Infrastructure for Enterprise Innovation Hubs

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Infrastructure for Enterprise Innovation Hubs

• EIF Experience
• By Bagrat Yengibaryan

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Enterprise Incubator Foundation

• Non-profit business development and incubation
  agency
• Established in 2002 by the Government of Armenia
  within the World Banks Enterprise Incubator
  Project to support the development of Armenias
  IT industry
• Mission is to stimulate economic growth of
  Armenia by assisting the local IT enterprises in
  business and skills development areas and
  stimulating entrepreneurial activity and start-up
  formation in the country

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Infrastructure for Innovation Hubs

• This is an evolving concept that has reached
  different levels across the world, reflecting the
  different stages of development. Technological
  and other change is rapidly transforming the
  environment in which the Innovation is developed.
  We should promote it at the national level. To
  put the potential of knowledge and ICT at the
  service of development

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Challenges

• Incubator as a Start up
• Wide range of Services
• Business Services
• Skill Development Services
• Facility Services
• Revenue Generation
• Virtual vs. Physical

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Support Actors Key Stakeholders

• Government
• Private Sector
• Educational Institutions/Academia
• Think Tanks
• Research Centers

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Role of Government

• Development of strategy, including the necessary
  human capacity building
• Initiate structured dialogue involving all
  relevant stakeholders, including through
  public/private partnerships, and for the exchange
  of best practices

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Role of Government

• Government should take action, in the framework
  of national development policies, in order to
  support an enabling and competitive environment
  for the necessary investment in Innovation and
  for the development of new services
• Provide funding for joint projects

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Business Development/ Cluster Development

• Cluster promotion (Foreign Offices)
• Branding
• Business development (software process
  improvement, CMMI certification)
• Capacity development (training labs, curricula
  development, RD facilities)
• Consultancy (legal, accounting, sales, marketing)

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Business Development/ Cluster Development

• FDI attraction
• Microsoft Innovation Center
• SUN Solution Development LAB
• Financing mechanisms (Venture Capital)
• Start-up creation
• Surveys and Publications

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EIF as Part of Knowledge Infrastructure

• RD Centers
• Training Labs
• VC Funds
• Techno parks

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Key Results Achieved

• Annual sector growth 20,
• Annual workforce growth 30
• 10 growth in start-ups creation
• IT industry produces 10 of Armenias exports
  and almost 2 of Armenias GDP
• Productivity increase 7
• 70 of IT companies using EIF services
• FDI attracted (Sun Microsystems, Alcatel,
  Microsoft, National Instruments, HP)
• First VC fund established in Armenia

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Success Factors

• Idea generation
• Turning ideas into action
• Public-private partnership
• Matching interests
• Quality services/new perspectives
• Networking opportunities
• Big picture

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What is needed?

• Political support
• Skilled human resources
• Dedicated management
• Creative culture
• Start-up capital
• Physical Infrastructure

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Next Steps

• Development of New Strategy and Implementation
  Plan
• Joint actions with Donor Community and Private
  Sector on Implementation of Projects on
  exploring ICT and E-development aspects related
  to knowledge based economy
• Establishment of Innovation Centers and Start-up
  Funds, Industrial Zones, etc

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• Enterprise Incubator Foundation
• 123 Hovsep Emin st.
• Phone [phone]
• Fax [phone]
• E-mail info_at_eif.am
• www.eif-it.com