High-Tech Business Incubators in Cyprus. Business Incubators

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1 High-Tech Business Incubators in Cyprus George Michaeloudes Ministry of Commerce, Industry and Tourism Presentation Outline Cyprus Manufacturing Industry New Industrial Policy Business Incubators Programme for the creation of new enterprises of high technology and innovation through the institution of business incubators

2 Restructuring of Cyprus Manufacturing Industry A number of problems facing the sector Strengths High percentage of graduates Many Cypriots employed at research centres abroad Geographic location Accession to the EU The Future Focus on differentiated products or services market oriented knowledge-intensive less price-sensitive less susceptible to competition

3 How is it achieved? Innovation Entrepreneurship Targets New Industrial Policy Creation of new high tech industries Attraction of Foreign Direct Investment especially in knowledge-intensive sectors The restructuring and support of traditional manufacturing industry Improvement of Productivity

4 1 st Chapter of New Industrial Policy Two Programmes have been adopted Programme for the creation and operation of Business Incubators Programme for the creation of new enterprises of high technology and innovation through the institution of business incubators Business Incubators Business incubators provide the necessary support to inventors to enable them to develop innovative ideas,, while at the same time promote the creation of new companies for the commercialisation of the products which will ensue. High tech incubators aim at the commercialisation of research results.

5 Basic services offered by the incubator Assistance in assessing the prospects of the idea from a technological and commercial point of view Assistance in the drafting of a business plan Scientific and business support Assistance in securing finance Secretarial and accounting support Office services: space, basic furniture, telephone, fax, internet connection, electronic and conventional mail Use of data bases and technology transfer networks Programme for the creation and operation of Business Incubators Four Incubators signed agreements with the Details / Contact persons at

6 Programme for the creation of new enterprises of high technology and innovation through the institution of business incubators Beneficiaries / Who can apply Individuals or small groups of individuals The submission of a complete business plan that satisfies the section criteria of the Programme Programme for the creation of new Acceptable activities Applications may be accepted for non-polluting activities which lead to the development of a product, which can be classified in any of the sectors of manufacturing industry, information technology, software development and other sectors, provided that the following elements, which will constitute the basic criteria in the applications evaluation, are satisfied:

7 Programme for the creation of new Evaluation criteria Innovation Technological viability Marketability of the idea The possibility to develop the idea within the budget and time framework described in the project proposal The suitability and adequacy of the team with regard to the scientific and business requirements of the project Programme for the creation of new Application procedure Application to a suitable incubator Ability of the incubator to support the development of the specific idea Patent search In-depth assessment of the idea by the incubator Agreement in relation to the terms of co-operation operation Preparation of a Business Plan and Research and Development Plan Submission of an official application to the Ministry of Commerce, Industry and Tourism

8 Programme for the creation of new Assessment Procedure Assessment by a 5-member 5 Assessment Committee (2 members) Planning Bureau Institute of Technology Foundation for the Promotion of Research Assessment by external assessors Programme for the creation of new After approval Creation of a limited liability company Inventor Associates Incubator at least 50% + 1 share Development of the idea within a two year period

9 Programme for the creation of new Grants 1. Grant towards operating expenses and purchase of equipment (aid covered by the de minimis rule) It covers 100% of the following eligible expenses: Wages and salaries Equipment Consumables Rent and services This de minimis grant will not exceed the ceiling of over a period of 3 years. Programme for the creation of new Grants (cont.) 2. Grant for Research and Technological Development Depending on the stage of research (The grant is reduced the nearer to the market it gets) Industrial research 50% Technological development 25% For SME s + 10% Two at least independent partners in Cyprus and one partner from a European Union Member State a further increase of 10% will be given.

10 Programme for the creation of new Grants (cont.) 3. Grant for small and medium enterprises Investment Grant for small-size size enterprises 15% for medium-size enterprises 7,5% It covers the following eligible costs: Initial investment expenses on equipment Expenses for acquisition of know-how Programme for the creation of new The above grants will be provided subject to the condition that the total amount will not exceed CY the inventor and/or his associate will deposit an amount of at least as own capital.

11 Where do we go from here? This is just the beginning. The success of this endeavour requires a continuous, intense and long-term effort. If successful, the benefits to the participants and the economy are expected to be invaluable. High-Tech Business Incubators in Cyprus George Michaeloudes Ministry of Commerce, Industry and Tourism

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