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Mr. Ahmed Hassan Dhaif Title: The Prospects for Knowledge-based Industries in the GCC Countries Abstract: The paper includes an introduction on the importance of knowledge as a key driver for economic growth. The application of knowledge leads not only to the development of industrial production outputs, but also to a radical change in the patterns of production and consumption. The introduction also includes the difference between the business model in the traditional industry and that in the knowledge-based industry. The paper aims at the adoption of a set of recommendations on future directions for the GCC countries in the areas of the infrastructure development of knowledge-based industries, innovation systems and the high-skilled human resources required for such industries. The paper is divided into three main parts: Part I deals with the diagnosis of the current state of knowledge-based industries in the GCC countries through the presentation and analysis of human resources indicators which reflect a quantitative and a qualitative importance to these resources and its readiness to apply knowledge and to promote the development of knowledge-based industries in a knowledge-based economy. The technological infrastructure includes communication and information, and then innovation which means organization networks, rules and procedures that affect in one way or another the means used by the state in the introduction and use of knowledge. These organizations include research centers and universities, government policies for spending on education, scientific research and other indicators related to the system of innovation. The second part of the paper deals with future trends in the field of knowledge-based industries of the GCC countries in several aspects, namely: human resources, educational systems and policies, innovation and infrastructure.
The third and final part focuses on the development of a set of
recommendations on future directions of the GCC countries in
building and developing knowledge-based industries.
Mr. Martin Harnevie Title: Building successful businesses in non-traditional KBI environments Abstract: The challenges of building successful knowledge based businesses in non-traditional environments require new approaches from both the entrepreneurs and the government. If the objective is also to broaden a country’s industrial base, additional challenges in non-traditional industries become important. In many cases, businesses are faced with small or undeveloped home-markets, limited access to component suppliers, import and/or export issues, limited access to human resources in their respective niches as well as limited access to test labs and other R&D services. Martin will provide an overview of the key challenges in developing markets, technology innovation, business incubation and business models. There are however some approaches that can be taken. Some of these approaches are applicable throughout south Asia, Middle East and Africa. Therefore Martin will also touch on some key recommendations for such businesses and how governments may support the growth of KBI. This includes business models, global market reach, partner strategies, maximisation of online collaboration and making businesses attractive for venture capital. He will discuss the importance of R&D support from universities and research centres and some of the key reasons why a huge amount of government money has been invested in research centres without any significant result in successful businesses. He will also discuss the importance of achieving a balanced community in relation to software, hardware and services, and why long term success cannot be achieved without broad catering for all three. Achieving global reach with a small marketing budget is another key challenge, especially when your home market is small and at least partially underdeveloped. In conclusion, Martin will summarise the key factors in creating appetite for capital to flow into non-traditional KBI.
Title: Cooperation for Radiooncology Abstract: Radiation –therapy or radio –oncology is the medical use of ionizing radiation, with primary medical application in the treatment of tumours and cancer and for the control of malignant cells. Radio-Oncology is a wide technical field, which utilizes varied technologies that range from simple cobalt treatment machine to more sophisticated heavy ion plant. These equipment have to fulfil the FDA (USA) and the CE (Europe) regulations.
Cancer treatment with photons is done by machines (Cobalt, Linacs). They cost up to 4 mio. USD for one treatment room. To do the more precise treatment with particles plants with a length of up to 80 meters are needed. They cost from 70 mio. up to 140 mio. USD for 4 treatment rooms. The price and the dimensions of the plant show that it is not simple equipment. In general a plant can be divided into the following parts: - Accelerator for the beam production - Beam line to bring the beam to the treatment rooms - The beam steering to deposit the particles in the tumor - The Gantry to move the beam around the patient - The patient environment to bring the patient in the right position to the beam To build such a plant the best know how of the right partners is needed. The technology was growing over the last decenniums. The technology but also the regulations are very demanding. A clear technical structure with specified interfaces is needed and a cooperation between experienced partners in research and industrial partners has to be set up. The culture of the cooperation has to be based of the willingness of all involved people to find the best technical solution. Costs have to be respected in the right way. The most expensive until now have been the cheap solutions. To be successful a culture of trust between all the project partners is needed.
Dr. Anil Khurana Title: Industrial Investment Opportunities in Knowledge Based Industries
Abstract: This presentation will discuss the setting up of a Qatar based company that is focused on designing and manufacturing lightweight materials and energy storage materials used in automotives, industries and power applications. The CEO of this company and I will discuss the value proposition analysis, product-technology value chain and business case. We will also discuss the impact on knowledge activities- R&D, process engineering, research and jobs.
Mr. Bob Hodgson Title: Public policy to support KBIs Abstract: All businesses are based on knowledge – knowledge of customers, knowledge of production of goods and services, knowledge of finance, both short and long term,;and skills embodied or developed in the firm’s staff. KBIs are, therefore, different only in degree in that their essential competitive strategy is based on knowledge and where the accumulation and delivery of knowledge are crucial to their competitiveness in both domestic and international markets. KBI businesses are higher productivity, and therefore higher wage, are usually addressing growing markets or growing segments of established markets and being internationally oriented they add to national competitiveness. Consequently they are the main target of many government economic development strategies. While the balance will differ all strategies emphasise: ¨ growing more KBIs locally ¨ attracting internationally mobile KBIs ¨ encouraging existing businesses to adopt higher levels of knowledge in their development strategies. There are, of course, additional crucial areas – education and training to ensure the labour force has the right skills and competences to succeed in the knowledge economy and the application of advanced knowledge strategies to government services itself, where e-government is often used as the summary title of a range of initiatives, are two examples. These areas are excluded from this presentation. The core of the presentation will deal first with growing more KBIs through the use of incubation and acceleration processes and the provision of early stage venture funds. Second will be strategies to attract internationally mobile KBIs through appropriate incentives and the development of the right infrastructure such as science and technology parks and technology development centres to provide the accommodation they need. And, third, encouraging knowledge strategies in existing businesses through the use of shared cost grant schemes and technology development centres focussed on particular clusters or crucial horizontal technology areas such as biotechnology or nano tech as well as the still ubiquitous information and communications technologies.
Dr. James N. Dertouzos Title: Knowledge-Based Economies and Basing Economies on Knowledge Abstract: There is a misconception that developing or adopting Information and Communication Technologies (ICT) is all there is to building a knowledge-based economy (KBE). While ICT is crucial ingredient of a KBE the during present times, an equally important ingredient is using knowledge appropriate to the level of development of an economy in all activities so as to increase productivity. Without the appropriate human capital to take advantage of the adopted technologies, their potential is unlikely to be realized. South Korea is an excellent example of an economy that followed this balanced strategy at every stage of its development; it was a KBE before the term even came into usage. These are a few questions that are examined in this paper. What are the appropriate technologies for the GCC countries to build a KBE? What are the relevant industries? What types of skills and human capital can fully exploit these technologies? What policy successes aid this integrated development of a KBE and what challenges remain? What lessons can the GCC countries learn from the KBE experiences of other countries?
Title: Knowledge-Based Economies and Basing Economies on Knowledge Abstract: There is a misconception that developing or adopting Information and Communication Technologies (ICT) is all there is to building a knowledge-based economy (KBE). While ICT is crucial ingredient of a KBE the during present times, an equally important ingredient is using knowledge appropriate to the level of development of an economy in all activities so as to increase productivity. Without the appropriate human capital to take advantage of the adopted technologies, their potential is unlikely to be realized. South Korea is an excellent example of an economy that followed this balanced strategy at every stage of its development; it was a KBE before the term even came into usage. These are a few questions that are examined in this paper. What are the appropriate technologies for the GCC countries to build a KBE? What are the relevant industries? What types of skills and human capital can fully exploit these technologies? What policy successes aid this integrated development of a KBE and what challenges remain? What lessons can the GCC countries learn from the KBE experiences of other countries?
Dr. Alfred Watkins Title: Foundations of Knowledge Based Economic Development and Their Relevance to the Gulf. Abstract: Developing a knowledge-based economy entails much more than encouraging a series of high tech multinationals to begin operations in the Gulf Region. This is a useful starting point. But the critical issue for developing knowledge based economies in the Gulf Region is not whether multinationals are using expatriates to produce knowledge-intensive goods and services in the Gulf but whether residents of the Gulf are developing indigenous businesses with the capacity to produce knowledge-intensive goods and services and whether local residents have the skills to perform knowledge-intensive tasks. Global experience suggests that building this type of indigenous knowledge based economy entails new ways of doing business and new ways of thinking about progress. This presentation will outline some of the key features associated with successful knowledge based economies and outline specific policies and programs that will help Gulf countries become successful knowledge-based economies.
Dr. Suk-In Chang Title: Korea's New Growth Engine Strategy: Seizing New Opportunities from the Post-Crisis and Transition to Knowledge-based Green Growth Economy Abstract:
In this the paper, I will address Korea's new strategic response
to seize the new opportunities from the post-crisis era and the
transition to the innovation-based green growth economy. I will
also explore the role of government in generating the new
engines of growth over the years ahead. For this I will consider
the conceptual and policy framework required to generate new
growth engines including the role of government in fostering new
growth engines, based on the distinctive characteristics of new
activities. I will use this to take stock of where Korea
currently stands now. Finally, I will suggest some lessons for
developing economies from the evaluation and discussion on the
several measures to facilitate Korea’s transition to an advanced
knowledge-based green growth economy over the years.
Dr. Norsaidatul Akmar Mazelan Title: Case Study – Performance Tracking Program “The MSC Central Incubator” Abstract: This paper is prepared as a handbook and guide for government, association and Chambers of Commerce, companies and individuals that are directly involved in entrepreneur development strategies, planning, implementation and monitoring; to conceptualise and successfully understand the key success factors of entrepreneur development especially in the field of information, communication and technology (ICT). The research will bring the insights of the different players and the economic responses in supporting the growth of the K-Economy. The state of the economy will be to incubate the market and investment environment with the pool of entrepreneurs supported by the rise of new players such as Shared and Facilities Service Providers, Venture Capitals and Venture Financiers. These are called Incubator's Supporting Agents since their role and functions fits in nurturing of new entrepreneurs with facilities and services, assisting them with training programs and management support, and also with financing support. While the K-economy is still in its transition from the old one, therefore it makes a lot of justification that the Incubators are catalyzing the k-economy with the support of government policies and regulations. Incubator tenants can be categorized as Long Short, Up-&-Comers, Superstars and Anchor Tenants.
Mr. Michael Kahn Title: South Africa: The BRICS and its KBIs Abstract: This paper examines South Africa’s future trajectory with its intended shift to higher growth arising from the development of knowledge-based industries. The paper commences with analysis of the economic structure of the country, pointing to the significant shifts in GDP composition and employment over time. Next is the role of South Africa on the world stage, and particularly its role as the youngest member of the BRICS club. This membership raises the prospects of increase bilateral trade between South Africa and the original BRIC club but carries the risk of the country becoming a mere gateway into Africa. Then follows a seeming paradox. Although the World Economic Forum categorizes South Africa as an efficiency driven economy, it already shows elements of being innovation-driven in that its innovation prowess far exceeds its patenting intensity. Indeed there is a depth of scientific and technical competence residing in KBIs and KISAs that enables the country to compete on the world stage. Even so its economic growth has been lackluster and it is this issue that is dealt with in section five, with consideration given as to how the country is to break out to the new trajectory. Four export-oriented KBIs – agriculture, machinery and equipment, chemicals and pharmaceuticals - show such promise in that they are already underpinned by technological competences. The final section deals with government thinking on the environment in which enhanced growth and poverty reduction may occur, namely through the role of a developmental state, coupled with industrial policy and a new social compact. The paper concludes with recommendations for policy.
Mr. Mohamed Bin Mohsin Al Maskari Title: Knowledge Oasis Muscat (KOM): Oman’s Technology Park Abstract: KOM is a technology park that advances human and social development through the generation, dissemination and application of knowledge using Oman's competitive advantages. Established in 2003 with main aim to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based institutions. To reach these goals, KOM stimulates and manages the flow of knowledge and technology amongst universities, R&D institutions, companies and markets; facilitates the creation and growth of innovation-based companies through incubation and spin-off processes; and provides other added-value services as well as high quality space and facilities. KOM offer a business support and knowledge transfer initiative that encourages and supports the start-up, incubation and development of innovation-led, high growth, and knowledge-based businesses
The Knowledge Main (TKM) a Business Incubation program, is one
of KOM initiative that helps to reduce the failure rate of early
stage companies and speed the growth of companies which have the
potential to become substantial generators of employment and
wealth. The process spans creation of the business idea through
company formation, to assisting the company finding appropriate
accommodation outside the incubation center in grow-on
facilities and until the company no longer actively seeks
assistance.
Dr. Nimir O. Elbashir Title: Potentials and Limitations for the Biochemical Technology to Play a Role in Energy, Chemicals, and Biomedical Market in the Gulf Region Abstract: The dramatic shifts in energy and chemicals prices in recent years are due to rising demands from emerging markets and regional instabilities, coupled with growing environmental concerns led to the search of alternative abundant resources in different places in the world. Despite the fact that the Gulf Region has the wealthiest reserve of conventional fossil fuels resources, gas and oil, several governments initiate ambitious investments in research and development of bio resources as well as biotechnology processes. The focus in these investments moves beyond the search for the ultraclean fuels and value added chemicals from biomass to the establishment of infrastructure for utilization of biomass technology in pharmaceutical and medical fields. Nevertheless, the expansion of such technology in the Gulf Region will face several challenges included but not limited to the extremely low prices of fossil-fuel based energy in this region compared to others in the world as well as to the limited bio resources for energy conversion. This is not the case in Europe and the USA, where biotechnology can competitively play a role in these markets even with the presence of other fossil fuel sources. Furthermore, the utilization of biotechnology in the biomedical market, in areas such as biopharmaceuticals, stem cell research, regenerative medicine, and diagnostics, is highly technology competitive where very few countries having the leading edge on them. The purpose of this study is to highlight the potentials for the Gulf Region to advance themselves in specific areas of the biotechnology market as well as to shed the light on experiences of other growing nations in this field who could be used as examples to follow.
Dr. Abigail Barrow Title: Growing Biotechnology Research and Manufacturing Clusters: Some casestudies from the USA and Europe Abstract: A review of regions in the United States and Europe where clusters of biotechnology have developed that are focused on research and manufacturing for industrial and pharmaceutical applications and how countries in the Gulf region can learn from these lessons. I will consider how physical facilities including sciences parks, academic institutions, and incubators have influenced the growth of these industries. In addition, the presentation will reflect on the need to develop programs associated with these planned clusters that link and support the academic, industrial, investment, entrepreneurial and government sectors.
Title: ISRAA: Recent Advances with Great Hope for Mankind Abstract: We have recently described ISRAA (immune system released activating agent) as a 15 kDa novel nervous system-induced factor inducing immune responses in the spleen. ISRAA gene was identified and further cloned and its sequence was mapped to chromosome 14 in the mouse system. Recently, in silico simulation of molecular biology approaches were used to identify the human ISRAA and revealed that ISRAA gene constitute a sequence in the human chromosome 10 within an intron of Zmiz gene. Interestingly, this sequence demonstrated a strong activity on immunosuppressed cells, tumor cell lines and adult peripheral blood cells to differentiate to muscle and nerve cells. Thus, it became a potential candidate for treatment of patients with immunodeficiency by using its stimulatory effects and treatment of cancer through its apoptotic effects on malignant cells and proliferative effects on normal immune cells. Furthermore, the biological transformation effects of ISRAA on peripheral blood cells differentiation to non-hematopoietic cells can be explored in autologous cell transplantation therapy to treat neurologic and muscular diseases.
Dr. Rafiqul-Gani Title: A systems engineering approach to managing the complexity in sustainable chemical product-process design Abstract: Chemical product-process design consists of finding the identity of the candidate chemical product, designing the process that can sustainably manufacture it and verifying the performance of the product during application. The chemical product tree is potentially very large; starting from a set of basic raw materials, to a bigger set of basic chemical products, to an even bigger set of intermediates, and finally, to a very large number of refined chemicals and consumer products. At the top, the chemical products are usually from the life sciences, pharmaceutical, food and related industries while at the lower-middle levels, the chemical products are usually from the oil, petrochemical and chemical industries. These lower-middle level chemicals are usually produced in large amounts and the use of model (knowledge) based tools in the design/analysis of their processes are quite common. Problems associated with sustainable product-process design, however, involve several additional features, such as, Multi-scale; Multidiscipline; & Multi-tools that make these problems large, complex and difficult to solve efficiently and reliably. That is, for sustainable product-process design, it is necessary to manage complex situations requiring the handling of data and knowledge from different sources and at different scales of time and size (from micro to mega). Use of a systems approach that can efficiently manage this complexity therefore becomes desirable. An integrated computer aided system (ICAS) has been developed to efficiently manage the complexity for sustainable chemical product-process design. ICAS consists of a collection of state of the art methods and tools such as knowledge (data, model, equipments, operations) libraries; templates and work-flows for synthesis/design; and, efficient numerical solvers. Problems such as design of energy efficient and sustainable intensified processes, design of environmentally friendly solvents, retrofit design of chemical processes for improved sustainability and many more can be solved and analyzed efficiently and reliably through ICAS.
Dr. Gurkan Sin Title: An integrated knowledge-based framework for synthesis and design of enterprise-wide processing networks Abstract: Today chemical processing industries manufacture a wide range of products and provide services that touch billions of people’s lives across the globe in many different ways. Making this requires an effective management of innovation in product and process development. On the other hand, the synthesis and design of processing networks is a complex and multidisciplinary problem, which involves many strategic and tactical decisions at business (considering financial criteria, market competition, supply chain network, etc) and engineering levels (considering synthesis, design and optimization of production technology, its feasibility, sustainability, R&D needs, etc), all of which have a deep impact on the profitability of knowledge based industries. In this talk, an integrated business and engineering framework for synthesis and design of processing network within enterprise wide context is presented. A systematic approach is used to manage the complexity and solving simultaneously both the business and the engineering dimension of the problem. This allows generation and comparison of a large number of alternatives at their optimal point. The result is the identification of the optimal raw material, product portfolio and process technology selection for a given market scenario, their sustainability metrics and risk of investment under market uncertainties enabling risk-aware decision making. The framework is highlighted with successful applications for soybean oil processing (food technology), biorefinery network (renewable chemicals) and wastewater treatment network (petrochemical industry).
Dr. Ali Demirci Title: Bioprocessing and energy Abstract: Bioprocessing involves the utilization of microorganisms for production of value-added products such as organic acids, enzymes, vitamins, and antibiotics. Raw agricultural products, industrial wastes or by-products, including petroleum by-products can be converted into value- added products by utilizing microbial fermentation. Bioprocessing can be utilized to improve oil quality by biodesulfurization or biodenitrogenation. In terms of renewable energy production, ethanol, butanol, hydrogen, and biogas are the most promising microbial products. Agricultural cellulosic feedstocks are getting attention all over the word for production of biofuels, because they do not compete with food supplies. In the U.S., the ambitious national goal of reaching 25% of the energy from renewable resources by the year 2025 requires a great ramping up of renewable energy in ways that are sustainable, environmentally sound, and reliable. Bioenergy will certainly be part of this package.
Dr. Noorhana Bt Yahya and Dr. Mariyamni Awang Title: Nanotechnology in the Non Conventional- Electromagnetics Method for Enhanced Oil Recovery Abstract: Nanotechnology is about engineering materials at nanoscopic scale. There are numerous areas in which nanotechnology can contribute to be more-efficient, less-expensive and more-environmentally sound technologies than those that are readily available. Few are concerned with, or even aware of, the oil industry's needs. Considering the extreme conditions that are common in the subsurface, which is often hot, chemically intense and at high pressure, ultra hard coatings for tubular goods and drill bits using diamond-like carbon nanostructures are often cited as a pioneering solution (Endo, et al., 2008). Other similarly specific solutions arose from the inclusion of carbon nanotubes additives for drilling and stimulation fluids (Samsuri A., Hamzah A., 2011). Recent publications have revealed a significant enhancement of heat transfer in nanofluids. Due to their ability to enhance the fluid viscosity and molecular modification, nanofluids have been applied in the production of nanostructured materials (Kinloch et al. 2002) for the engineering of complex fluids (Tohver et al. 2001), as well as for cleaning oil from surfaces due to their excellent wetting and spreading behavior (Wasan & Nikolov et al. 2003). Nanotechnology holds great promise, both for mapping out and manipulating fossil-fuel reserves, because of the small scales that characterize the cracks and pores where oil is stuck. However this paper focuses on today’s major challenge for oil industry is to improve the oil recovery from the reservoir. Varieties of enhanced oil recovery (EOR) methods have been applied in the field and the steam injection is one of the most favorable methods. The deep reservoir will result in failure of this method due to excessive heat dissipation. In this situation generating and injecting steam may be uneconomical due to the tremendous reduction of the recovery. Some methods using nanotechnology will be introduced and elaborated. However, we propose electromagnetic (EM) method as an alternative method due to the possible long range transmission of this transverse waves. These EM waves will be coupled with some nanoparticles (NP) which will potentially modify the surface energy. We will propose an optimum conditions based on some parameters namely, frequency, flux density, space charge density and skin depth employing Maxwell and Helmholtz equations which will interact with some magnetic and dielectric nanoparticles. A newly design EM antennae with very high flux density will be model for this specific purpose. The electrical energy from the antennae transfers the waves to the dielectric and resistive nanoparticles which will be transferred to the fluid with high capillary force. This will result in lower surface tension which reduces the oil viscosity. In magnetic material, magnetic domains are not aligned in a uniform orientation. In this case, hysteresis losses will dissipate energy in the form of heat which will further reduce the surface tension. In order to investigate the transport phenomena of the nanoparticles in porous medium, we will apply Darcy’s law. Our preliminary study for scale model simulations show that at low frequency of 1Hz antenna gives H field (1.97X 10-06A/m) whereas at high frequency of 80MHz, H field is 3.29 X 10-03 A/m. The combined novel findings expected from this research will elevate PETRONAS research achievement which will then contribute to the high economic income model aspired by the government.
Prof. Mohamed Bin Abdul Rauf Bin Hussain Title: Production & Applications of Carbon Nanotubes Abstract: Two main types of Carbon Nanotubes (CNTs) are being produced by several methods. These methods are plasma, chemical vapor deposition (CVD), arc discharge and laser ablation. CNTs are being used in different applications in industry such as building materials, electronics devices and environmental purposes. This presentation is focused on the production of CNT by plasma method and its application on concrete. The CNT produced was Multi Wall Carbon Nanotube (MWCNT) which then treated with ultrasonic device and mixed with normal and foam concrete. The results of the destructive tests and SEM images showed development on the mechanical properties of concrete with CNT. However, this development was not significant (10 – 18 %). Further research is needed especially on the congregation of CNTs in concrete mix.
Dr. Osama O. Awadelkarim Title: Nanotechnology : Implications, Applications, and Skilled Workforce Development Abstract: Nanotechnology deals with material and device structures whose characteristic dimensions have been reduced to a range where new properties and behavior, fundamentally different from those of macroscopic and mezoscopic structures, appear. The impact of nanotechnology on the health, wealth, and lives of people could be at least as significant as the combined influences of microelectronics, medical imaging, computer-aided engineering, and the man-made polymers developed in the 20th Century. Some of the breakthroughs promised by nanotechnology include computers with thousands of times more information storage capacity and faster processing speeds than today’s equipment, lighter and more fuel efficient land, sea, air, and space vehicles, ability to remove contaminants from water and air, new cancer treatments, and dramatically more efficient genome sequencing processes. Therefore, the availability of a strong nanotechnology workforce - strong across the board from researchers to manufacturing floor technicians - is rapidly becoming a key to economic development. In this presentation we briefly highlight nanotechnology applications in a number of traditional and modern industries. However, more importantly, we discuss a twenty-first century nanotechnology workforce development model, currently applied in the U. S., and based on a resource sharing approach between industries, research universities, and technical colleges. If adopted, this model may help give the Gulf region the intellectual capital necessary to be a competitive force in the rapidly expanding nano-scale manufacturing arena.
Dr. Alan Smith Title: New exciting products from nanomaterials Abstract: The incorporation of nanoscale components into conventional materials is leading to the development of many new products across every industry sector. Nanoparticles, clays, nanofilms, nanofibres, carbon nanotubes, and graphene are providing numerous improved properties. It is possible to achieve lighter weight materials for transport and packaging; improved flame retardancy for plastics, antimicrobial films and composites for homes and institutions; and improved barrier properties especially for food packaging. As with many new technologies, nanomaterials have attracted societal issues which might lead to regulation and legislation, but there is no doubt that nanomaterials are going to have a major impact and will revolutionise the development of new products.
DR. JOSE PALACIN Title: Financing innovation in Europe: policy initiatives Abstract: Financing has been identified an important constraint hampering the development of innovative SMEs. Public policies have sought to address this issue through a variety of instruments, often as part of general strategies for the promotion of innovation. This presentation, which has a policy focus, first introduces the rationale for public intervention in the area of innovative financing, before presenting the diversity of European experiences regarding access to finance. Equity financing appears as better suited to the particular needs of innovative SMEs, which explains the increased focus on risk capital in policy initiatives. The paper presents the limits of venture capital as a source of financing for innovative enterprises and different public programmes that have been carried out to attract venture capitalists to early-stage financing and, more generally, to develop national venture capital industries. The awareness of the limits of formal venture capital has led to an increased policy attention on business angel financing (informal venture capital). The presentation will briefly mentions another source equity financing, corporate venture capital, before introducing two characteristic European problems: the lack of developed exit alternatives for investors and the fragmentation of markets, which has prompted a search for regional solutions. While the emphasis is being put on risk capital, some schemes regarding bank financing will also be introduced. Public programmes have traditionally sought to increase the supply of risk capital. However, there is a growing perception that demand-side considerations need to be addressed to ensure effective interventions. Finally, the presentation concludes by presenting some general principles that represent good policy practices in the area of financing for innovative enterprises. The presentation will cover policy experiences in the EU but also touch upon the emerging initiatives in a number of CIS countries to facilitate the financing of innovation.
Dr. Mohamed Nagy Eltony Title: Industrial & Development Financial Institutions and Their Potential Role in Financing Knowledge-based Industries in GCC Abstract: The presentation gives a brief review of industrial and development banks’ mandates and functions in GCC member countries. It also looks closely at the potential role of these specialized banks in the development of the knowledge based industries in the GCC.
Mr. Imad Ghandour Title: Alternative Options for Funding Venture Capital Funds in the GCC Abstract: The MENA region, including the GCC, is underperforming many other regions in terms of new innovative ventures. This lackluster performance is due to many fundamental factors, one of which is funding. The GCC in particular has no shortage of capital, yet such capital does not find its way easily to supporting innovative promising ventures in the quantum needed. Governments have a pivotal role in facilitating the flow of private capital to promising ventures, and they have to adopt best practices from other successful policy implementations around the world. They have also to distinguish between mechanisms for financing small-and-medium (SME) companies and those for funding innovative ventures. Innovative ventures need capital and mentoring to survive and flourish and as such, professional venture capital funds (VC) are needed to support innovative companies. Such professional fund managers furnish entrepreneurs with both capital and experience, and are trained to manage the full cycle of such investments. By providing or facilitating capital flow to competent VCs, governments will create a competitive VC industry which is focused on funding as many innovative ventures as possible. Secondly, governments have to improve the eco-system around innovative ventures including improving legal processes, facilitating employment procedures, preferential access to tenders, preferential access to government and quasi-government information/knowledge, etc. This will require special and continuous attention from the top public echelons as they are the most effective decision makers. Lastly, governments have to facilitate and incentivize large industrial companies to support innovative companies in sharing of facilities and resources, procurement, exchange of people and knowledge, and capital. These policies are easy to implement within the current political and economic context, and will yield results in a relatively short period of time as demonstrated in other countries.
Title: The role of FDIs in supporting SMEs and Startups Abstract: Financing SMEs and Startups can be one of the greatest challenges facing entrepreneurs. The beginning phases of any new commercial venture can be the riskiest. Many lenders do not wish to take on the extra risk of getting a new company going. Entrepreneurs not only need to define their value proposition but they must also setup operations, offer economically viable solutions, gain credibility, build a customer base and generate revenues. Although entrepreneurs face a number of challenges when they commercialize their business ideas, raising startup capital to fund their business efforts is the most challenging of all. Conventional banks/financial institutions usually shy away from SMEs and Startups due to: absence of sponsor’s track record, lack of quality documents, ambiguity of the business strategy and corporate governors, cash flow uncertainty and quality & availability of collateral's Funding can come from a variety of sources, but will most often come from an owner's personal savings. A solid business plan and persistent approach can sometimes entice traditional lenders to approve a loan. Other funding sources might be individual investors, loans provided by governmental institutions, or venture capitals. The role of Financial Development Institutions (FDIs) becomes very important in supporting SMEs and Startups. The mission and mandate of FDIs differs from conventional financial institutions. FDIs usually look after poverty reduction, manpower employment, social and economic development, infrastructure development, and transfer of knowledge. Commercial aspects comes as a second priority and mostly for sustainability purposes. This presentation will focus on funding challenges facing SMEs and startups and how FDIs are reacting to these challenges.
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