Strategic management of a sciencetechnology Park

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Strategic management of a science/technology Park

• Norman Apsley
• Chief Executive,
• Northern Ireland Science Park Foundation

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Workshop Themes

• Basics
• Vision
• Governance
• Funding
• Self-sustainability
• Essentials 1
• Relationships
• Location
• Buildings
• Connectivity
• Coffee

• Essentials 2
• Tenants
• Support Programmes
• Probity
• Not just a property company!
• Quick tour of NISP if time.

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Basics

• Vision
• Governance
• Funding
• Self-sustainability

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Governance

• Strict Adherence to Articles, Corporate Plans and
  Budgets governed by an independent board
  established by stakeholders
• Tenants must pass a gateway process

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NISP Mission and Structure

• To be a self sustaining, internationally
  recognised Science Park which is both a
  commercially and research driven centre for
  knowledge-based industries.

Members QUB, UU DETI nominees
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• NISP is a not-for-profit, property based
  business support and technology transfer
  initiative that
• encourages and supports the start up and
  incubation of innovation led, high growth,
  knowledge based businesses and
• provides an environment where larger and
  international businesses can develop specific and
  close interactions with the NI knowledge base.
• Queens University Belfast and the University of
  Ulster, corporately, are founder members of NISP.
  
• NISP was capitalised by the NI Dept. of
  Enterprise Trade Investment.
• Particular NISP projects would be impossible
  without the support and finance of the
  International Fund for Ireland, Invest NI,
  InterTradeIreland, the NI Tourist Board, Belfast
  City Council and the private sector.

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NISP Gateway, managed by University Liaison
Committee

• High Percentage of staff and/or floor area to be
  used for R D,
• High Percentage of knowledge workers included
  in above staff (see definition in Selection
  Criteria),
• Strong relationship (or intent) with a University
  or Research Establishment,
• Strong relationship (or intent) with other
  tenants of NISP.

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Funding

• Grant (govt, national or local) must lead
• Charity unlikely
• Banks will follow
• Developer partner next but care to ensure partner
  buys in completely, issues at churn of high
  provenance

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Self-Sustainability

• Short leases and low provenance weaken Science
  Park property covenants
• E.g. say, 1 sq.m. costs 1000 to construct.
• Let for 100 pa to World Corps RD lab on 25 year
  lease capital value 2000.
• Let for 100 pa to New Tech Co on 2 year licence
  capital value 400.
• Hence need to achieve a balance.
• Initial Grants Donations to acquire land
  property essential.
• Critical Mass 10,000 sq.m.

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Essentials

• Relationships
• Location
• Buildings
• Connectivity

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Strategic Relationships A Science Park must be
integral to the local Innovation Network
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The property base site

• Well Connected
• and
• Green Field
• Agriculture ? Clean Industry
• or
• Brown Field
• Old Industry ? Clean Industry

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The property base buildings

• Critical Mass (gt10,000 sq m) of
• Agile, fit-for-purpose buildings,
• Designed for efficiency, with
• Secure private work spaces and
• Plenty of networking/ meeting spaces.

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Unconstrained geometry
risers
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Connectivity

• Details depend on local regulations.
• Must be on fibre backbone with guaranteed Quality
  of Service or low latency.
• Need to support small non-ICT literate companies
  and Global Corps

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Essentials 2

• Tenants
• Support Programmes
• Probity
• Not just a property company!

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Tenants

• Selection
• All tenants must pass a Gateway process
• Aim for 5050 mix local to FDI
• Terms
• Hard agreements, soft implementation
• Management
• This is your main tool!

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Flexible Lease terms

• Associate (no desk)
• Incubator hot desk to 500 sq.ft
• Tenant 500 sq.ft. to whole buildings
• Leases negotiable from 1 month
• ICT plug and play
• Special (e.g. Lab) fit-out made easy.

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Tenant Management

• The right facilities at the right price!
• SP most expensive per desk, least expensive per
  worker.
• but
• The customer is not always right!
• SP must help tenants eke out their investors
  cash no palaces in favour of sales marketing.
• Problems will become obvious when rents default
  SP needs to read the signals and offer help.

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The support programmes

• A science park needs to create or join with
  others to create a pipe-line of knowledge-based
  companies.
• Enlightened self interest or marketing is the
  rationale for funding but usually others will
  help.
• There are many models across the world but all
  look something like this.

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NISP support to entrepreneurs

• InnovaNET Knowledge-networking pointing to
  others (e.g. INI-ITI Transform)
• 25k Award Research Student Business Plan
  Competition (QUB, UU CAFRE)
• Enzyme mentoring by business people
• halo the Business Angel Network

Sponsored by InvestNI, InterTradeIreland, BCC,
Viridian, NI Bankers Ass, PWC others from the
private sector.
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NISP-CONNECT

• An organised programme of mentored improvement
  leading from proof-of-concept to first round
  venture funding.
• Referrals from Business Plan competitions,
  incubators, universities, agencies and the
  private sector.
• Needs the explicit help and support of the local
  business community!

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The programme SP facilitates only
Distillation
Success
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Probity

• Complete adherence to local and EU procurement
  and other rules
• Complete disinterest of all executives and
  non-executives, personally
• Arms length transactions only

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Not just a property company!

• Keep all issues balanced
• Public face of technology innovation
• Image comment
• Support to Innovation by showcasing and
  celebrating local success.
• Support to Innovation by example and procurement

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Awards

• The Innovation Centre was awarded an Irish
  Property Award in 2003
• NISP won the InvestNI most innovative design
  award in 2004
• NISP gained a national award for its
  telecommunications in 2004
• White Star House has been given a Commercial
  Architecture Award 2007
• NISP was runner-up in the world-wide CoreNET
  award for sustainable leadership 2007.

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NISP CONNECT - The Model
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Summary

• NISP was 4 years in preparation and 4 years in
  construction to date.
• 10,000 sq.m. net of international quality
  workspace all let to a mixture of local and
  global high tech companies on leases between 2
  years and 10 years.
• Good start but lots to do and happy to share
  experience to make it better.

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More

• www.nisp.co.uk