Science and Technology Parks, Tools for a Leap into Future

Science and Technology Parks, Tools for a Leap into Future Mahdi Moudi Master of Information Technology, Department of Industrial Engineering, Zahedan Branch, Islamic Azad University, Zahedan, Iran Hamid Hajihosseini(Corresponding author) Master of Industrial Engineering, Department of Industrial Engineering, Zahedan Branch, Islamic Azad University, Zahedan, Iran Abstract: Science and research villages and science and technology parks are innovative ideas developed to advance technology and provide conditions required to achieve superior innovations and technologies. After origination of electronic revolution from these parks which proved the importance and position of them in daily development of industries, various definitions were offered. Also their role and position considering technology development abilities of each country directly depends on goals, policies and foundations for development in those countries. Nowadays, science and technology parks are considered one of the main indicators of national innovation system due to huge transformations taking place in IT. Furthermore, developing societies are moving towards establishment and use of these parks with a fast pace. This essay will discuss the position of science and technology parks and their role in today s developing societies and the effects of their performance in solving issues and challenges faced by goals and policies of these societies. Keywords: Science and technology parks, Incubator, Technology. 1. Introduction Establishment of incubators and science and technology parks in the world has taken place very fast. Science parks were established to achieve two main goals: Goal one: To ease transfer of university knowledge to member companies, to develop and promote new small high-tech institutions and also to simulate new procedures and products. Goal two: To organize development of regional economy, however the main goal of establishment of these parks is reconstruction of region s industrial structure by attracting high-tech companies to the park. (Kang, 2004, p2) Generally, science and technology parks have become centers that tackle problems and challenges in economic sector and utilize and maintain an active business. A science park is one of physical foundations for development of knowledge-based institutions which are used to achieve wisdom-based economy. Although science parks were established in the 50 s, however their effective function simultaneous with technology era led to their fast growth in the last two decades; today, all the countries including developed or developing with various economic-social structures benefit from this structure and experience it with different names such as technology parks or research parks. (Azarkesht, 2008, p1) Science and technology parks are designed and built to concentrate research and information capabilities of universities, and governmental and private institutions in one location. Moreover, a superior technology is invented with cooperation of lecturers, students and innovators, specialists and researchers of industries inside and outside of the country in order to aid industrial development and technology. 1168

Today, developed countries want to develop a structured viewpoint using an efficient management or involvement in order to achieve an innovative economy based on wisdom in 21 st century and provide the necessary foundations to design and build these parks as soon as possible. Generally, the role of science and technology institutions including parks and technology growth centers is being part of innovation foundations to achieve functions and activities such as transfer and publication of technology, entrepreneurship, using research findings for businesses via offering consultation services and reducing risks of new non-governmental institutions, etc. Considering new opportunities provided in recent years to use advanced technologies with traditional procedures in fields such as agriculture, fabrications, energy and environment and stronger connections with technology resources and users, universities, companies and governmental researches will require centers next to technology parks and industrial regions. A new business center such as an ideas laboratory inside a technology center and science park can be beneficial. 1.1 Definitions of science and technology parks and incubators Based on definition of international association of science parks (IASP) a science park is an organization which is managed by professional specialists and the main goal of this organization is increasing wealth in the society by encouraging and improving innovation culture and increasing the competition power of companies and institutions. A science park relies on science to motivate and manage knowledge and technology in universities, research and development centers, private companies and markets, and also facilitates foundation and growth of companies relying on innovation via growth centers and procedures. But according to European Union, a science and technology park is a place where newly-founded companies are concentrated in a limited space with the goal of development and increasing the chance of advancement and lifecycle of these companies in order to create common opportunities in a building which has suitable spaces called research parks. Therefore, research parks are categorized based on their activities: A ) Science push They are usually founded in an appropriate space next to university and will lead to an interactive cooperation between industry owners located in parks and universities. B) Technology parks They are founded next to industrial poles with goal of developing industries' research connections in the region with research centers and universities. Growth centers are centers which provide facilities for a number of new growing businesses for instance they can use facilities and space of offices, labs and research centers and access a wide range of consultations, trainings, technical, professional and financial supports and programs, market evaluation etc; these facilities are provided with low costs or free and are given to qualified legal and actual individuals for a certain period of time. (Kanaani, Javanmardi, 2007, p4) 1.2 The difference between incubators and science and technology parks It seems that each of growth centers and science and technology parks play a different role in national innovation structure. The depth of studies carried out on science parks refers to relative comparison of information regarding a limited number of science parks and then it is summarized in the existing difference in internal working life of each park. (Hansson, 2007, p3) It seems that science parks next to university centers with a research approach and not an educational approach and technology parks next to industrial complexes with the potential of research and development play a role which is different from growth centers which can be established with no connection to research centers or industrial mother complexes next to them. In order to explain this difference, it is essential to understand the 1169

formation of new technology companies or new knowledge-based companies which can be done by one of the three following methods: A) Organizational franchise from the mother company In this case, the new company,although different in its operation and independent from the mother company and organization, stays under ownership of mother organization and entrepreneur or establishing team due to policies and decisions of mother organization. This will help the franchise pass technology completion period inside the mother organization and y entrepreneur or establishing team. B) Organizational franchise from the mother company In this case the new company is independent from the mother organization and company both in operation and ownership. Therefore its control is 100% in hands of entrepreneur or founding team and the entrepreneur or entrepreneurship team has passed primary stages of changing ideas to the product inside the mother organization. C) Independent entrepreneurs Here entrepreneur or founding team although are present inside the mother organization, they can advance the technology with paying their costs, mental support. Therefore after exiting from mother organization, they are due to establish new organization without operational or legal participation with mother organization. (Moosavi, Bazargani, 2007,p1) Without a doubt, in developing countries in which most of universities and industrial complexes are research and technology based, there are less franchise companies from an operational point of view and ownership point of view. This restriction especially increases when there is lack of legal procedures to facilitate share holding and companies having universities. Therefore, establishment of science and technology parks in developing countries is doubtful due to universities' educational approach and lack of internal research and development potentials in industrial complexes and also lack of legal procedures, because basically company franchise from these centers has the least priority in operational or legal aspects. Therefore, although science and technology parks are established in these countries, type of these companies makes them huge growth centers without science and technology parks. For instance, Pardis Science and Technology Park is not actually a park but it is a huge growth center because the mother organization and its founding team do not have science and technology production potential. Although growth centers such as Tehran university growth center for drug products and polymer growth center next to polymer research center are called growth centers, they are actually science parks which will in long term harm the mother organization. 1.3 The effect of science and technology parks on success of small and medium sized agencies and companies New technology-based companies play a major role in increasing investment and growth of economy. Establishing science-industrial complexes near universities and in research centers is an essential strategy used to develop modern industries in many countries such as Western Europe and developing Asian states. The question whether or not Science Park's policy is successful or not must be evaluated by examining the number of jobs created and innovative performance between a group of other factors. (Yang& Motohashi & Chen, 2008, p1) When the performances of active and inactive science parks in Sweden were assessed, particular differences appeared in their strategy in a way that founded science parks had more emphasis on innovative activities and the potential importance of science and technology parks as a mechanism to create technological or technical promotion was confirmed. (Park, 2002, p1) Based on this, science and technology parks and growth centers were established to help develop and form small research and development institutions and medium sized industries. Small and new companies which are mostly 1170

established by entrepreneurs, primarily face problems such as lack of experience, information and investment. Science and technology parks and growth centers especially those companies which are founded wit the goal of business development of ideas and developing the market consider it as their duty to support these new companies and help them grow and develop. (Kanaani, Javanmardi, 2007, p5) 2. Examining success factors in science and technology parks These factors are divided into two groups of hardware and software factors: There are three elements in hardware factors which include: 1) coordination of goals with park development 2) Capability of tenant organizations 3) Network connection between organizations in park and universities next to them. Also two elements of supporting park from outside and service and research facilities were provided in the park. Generally science parks success factors can be categorized in three following categories: Factors dependant on location Existence of a qualified engineering university is a key factor in success of science parks. Having access to highways, airports, residential areas with various cultural facilities, educational organizations with high quality etc. Factors dependant on facilities and providing the necessity The most important factor in successful building is permanent continuous connection between personnel. Other factors dependent on facilities and providing the necessity for newly founded companies are innovative technology centers, research labs with low cost ands and tenant buildings. Factors dependant on support mechanisms Connection between universities, companies and research institutions, strong leadership, high number of high-tech institutions next to parks are crisis factors dependent on support mechanisms. Moreover, investment risk is a very important factor because a small risk will result in a heavy loss of investment. (Kang, 2004,p4) Considering all these, it can be concluded that successful technology parks have created new innovations and job opportunities, however many played a minor role in economic development. Today, risk accepting investment complex in knowledge-based economy has led to ideal achievements with low costs. Fast globalization needs a new model which has changed its route from a flexible work environment to a work environment and is mostly as cities with open gates rather than buildings with closed doors. Technology parks are able to be flexible and adapt to these procedures, grow and key connections with tenant companies inside and outside of the country. (Lalkaka, 2008, p2) 2.1 Role of science and technology parks in the world Various stages of innovation procedure include idea generation, development and design, producing a primary sample model before production and also business mass production of recognized product which will finally lead to technological innovative entrance into the market. Important actions taken in the world to support generation of ideas, research discoveries, technology development and creating extended value are as following: 1) Establishing national research laboratories since 1946 2) Establishing parks and growth and technology centers since 1959 3) Supporting intellectual property rights since 1883 and establishment of world intellectual property organization (WIPO) in 1967 1171

2.2 Categorizing science and technology parks In 1985, a German researcher called Arlesh divided parks into three groups: Research parks, innovation centers and Science Park. Research Park is a park in which young or franchised companies are closely connected to universities and research centers. Companies situated in these parks only produce sample products and do not go into mass production of those products. The definition suggested by Arlesh has two main limitations. First formation and growth of newly founded companies (new companies and franchise companies) was not taken into account in parks. Secondly separating parks into two groups of science parks and research parks is very difficult and even many parks are a mixture of these three groups. In 1989, Joseph introduced another concept called technology operated companies (TOC) s a replacement for all types of parks and based on their method of formation, they are categorized into four groups: 1. Those that their growth is the result of newly founded and franchise companies such as: Silicon Valley, Boston's Route 128 2. Research technology operated companies which are restricted to park area such as: Research Triangle Park in North Carolina 3. TOCs that provide facilities for high-tech companies such as Arizona, Phoenix 4. TOCs that are formed by government's budgets such as those in Houston, Texas by US defense ministry In 1989, Carter identified three resolutions for establishing science parks in England and used them as a basis for categorization of parks: 1. University Let and funded Strategy: In this method which is used rarely, universities and higher- education institutions establish parks themselves and manage them. 2. Joint Venture Strategy: In this method, universities, higher education institutions and private investors cooperate to establish the park and the whole complex is managed by several organizations. 3. Cooperative Venture Strategy: In this method which is used mostly, all organizations which participated in creating the park work together in an informal and flexible framework. Usually in this method universities and higher education institutions have less interference in daily tasks of the park. (Tavallaei, Taghiyare, 2007, p2) In addition to the above categorizations, there are other categorizations based on "special volume" and " physical period" and goals and functions of parks are dividable. Physical performance period has three categories of concentrated, scattered and medley. In concentrated parks, community economy is taken into account because facilities and performances of research parks are concentrated in restricted buildings or small locations. This way knowledge and information can be transferred easily and costs of park management will be reduced. Although research development and production operations will be situated in one location, how different types of tenants confront this problem can become problematic. A scattered park is more creative and efficient if long term and highly regarded projects are managed in a specific region, because facilities and performance of research parks is scattered amongst several buildings and location in this type of parks, however costs of park management in this method is more than concentrated parks. Medley parks are established based on this assumption that effects of park's performance can increase by concentrating on small institutions and research institutions which direct similar performances. The advantage of establishing these parks is that tenant institutions can easily be 1172

attracted to it because tenant institutions have more choice compared to other parks. (Kang, 2004, p2) [Inset Table 1 here] 2.3 Incubators Most science parks have a substructure called incubator. The general space of an incubator emphasizes on research, innovation and increasing the competition power of industries. Incubators encourage formation and function of innovative and creative ideas. The governmental sectors (universities and industrial) and private are active in organization and management of incubators. 2.4 The definition of incubator The meaning of the word incubator is an apparatus which keeps eggs warm until they hatch and is a temperaturecontrolled apparatus in which sick or premature infants are kept; Now the question is what is the connection between an incubator and a business. In other words what is a business-industrial incubator? In a business-industrial incubator the same thing that happens to eggs in an incubator, will happen to ideas and innovative thoughts. (Ebrahimi et al., 2005, p2) To be more exact, incubator is part of a land or building which is given to entrepreneurs to found new companies. This land or building usually has a central office offering public services including support and management services to companies located there. The building or services may be offered by the government, industry one or more universities. (Delavar, 1997, p131) The general space of an incubator emphasizes on research, innovation and increasing the competition power of industries. Incubators encourage formation and function of innovative and creative ideas and are suitable tools to attract entrepreneurs. These centers have a flexible structure which provide services required by small businesses in an active space during primary years of their lives, they reduce the preliminary costs to start a profession by offering necessary facilities and services, in addition to that, they makes up for the companies' weaknesses by offering management and legal consultations. In other words, their main goal is helping entrepreneurs and innovators establish companies and institutions so that they can achieve success with less risk and compete in free international market. (Ebrahimi et al., 2005, P3) 2.5 Categorization of incubators Incubators can be categorized into the following groups: 1. Industrial incubators: This group of incubators is supported by governmental organizations and private institutions and their goal is creating jobs and supporting employers. These incubators are mostly located in renovated buildings, abandoned factories, office buildings and other spaces. 2. University incubators: These incubators are established to make technical, technological and spiritual ownership operational and are established as a result of universities research activities. University incubators offer facilities such as laboratories, libraries, specialists and students and scientific members' consultations to new companies. Some of these incubators are directly supported by universities however they mostly have other partners and role players in this field. 3. Virtual incubators: They do not have a special location and offer other services and facilities except work spaces. Most of these incubators are internet incubators. This group called business accelerators have their special characteristics for instance their business procedures are shorter and their results are not easily examinable and measurable. 1173

4. International incubators: Usually this category of incubators has a complete set of support services to advance business activities and their focus is on export. These incubators are connected to universities, research centers, internal and international investors. One unique characteristic of this group is establishing a network of incubators in their relevant area. These networks increase ability and capacity of international incubators by sharing resources and information to a great extent,. (Ebrahimi et al., 2005, p4) Governments resolutions to support incubators Although growth of incubators in industrial countries is becoming slow, development of these centers in developing countries and also renovating the structure will continue with the pace of 10 to 15 percent in a year. This growth is relevant to countries which are establishing incubators and similar centers. Other countries are planning huge development and major improvement of their current activities. While incubators are used separately and their associations and consultants are searching for more efficient functional methods and experiencing various options, more exact research approaches are being carried out considering that each situation is different from the other and each solution must be according to reality. Business incubation procedure has achieved several successes under various difficult conditions, however providing a stronger basis for this concept, defining and achieving this potential needs a broader activity. It is time we accelerated business interactions and opportunities between incubators and their tenant companies and today the essential technologies, needed for creating a global central network and growth centre and achieving a solution to start a global growth network, are provided. 3. Conclusion Science parks were established as social organizations and as part of the chain of economic development based on technology. Goals of technology parks include increasing technological innovation for economic development and creating specialists jobs. Furthermore, many policy makers of science parks consider it part of a coordinated solution for national or regional development. On the other hand, science parks are recognized as tools to attract companies relying on advanced technology internationally and in addition to that, they are a place to attract specialists and scientists and to develop activities of entrepreneurs. Formation and development of many new technological phenomena originated from science and technology parks and governments make an effort to provide a suitable environment, working conditions and activities of small and medium size companies and attract international companies based o technology. Therefore the role of government, especially in countries such as Iran, in development and success of these parks and increasing their role in improvement and advancement of internal industries is very essential and efficient. 1174

References Azarkesht, A., (2008), Science Parks, The Main Tools for Knowledge-based Economy, Structures' Engineering Technical Magazine, No. 38, Tehran, Iran. Delavar, A., (1997), Methodology in Psychology and Cognition Sciences, Virayesh Publication, Tehran, Iran. Ebrahimi, B., Zamanzadeh Daraban, M. and Ebrahimi, S., (2005), Incubators and Developing Entrepreneurship in Iran, Tadbir Seasonal Journal, No. 166, Tehran, Iran Hansson, F., (2007), "Science Park as Knowledge Organizations the BA in action?, Department of Management, Polities and Philosophy, Copenhagen Business school, Copenhagen, Denmark. Kanaani, M. and Javanmardi, S., (2007), Analyzing The Role of Science Parks in Funding SMEs, Tosee Farda Foundation, No. 4, Tehran, Iran. Kang, B.J., (2004), "A Study on the Establishing Development model for Research Parks", Journal of Technology Transfer, Vol 29. Lalkaka, R., (2008), Science Parks, Roles and Properties, Ertebatate Jahan Gostar Magazine, No. 22, Tehran, Iran. Lin, C. L. and Tzang, G.H., (2009), "A Value-Created System of Science (Technology) Park by Using Dematel", Institute of Managent of Technology, National Chiao Tung University, Taiwan. Mousavi Bazargani, S.J., (2007), Science Park, Private or Public?, Professional Journal of Science Parks, Tehran, Iran. Park, S.C., (2002), "Science parks in Sweden as Regional Development strategies: A Case Study on Ideon science park", School of Economics and Commercial Law, Gothenburg University, Sweden. Pour Soleimanian, F., (2007), Role of Science and Technology Parks in Developing Country s Industry, Professional Journal of Science Parks, Tehran, Iran. Tavallaei, S.M. and Taghiyare, F., (2007), Categorizing Science and Technology Parks of Iran Based on Information Technology, Professional Journal of Science Parks, Tehran, Iran. Yang, C.H., Motohashi, K. and Chen, J.R., (2008), "Are New Technology- Based Firms Located On Science Parks Really More In Novotive? Evidence from Taiwan", Department of Economics, National Central University, Taiwan. 1175

Annexure Table 1: Types of science parks Providing prerequisites for R&D Example: Stanford research park Concentration on utilization of science and engineering in development of new potential products and procedures Employing personnel with the ability to produce products with maximum extended value -Many Asian parks Huge boxes which may have used advanced technology -Global parks built in NC, Kingston and Thailand -Sales function, organizational activities, regional presence Internal and external connections efficiently and temporarily to reduce storage and get rid of pollutions Research parks Technology/science parks High-tech industrial parks Distribution/ storage parks Office and organizational parks/ Industrial economic parks 1176