Innovation Process: Country Case Palestine

Transcription

1 Innovation Process: Country Case Palestine Eng. Samah Abu Assab M.Sc. Innovation & Technology Management

2 Blick on Palestine RWB area=5,860 sq. km. GS (area=360 sq. km Israel (area=20,770 sq. km Population & demography: Projected Population: WB: 2, GS: 1, Jerusalem: Population by Age 0-17 yrs 52.7% % % Source: Buenos Aires,

3 Main Conflict Issues The equal in importance still conflict issues include but not limited to the following: Apartheid Wall Source: Net Jerusalem, Al sakhra Source: own photographing 1. Jerusalem as the capital of Palestine 2. Refugees and the right of return 3. Israeli settlements and land confiscation 4. Water and other natural resources Buenos Aires,

4 Palestinian economy: Key indicators (West Bank and Gaza Strip) (1/3) Labor Force (1 Quarter 2005) Male Female Labor force participation rate 66.8% 12.2% Unemployment rate in 27.4% 20.2% Palestinian Territory Unemployment rate in WB 24.0% 16.1% Unemployment rate in GS 34.2% 33.0% Buenos Aires,

5 Palestinian economy: Key indicators (West Bank and Gaza Strip) (2/3) (est.) 2003 (est.) GDP (US$ million) 4,201 2,903 3,179 GNI (US$ million) 4,932 3,090 3,363 GDP Per capita US$ 1, GNI per capita US$ 1, Real GDP growth (%) Real GNI per capita growth (%) Domestic expenditure (% of GDP) Inflation (CPI-annual %) Poverty rate (% of population) West Bank Gaza Strip Source: UNCTAD. Report on UNCTAD s Assistance to the Palestinian People. July 2003, p.7. 1 World Bank estimates. Buenos Aires,

6 Palestinian economy: Key indicators (West Bank and Gaza Strip) (3/3) (Source: MOPIC, Monitoring Report of Donor Assistance, 2002). Buenos Aires,

7 Business Environment (1/2) To date, significant investment has been made in large infrastructure projects and micro-lending programs... WBG Businesses (50,000 businesses) Large >100 Small & Medium employees Micro <5 employees (95% of total businesses) Buenos Aires,

8 Business Environment (1/2) Capital Sources International Finance Corp. ($87M) Palestinian Investment Funds ($80M) Capital Access Very High Commercial Banks ($minimal) Low Microlending Programs ($25M) World Bank United Nations US Foreign Aid Very High Buenos Aires,

9 Business Needs Assessment (1/2) but small and medium sized businesses still find it difficult to access capital and business assistance for business expansion. Non-Family Owned 5% Investment Gap Profile Family Owned Small & Medium Sized Businesses employees (2,500 businesses) Family owned businesses have limited experience with financiers Growth limited by size and skills of family Growth Companies 5% Lifestyle Companies Lifestyle companies work to meet basic needs Growth companies reinvest for expansion Buenos Aires,

10 Business Needs Assessment (2/2) Much like a start-up business, WBG faces an ambiguous future with a series of investment risks that must be mitigated to secure a return. Business Risks in the WBG: Israeli obstacles (closures, trade restrictions, etc.) Restrictive WBG/Israeli borders Unstructured legal and regulatory environment Limited knowledge in international marketing High unemployment Political uncertainty Buenos Aires,

11 Investment Opportunities In light of the business risks, there are still promising WBG sectors. Strategic investment coupled with innovative business models will lead to growth Growth Sectors Potential Cluster Construction & masonry Specialty crafts Information technology Exotic agri-products Software Develop. Info Tech Web Design Potential Rollup Agri- Products Rollup Computer Coding Israeli JVs ISPs Micro Businesses Buenos Aires,

12 Investment Options The UMBS team investigation uncovered a series of investment opportunities among small and medium sized businesses in the WBG. Investment Options Small Enterprise Equity Investment Fund Work with SEAF to establish a development fund. Fund will be managed by experts at SEAF. Palestine Innovation Technology Fund A revolving fund managed by a US subcontractor and a Palestinian bank that will focus on private initiatives with a technology focus. Individual Investment $1 million $100,000 Masri Seed Fund $100,000-$1 million An off-shoot of the $60 million Peace Technology Fund that will focus on seed investments in Palestinian start-ups. Individual Projects $50,000-$1 million We identified many individual projects including, a shopping center development project, an entrepreneurial training programs, a small business resource center, etc. Buenos Aires,

13 Organizational Options Three options for creating an equity fund exist. Partnering with an existing fund such as SEAF provides the highest value. Go it Alone Joint Venture Invest in SEAF Pros Complete control over fund disbursement Shared management burden across other parties Shared risk Larger network of human capital resources Expansive network of business experts, regional contacts, and human resources Flexibility with level of participation Cons Bear 100% of risk Major time commitment to manage projects from abroad w/ small network Must have significant funds to reach critical mass (~$15M) Must have significant funds to reach critical mass (~$15M) Requires in depth knowledge of the region and business climate Projects chosen by fund based on set criteria Buenos Aires,

14 Institutions & Innovation (1/4) The Palestine Information and Communications Technology Incubator (PICTI) independent Palestinian organization mission the revitalization and the sustainable growth of the Information Communication Technology (ICT) sector in Palestine Buenos Aires,

15 Institutions & Innovation (2/4) PICTI utilizes a diverse network of industry professionals that will help identify and assess future ICT development trends where high-value-added regional and/or international niche markets will emerge. Within these niche technology applications, it will be necessary to identify those that will be applicable to a wide cross section of industry sectors and that will maintain strong, sustainable growth acceleration into the future. The Incubator will work closely with its client firms to channel and focus their entrepreneurial zeal and technical talent into developing those expertise required for successful entrée into these valuable niche markets. The strategic core components of PICTI include the establishment of an Incubator facility that will offer professional business services to Palestinian entrepreneurs who have mature concepts for unique and innovative ICT products assessed to have strong market potential. Buenos Aires,

16 Institutions & Innovation (3/4) Innovation is a palestinian tradition derived from the values of education, expermentation and the need to find new ways to push beyond boundaries. Ingenuity in Palestine are experts at transforming scarce resources and limited opportunities into tools, products and services. Innovation Ingenuity Creativity: palestinian culture remains enormously productive in architecture, design and the arts and crafts. Creativity Buenos Aires,

17 Institutions & Innovation (4/4) Programs Business development Services Incubation Program Marketing Strategic Relationship building Legal Services International Marketing Financial Industry-University links program Load fund Networking and Personel Development IT Services Buenos Aires,

18 Startups (1/3) Mobis Mobile Information Services is a startup company currently incubated at PICTI MobIS is specialized in the area of mobile service and content. Buenos Aires,

19 Startups (2/3) 360 HR 360 HR is a pioneering project of SAFAD Systems & Services The project s overall objective is To provide small and medium enterprises (SMEs) with a superior solution based on the best of international standards that empower SMEs workforce to work smarter leveraging business intelligences to make strategic decisions. Buenos Aires,

20 Startups (3/3) 360 HR is progressing on a well planned path of development. This path is guided by a sharp and concise vision to build a comprehensive self-service e-hr software. 360 HR technical team is guided by a team of HR practitioners who contribute full business value and HR functionality to its technical know-how. Buenos Aires,

21 Danke sehr! Thank you! Muchas gracias! Merci beaucoup! Buenos Aires,

22 Eng. Samah Abu Assab M.Sc. Innovation & Technology Management Jerusalem, Buenos Aires,