virtual sectors. It is now planning to develop other techparks and

tech museum by starting to develop plans and studies and it has started to approach by exploring funding opportunities, establish linkages, and by seeking technical support. 3. Software Technology Park, Islamabad The Software Technology Park of Islamabad is now well established. A covered area of about 40,000 sq ft, with all infrastructural requirements is available on nominal rent. The Software Technology Parks provide conducive conditions for software shops. It provides a large band width communication with reliable power supplies, high flexibility buildings, minimized regulatory overheads and maximum flexibility in the choice and use of space. The Park management is developing similar Parks at Lahore and Karachi. 4. High-technology township (techtown) High-tech township was approved by the government at a total cost of Pakistan Rupees (PRs) 1,396 million (US$ 24 million). The implementation of this scheme had been delayed due to financial constraints. 5. Electronics industries promotion centre The National Institute of Electronics (NIE) situated in Islamabad is involved in research and development of electronics systems and components. It has established an incubation centre for the development of its own lab prototypes into pilot production lines. 6. Indus information technology park The Government of Sindh is working on the establishment of an Information Technology Park at Karachi, the largest industrial city of the Country. The development work for the park is in progress, the park envisages the establishment of software houses, Incubation Centers, hardware manufacturing and setting up of other related facilities. The park would be declared an export free zone to encourage foreign investments and export of software. This would be the first complete IT Park in Pakistan providing all necessary facilities to the start up companies and entrepreneurs of IT business. 7. Scientific and Technological Development Centre (STEDEC) STEDEC has been established to facilitate R&D Organization in

commercialization of the R&D results. The STEDEC provides finances for Strategic Partnership in Promoting Incubation System for SMEs matured projects by the R&D organizations for commercialization of their outcomes as soft loans with a comfortably

long period of recovery. Another such scheme has been launched by the Ministry Science and Technology (MoST) under the name Contractual Research. Under this scheme, MoST funds private entrepreneurs for practicable ideas or initiate, schemes involving high priority commercial projects. The concept is to involve R&D infrastructure in the development of such commercially valued products which have definite sponsors. Projects on roses and citrus nursery being executed by the University of Agriculture, Faisalabad are some of the pioneer and good examples in the direction of commercialization of technologies and products. 8. Metrology, Standard, Testing and Quality Assurance System (MSTQ) Under the science and technology policy, Pakistan has initiated a comprehensive program for strengthening of MSTQ infrastructure. The following measures are taken to make manufacturers more quality conscious and to build infrastructure for an effective quality assurance system: 9. Pakistan Council for Scientific and Industrial Research PCSIR is planning to setting up a variant version of Technology Business Incubators (TBIs). Through these TBIs, PCSIR is aiming at popularization of its technologies in an innovative approach. These TBIs will function as pilot plants for the demonstration of technological processes developed by its scientists. These are anticipated to attract venture capital from SMEs in a science and technology cooperative mode. The approach is being designed to attract such SMEs who are either shy of investing in technologies or do not have sufficient venture capital resources of their own. The other developments in this direction include (i) an agreement between Pakistan and China for active collaboration for setting up Science and technology parks and technology incubators at various sites in Pakistan, (ii) entrusting responsibility of strengthening the initiatives for incubation of IT/ITES (IT enabled services) companies in Pakistan, and (iii) development of a mindset for developing technology incubators in the future vision of organizations like PCSIR, UAF, NUST, HEC, etc. 10. Technology Incubation and Product Commercialization Programs at the University of Agriculture, Faisalabad University of Agriculture, Faisalabad (UAF), a historical custodian of national agricultural heritage and development, has always played a lead role in accepting the change viz-a-viz

national and international requirements. Since 1961, UAF has been practically engaged in technology transfer, offering consultations and facilitating the commercial processes in the field of agriculture and allied disciplines. Old examples in this regard are the establishment of Kissan Hall, 03 museums and crop demonstration plots in the university aimed at technology transfer and incubation, product/technology display, etc. UAF has promptly responded to the concepts of technology incubators and parks. UAF has already allocated a piece of land for this purpose with the possibility of increasing capacity with time. Some of the in hand projects include product/display centre, agricultural heritage museum, patent and product commercialization through demonstration of crop varieties and techniques/processes, agricultural implements, controlled atmosphere storage technology, seed technology, tunnel farming, animal feeds, etc. Initial investments in these projects have been made either through competitive grants and/or own resources of the university. UAF also responded to GOPs STED (science and technology for economic development) initiatives. Two proposals funded by MOST are part of our upcoming technology parks. These are our Commercialization of Roses and Model Citrus Nursery Development. B. Bottlenecks Weak political will, leading to inconsistent and feeble sate-run policies Lack of technology up gradation High cost of financing High cost of utilities Little international exposure of Pakistani vendors C. Relevant international indicators In 2009, despite a down economy, President Obama has pledged $250 million a year in federal funds to seed a regional network of such organizations--an effort aimed at growing jobs and innovation. This is the first time in the U.S. that a new administration has made this kind of commitment to innovation, entrepreneurs and technology, says Dinah Adkins, president and CEO of the National Business Incubation Association. This is the first time weve had a presidential administration that wants to invest in this. There are 7,000 incubators around the globe, and they create jobs, grow companies and help technology evolve. Some of the examples include:

International Association of Science Parks (Western Australia), AgriTech Park (Canada), Hong Kong Industrial Technology Centre Corporation (China), Okamoto & Company (Japan), Advanced Technology Development Center (Georgia, USA), Arizona Technology Incubator (Arizona, USA), Colorado Bio/Medical Venture Center (Colorado, USA), International Business Incubator (California, USA), etc. Business incubator models are among the priorities of United Nations to address poverty issues particularly in Asia. International donors/investors are supportive to technology incubators D. How to address the bottlenecks Effective legal framework to ensure the continuity of policies Heavy public sector investments in the form of endowments in the research and development Technology financing at low costs Low cost of utilities Increased academia-industry interaction at national and international level E. What are the appropriate and effective policies ? Constitution by act of a National Innovation and Technology Consortium Establishment of a National Innovation and Technology Incubation Centre (NITIC) Setting up the technology incubators in all the main cities near renowned universities Establish the incubators in line with the development strategy of the regional economy Set up various specialized incubators in different technology fields Merger of public sector R & D organizations with the universities both at Federal and Provincial levels Affiliation of vocational training institutes with the universities Who is responsible for the change or needs to be brought on board for the change to happen ? Is their any major concern or obstacle to implementing this solution ? The proposed National Innovation and Technology Consortium should be responsible to bring the change. The only concern is the inconsistency in the political will required for the change.